Declining sales of nokia

8/13/2019 Declining sales of nokia

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Preface

In this era, where the technology is growing in a very faster speed and every positive

change is bringing new and enhanced features with them, the cellular phones are at the

very hot issue in this growing technology.

The technologies in these cellular/mobile phones are enhancing and developing day by

day, including new features of entertainment, and multiple options like imaging facilities,

movie/animation features, sound technologies etc.

When the technology is the matter, every consumer/user prefers the latest, best andinteracting featured technologies and also prefers these facilities in less cost. So, in this

view, there is a very big and fast competition between many companies/manufacturers of

cellular phones at the world level.



History of Nokia

In 1979 the company established the radio telephone company Mobira Oy as a joint venture withthe Finnish TV maker Salora. Having established a firm business footing Nokia released the

Nordic Mobile Telephone (NMT) service, the world’s first international cellular network. As the

mobile phone industry expanded throughout the 1970s and early 1980s Nokia introduced their

first car phone in 1982, the Mobira Senator .

Introduction to the Organization

Company Information: Nokia was the world's largest vendor of mobile phones from 1998 to 2011. However, over the

past five years its market share declined as a result of the growing use of touch screen smart

phones from other vendor principally the iPhone, by Apple, and devices running on Android, an

operating system created by Google.

Mission StatementMany organizations develop formal mission statements that answer these questions. A mission

statement is a statement of the organization’s purposes, what it wants to accomplish in the larger

environment. A clear mission statement acts as an invisible hand that guides people in the

organization.

The mission statement of NOKIA is “CONNECTING PEOPLE”

GoalsThe goal of NOKIA is “to be a good corporate citizen wherever we operate, as a

responsible and contributing member of society. We take part in long-term projects

aimed at helping young people create their own place in the world, for example

through our global youth programs.



Objectives:

Objectives presents a brief summary of the main goals and the recommendations of

the plan for management review, helping top management to find the plan’s major

points quickly.

In objectives, following areas are included…

· Current marketing situation

· Threats and opportunity analysis

· Objectives and issues

· Marketing strategy

· Action programs

· Budgets

· control



Organization’s Network:

Nokia is manufacturing its products worldwide in following countries…

· Austria

· Bahrain

· Belgium

· Bosnia-Herzegovina

· Croatia

· Cyprus

· Czech Republic

· Denmark

· Finland

· France

· Germany

· Greece

· Gulf countries

· Hungary

· Israel

· Italy

· Kuwait

· Lebanon

· Luxembourg

· Malta

· Monaco

· Netherlands

· Norway

· Oman

· Poland

· Portugal

· Qatar

· Saudi Arabia

· Serbia and Montenegro

· Slovakia

· Slovenia

· Spain

· Switzerland

· Tunisia

· Turkey

· UAE

· Yemen



HYPOTHESIS:

Nokia net sales have been declining for the past two years due to:

Features

Competitors Moved slowly

Not doing much innovation.

Android

Not stratifying consumer demand

HYPOTHESIS QUESTION:

I. What is the main reason behind decreasing net sale of Nokia?II. How Samsung has more share than Nokia? Where Nokia Company did mistake?

III. Which step should company take to improve its sale?

Hypothesis:

The net Sale of Nokia Company has been declining for the past two years due to

introduction of android system in competitive companies.





Telecoms giant Nokia has made products from tyres and rubber boots to

televisions and smartphones in its near 150-year history.

Starting from humble beginnings in 1865 as a riverside paper mill in rural south-

western Finland, the company's founder Fredrik Idestam would never havedreamed it would one day become a global brand.

The Nokia name - now synonymous with mobile phones, the addictive game Snake

and signature ringtones - came from a second mill Mr Idestam set up a few years

later on the banks of the Nokianvirta River, which inspired him to name his

business Nokia Ab in 1871.

In 1898, Finnish Rubber Works, which later became Nokia's rubber business, was

founded and went on to make everything from galoshes to tyres.

Nokia's rubber boots went on to become a design classic, although they are no

longer made by the company.

Finnish Cable Works, the foundation of Nokia's cable and electronics business,

was founded in 1912 by Arvid Wickstrom.

By the 1960s, the company, which was working closely with Nokia Ab and

Finnish Rubber Works, began branching out into electronics.

In 1962 it manufactured its first in-house electronic device - a pulse analyser for

use in nuclear power plants - and in 1963 it started developing radio telephones for

the army and emergency services.

The company's MikroMikko label eventually became the best-known computer

brand in Finland and by 1987, Nokia was the third largest television manufacturer

in Europe.

Having been jointly owned since 1922, Nokia Ab, Finnish Cable Works and

Finnish Rubber Works officially merged into the Nokia Corporation in 1967 withfive businesses: rubber, cable, forestry, electronics and power generation.

Nokia created the radio telephone company Mobira Oy as a joint venture with

Finnish television maker Salora in 1979, and in 1981 it launched the Nordic



Mobile Telephone (NMT) service, the world's first international cellular network

and the first to allow international roaming.

In 1982 Nokia introduced the first car phone - the Mobira Senator - to the network,

and later that same year the Nokia DX200 - the company's first digital telephoneswitch - went into operation.

In 1984, Nokia launched the Mobira Talkman portable car phone and in 1987 the

Mobira Cityman, the first handheld mobile phone for NMT networks, was

introduced.

Nokia sold its billionth phone - a Nokia 1100 - in Nigeria in 2005.

On Monday, Sudipto Dey | New Delhi September 6, 2013 Last Updated at 00:15 IST

a day before Microsoft's $7.2-billion buyout of Nokia's mobile device business, the Finnish mobile manufacturer's India outpost

was to host a press conference in the capital to announce the launch of a slew of products targeting the mass market. The event

was re-scheduled-ostensibly due to indisposition of the chief guest, Telecom Minister Kapil Sibal. However, the overnight

announcement in Seattle has changed the picture. From now on the shadow of the new owner will loom large on any move that

Nokia makes. Wary competitors included.



The deal will have the biggest resonance for the market leader in India, Samsung, which occupies the No. 1 position both in

terms of revenue generated and units sold. According to a Voice & Data survey of mobile handset players released last month,

Samsung generated sales worth Rs 11,328 crore in 2012-13, a jump of 43 per cent from the previous year. Its market share for the

year was pegged at 31.5 per cent as against Nokia's 27.2 per cent. While Nokia's sales were lagging Samsung's at Rs 9,780 crore,

the Korean company may now have to step up its vigil to guard its market share in the country in the light of the new

development.

Nokia has been in India for around 18 years, for most of these it was the unquestionable leader of the handset market. In fact, it

gave millions of Indians their first feel of a mobile phone. At its peak-which lasted until the mid-2000s-the Finnish company had

60-65 per cent market share. The dream run came to an end in the second half of that decade as Android-operated phones took

the industry by storm. A few strategic missteps by Nokia only hastened that slide-making Samsung's growth in market share

sweepstakes easier.

Analysts say what worked for Samsung was its different-strokes-for-different-folks strategy. Even as it went about building a

channel distribution network on the ground, Samsung hit the market with a wide portfolio of handsets at varying price points,

leaving no consumer segment untapped. While highlighting the ease of user interface of its handsets through marketing

promotions, frequent product upgrades kept its portfolio fresh. This helped to keep up consumer interest in its products. Samsung began sprucing up its product portfolio every quarter at a time when the industry norm was to come out with a new product line

every six to eight months.

Down.com

HELSINKI | Fri Jul 12, 2013 - Next week could be crunch time for Nokia Oyj and its Chief Executive Stephen Elop in their

battle to prove the Finnish mobile phone company can survive on its own.

Investors will be scrutinizing second-quarter results to see whether there's enough cash to stay with a turnaround plan which Elop

said would take two years but is now into its third.

Elop's bold bet in 2011 to adopt Microsoft Corp's untested Windows Phone software has yet to pay off, with no sign of catching

Samsung and Apple Inc in smartphones.

Analysts also expect Thursday's results to show a steep fall in handset shipments, led by a drop in sales of regular mobile phones

as consumers switch to smartphones and cheaper models from Asian rivals.

Nokia's weak market position has made it a perennial target of takeover speculation, but such deal talk has intensified in the past

month after a media report said it had held abortive talks with Microsoft.

The company's recent decision to buy Siemens AG's stake in their joint venture Nokia Siemens Networks is seen straining its

balance sheet further when the deal closes later this year.

"I'm going to take a deep look at underlying cash flow," said Alandsbanken analyst Lars Soderfjell. He believed Nokia would

stay independent for longer as its current state was unlikely to warrant a good price, but he said a deal couldn't be ruled outdepending on its finances.

"If it's not able to control cash, that might trigger strategic options," Soderfjell said.

Nokia earlier this month estimated its net cash position at the end of the second quarter was between 3.7 billion euros ($4.8

billion) and 4.2 billion - implying it burned through between 300 million euros and 800 million in the quarter.

The upper end of that range would be worryingly high, some analysts said.



Most analysts, however, also saw the acquisition of Siemens' NSN stake in a positive light, saying the price was cheap given

NSN's turnaround in the past year. The formerly troubled unit is seen bolstering, rather than weighing on, Nokia's bottom line.

DUAL BATTLE

Despite that boost, Nokia still faces a challenging battle in both basic mobile phones and smartphones.

Basic phones still account for over half of its device sales, making them a market worth protecting. Yet analysts forecastquarterly shipments of basic handsets to fall 24 percent from a year earlier to 56 million units.

Smartphones are also seen crucial for its longer-term survival, due to their higher margins and as more consumers seek access to

sites such as Facebook from their phones.

Analysts estimated smartphone shipments fell 19 percent to 8 million units as a decline in sales of outmoded Symbian phones

canceled out growth in Lumia sales.

Nokia has launched a number of smartphone models this year in a bid to regain market share. On Wednesday, it unveiled its

newest model, the Lumia 1020, with a 41-megapixel camera that some tech bloggers said was the best in the market.

Yet some still worry Nokia may be arriving too late to the game, just as it starts to show signs of saturation. Smartphone leader

Samsung last week estimated its second-quarter operating profit was 9.5 trillion won ($8.3 billion), missing the market consensusof 10.2 trillion.

"Overall the smartphone market has been quite underwhelming in the first half of the year," said Pacific Crest analyst James

Faucette.

Weak handset shipments could prompt a sell-off in Nokia shares, which have risen over 20 percent in the past quarter on hopes of

a buyout and enthusiasm over new handsets. But any sign that Elop was open to a buyout could send them even higher.

ConclusionAs stated in our hypothesis, Nokia sales have been declining for the past two years

due to Android system, the 4 month research shows that years its market sharedeclined as a result of the growing use of touch screen smart phones from other

vendor principally the iPhone, by Apple, Samsung phones and devices running on

Android, an operating system created by Google.

Suggestions Though the NOKIA is one of the world’s largest cellular phone companies and has

the very efficient features and facilities but there are some suggestions by me after

analyzing and researching about this company.



. It should adopt android system in its cell phones as it is easier then Nokia

operating system.

· It should decrease its prices of the sets so that the sets may become in reach of

every user and the market may increase and become the cause of increasing profit

rate.

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Declining sales of nokia