1. NOKIA
“CONNECTING PEOPLE”
Competitive Strategy Case
22/OCT/2012
By Sadat Faruque

2. • Nokia's history started in 1865 when mining engineer Fredrik
Idestam established a ground wood pulp mill on the banks of the
Tammerkoski rapids in the town of Tampere, in southwestern
Finland in the Russian Empire and started manufacturing paper.
• In 1868, Idestam built a second mill near the town
of Nokia.
• In 1871, Idestam, with the help of his close friend
Statesman Leo Mechelin, founded Nokia Company.
• In 1902, Nokia added electricity generation to
its business activities.
• In 1960, First electronics department started,
sowing the seeds of Nokia’s future in
telecommunications.

3. The Move To Mobiles : (1968 – 1991)
As European telecommunications markets were deregulated, Mobile
networks became globe. Nokia led the way with some
iconic products.....
The Mobile era begins : 1981
Nordic Mobile Telephone (NMT), the first international mobile phone
network is build.
GSM – a new mobile standard opens up : 1991
Nokia equipment is used to make the World’s first GSM call. Thus the
Revolution of Mobile started …..

4. SWOT Analysis - Nokia :
STRENGTH
•Brand name Nokia
•Leader in Manufacturing Mobile
•Market Leader
•Presence Worldwide
WEAKNESS
•Not good at software
•Performance of Symbian OS is poor
•Increasing dissatisfaction level with its higher end sets.

5. SWOT Analysis - Nokia :
OPPORTUNITIES
•Huge loyal customer base
•Huge presence in developing countries
•Can use its infrastructure business (Nokia Siemens
network) to reduce bargaining power of mobile operators
THREATS
•Rapidly changing industry
•Threat of entry from new players
•Strong Competitions

6. • Till 2005, Nokia enjoyed almost 60% of the handset market and
became the market leader due to …
1) Innovation
2) Customization
3) Product Quality
4) Extensive Distribution
• But after 2005, New competitors like Sony Ericson, Blackberry,
Samsung, HTC, Spice, Micromax were forcing Nokia to head
downwards.
Nokia’s low end segments were facing tough competition from
homegrown players like Micromax, Spice, Karbonn, etc.
Whereas, high end segments were facing tough competition
from Samsung, Blackberry, Sony Ericson, etc.

8. HANDSET MARKET IN INDIA
In Indian mobile handsets market i.e. smart
phones or featured phones was expected to grow
all over 30% during 2012.
According research of Cyber Media (CMR) 2011 it
was found that mobile phones production was
found to be the highest i.e. 26.2%.

9. Nokia in India
• Nokia was ranked as the ‘Most Trusted Brands’ in 2010.
• Nokia established itself brand leader in the mobile devices market
in India.
• Nokia has a wide range of mobile phones ranging from Rs 1,499
to Rs 45,000.
• In 2003, Nokia launched the Nokia 1100, a first Made for India
phone.
• Nokia’s ‘Made for India’ phones introduced the Nokia 3210 with a
Hindi menu.
Market Share of Nokia
• 2008: 56.2%
• 2009: 54.1%
• 2010: 49.3%
• 2011(January-July): 39%

10. Market Share in Mobile Market

12. Samsung emerged as the biggest competitor to Nokia in the
handset market.
• It sell a large variety of mobile phone almost 50 handsets
models of various price Worldwide.
• Invests heavily in R&D, Marketing, portfolio and people.
• Focuses on launching products matching India ‘taste and
preferences’.
• Has tie-up with Hungama that gives customers
access to over 150,000 songs.

13. • BlackBerry better known as a Corporate phone.
• It has increasingly targeting the young generation.
• It’s introducing lower range phone like Blackberry
Curve

14. • HTC one of the largest
manufacturers of devices
based on Google's Android
operating system.
• Its introduces innovative
phones.
• It has a distinctive large
clock numerals.
•Focuses emerging markets
like India and China.
• HTC instead of competing
continue with its strategy of
producing high quality,
high-end devices.

15. • The company makes its presence felt in the music,
imaging, and Smartphone categories.
• It also focused on providing emotive series that
catered to individuals who love indulgence and
pampering.
• Sony Ericsson’s main flagship brand phones were its
Android-based Xperia smartphones.
• It not only has high segment phones but also low
segment phones.

16. • Micromax has become India’s third-largest GSM mobile
phone vendor.
• It brings in low-cost smart phone’s category.
• Understands the changing priorities of the consumers.
• Provides unique facilities like dual sim, wireless FM,
QWERTY phones at a reasonable price.
• Company’s ideology was reflected in its rooted belief in
‘Innovation’ and delivering ‘nothing short of the best.’
• Provides wide range of phones at affordable prices.

17. • G'Five, is a Chinese
Brand.
• Focuses on mid end
segment to tap the
Growth in replacement
market.

18. •Chinese vendors are focusing on the replacement
market by launching costlier but feature rich phones.

19. FUTURE OUTLOOK
• Physical product with an emotional plane.
• 17 million people – Life Tools (2009).
• No.1 app store – Ovi store.
• Music store – largest online movie seller.
• Collaboration with Microsoft