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JGBS
Singles 360
Q1: How Nokia Microsoft alliance will recapture market share.




                                                                            Q1




                                  Source: Compiled from “ worldwide smartphone 2011-2015
                                                                                   2
                                  forecast & analysis” IDC
BRAND REBUILDING
             • Nokia have to rebuild its image as the
               country's most popular smartphone
NOKIA          make and even though it will take some
               work, the Lumias have helped its cause a
Connecting     little.
  People .   • According to a report conducted by the
               Economic Times, Nokia is currently the
               most exciting youth brand in India
               followed by Coca Cola and 7Up.
             • The main things a customer needs to
               consider when thinking about a
               refurbished mobile phone, then, are
               quality, warranty and price.

               NOKIA Connecting People             3
CRITICAL SUCCESS
                   FACTOR
                 Development of
               competitive product


      Technology                        Customer Support


Investment on R&D                       Product information
     Patent                              After sale support


              NOKIA Connecting People                         4
Analysis of New Strategies implemented by Stephen Elop




                     Strengths                   Weaknesses

 SWOT                   Scale of operations
                        Acquisitions to drive
                                                    Market share losses
                                                    Ineffective R&D
ANALYSIS                organic growth              investments


                     Opportunities               Threats
                        Smartphone market           Tough competitive
                        Feature phones will         landscape
                        continue to have            Margins will be impacted
                        relevance in short to       as the average
                        medium term                  price of devices decline
                                                    Rapid technological
                                                    changes and short life
                                                    cycles
                       NOKIA Connecting People                               5
NOKIA’S NEW MISSION

Taking New   • Globally accountable
   Guard:      business units.
 STEPHEN
             • Local empowerment.
    ELOP
             • Revised services mission.
             • Performance based culture.
             • Simplified decision making.

             Source: compiled from “The Architecture of a company being rebuilt from within”
             The Financial Times, April 14, 2011, Via Factiva.



                NOKIA Connecting People                                                 6
THREATS FROM NEW ENTRANTS

                                      Patents, Rights
     Porter’s 5                       Brand Building
                                  Absolute Cost Advantage
       Force
      Model
                                                                BARGAINING POWER OF
                                COMPETITIVE RIVALRY
BARGAINING POWER OF                                                  CUSTOMER
      SUPPLIER                        Google Inc.
                                                                 Bargaining Leverage
                                       Apple Inc.
Suppliers Switching Cost                                           Price Sensitivity
                                  Diversity in Industry
 Supplier To Firm Ratio                                               Substitute
                                 Intensive Advertising

                                THREATS OF SUBSTITUTE

                               Relative Cost Performance
                           Buyers Tendency Towards Substitute
                                   White-Box Industry
                                                                                  7
                                 NOKIA Connecting People
Three Prong Approach to make Nokia
                  & Microsoft alliance a Success
• Customer
  perceptions
• Operating
  efficiencies
  /economies of
  Scale
• Structure




                    NOKIA Connecting People      8
How right is Nokia in choosing
Windows over Android




 NOKIA Connecting People    9
Cons of the Alliance




NOKIA Connecting People   10
From Consumer Point
       Of View
• The Need for new Ecosystem i.e.
  Windows in addition to
  iOS, Android makes sense as it will
  drive enough competition and
  surging innovative developments
  thus ultimately benefitting users to
  select from a large variety of
  options available.
• With Smartphone market set to
  grow Nokia has adopted the right
  strategy where it avoids being
  lagged behind, and also it has got
  the time to rebuild Symbian OS for
  future.

 NOKIA Connecting People             11
NOKIA Connecting People   12
SINGLE
  360
         THANK YOU

         NOKIA Connecting People   13

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Nokia microsoft alliance

  • 2. Q1: How Nokia Microsoft alliance will recapture market share. Q1 Source: Compiled from “ worldwide smartphone 2011-2015 2 forecast & analysis” IDC
  • 3. BRAND REBUILDING • Nokia have to rebuild its image as the country's most popular smartphone NOKIA make and even though it will take some work, the Lumias have helped its cause a Connecting little. People . • According to a report conducted by the Economic Times, Nokia is currently the most exciting youth brand in India followed by Coca Cola and 7Up. • The main things a customer needs to consider when thinking about a refurbished mobile phone, then, are quality, warranty and price. NOKIA Connecting People 3
  • 4. CRITICAL SUCCESS FACTOR Development of competitive product Technology Customer Support Investment on R&D Product information Patent After sale support NOKIA Connecting People 4
  • 5. Analysis of New Strategies implemented by Stephen Elop Strengths Weaknesses SWOT Scale of operations Acquisitions to drive Market share losses Ineffective R&D ANALYSIS organic growth investments Opportunities Threats Smartphone market Tough competitive Feature phones will landscape continue to have Margins will be impacted relevance in short to as the average medium term price of devices decline Rapid technological changes and short life cycles NOKIA Connecting People 5
  • 6. NOKIA’S NEW MISSION Taking New • Globally accountable Guard: business units. STEPHEN • Local empowerment. ELOP • Revised services mission. • Performance based culture. • Simplified decision making. Source: compiled from “The Architecture of a company being rebuilt from within” The Financial Times, April 14, 2011, Via Factiva. NOKIA Connecting People 6
  • 7. THREATS FROM NEW ENTRANTS Patents, Rights Porter’s 5 Brand Building Absolute Cost Advantage Force Model BARGAINING POWER OF COMPETITIVE RIVALRY BARGAINING POWER OF CUSTOMER SUPPLIER Google Inc. Bargaining Leverage Apple Inc. Suppliers Switching Cost Price Sensitivity Diversity in Industry Supplier To Firm Ratio Substitute Intensive Advertising THREATS OF SUBSTITUTE Relative Cost Performance Buyers Tendency Towards Substitute White-Box Industry 7 NOKIA Connecting People
  • 8. Three Prong Approach to make Nokia & Microsoft alliance a Success • Customer perceptions • Operating efficiencies /economies of Scale • Structure NOKIA Connecting People 8
  • 9. How right is Nokia in choosing Windows over Android NOKIA Connecting People 9
  • 10. Cons of the Alliance NOKIA Connecting People 10
  • 11. From Consumer Point Of View • The Need for new Ecosystem i.e. Windows in addition to iOS, Android makes sense as it will drive enough competition and surging innovative developments thus ultimately benefitting users to select from a large variety of options available. • With Smartphone market set to grow Nokia has adopted the right strategy where it avoids being lagged behind, and also it has got the time to rebuild Symbian OS for future. NOKIA Connecting People 11
  • 13. SINGLE 360 THANK YOU NOKIA Connecting People 13