January 15, 2018
Rajeev Suri, CEO of Nokia
Espoo, Uusimaa, Finland
Dear Mr. Suri
The Purpose of writing this report to you is to inform
you about the facts that Why Nokia Corporation is falling down in the Market?
In this report I have written all the problems which
we are facing today. I have not just figure out the facts I have also tried to
give the solutions of that problems.
I hope that you will take notice after reading the
Muhammad Mohsin Altaf Bhutta, Market Manager
Room-139, Q-Hall UET Taxila
1) Slowly Moved: 5
2) Android vs Windows Phones: 6
3) Weakness of Nokia Phones: 7
4) Opportunities for Nokia: 7
5) Threats: 8
1. The main objective of the
study is based on the following points:
2. To know the reason for the failure
of Nokia Smart Phones
evaluate the preference level of Nokia Phones among the consumers
figure out the problems and issues related to the failure and downfall of Nokia
Corporation started in 1871, and in 1967 three companies merged
and created the new Nokia Corporation. In 1987 Nokia Company presented
first fully portable mobile phone after the Mobira Senator was Mobire
Cityman 900, and then this company did so much progress in
telecommunication system. And one day Nokia launched digital satellite
receivers in the UK in March 1997. In 1998 Nokia overtook
Motorola and became the best selling mobile phone brand. Nokia has seen so much
success from 1998 to 2009.The best selling mobile phone of all
time made by Nokia was Nokia 1100 in 2003. In this year Nokia also
launched first camera phone in the market it is Nokia 3600/3650. Nokia
has also faced low market share in 2008 and decided to end mobile phone sales
in Japan. On 10 September 2010 a big change was made in the history that Nokia
fired Olli-Pekka Kallaasbuo and Stephen Elop take the position as Nokia’s CEO. In
2011 Nokia launched first Windows phone Lumia 800. Nokia almost
become bankrupt in 2012. From 2009 to now Nokia is falling down continuously.
I am giving Five reason about the
falling down of Nokia Corporation after a long search. It take too much time to
identify the problems.
Moved or Failure of Symbian
vs Windows Phone
of Nokia Phone
Nokia was a first settler in the market of
smartphones, Symbian Series 60 was initial smartphone device in 2002. Its true
that Nokia has failed to respond to the iPhone consumers in the Business
market. People like software not good hardware. Nokia was trying to make good
hardware for phones. It did not do any handwork in software field, and it is
the major reason behind the Nokia fall down.
was slow to respond to these trends. Local brands stole the lead on dual SIMs,
end Qwerty and long-battery-life phones.
2) Android vs
introduction of Apple iOS in 2007 and Android in 2008, the OS race was
completely taken over by the two giants. The behind the fall of Symbian OS is
lack of applications and User Interface. Nokia was not creating something
unique in Symbian OS after facing competition from iOS and Android.
For marking Company made
the biggest mistake to take a leap of faith in Windows in 2011. At that time company
was already in declining condition and Windows which was new in the field.
After that company has
released some phones which are comparable to other competitor devices but the
Operating System is the problem which is leading company to ultimate collapse.
of Nokia Phones:
If you look at
Samsung a few years ago, they were nowhere to be find in the smartphone market,
whereas Nokia and RIM were leaders in the smartphone market.
Not only Samsung is speedy. They
have chosen Android at the right time and it had provided so much benefit to
them. And Nokia has not even one phone of Android based.
On the other hand, we have spent so much time focusing on Symbian until
the company’s partnership with Windows. Nokia’s flagship Lumia Windows Phones have
not paid off yet, as evidenced by Nokia’s Q1 earnings.
Other manufacturers like Huawei have attacked Nokia from the low end in
developing markets like China.
There are few major properties which is falling down Nokia mobiles in
stylish in low priced products
iPhone apple, Nokia N97 is complex, tough and not user friendly
a long time to enter the highly productive and blooming Smartphone market
Nokia was able to get in new growth markets and well designed
style sets. Nokia have not improve their
presence in 3G and edge market. Nokia have not made any type of mini notebook.
The Microsoft-Nokia deal is a win-win situation for both
companies. The deal possesses great opportunities of both utilize resources in
a proper way.
Opportunities to expand the range of products and their
process. Also bring in new features and applications on the Windows Operating
feels some threats from other competitors. But competitors like Samsung and
Apple are really dangerous. Sales may decline due to global economic downturn.
Nokia has been an industry leader for many
years however the market has changed quickly and Nokia must right itself. There
is a significant risk for Microsoft it should deliver a world class Operating
System or otherwise the customers will turn to Apple and android.
On the basis of this dtudy it is understood
that the role of Stephen Elop is the contributing factor in the failure of Nokia
as a company. The conspiracy theory states that even though Stephen Elop came
from Microsoft to Nokia but against all the ethical rules of professionalism
but he continued to make decisions which were beneficial for Microsoft. The
argument is supported by the facts and statistical data given in the paper on
how Nokia went on a downward spiral after Stephen Elop joined as the CEO. His
decisions of only carrying the Windows operating system in all of their phones
& abandoning all other operating systems did no good for the company’s
performance in the business. His decision of not going for the Android OS after
Symbian while the other mobile carriers such as Samsung, Sony Ericson did,
eventually led to Nokia losing a major market share. The sales of Nokia dropped
over the period of his tenure which eventually led Nokia being sold to
Microsoft. So the research in this paper digs deeper into the role of Stephen
Elop is the downfall of Nokia. We wonder what would have been if Nokia would
have embraced Android as it is the biggest smartphone operating system in the
world by far. Soon after being sold to Microsoft, ousted employees are on the
look for investors to manufacture same quality hardware devices with a variety
of Operating Systems other than Windows. Despite its strong position, Nokia
lost out to new entrants who emerged as the mobile industry converged with
adjacent digital industries. The company did not only fail to beat these new
entrants in bring market leading innovations to the market in a timely manner,
but also failed to respond appropriately to threats posed by the innovations
produced by its new competition