The Fading Nokia

3126 Words13 Pages
Contents Contents Introduction 1. Glorious period 2.1 Biggest market occupation 2.2 Essential and successful merger and acquisition 2.3.1 Merger with Siemens 2.3.2 Acquisition to NAVTEQ 2. Sagging situation at present 3.3 Severe competition in this area 3.4.3 Pressure from Apple and Samsung 3.4.4 No longer popularity of Symbian operational system 2.2 Lack of cash flowing 3. Analyze the causes resulting in the depression of Nokia 3.1 Failure investment 3.2 Losing the opportunity to achieve most value 4. Future and some suggestions 4.1Transformation to windows systems 4.2Get experience from other failed companies (Ericsson and…show more content…
Additionally, Nokia and Siemens were even closer in 2008. A communication company based on them was proclaimed, achieving 4.3 billion euros on net sales, which increased by 24% than last quarter. 1.2.2 Acquisition to NAVTEQ In the same year as the communication company was established, a significant acquisition to NAVTEQ Company by Nokia was completed on July 10th. A wise leading strategy was so important to a company that this event directly resulted in 31.2% business growth of NAVTEQ in the third quarter. According to the financial data in third quarter of Nokia, it remarked a decline trend in overall business profitability. The consensus could be mostly caused by huge market investments and fast rate to expand the trade chain. The table below presents the financial statements during 2007 and 2008. Figure 2 The financial statements during 2007 and 2008 euro(million) | 2008 | 2007 | net sales | 50710 | 51058 | sales cost | -33337 | -33781 | gross profit | 17373 | 17277 | research and develop cost | -5968 | -5636 | cost of marketing | -4380 | -4379 | other income | 420 | 2312 | other cost | -1195 | -424 | profit | 4966 | 7985 | pretax profit | 4970 | 8268 | Source: Nokia’s official avenue financial statements in 2007 and 2008. Based on the data provided, several figures were not as ideal as last year, as their profit decreasing was mainly
Open Document