Nokia Analysis
Unit 3 Case Study
Nokia Analysis
Kaplan University
School of Business
MT460 management Policy and Strategy
Professor Bagley
February 19, 2013
Nokia Analysis
Introduction
Nokia is one of the largest telecommunication manufacturer companies in the world. They are recognized globally for their reliable and high quality products. Though they are a pioneer in manufacturing mobile phones and the GSM technology, Nokia’s profitability has been on the decline in recent years. A reduction of market share in North America of thirty-five percent in March of 2008 to eight and one tenths percent in April of 2010 highlight’s Nokia’s decline (Wong, 2011).
Synopsis of the situation
Nokia has been on a steady decline for the last few years due to outdated product design and technology. On February 11, 2011, Nokia’s new CEO Stephen Elop announced a new mobile strategy to adopt Microsoft’s new but unproven windows phone as its primary smartphone operating system (Wong, 2011). Nokia’s flagship phone, the Vertu, has been a staple in the urban luxury market for the last eight years. Will Nokia’s loyal customer accept or reject this new move for their beloved devise.
Key Issues
Nokia was once an industry leader, but as of recently found themselves behind in the times. Nokia has several key issues that need to be addressed. The first is their shrinking market share and brand preference. The next issue is the inability to deliver innovative products in a timely manner.
Define the Problem
The Microsoft operating system is not a winning over the customers that Elop thought that it would. Nokia has one phone that has been their flagship item for the last eight years. It is believed that making the change to the Microsoft operating system on that phone will cause Nokia to lose the customers for that one popular devise.
Alternative solutions
One alternate solution that could be well received would be to scrap the Microsoft idea all together.
Nokia Analysis
Kaplan University
School of Business
MT460 management Policy and Strategy
Professor Bagley
February 19, 2013
Nokia Analysis
Introduction
Nokia is one of the largest telecommunication manufacturer companies in the world. They are recognized globally for their reliable and high quality products. Though they are a pioneer in manufacturing mobile phones and the GSM technology, Nokia’s profitability has been on the decline in recent years. A reduction of market share in North America of thirty-five percent in March of 2008 to eight and one tenths percent in April of 2010 highlight’s Nokia’s decline (Wong, 2011).
Synopsis of the situation
Nokia has been on a steady decline for the last few years due to outdated product design and technology. On February 11, 2011, Nokia’s new CEO Stephen Elop announced a new mobile strategy to adopt Microsoft’s new but unproven windows phone as its primary smartphone operating system (Wong, 2011). Nokia’s flagship phone, the Vertu, has been a staple in the urban luxury market for the last eight years. Will Nokia’s loyal customer accept or reject this new move for their beloved devise.
Key Issues
Nokia was once an industry leader, but as of recently found themselves behind in the times. Nokia has several key issues that need to be addressed. The first is their shrinking market share and brand preference. The next issue is the inability to deliver innovative products in a timely manner.
Define the Problem
The Microsoft operating system is not a winning over the customers that Elop thought that it would. Nokia has one phone that has been their flagship item for the last eight years. It is believed that making the change to the Microsoft operating system on that phone will cause Nokia to lose the customers for that one popular devise.
Alternative solutions
One alternate solution that could be well received would be to scrap the Microsoft idea all together.
References: Simmons, L. (2011, June 26). How to integrate new technology into the workplace. Retrieved from http://www.ehow.com/how_8649447_integrate-new-technology-workplace.html Wong, K