Nokia and the Global Mobile Phone

Industry
By :
Aditya Ashok Nair
Amrita Nangia
Arpit Srivastava
Nidhin babu
Pushpraj ingh
Shaswat Dubey
Simranjeet Singh
Urvi Swayney
‘We want to be the company that brings this industry
to the next phase. And if we have a little bit of a bump
in the road in 2004 that’s immaterial’.
- Jorma Ollila
Major Benchmarks
 1981 – Manufactured first car phones for NMT (Nordic
Mobile Telephone) and launched in Scandinavia

 1987 – Manufactured first hand portable phone

 Popularized GSM technology

 1994 – Listed in NYSE

 1998 – Overtook Motorola to become the worlds largest

mobile manufacturer company. Sales - +51%, Profit - +71%
 Diversification through acquisitions

The collapse of USSR in 1990 forced Nokia to focus on

telecommunication.
The Rise
 Emphasis on design along with
functionality.
 Launched Nokia 8210 in Paris
Fashion Week.
 Greater dependence on innovation,
and encouragement of employees to
come up with new ideas. E.g. Chat rooms (Nokia – 3310)
and NaviKey (Nokia – 5100 and Nokia 6100).
 1998 – Nokia 8800 had internal antennae which
contributed to 70-80% of total gross profit margin.
 Scattered and dispersed R&D with 70 sites across the
world. Employees directly reported to Head of R&D.
Reduction in Size
THE FALL OF NOKIA
In mid 2004 The Economist wrote-
“ WHEN A FIRM DOMINATES ITS MARKET,
ESPECIALLY ONE THAT IS DRIVEN BY
CONSTANT TECHNOLOGICAL ADVANCES IT
RISKS BECOMING SO FIXATED WITH TRYING
TO WARD OFF WHAT IT RECKONS TO BE ITS
MOST POWERFUL CHALLENGER THAT IT
LEAVES ITSELF VULNERABLE TO ATTACK
FROM ALL DIRECTIONS.”
EARLY 2000
N-GAGE
N-GAGE was a technically superior product but did
not find favor in the market.
High price $299 compared to other gaming consoles.
Had a vertical screen, not appreciated by many users.
Loading games and soft wares was a complicated
process.
Inconvenient to use as a phone instrument- awkward
holding angle
Other factors
Focus on technology superiority.
Obvious market signs ignored.
Failed to read the growing popularity of the camera and
color screens.
Focus on the lower and the upper segment only.
The growing mid segment was ignored.
Ignored the concept of the customized operator specific
handsets.
Heavy investment in the S60 operating system,
eventually present in only 1% of the phones world wide.
Efforts at Recovery
Phones that propelled Nokia to
recovery
Clamshells (6260 and 6170)

6630 – Smallest Camera phone designed for 3G

1100, 2600 and 2650 – Low end models

6230 – Mind range model (Nokia unable to meet its

demand)
7700 – Media Phone
Challenging future
Entrance of new players and competition with the
existing top notch Eg Moto Razor V3 (sleek and thin),
Sony Erricson S700 (swivel design).
More focus on improvement of Ngage and warding off
competition

Concentrate on developing nations

Designing products for emerging markets.
E.g. India

Business phones are the area of furthur

innovation and expansion of the company.
THANK YOU