NOKIACASE STUDY

MINI CASE STUDY NOKIA: MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR,

INDIAN INSTITUTE OF MANAGEMENT, LUCKNOW

Introduction

Based in Finland

Employ nearly 130,000 people in 120 countries

38% of market share in 3rd quarter of 2009

Number one in the world for cell phone sales

Industry Analysis

Economy

People are saving money-spending less

2009 first quarter cell phone sales down 8.6% from a year ago

Households omitting landlines-using only cell phones

Barriers to enter are high

Fierce competition

Industry cont.

Companies struggling to expand

Nearly billion people own a cell phone

Motorola went from 2nd largest to 5th largest in 2007

Health risks are threatening to industry as a whole

No proven facts that cell phones cause cancer

On-going studies conducted

S.W.O.T ANAYSISStrengths

Nokia has ten series of cell phone; eight of them are used Symbian operating system.

all models in N series and E series are used Symbian S60 OS

Nokia Corporation purchased Symbian, Ltd in 2008

High quality and solid shell

The funny Nokia 1100

Opportunities

Smartphone is the future trends of cell phone.

The future trends of Smartphone are Touch Screen Smartphone and QWERTY Keyboard Smartphone.

High price, high quality, high tech and numerous functions but also mean high profits.

Weaknesses Nokia’s market share in North America is only 10 percent.

Firstly, Nokia didn’t have so much advertisement in America

Secondly, more than 90% of Nokia’s cell phones are in GSM net.

Thirdly, Nokia’s designs are not suitable for American customers.

The last but also the most important reason is telephone services providers.

Nokia in T-mobile

Threats

It is reported that Nokia’s market share of Smart phone was 35% in the third quarter of 2009.

Although an unlocked Iphone’s price is more than $700 dollars, but customers could only spent $199 dollars buy an Iphone with two years AT&T services.

Nokia in Europe

The Emergence of Competitors

Intellectual Property Disputes

Concern on Expanding Business

Nokia in north America

Outmoded Design

Ineffective Cooperation with Operator

Losing the Smart Phone Market

NOKIA IN ASIA

Nokia in China

-3G market

-Domestic Competitors

Nokia in India

-Accusation of After Service

-Walkout

Apple Inc

April 1，1976

Steve Job，Steve Wozniak & Ronald Wayne

Cupertino, California, United States

Revenue: US$32.48 billion (FY 2008)

Net income: US$ 4.83 billion (FY 2008)

Employees:35,000 (Q1 FY 2009)

Products

iphone (January 9, 2007)

Apple Inc

Strength

1.Operating system

2.Design

Motorola

1928

Paul Galvin & Joseph Galvin

Headquarters: Schaumburg, Illinois, United States

Revenue: US$ 30.146 billion (2008)

Net income: US$ -4.244 billion (2008)

Employees:64,000 (2008)

Motorola

current

situation

2006

Samsung

1938

Lee Byung-chul

Headquarters: Samsung Town in Seoul, South Korea

Revenue: US$ 173.4 billion (FY 2008)

Net income: US$ 10.7 billion(FY 2008)

Employees: 276,000 (Q1 FY 2009)

Samsung

Marketing Strategy

Sports marketing

•1988 Seoul （24th）•1998 Nagano（18th winter ）•2000 Sydney （27th）•2002 salt lake city（19th winter ）•2004 Athens （28th）•2006 Turin （20th winter ）•2008 Beijing （29th）

Short-term recommendation

Enhance Cooperation with Operators in

North America

Smart Phone Market

Learn from Competitors

Long-term recommendation

Enhance Cooperation with Operators

Changes on Operation System

Meet Consumer’s Needs

Diversity

DISCLAIMERCreated by Sarthak Sinha, SCE Bangalore, during Marketing Internship under Prof. Sameer Mathur, Indian Institute Of Management Lucknow.

( See www.IIMInternship.com)

Prof. Sameer Mathur, IIM LucknowSarthak Sinha, SCE Bangalore