Dear Sir, As discussed with you on phone, we Group 7 from MBA 2011-2014 batch were here to discuss the

e Class Project of Nokia. Keeping the problem statement defined by Group 9 as Can Nokia regain its market share, weve tried to analyze the following. We also, came along this video which can be used as an Exploratory Material http://www.youtube.com/watch?v=WULpCRlfIfI

Segment

Features Having handsets range above 10,000. Comprises of 3% of the Market

Premium Segment

Lower Segment

Having handsets range below 10,000. Comprises of 97% of the Market

Why did it loose Lack of Android/Apple based applications/OS Lack of DualSim, Quality Camera Loud Speaker/Music Player in phones

Competitors Iphone, Samsung/ Android based phones

Counter Attack

Lumia

Micromax,Karbon, Asha 200 Spice, &Asha 300, Samsung (lower X2-02 range)

With the above analysis, were clear of the problem, reasons and the steps, which Nokia is taking to cater to the problems. So, the question arises Will people now, again buy Nokia?? Research Objectives :

1. Will Lumia help Nokia, fight against Iphone and Samsungs Android based phones? 2. Will Lower Segment population : Re-associate themselves to Nokia, with the launch of

Sir, you understand were still in the process of learning so, Kindly guide us whether these research objectives are correct, or needs to be reformulated? We have thought of the next step as Questionnaire (but only once youve approved the objectives) for which we would be needing your expertise. Looking forward to your reply, Thanks Regards Group 7

Nokia underestimated Silicon Valley Nokia's fall started much earlier, however. Strategically, its major mistake has been to underestimate the importance of the U.S. market and developments in Silicon Valley. Nokia rose to prominence mainly through its willingness and ability to ride the emerging-markets boom, both by building massive production facilities in low-cost countries and selling its products to clients in those markets. However, Nokia did not realize early enough how big an impact touch-screen phones such as the iPhone would have, nor was it able to foresee the importance of attractive applications. It also did not anticipate how quickly Google's operating system Android would change the mobile landscape. Instead, Nokia focused on growing in emerging markets, where its margins had already started to suffer from increasing competition by cheap local brands . Nokia vs. Apple stock price

In 2010 Nokia decided it had to make changes to its management and strategy, and it hired Canadian Stephen Elop from Microsoft as its first non-Finnish CEO. Quickly afterward Nokia announced it would abandon its Symbian operating system and use Microsoft Windows in its smartphones. Nokia's first Windows models were sold in November 2011. In my opinion, Nokia still has a chance to become a big smartphone player if it can leverage its massive scale and broad distribution. But in any case, Nokia's miraculous success is likely over, because the market has become much more competitive. The fact that the market has finally come to understand the new realities is ultimately a good thing for longterm investors.

It is difficult for Nokia to regain market dominance (the 70% market share situation) in India. Here are the reasons

Can Nokia ever regain its market dominance in India? 1. Trade fragmentation: With commoditization of the handset category, the channel power is increasingly shifting to retail. Nokia still remains the highest distributed handset major with presence in 200K retail stores across the country, but the retail thrust is around brands which are sharing highest margins with retails. Given Nokia's cot structure Nokia is far less agile in deal based transactions which a Micromax, Karbonn or other "B" cat brands specialize in. 2. Missing the Feature-price equation: While Nokia is the most trustworthy brand in India, it has been less aggressive in targeting customers who are looking at higher Value for Money (VFM). The ability to provide advanced features at far more economy prices has altered the brand-led positioning that Nokia has leveraged thus far. This is especially true for the device around the price segments INR.2-6K. This is both a volume segment as well as value segment and Samsung has mastered this segment pretty well. Nokia mis-read key parts of the value equation and missed the opportunity and it will have a tough time catching up. 3. With proliferation of Blackberrys and Androids, Nokia has steadily been loosing its high end sheen. With a lacklustre high end portfolio, the desirability rub -off is also starting to wear out. 4. With Android's beginning to make its presence felt at INR.6-10K price segment, it is increasingly becoming a credible threat to Nokia as an alternate experience platform. The favourability for Android will see improvements as we go along. 5. Nokia has been pushing services such as Life Tools, Nokia Money and these will find traction in the markets, but it is not a sustainable leadership position even if its innovative. 6. Nokia now deals with working on very low ASPs, shrinking margins as an antidote to its market share erosion. It will be interesting to see how much Nokia is willing to bleed to wrestle back the low end masses from the "others"

There are a few keys to success with the smartphone market:

1) Devices -- Nokia is trying to work with carriers/operators around the world to introduce new smartphones across the device portfolio to a variety of markets. To ensure mass sales, the carriers will need to offer subsidies and work with Nokia to make sure that (co)marketing campaigns are carried out and that the sales staff are properly trained and hyped to sell the Nokia devices. One recent case where this did NOT go successfully is the case of the Nokia X7 with AT&T. Nokia pulled the launch due to purported rumors that AT&T would not be providing the proper marketing and subsidy support for the device. 2) Services -- While Nokia provides a full suite of Ovi services (messaging/email, music, app store, navigation, etc.), the services don't yet have the proper reputation that can entice users to make the switch to a Nokia device. Even in some markets where devices were offered with a "Comes With Music" service, which provided users with unlimited music downloads from the Ovi Music store for one year, it still did not help reach that tipping point that perhaps was anticipated. 3) Applications -- Perhaps the bigger concern is around the availability of applications and the developer ecosystem. Because of the fragmentation around OS and device support, many developers had been turned off from developing for Symbian/MeeGo. With the recent decision to utilize Qt/QML as an application framework and development language, the barrier to developing across many devices and even across various Operating Systems has been minimized. One area that the Ovi Store has done well has been in terms of global reach. The Ovi Store is currently the leading app store in China and is leading the way in some emerging/developing markets globally. 4) Usability/OS -- Symbian is a huge turnoff for lots of users. Despite being a pretty powerful OS, it comes with a relatively larger learning curve than iOS and Android.