NOKIA UPGRADATION Kapil rodeSneha MaheshCONNECTING PEOPLE

VISION / MISSIONOur customers continue to our First priority “Nokia’s future success depends on delivering great experiences to customers by creating product and solutions that work seamlessly and are appealing”.

Nokia’s mission is simple: Connecting People. Goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Challenge is to achieve this in an increasingly dynamic and competitive environment.

Ideas. Energy. Excitement. Opportunities. In today's mobile world, it feels like anything is possible - and that's what inspires us to get out of bed every day.

 

NOKIA - BASIC BACKGROUND / EXISTING STATE OF THE COMPANY

Nokia was the world's largest vendor of mobile phones from 1998 to 2012.

Nokia has around 101,982 employees across 120 countries, sales in more than 15 countries Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. In 2009 Nokia contributed 1.6% to Finland's GDP, and accounted for about 16% of Finland's exports in 2006.

Over the past five years it has suffered a declining market share as a result of the growing use of touch screen smart phones from other vendors - principally the Apple iPhone and devices running on Google’s Android operating system

In a bid to recover, Nokia announced a strategic partnership with Microsoft in February 2011, as part of which all Nokia smartphones will incorporate Microsoft's Windows Phone operating system replacing Symbian. Nokia's current flagship product is the Nokia Lumia 920 and its successors, the 925 and the 928.

NOKIA - 5 YEAR PLAN

Stephen Elop, Nokia President and CEO –

Nokia’s strategy is about investing in and ensuring Nokia’s future. “I have incredible optimism, because I can see fresh opportunity for us to innovate, to differentiate, to build great mobile products, like never before, and at a speed that will surpass what we have accomplished in the past.”

JOINT VENTURE / PARTNERSHIPNokia-Microsoft partnership

Nokia is adopting Windows Phone as its primary smartphone platform. Working with Microsoft, will help to leverage hardware optimisation, software customisation, and language support.

Nokia Partners YES Bank to Launch Nokia Money In India.

Nokia has tied up with YES Bank to launch Nokia Money in India powered by Obopay. The service is called as mobilemoneyservices.co.in

According to Nokia Money, the service will allow users to check their balance, manage expenses and payments, recharge prepaid (mobile) account, and pay utility bills.

ACQUISTIONSOn October 2007, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 billion.[Nokia finalized the acquisition on 10 July 2008.

On 19 June 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, Nokia Siemens Networks.

On 22 September 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device.

SWOT ANALYSIS

Strengths

Strong corporate brand & the largest cell phone vendor

Strong distribution network

Best navigation (Nokia OVI maps)

High resale value of hand sets compared to

other hand sets

Weakness

Slow to adapt new ways of thinking(for example :- Launch of

dual sim mobiles)

Symbian OS lost out the race with google’s android and apple iOS

Too many products & very little product

distinction

Opportunities

Global advancements in technology such

as MMS, Bluetooth, WAP, GPRS , cameras, social network,

3G etc

Target smart phone in the low

to medium segment with MS windows 7

platform

Nokia has the largest mobile

distribution network of

130,000 outlets

Nokia “concept store” set up in 9

major cities across India to

enhance customer experience

Nokia priority Dealers set up in Tier-1 and Tier-2

cities

Multi brand stores like the

mobile store, Hot spot, Big C

Threats

Threats from emerging domestic companies like

Micromax, Karbonn, Maxx, Lava, Spice etc

which offer similar features at lower prices

In the higher segment it is losing market share to players like Apple, HTC, Samsung, Blackberry

etc

Future strategies

PC based applications such as IP Telephony

Convergence between PDA’s and Mobile

phonesInternet revolution

PESTEL

Political factors: Nokia is a multinational corporation with presence in more than 120 countries. So it is exposed to political risks in all these countries.

Economic factors: The economic cycles have a significant impact on the revenues and profitability of Nokia.

Social factors: The social factors like attitude to technology and the desire for social connectivity have an important affect on the sale of mobile phones.

Technological factors: Technological infrastructure of the market determines the kind of mobile phones that a manufacturer like Nokia can launch there .For instance, 4G mobile handsets couldn’t be launched till very recently in China because of the lack of 4G technology infrastructure there.

Environmental factors: Environmental factors are increasingly become important as governments and people around the world look to cut down their carbon footprints. The environmental factors were the major consideration behind the concept of launching an environmental friendly mobile phone.

Legal factors: Legal factors like contract laws and laws relating to foreign direct investments affect Nokia’s decision to invest in a country or not. When they do release a product with an innovative capability it is vital to protect the rights to it through patents, copyright, trademarks or design to ensure they are not “stolen” by their competitors

NOKIA – MARKET SHARENokia has raked sales of 88.5 million in Q2 2011 and remains the number one company in the world wide phone market.  In July 2010, Nokia reported a drop in profits by 40%, turning into an operating loss of EUR 487 million in Q2 2011, but still making a profit of 227 million Euros.  In the global Smartphone rivalry, Nokia held the 3rd place, trailing behind Samsung and Apple. In September 2011. Nokia announced laying off another 3,500 jobs worldwide, including the closure of its Cluj factory in Romania

HISTORICAL ANALYSIS - FINANCIAL HIGHLIGHTS

      2012 EUR m

    2011 EUR m

    Change %

Net sales 30,176 38,659 -22%

Gross profit 8,390 11,359 -26%

Gross margin, % 27.8% 29.4%

Research & development expenses 4,782 5,584 -14%

Sales and Marketing expenses 3,205 3,769 -15%

Operating profit  -2,303 -1,073  

Operating profit (non IFRS) 126 1,825 -93%

Operating margin (non IFRS), %  0.4% 4.7%  

Profit before taxes -2,644 -1,198

Profit attributable to equity holders of the parent

-3,106 -1,164  

Net cash from operating activities -354 1,137

Net cash and other liquid assets 4,360 5,581 -22%

BENCHMARKING AND COMPARATIVE ANALYSIS

QUALITY STANDARDS• Long lasting device

• Good battery backup

• Good display

• Easy to repair

• Design

• Good Hardware quality

• Recycled material from old used Nokia phones

NEW PRODUCT LINE

Tablets Desktop Server

Television Laptop UPS

DISTRIBUTION CHANNEL

Nokia Chennai factory

Nokia Mother Warehouse, Gurgaon

HCL Distributor

Re-distribution Stockist Supplier

(RDSS)

Retailers

NOKIA

HCL Info system

Redistribution Stockist Supplier

Dealers Priority Stores

Concept Stores

RECOMMENDATIONS

Focus on replacement market

Focus on the CDMA Market

Product Competiveness

Customer Satisfaction

Research & Development

Demand & Supply

RECOMMENDATIONS – FOUNDATION OF NOKIA SYSTEM LTD?

Nokia system ltd

Business Plan

Obtain start up capital

Set up a legal

business structure

Obtain a Employer

Identification Number

Satisfy business licensing

requirements

Establish Web

presence

Develop Business Collateral

Follow govt rules

NEXT FIVE YEAR PLAN• Introducing new technology products

• Capturing the hardware market

• Improving standard of technological products.

• Old and new Customer retrieving.

• Leading the technology market

Thank you

Kapil

Mahesh

Sneha