Case Study Of Nokia E Engineering Company

Rumors about a possible sale of the division for mobile phones Microsoft's had for months. But always claimed that these are just speculation without much truth. Therefore, the notice of sale of mobile unit for 5.4 billion euros, just at this stage was felt Tuesday morning in Finland as a bomb. Moreover, despite the fact that Finns are known for their pragmatism.
At the same time, many people in the small country are asking what will happen to jobs. Details are not yet known, but it is known that about 32 000 employees of Nokia to switch to Microsoft. Headquartered in Espoo, near Helsinki, will be retained. A main output anyway no longer manufactured in Finland.
Now, so hope in Finland, the Group faces a new beginning. Leading the group will
But that's not quite right. In the beginning, Nokia has welcomed to its marketing and that manages to turn phones into fashion accessory. More accurate to say that Nokia is based in hardware, not software company. Ultimately company completely underestimate the importance of software for using your phone, including the development of applications. (Chiefs of Apple, by contrast, consider the hardware and software equally important and encouraging multidisciplinary teams.

Here happens another error. Nokia overestimated the strength of his beard and believes that even if delayed, will be able to catch up quickly. Soon after the launch of iPhone, Nokia insists that its supreme hardware will provide its advantage to consumers. Even today there are people who say that if the company had adhered to its own operating system, rather than move to Windows Phone in 2011, she would succeed. But although Windows Phone was a failure, the truth is that by 2010, Nokia had already launched too many disappointing phone and its OS had proved full of bugs, awkward and unintuitive.
In 2008, Nokia said it has one of the most valuable brands in the world. But she failed to realize that today brands are not as strong as they were. The era of high-tech teach people to expect constant innovation. When companies lag behind consumers punish them. The delay and inadequacy proved to be a deadly combination
In July repurchase Nokia Siemens' share in their joint venture for network equipment against 1.7 bn. Euros and get full control over Nokia-Siemens Network (NSN). Even then, analysts saw in this action ensuring the continued turmoil in the mobile business.
But they did not expect that so soon this will become a major business for the company. Revenues from NSN constitute 45% of the total of the Finnish company in 2012. The company reported robust profit growth for the moment, but went through a series of major restructurings in recent quarters decreased revenues.
Despite the reduction in revenues of the company for new network equipment, Nokia will hold approximately 15% of this market in the world in competition with Huawei, Ericsson and Alcatel-Lucent. Furthermore, NSN has signed a number of contracts for the supply of equipment from the last, fourth, generation mobile networks (4G). As a result of the deal with Microsoft Finns actually separated by a unit that is currently pulling its revenue down, and left with a business that is