PROJECT REPORT On BRAND AWITCHING OF NOKIA CUSTOMERS

Submitted To: Ms Divya Periera Lecturer AIMIT

Submitted By: Alex Aloysius Muhssin Moosa

EXECUTIVE SUMMARY Problem Centred Approach to research is a new dimension of research studies. A problem is a system at unrest. A system is anything (subject, object, property or event) that is made of two or more interacting parts. In this sense, everything in the universe is a system. Different from traditional way of conducting research, we try to define the stated problems, understand the intensity, Come up with different resolutions to the problem and select the best out of it. It is a collaborative effort of both the firm as well as the researcher, in order to resolve the given problem. Brand switching, sometimes known as brand jumping, is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers, thus helping to grow market share for a given brand or set of brands. If the degree of the brand switching is very high in an organisation, it will affect the market share, growth and the profitability of the firm. Convincing consumers to switch brands is sometimes a difficult task. It is not unusual for customers to build up a great deal of brand loyalty due to such factors as quality, price, and availability. To encourage switching brands, advertisers will often target these three areas as part of the strategy of encouraging brand switching. Price is often an important factor to consumers who are tight budgets. For this reason, advertisers will often use a price comparison model to entice long time users of one brand to try a new one. The idea is to convince the end user that it is possible to purchase the same amount of product while spending less money. Ideally, this means that the consumer can use the savings for other purchases, possibly even a luxury item of some sort. The idea of more discretionary resources in the monthly budget can be an effective in the encouragement of jumping brands. This mini-project attempts to have a brief idea about the customer awareness and brand switching of customers from NOKIA Mobiles to other mobiles. Nokia Corporation is a Finnish multi-national communications and information technology corporation. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, media and messaging, Nokia was the world's largest vendor of mobile phones from 1998 to 2012. However, over the past five years it has suffered a declining market share as a result of the growing use of smartphones from other vendors, principally the Apple iPhone and devices running on Google's Android operating system. As a result, its share price has fallen from a high of US$40 in late 2007 to under US$2 in mid2012. But now, the smartphone sales have been collapsing and the previously profitable smart devices business unit went loss-making. This motivated us to come up with the topic brand switching in Nokia Mobiles, which indeed helps to identify some problems associated with Nokia and to come up with some strategies, which will help Nokia to deal with this situation to an extent.

INTRODUCTION 1.1 Company Profile Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. In the late 1970s, Nokia started taking an active interest in the power and electronics businesses and by 1987, consumer electronics became Nokia's major business. Nokia created the NMT mobile phone standard in1981 and launched the first NMT phone, Mobira Cityman, in1987. The company delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in1992, Nokia 1011 a precursor for all Nokia's current GSM phones - was introduced. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its non-core operations like IT. The company focused on two core businesses mobile phones and telecommunications networks. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, media and messaging, and free-ofcharge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia has a joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications network equipment and services. Nokia has around 101,982 employees across 120 countries, sales in more than 150 countries and annual revenues of around 30 billion. It is the world's second-largest mobile phone maker by 2012 unit sales (after Samsung), with a global market share of 22.5% in the first quarter of that year. Nokia is a public limited-liability company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world's 143rd-largest company measured by 2011 revenues according to the Fortune Global 500. Nokia was the world's largest vendor of mobile phones from 1998 to 2012. Nokia entered the Indian market in 1994. The first ever GSM call in India was Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mobile phone industry. .It started capturing the market with its quality products and services

1.2 Research Methodology The accuracy and reliability of a research study is highly dependent on the nature and the sources of data collection. In this study, the data is obtained through: Primary Sources Observation Method Direct Interview Method Secondary Sources Magazines and Journals Company Official Website Other e-reports and journals 1.3 Industry Profile Communication is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behaviour. One definition of communication is any act by which one person gives to or receives from another person information about that person's needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes. A communication normally requires four elements, sender, message, medium and receiver. In ancient times, communication has been made possible with the help of birds, animals and via people; no other medium was not there. But today the communication facilities available are wordless, with the advancements of satellites, internet, the communication become cheaper as well as very quick. The word telecommunication was adapted from the Spanish word Telecom. It is a compound of the Greek prefix tele- (-), meaning "far off", and the Latin communicare, meaning "to share". Telegraphs and Telephones were the first innovations in this industry, later it gave up to Televisions, Computers, Mobiles, Smart Phones and Tablet PCs. All these advancements bring down the communication barriers and hence today the entire world is like a global village. A mobile phone is a device that can make and receive telephone calls over a radio link while moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile phone operator, allowing access to the public telephone network. By contrast, a cordless telephone is used only within the short range of a single, private base station. In addition to telephony, modern mobile phones also support a wide variety of other services such as text messaging, MMS, email, Internet access, short-range wireless communications (infrared, Bluetooth), business applications, gaming and photography. Mobile phones that offer these and more general computing capabilities are referred to as smartphones.

This is a highly technology intensive industry and have a good pace of technological advancement; Android O/S was the recent changes in mobile technology, which bring down Nokia as from worlds largest mobile vendor. 1.4 Market Profile Mobile Phone industry is an oligopoly market type, where exists a few number of sellers. Each oligopolist is likely to be aware of the actions of the others. The decisions of one firm influence and are influenced by the decisions of other firms. Strategic planning by oligopolists needs to take into account the likely responses of the other market participants. Some of the main characteristics of oligopoly are that the restrictions to entry and exist, price makers, product differentiation, interdependence and non-price competition. The target markets for the mobile phones are beyond the boundaries, it covers male as well as female youth, middle-age and old all over the world. From 1990 to 2011, worldwide mobile phone subscriptions grew from 12.4 million to over 6 billion, penetrating about 87% of the global population and reaching the bottom of the economic pyramid. Now more companies are freely entering to this industry and as well the competition is being more intensive, some of the major market players than Nokia are: Samsung Apple htc Motorola Sony Tcl Karbon Micromax etc.

1.5 Product Profile Over the Years Nokia has come up with some innovative phones that have given people wide variety of features and amazing facilities. These phones are true masterpieces that are full of innovative features. These handsets have great looks and feature easy interactivity that make them extremely user friendly. These devices offer better facilities to its users. Nokia is the icon of immense success and mammoth credibility in the world of mobile phones. It is an organization that has led the mobile industry to new heights with its innovative technology and well organized strategic planning. Every product from this pioneer manufacturer is crafted with great care and quality. It is the extreme hard work and customer oriented goals of Nokia that has helped the brand to sustain in the highly dynamic and competitive world of mobile phones. The mobile industry has taken enormous boom in the last few years. It has become one of the most powerful and preferred brands across the globe. This brand has created a special place in the minds and hearts of the customers with its emotional and human sensibility that creates a feeling of belonging amongst the customers. Its slogan "Connecting People" has been able to create a special relationship with the customers across the globe. Over the past few years, it has gained immense credibility and

adulation by the users. The company has been able to create special place for itself in the minds and the hearts of the users by offering them amazing products with great quality. Customers trust Nokia phones for their high performance and great utility

The following is a list of products branded by Nokia Corporation. This list concentrates on the modern Nokia products. Modern series (C/E/N/X/Asha/Lumia) Nokia Cseries The Nokia Cseries is an affordable series optimized for social networking and sharing. Nokia C2-00 Nokia C2-01 Nokia C3-00 Nokia C3-01 (Touch and Type) Nokia C3-01 Gold Edition(Touch and Type) Nokia C5-00 Nokia C5-03 Nokia C6-00 Nokia C6-01 Nokia C7-00

Nokia Eseries The Nokia Eseries is an enterprise-class series and includes business-optimized smartphones. Nokia E50 Nokia E51 Nokia E52 Nokia E55 Nokia E60 Nokia E61, Nokia E61i Nokia E62 Nokia E63 Nokia E65 Nokia E66 Nokia E70 Nokia E71 Nokia E72 Nokia E73 Mode Nokia E75 Nokia E5-00

 Nokia E7 Nokia E90 Communicator

Nokia Nseries The Nokia Nseries is Nokia's most advanced smartphone series. It is for people who wish to have advanced multimedia and connectivity features and as many other features as possible into one device. Nokia N70 Nokia N70 Music Edition Nokia N71 Nokia N72 Nokia N73 Nokia N73 Music Edition Nokia N75 Nokia N76 Nokia N77 Nokia N78 Nokia N79 Nokia N8 Nokia N80 Nokia N81 Nokia N82 Nokia N85 Nokia N90 Nokia N95 Nokia N96 Nokia N97

Nokia Xseries The Nokia Xseries targets a young audience with a focus on music and entertainment. Nokia X2-00 Nokia X2-01 Nokia X2-02 Nokia X3-00 Nokia X3-02 Touch & Type Nokia X5 Nokia X6 Nokia X7-00

Nokia Asha Series The Nokia Asha series is an affordable series optimized for social networking and sharing. Operating system used is Series 40. Nokia Asha 200/201 Nokia Asha 202 Nokia Asha 203 Nokia Asha 205 Nokia Asha 206 Nokia Asha 300 Nokia Asha 302 Nokia Asha 303 Nokia Asha 305 Nokia Asha 306 Nokia Asha 308 Nokia Asha 309 Nokia Asha 310 Nokia Asha 311

Nokia Lumia Series The Nokia Lumia series is a series running Windows Phone OS. Nokia Lumia 505 Nokia Lumia 510 Nokia Lumia 520 Nokia Lumia 610 Nokia Lumia 620 Nokia Lumia 710 Nokia Lumia 720 Nokia Lumia 800 Nokia Lumia 810 Nokia Lumia 822 Nokia Lumia 900 Nokia Lumia 820 Nokia Lumia 920

Other Products & Services Nokia N Gage- Mobile gaming devices Card Phones (PCMCIA) Concept Phones- Nokia developed a phone concept, never realised as a working device, in the 2008 Nokia Morph. HERE- Formerly Nokia Maps (20112012) and Ovi Maps (20072011) is a web mapping platform provided by Nokia. Nokia Music Nokia PC Suite Nokia Ovi Suite Nokia Photos Nokia Lifeblog Intellisync Mobile Suite Nokia Business Center Nokia Sensor Gammu and Wammu for both Linux and MS Windows Nokia Sports Tracker Nokia Software Updater Nokia Security Solutions Mini laptop- Nokia Booklet 3G Internet Tablets GPS Products Accessories Tetra Vertu- Luxury brand: Signature. Diamond Ascent, Constellation, Signature S Design Digital Television PCs Modems W LAN Products Military Communications and Equipments.

PROBLEM IDENTIFICATION Problem Meaning A problem is a system at unrest. A system is anything (subject, object, property or event) that is made of two or more interacting parts. A problem is a deviation from some standard or norm of desired performance. Hence, problems should be distinguished from decisions. Decisions always involve a choice among various ways of getting a particular problem resolved or a task accomplished. Business today is nothing but the problem resolution management. Problem is part and parcel of every organisation, organisations arguing problems itself is a problem. Thus management should be able to constantly observe its environment and find out the associated problems in the nearest as well as long future. Business Management is an exchange-related problem that occurs anywhere in the industry, business or organization (e.g., HR, purchasing, R&D, production, accounting, financing, marketing, business law, business ethics, or public relations) that needs to be constantly identified, formulated, specified, resolved or solved. The management should be able to resolve the problem, rather than giving solutions to the problem because todays solutions might be tomorrows problem i.e. continuously dealing with the identified problem. Problem Statement The problem, here we dealing with this research are about the brand switching of Nokia customers to competing brands. For getting a good understanding about what brand switching exactly means, it is better to know prior what a brand and brand awareness/brand choice exactly is. Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product unique from those of other sellers. A brand is often the most valuable asset of a Corporation. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Brands typically are made up of

various elements, such as:

Name Logo Tagline or Catchphrase Graphics Colours Scents Tastes Movements

Customer relationship management

Eg:- Disney, Coca Cola, Apple, Louis Philippe etc.

Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, and jingles and so on to certain associations in memory. It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products. Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it. Nowadays brand concept is so important for customers shopping that some experts take it as a perfect product and believe that most of the times: customers in fact buy a brand rather than a product. Some of the factors that affect the brand selection of one are listing below:

Brand Awareness Brand Loyalty Taste and Preference of the customers Customs, Beliefs and Tradition Promotional activities Act of competitors

and

Brand loyalty and brand switching behaviour of the consumers are evergreen issues of research strategic importance to the marketers and academic researchers. Sometimes known

as brand jumping, brand switching is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers, thus helping to grow market share for a given brand or set of brands.

Factors lead to brand switching:

Price Perceived Quality Advertising Desire to Change Innovative Products Promotion Extention to product line

Causes of Brand Switching:

Effects Demand for the product Reduces Market Share Affects Profitability Affects goodwill of the firm

Curse to the stake holders Effects the future potential and growth of the firm

PROBLEM FORMULATION Problem Formulation tries to identify the controllable and uncontrollable variables, which causes the problem. Controllable Variables are those variables; the company can handle or have a control over those with its current resources. Examples are manpower, capital, cash, infrastructure, technology and regulation-compliance. Uncontrollable Variables are those variables, in which the firm dont have control. Examples are government policies, laws and regulations, customer taste and preferences, act of competitors, demographic factors etc. Hence, do some competitor scanning, market scanning, legal environment scanning and global scanning in order to formulate your problem better. . A problem well formulated is half solved. Often, the process of problem formulation indicates the path of solution. The Variables causing brand switching of Nokia customers are listing as below: Controllable Variables Quality Technological advancement and adaptation Advertisement Promotional Activities Innovation

Uncontrollable Variables Government Policies and Regulations Customer Tastes and Preferences Competition

PROBLEM SPECIFICATION At this stage, we try to identify the actual and potential relationship between the stated controllable variables, between uncontrollable variables and between both controllable as well as uncontrollable variables. . One of the fundamental laws in systems thinking is that everything is connected with everything else in a global web or network of relationships. Hence, all your variables, controllable and uncontrollable, are connected, related, and they influence each other. The intelligence is all about identifying the major connections and influences. The relationship between various variables are stating below: Quality and Demand Quality is a measure of excellence or a state of being free from defects, deficiencies and significant variations. It is brought about by strict and consistent commitment to certain standards that achieve uniformity of a product in order to satisfy specific customer or user requirements. ISO 84021986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs." Demand describes a consumer's desire, willingness and ability to pay a price for a specific good or service. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price. Dependent Variable: Demand for the product Independent Variable: Quality of the product There is a positive relationship between the demand and quality. When the perceived quality of the product is decreasing or not up to the expectations of customers, then it may affect the demand adversely and when the quality is very high the demand for the products will also increase. Nokia concentrated on capturing bottom of the pyramid and in that process; it lost its edge of quality and competence as compared to its competitors resulting in Nokia losing a huge upper market share and thus lost its way in heavy cut-throat competition. Technological advancement and Demand The word technology refers to the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a problem, improve a pre-existing solution to a problem, achieve a goal, handle an applied input/output relation or perform a specific function. It can also refer to the collection of such tools, including machinery, modifications, arrangements and procedures. Technologies significantly affect human as well as other animal species' ability to control and adapt to their natural environments. The term can either be

applied generally or to specific areas: examples include construction technology, medical technology, and information technology. The technology today is least constant; it may change day by day hence an organisation should be flexible enough to adapt with the technological changes and advancements. Dependent Variable: Demand for the product Independent Variable: Technology used by the company, There is a positive relationship between the technology used by the firm and the demand for the product. Modern technologies provide better productivity and lesser cost of production, which indeed increases the demand for the product. Resistance to accept new and the innovative technologies will cause the demand and even it may wash out the firm from the industry (e.g. Kodak). As Nokia concentrated more on the bottom of the pyramid, the technology required in the production was not that advanced. Resultantly the competitors of Nokia took advantage of the situation and incorporated new innovative features in their products (both high-end and low-end products) and thus they over took Nokia in competition. For instance Nokia did not adopt the Android feature in their mobiles whereas Samsung in comparison adopted Android features in all of their mobiles both high-end and low-end. Result is today Samsung tops the market whereas Nokia is languishing way behind. Advertisement and Demand Advertising is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages. Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. In 2010, spending on advertising was estimated at $142.5 billion in the United States and $467 billion worldwide. Dependent Variable: Demand for the product Independent Variable: Amount spent on Advertisement There is a positive relationship between the amounts spent on the advertisements and the demand for the product. It may affect the market share as either it will help to retain the existing demand or it may increase the demand as it convince the viewers and make the brand aware. As well if the advertisement made is very low, it will affect the demand adversely. Samsung adopted heavy marketing and promotional strategies owing to its Android featured mobiles whereas Nokia had nothing to market about. This can be considered as major chink in the armour of Nokia and lost its credibility to Samsung. Promotional Activities and Demand Promotion is one of the market mix elements, and a term used frequently in marketing. It is the specification of the five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A

promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are: 1. To present information to consumers as well as others. 2. To increase demand. 3. To differentiate a product. There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product. Dependent Variable: Demand for the product Independent Variable: Promotional activities in order to promote the product in the market There is a positive relationship between the Promotional activities conducted and the Demand for the product. The company policies, resources, profitability etc. are the factors affecting the amounts to be spent for promotional activities. When the promotional activities is done effectively, the demand for the product will be positive and when the promotional activities arent fair, then it may affect the demand for the product adversely. Innovation and Demand Innovations in general provide unique and meaningful benefits to products and services. Creativity or innovation is defined in terms of meaningful novelty of some output. Thus, a creative product is that which evokes a meaningful difference from other competing products in the product category. Innovation is a new way of doing things, that is commercialized. , innovation is the use of new technological and market knowledge to offer a new product or service that customers want (Afuah 1998: 4, 13). New knowledge here means knowledge that has not been used before to offer the product or service in question it may include breakthrough knowledge (radical innovation) or better knowledge (incremental innovation) of technology and markets. Dependent Variable: Demand for the product Independent Variable: Willingness of the firm to be creative

No company can succeed in the industry unless they are creative and innovative enough to tackle the heavy competition in the market. In case of Nokia, they have failed take advantage of the corporate wide innovation rather they went for incremental innovation, which had a short life span whereas Samsung succeeded in taking advantage of Corporate Wide Innovation and they went for Radical Innovation, which in return increased their competency and they gained a huge market share.

 Government Policies and Regulations and the Demand Government policies are the government actions designed to affect economic activity and pursue one or more economic goals. It is also called economic policies. The four common types of government policies are: fiscal, monetary, regulatory, and judicial. Ait is a rule of order having the force of law, prescribed by a superior or competent authority, relating to the actions of those under the authority's control. Regulations are issued by various federal government departments and agencies to carry out the intent of legislation enacted by Congress. Administrative agencies, often called "the bureaucracy," perform a number of different government functions, including rule making. The rules issued by these agencies are called regulations and are designed to guide the activity of those regulated by the agency and also the activity of the agency's employees. Regulations also function to ensure uniform application of the law. E.g. Tax Policies, Labour Laws, RBI Policies and Regulations, Company Law, Partnership Act etc. Government policies and regulations will affect the firm to an extent. It may be either positive or negative. If the policies and regulations are liberalised, then the firm can take advantage over that and else it is very strict, it will affect the firms pricing, cost of production and it leads to reduction in the expected demand. Customer Tastes and Preferences The underlying foundation of demand, therefore, is a model of how consumers behave. The individual consumer has a set of preferences and values whose determination are outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a plethora of other factors. The measure of these values in this model for a particular good is in terms of the real opportunity cost to the consumer who purchases and consumes the good. If an individual purchases a particular good, then the opportunity cost of that purchase is the forgone goods the consumer could have bought instead. Dependent Variable: Demand for the Product Independent Variable: Customer Tastes and Preferences Customer taste and preferences and demand is inter dependent. When the competitors of Nokia came up with innovative features, the tastes and preferences of the Nokia customers changed towards other mobile companies. Over and above that Nokia Company was very rigid on being innovative and therefore Nokia lost their majority of its customers.

 Competition and Demand Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply. The intensity of the competition depends upon the environment in which the company is operating. If the industry has many players, it is but obvious that there would be heavy competition but if it is vice versa, then there would be minimum competition. Dependent Variable: Demand for the product Independent Variable: Competition in the industry For instance Nokia faced huge competition at the bottom of the pyramid from the companies like Micromax, Karbon, LG etc. and upper market share was already under the control of Samsung and Apple. Nokia had nowhere to go, it had only two options either to face competition or bring out something innovative which would result in capturing the majority of the market share both from upper and lower market level. Unfortunately Nokia failed in bringing innovative product and therefore it is surviving in the market, competing with the other companies at the bottom of the pyramid.

PROBLEM RESOLUTION Given problem identification, formulation and specification, we now investigate various problemresolution alternatives that might have occurred to us during the previous three steps. In systems thinking, we do not solve problems, but only resolve them; problem solutions are permanent, and there relate to simple problems where problem formulations and solutions are known. But when problems are complex (that is, problems may be formulated but solutions are not obvious), or unstructured (that is, problems cannot be formulated, but we can guesstimate their possible resolutions) or wicked (i.e., problems have neither known formulations nor resolutions), then we can only try to tame them with resolutions. As so far of our research, we came across both controllable and uncontrollable variables. These variables are the main factors behind creating the stated problem. Controllable variables are those which can be controlled by the management. Here in this case we have a short list of controllable factors which Nokia failed to control and some uncontrollable variables which was beyond the reach of Nokia to control. Here we shall provide effective resolutions so as to help Nokia in regaining their lost market share. In regard to quality as we saw above Nokia concentrated largely on bottom of the pyramid targeting lower-end consumers. Here what Nokia can do is going for product diversification i.e. concentrating on multiple classes of consumers one at a time so that the company can recover some of the lost market share through diversified products.

With regard to technological advancement there are lots of unknown companies which have innovated technologies, the world is unknown of. In this case what Nokia can do is finding such companies encouraging them to develop newer technologies by financing their R&D and marketing their technologies under the banner of Nokia. The major benefit here would be Nokia can promote their brands at a much cheaper rate and the companies which develop these technologies would also get recognition. The other option would be taking over such companies through Merger or Acquisition or signing a deal of technology sharing for a specified time limit.

Corporate Wide Innovation: Nokia Corporation should focus on corporate wide innovation to regain their lost market share and sustain in the market against the competitors over a long period of time. The Status quo in the present condition prevailing in Nokia could be explained using several of the corporate wide innovation models. Henry Clark and Abernathy Clark model might be best used to explain this problem

The Abernathy-Clark Model of Innovation Adoption Market Capabilities

Preserved

Technological Capabilities
Preserved Regular Innovation Destroyed Revolutionary Innovation

Destroyed

Market Niche Innovation

Architectural Innovation

The Henderson-Clark Model of Innovation Component Knowledge

Enhanced

Architectural Knowledge
Enhanced Incremental Innovation Destroyed Architectural Innovation

Destroyed

Modular Innovation

Radical Innovation

New Product Development using the Blue Ocean Strategy Nokia Corporation can come up with new Product Development Using the Blue ocean strategy that would create new to the world products helping nokia to define its own rules and boundaries and enjoy a great market share without competition until it would be replicated by some other competitor

 Differentiation Come up with highly differentiated products providing the customer with great options to choose. Thus helping Nokia to penetrate in to the markets and achieve a sustainable growth.