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THREATS IN A BUSINESS
ENVIRONMENTTHE RISE AND FALL OF NOKIA
PRESENTED BY FLOYD CHARLES FERNANDES
TABLE OF CONTENTS• Birth of a New Empire.
• Nokia’s Saviour.
• Nokia Taking Over the World.
• 3 Stage Downfall.
• A New Start.
• End of Days.
• Nokia’s Recent Timeline.
BIRTH OF A NEW EMPIRE
• Nokia was originally a paper supplier.
• Many poor investments coupled with the massive recession that hit Finland nearly destroyed Nokia.
• The 80s board considered selling the company.
• Jorma Ollila came to Nokia’s aid and took charge as the company’s CEO in 1992.
JORMA OLLILA: NOKIA’S SAVIOUR
Jorma Ollila’s achievements as CEO of Nokia:• After taking charge in 1992, he was instrumental in convincing the company to dedicate itself
completely to establishing and developing telecommunications infrastructure.
• Was the reason for advancement in rubber, cable and consumer electronics divisions.
• Moving force behind the establishment of GSM wireless technology, used globally till date.
• Set up the company’s internal manufacturing supply chain resulting in efficient and quick building of its phones.
NOKIA TAKING OVER THE WORLD
• Nokia was the first telecommunications company that viewed the world as a global market.
• Most other companies in the business only worked for domestic markets.
• Did lot of work to beautify its design and reduce the size of its devices for each successive generation.
• Better device designs was the primary reason for Nokia to rule over the global market.
• In 1998 Nokia replaced Motorola as the world’s largest phone manufacturer.
3 STAGE DOWNFALL
The First Cut Made by Razr.• Nokia’s phone designs, Candy Bar, started getting repetitive.
• Motorola came up with Razr: ultra slim, flip phone.
• North America taken by storm with the introduction of Motorola’s Razr.
• Customized phones were in demand, Nokia refused to acknowledge this.
• This lead to the establishment of Korean vendors like LG and Samsung.
3 STAGE DOWNFALL
Phones Just Got Smarter• Nokia was also the leader in the smartphone business, roughly owned half the market.
• Nokia’s smartphones were mostly used in offices.
• Apple created the iPhone which could be used by anyone, anywhere.
• Symbian software didn’t serve the needs of the people as good as iOS and Android did.
• Nokia’s inability to adapt to new trends prevented it from investing its resources in the development of better smartphones.
3 STAGE DOWNFALL
Slow and Steady Doesn’t Always Win the Race• Nokia 5800 not even a good enough response to the iPhone.
• Nokia’s Ovi store was difficult to use as compared to Apple’s App store.
• Nokia started creating phones from premium material to woo the crowd.
• Meego was to be the successor of Nokia’s Symbian OS.
A NEW START
• Stephen Elop, a former Microsoft executive, took charge as CEO of Nokia in 2010.
• Nokia started working with the windows OS.
• A new willingness to take risks.
• First Lumia phones: Lumia 800 and Lumia 720 launched in 2011.
THE END OF DAYS
• Lumia innovations had little impact on the world market.
• iPhones and Samsung Galaxy S franchise became well rooted.
• Since Nokia still couldn’t pull itself out of the red, Microsoft became its only logical place to go.
• Reasons why Nokia couldn’t survive:• Ignored the market.
• Ignored the threat of iPhone.
• Stuck to Symbian for too long.
• Took too much time to respond to market threats.
• Inability to take risks.
NOKIA’S RECENT TIMELINE
• Nokia had been acquired for $7.5 billion by Microsoft in the year 2014.
• Nokia’s market share in 2007, considered its peak, was 41%.
• Nokia’s market share in 2013 dropped down to just a little over 15%.
• Nokia still operates telecom infrastructure business, mapping services, advanced technology division.
THANK YOUIF YOU HAVE QUESTIONS, I MAY HAVE ANSWERS.
IF YOU HAVE SUGGESTIONS, I MAY HAVE ACCEPTANCE.
IF YOU HAVE CRITICISM, I MAY HAVE APPRECIATION.
Feel free to contact me outside class for your queries regarding this presentation:Mobile No: +91 88922 07411E-mail ID: [email protected]
