Nokia's Declining Market Share

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BRM PROJECT PROPOSAL
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NOKIA’S DECLINING MARKET SHARE
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SUBMITTED BY,
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JYOTI PRAKASH LAKRA
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PGP/16/203
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SECTION D
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IIM KOZHIKODE

1. Abstract
a. Purpose:
The purpose of this paper is to analyze some of the issues, difficulties that Nokia is facing. Nokia being a market leader until 2007 has lost its number one status worldwide. b. Design/methodology/approach:

A detailed discussion of Indian mobile industry is performed to identify key issues present in the industry and to confirm the areas on which Nokia needs to focus to maintain its market share. BOT analysis, Stakeholders analysis, Causal loop are used to identify the factors triggering the issues. c. Findings-

The challenges that Nokia is facing and Nokia has to look into those issues, else it will loose its market power in India which has already happened in developed countries like US, Europe. d. Originality/value:

The study may help in improvement of strategic focus and tactical decision making for Nokia. The use of system analysis can provide novel views and insights into the problems and inefficiencies which exist within current practices. Keywords: Nokia, declining market share, Smartphone, Android, Samsung, iPhone. 2. Introduction

Nokia is a Finnish company and the world’s largest manufacturer of mobile phone devices. In addition, the company offers communication services, software, and phone and Internet-based content. Nokia also has a network management segment called Nokia Siemens Networks, which offers network-based products and services. Nokia a Finland based company which accounts for its 30% of GDP. In 1984, Nokia became the became the first company to enter into the mobile cellular network and In 1991, Nokia became the first company to launch GSM mobile in the world and launched the first GSM handset of the world in 1992. The first GSM handset, the Nokia 1011, was launched in 1992 and the first satellite call was made using a Nokia GSM handset in 1994. From thereon Mobile became a global market leader of mobile phones. Nokia innovated its mobile by including mobile based internet and camera. In 2004 Nokia launched its first touchscreen, first of its kind. This was an instant hit and in the 2007 Nokia launched its first smartphone based on Symbian Operating System. But in the year 2008 Google based Android Operating system was launched and from thereon Nokia ‘s sales are decreasing consistently. Nokia’s status as the world’s leading mobile phone distributor is taken over by Korean manufacturer Samsung in 2012. India which was considered to be a strong hold for Nokia, Samsung’s sales increased rapidly. Even though Nokia has a great market share in India but Samsung is expected to take over by 2013. A major indicator of Nokia’s steep decline is that in 2009 the company was valued as the fifth most valuable brand in the world, whereas at the end of 2011 it ranked 81st.Nokia now has partnered with Windows for Operating system hoping to regain its number one status

3. BOT(BEHAVIOUS OVER TIME GRAPH)

This is a counter-intuitive graph which signifies that there is increase in sales of mobile handsets in India but still Nokia’s sales(in percentage) have declined even after increased spending in its R&D sector. 4. STAKEHOLDER’S ANALYSIS

(a)...
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