Name of Case Study
Nokia, which is known to be a luxury cellular phone, is located in Finland and is a manufacturer of telecommunication equipment, including an extravagant mobile device. It is apparent that the cellular phone, which was originated and presented by Frank Nuovo in 1997. It appears that this luxury mobile device was directed mainly for the rich, and not the normal, everyday mobile phone user. The device is appealing to many, but is not realistically priced for the everyday individual. The manufacture of this luxury phone is Vertu, a manufacturer who aims toward luxury services, including the finest designs, engineering and manufacturing. They have put together this luxury mobile phone using innovations in the making and the technology of mobile phones, along with the normal workmanship, but at high-end prices. Vertu’s headquarters are located in England and their products are in over 500 stores, across 66 countries. Synopsis of the Situation
Nokia’s CEO, Stephen Elop joined the company and within 5 months, on February 11, 2011, Stephen Elop proclaimed that Nokia was implementing a new mobile phone with Microsoft’s new Windows program, which was unconfirmed as Nokia’s main smart phone. After making this announcement on February 11, 2011, the stock dropped and the share price went down by 14 cents, because the market was not interested in a smart phone that had not proved itself. With the stock dropping, Elop went full force to save Nokia and partnered up with Microsoft to manufacture and introduce a new global ecosystem in a mobile phone. The partnership led Nokia to producing the Vertu Luxury cell phone. This luxury mobile device was created by Frank Nuovo. Key Issues
Because of the 14 cent share drop in stock, Nokia had to implement a plan to better their company. Nokia’s market was decreasing and this is when Stephen Elop was hired, in order to make the changes to allow the company and the product to improve. Elop decided to...
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