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Emerging Nokia

Kelompok 9
1. Rizziandrie Zairul
2. Viman Alfarizi R
3. Fery Purwaginanjar
Contents

Nokia in a Glance
Mobile Phone Industry
Nokia in Emerging
Markets
Challenge for Nokia
Recommendation
NOKIA IN A GLANCE
A Glance

Pre Telco Kari Kairamo & Jorma


1865-mid 20th cent Ollila (1977 2006)
1981: Telenokia (51% share)
Paper, electricity, rubber 1982: First digital telephone system
boots, computers (Sweden)
1990 1993: Financial distress
(collapse of Soviet Union & recession
in Finland)
1992 2006: Jorma becomes CEO,
making Nokia profitable, focus on
telecommunications (esp. services),
becomes global brand (5th most
valued brand in 2000, Interbrand)
A Glance

Olli-Pekka Stephen Elop


Kallasvuo (2010 2013) Sept 2013
(2006 2010) Decline of Nokia. During Microsoft acquires
tenure: revenues fell Mobile Device
Facing intense 40%, profits fell 92%,
competition: iPhone market share in business
launch in 2007, Chinese smartphone drop from Nokia now: HERE
producers in emerging 34% to 3.4%, credit
markets mapping service,
rating drop from A to
Transform/restructure junk, share price drop NSN, &
Nokia: Mobile Solutions, 60%, market cap lost USD develop/licensing
Mobile Phones, Markets 13 billion) advanced
2007: Nokia Siemens 2011: Exclusive deal with technology
Network (joint venture Microsoft to use Windows
with Siemens), full control Phone for smartphone
on July 2013
MOBILE PHONE
INDUSTRY
Mobile Phone Industry
1st Generation (early 1980s)
Monopolies
Post-paid, high monthly & per-minute fees
Analog system

2nd Generation (1990s)


Digital: GSM & CDMA
Better call quality, new services (SMS, call forwarding, etc.)
Liberalization in industry, subscriber grew 52% annually (1990 2000)
1998: Nokia becomes global industry leadeR

3rd Generation (2000 now)


3G & 4G
Operators also focuses on services & data
Severe competition in platform:
Rise & fall of BlackBerry (2002 now)
Rise of iPhone (2007) & Android (especially Samsung)
Apple & Samsung takes almost all smartphone profitability (peak: Q1-2012, 99%)
Market share (Q3-2013): Android (81%), iOS (12.9%), Windows Phone (3.6%), BlackBerry (1.7%), Others (0.6%)
NOKIA IN EMERGING
MARKET
NOKIA IN EMERGING
MARKET
aracteristics of Emerging Markets
Lower income

Intense competition among


operators

Device manufacturer: sold


directly to consumer

Services as key selling point

Mostly pre-paid (low ARPU)


NOKIA IN EMERGING
MARKET
Nokia Strategy
2009: 55% revenues
Q3-2013: drive WP market growth in India 229% YoY
Focus on
low-end mostly due to low-end Lumia 520 (note: Nokia = 90%
phones WP market share)

Extend
productio China, Brazil, Mexico, India (Chennai)

n
facilities

Understand Result: importance of groups in device usage


locals by Services tailored to local markets
anthropolo
gist
NOKIA IN EMERGING
MARKET
CHALLENGE FOR
NOKIA
CHALLENGE FOR NOKIA

What Focus on
Developed
to do Countries,
Developing
Next? Countries, or
both?
? What strategy
to use?
RECOMMENDATION
CHALLENGE FOR NOKIA
Mobile Phone Divisions
Look at Developed: Higher GDP, post-paid &
Market & bundling
Industry Developing: Low GDP, pre-paid &
Characteris device-operator separation
tics
Smartphone: People buy
ecosystem, not device

Low-priced phones in emerging


Focus on: markets (Lumia 520)

Extraordinary phones in developed countries


(Lumia 1020), especially to enhanced brand
image as high quality manufacturer
Get top apps to be present in WP (though
Microsoft)
CHALLENGE FOR NOKIA
Mobile Phone Divisions
Social medias (Facebook, Twitter for
Know & news, teasers, etc.) , blogs (including
build brand community blogs such as WP
Central, WM Power User)
relationshi Ask for ideas, inputs, complaints
ps with
customers
Know each markets better

Product & services focus on market


needs (e.g. dual-SIM for emerging
markets)
CHALLENGE FOR NOKIA
Other Nokia
Added value now: offline turn-by-

HER turn navigation worldwide, no


need for data (GPS only)

E Becomes the best mapping app

Map
worldwide, including its value-
added services (traffic sharing a la
Waze, route sharing), updated

s
regularly to ensure complete
roads worldwide
Can be sold to different platforms
(WP, iOS, Android) as additional
apps
CHALLENGE FOR NOKIA
Other Nokia
Focus on building customer
NSN loyalty by giving added value
not offered by competitors
(Nokia
Avoid price wars with Chinese
Solutio companies such as Huawei

ns
Focus in the markets where
Networ lag behind globally, but will
k) catch up, e.g. Indonesias
move to 4G
Focus on R&D to provide
high-quality equipment with
optimal price, such as for
TERIMA KASIH

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