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Nokia PDF

Nokia started as a timber company in Finland in 1865 and over decades expanded into telecommunications equipment, becoming a global leader in mobile phone production and sales in the 1990s and 2000s. However, Nokia struggled to keep up with the rise of smartphones and competitive pressures from Apple and Android OS phones. After failed attempts to transition to the Windows Phone OS, Nokia sold its mobile phone business to Microsoft in 2013, marking the fall from being the largest mobile phone producer.

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78 views

Nokia PDF

Nokia started as a timber company in Finland in 1865 and over decades expanded into telecommunications equipment, becoming a global leader in mobile phone production and sales in the 1990s and 2000s. However, Nokia struggled to keep up with the rise of smartphones and competitive pressures from Apple and Android OS phones. After failed attempts to transition to the Windows Phone OS, Nokia sold its mobile phone business to Microsoft in 2013, marking the fall from being the largest mobile phone producer.

Uploaded by

Rosenna99
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Submission Date: ___/04/2019 AIMAN JAMIL

04151713057
BSBS- 4A

THE RISE AND FALL OF


• Founded in 1865
• Started as a timber company near Nokia, Finland.

1965-1970s (Bjorn Westerlund)


o Late 1960s; merged with other companies to form Nokia Corp.
o 1970s; developed Mikro Mikko Office Computer and obtained 80% market
share in Finland.
o Developed 1st wireless phone for Scandinavia govt. services.
o 1971; Developed analog car radio telephones.
o Had a 50/50 joint venture with state owned telecom networking company.

1977- 1988 (Kari Kairamo)


o 1983; 1st International acquisition of Luxor AB.
o Increase in export to Europe, UK, North America and Asia.
o 1987; 54% increase in revenue & €210 million investment in R&D.
o Established 2G network.
o Consumer electronics division (70%) struggled due to low cash reserves.
o 1988; became major player in analog handset market with market share of
13.4%.
o Net income fell to €199million i.e., 23%

1988-1992 (Simo Vuroilehto)


o Restructure of firm into 5 divisions but the poor performance continued.
o 1991; Total sales dropped 31% from previous year.
o Consumer electronics division suffered loss as the colored TV set sold poorly
o The fall of Soviet Union pushed Finland into economical crisis and the company
was unable to obtain loans.
o Telecom Networking division was thriving and earned revenue of €323million.

1992- 2006 (Jorma Ollila)


o Adopted the “back-to-basics” approach.
o Focused on 4 business areas
o 1992; received 25% GSM Equipment orders for Europe
o Entered Japanese market.
o Became largest mobile phone producer in Europe and 2nd largest in the world.
o Ollila (CEO); predicted handset penetration to increase 20% by 2000
o 1994; Obtained 25% market share in Finland Stock Exchange and became the
1st finish company to be listed in New York stock exchange.
o 1998; became the leading mobile phone manufacturer with 23% market share.
o Protected its technology developments through patents.
o 1999; Launched 1st camera phone and1st phone with web browsing feature.
o 2002; reorganized its four divisions
o Controlled 40% of the GSM and 5-7% of CDMA market share.
o TCL became the largest handset manufacturer in China
o 2003; Introduced 1st touchscreen device which worked with stylus.
o 2004; Slow sales decreased market share to 28.9%.
o 2005; Low-end handsets became popular in Asia.
o ODMs started growing and threatened vertical industry model companies.
o Sudden emergence of different brands pushed Nokia down.
o Nokia’s patent portfolio, 1600 patents, helped ensue its dominance still.
o 2005; 3G emergence - LG became the first mover.

2006-2010 (Kallasvuo)
o 2006; Joint venture with Siemens which earned revenue of
o 2006; Joint venture with Siemens which earned revenue of €15.8 billion
o Smartphone industry emerged and Nokia Smartphones ran on Symbian OS.
o 2007; Apple introduced iPhone which ran on iOS.
o Nokia’s market share dropped in US but remained the most used in the world.
o Android OS became the most used but wasn’t adopted by Nokia.
o August 2007; Nokia launched its online store to sell songs, games & maps
compatible with Symbian OS and started developing another mobile computing
OS.
o Bought Navteq, digital map database. for $8.1 billion
o 2009; Maintained highest market share at 34%

2010-2013 (Stephen Elop)


o 2010; maintained 40.3% market share.
o Symbian OS was abandoned, and Windows Phone 7 software was adopted,
and shares fell 14% the day it was announced.
o 2011; Smartphone market share dropped to 25% and market value dropped
75% from 2007 to 2011.
o Changed all Symbian OS phones in the market to Windows OS
o 2012; moved US operations from New York to California.
o suffered operating loss of €2.3 billion and gave its market leader position to
Samsung.
o 2013; Sold its Devices & Services Business to Microsoft and provided access
to Nokia patents for ten years for $7.2 billion.
o Upon announcing this deal, Nokia’s share price increased 40% and Microsoft
share dropped 5%

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