STRATEGIC MANAGEMENT OF

Presented by:Balbir Kaur (5446)

Arshan Bhullar (5451)Aastha Singla (5452)

Introduction to Nokia

Vision and mission statements

Marketing strategies of Nokia

Competitors of Nokia in India

SWOT analysis

porter’s 5 force model

Boston matrix

Ansoff matrixConclusion

Presentation includes…….

Nokia corporation is a finland based multinational company.

Hesdquarters keilaniemi,Espoo,city neighboring finland’s capital ,helsinki.

Nokia started up as paper, rubber and cable manufacturer.

Nokia has 130,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over €38 billion It was the world's largest manufacturer of mobile phones in 2011, with global device market share of 23% in the second quarter.

NOKIA

History: Nokia started its business by manufacturing Paper in 1865. Then Nokia set up finish rubber works and finishRubber works the foundation of Nokia’s cable and electronics business. Nokia Ab, Finnish Cable Works and Finnish Rubber Works officially merge in 1967 and Nokia Corporation was formed. In 1981, NMT was develop, NMT was the world's first multinational cellular network and Nokia made first phone for them which launched the rapid expansion of the mobile phone industry.

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003.The Mobira Cityman line was launched in 1987.

Logos… NOKIA company

logo ,1865.

The NOKIA arrow logo before connecting people logo.

“connecting people” slogan invented by Ove strandberg.

NOKIA industries…..The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2011. Rubber and cable products Consumer electronics such as televisions Electricity generation machinery Tiers(car and by-cycle) Communication cables Personal computers Plastics Aluminums Robotics

Nokia’s mission is simple

To build great mobile products. To help people feel near to what matters to

them. To enable billions of people to get more of

life’s opportunities through mobiles. To capture volume and value growth to

connect “the next billion people” to the Internet in developing growth markets

Nokia’s Goals and objectives

Focused on Handset Manufacture only Enhance Product Portfolio Increase Distribution Channels Adjust Preferences for specific markets Customer Satisfaction Focused on Replacement Improve Collaboration on Designs Ensure Accountability and Quality Aggressive Pricing Increase Commitment to Emerging Market

Marketing strategies of Nokia

Production units Mobile

devices and enhancemens-Brazil,china,finland,India,Mexico,soth korea

Network technology – China,finland,India

Nokia market share…

The company has launched its newly unveiled mid-end phones from the 'Asha' series priced between Rs 4,100 and Rs 8,000 and

Other smartphones, including the new two Lumia models with Windows Operating System tagged at about Rs 29,000 and Rs 19,000 respectively, to drive up sales in India.

Nokia cut pricing on its phones by 9% to 15% in the recent weeks for it new Lumia model.

Nokia eyes 50% market share in India

The first mobile phone was launched in India during 1990s.The first mobile phone company was Nokia. There are more than 1oo mobile phone companies in India. Major competitors of Nokia are: Samsung Micromax Blackberry LG G’Five Karbonn Spice Maxx Mobiles Sony Ericsson iPhone

Competitors of Nokia in India

Competition between the two giants of the world’s largest mobile phone maker between Nokia and Samsung Electronics to become the handset No.1 vendor around the world become more violent.

Samsung holds the largest share in the North American market for 13 consecutive quarters since Q3 2008, and retain the top spot in the Western European markets from Q2 2011.

While Nokia, the world’s largest mobile phone manufacturers, still continues to occupy the top spot in three other regions such as Asia, Central & Eastern Europe and the Middle East & Africa. It can be concluded Samsung mastered most of the market share of developed countries, while the Nokia excels in developing countries.

Nokia competition with Samsung

The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.

SWOT Analysis

Brand Awareness Technology leader in Manufacturing Mobiles Market leader Nokia with wide range of products for all

classes. Presence across 150 countries

Strength…..

Not good at software Performance of Symbian OS is lackluster Increasing dissatisfaction level with its

smart phones Nokia does not like to adopt change very

quickly.

Weakness….

Huge loyal customer base Increase their presence in the CDMA market

as well as in 3G. Leverage its infrastructure business to get

preference and a stronger position Enter new emerging markets of the world

Opportunities….

Rapidly changing industry Threat from strong competitors like Samsung,

Sony, Apple as they are introducing strong strategies.

Last to adopt 3G technology creates a risk to be displaced by leaders like Motorola, LG, and Samsung.

Threat of entry from new players, Microsoft might enter smartphones market. Google has power of mobile operators just entered the market with Nexus One.

Threats…..

Political analysis In Countries like India and China where Partial regulations exist,

government intervention does take place. 3G technology constraints that Nokia have to take into

consideration. Nokia has to consider the labour laws and its political

implications.

Economic analysis The demand for smartphones is elastic and hence any economic

downturn might hamper the sales of the smartphones. Nokia has to change its function from single market to global

market .

PEST ANALYSIS

Social analysis Nokia has been the member of united nations global

compact since 2001. The Nokia Code of Conduct sets the approach to ethical and

sustainable business practice and is based on the highest ethical standards.

Technological analysis They have to keep up to date with all the newest

technological advances (like camera and motion capture phones) if they are going to capture the biggest market

share and stay ahead of their competitors.

Contd.….

Porter's five forces model is a framework for industry analysis and business strategy.

Porter’s 5 Force Model:

Profitable markets that yield high returns will attract new firms.

New entrants to an industry can raise the level of competition, thereby reducing its attractiveness.

The profitability of Nokia Company in India has attracted many new competitors like Samsung, LG, etc.

Threat of new competition

The threat of substitute products depends on: - Buyers' willingness to substitute- The relative price and performance of substitutes- The costs of switching to substitutes

Threat of substitute products and services

In mobile market the bargain power is high due to following reason: More choice of products and very limited

differentiation of those products. Elastic demand-Demand is highly sensitive to

economy; buyers can delay buying new models. Less asymmetric information-Buyers have all the

required information. Less switching costs: This depends on the country and type of mobile plans provided by the service

provider.

Bargaining power of customers (buyers)

The bargaining power of suppliers is also described as the market of inputs.

If the suppliers change the price then company in case Nokia has a direct impact on the pricing of their products.

Bargaining power of suppliers

The intensity of rivalry between competitors in an industry will depend on: Sustainable competitive advantage through innovation Competition between online and offline companies Level of advertising expense Powerful competitive strategy

Intensity of competitive rivalry

ANSOFF’S MATRIX

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. The aim of market penetration is to sell existing products to an existing market, to do this Nokia must do a few things: Change the pricing scheme (for example,

penetration or competitor based) Introduce discounting Start up a different advertisingcampaign or consider changing an existing one.

Market penetration

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. To complete market development successfully, Nokia must look into the following: Researching and selling to a different market (in case of

saturation or poor market share) Change times that television adverts are aired at and alter

the places in which print adverts are being displayed (this can help your products appeal to a whole new market segmentation)

Lower current prices to help the products appeal to a wider range of consumers.

Market development:

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. New Features in Current Markets Nokia joins forces with Microsoft Office Mobile to

offer Microsoft software on Nokia Phones. Nokia Meego platform on the N900 – A simple

Operating system developed by Nokia and used on their N900 device.

Product development:

Diversification is the name given to the growth strategy where a business markets new products in new markets.

For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

Diversification:

NOKIA uses the price strategy which best suits the product

• Market penetration- Nokia 1100• Market skimming-N-95• Hence ,the strategy which was used for N-

series and E-series was market skimming.

Price mix

Nokia's current marketing strategy has helped them become the biggest selling brand in the communications market. but now sales are starting to decrease with the saturation of the current market segment so Nokia will need to do one of the following:-

Re-launch their products with an aggressive promotional scheme;

Differentiate their products to offer something no other company can offer to the market.

Target a different segment of the market that has not been entered.

Nokia would develop new mobile phones that will be just equal to a mini laptop through this Nokia will regain its lost market share.

Conclusion