“Rise and fall of Nokia Corporation” Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

“Rise and fall of Nokia Corporation” Case Solution

Introduction

Nokia enter the market with its first launched product Mikro Mikko computer in 1970. This computer was mainly used in office work and the demand of this product generate great value for the company in market. (Juan Alcacer, The Rise and Fall of Nokia, 2014)This first product of the Nokia covers almost 80% of market share in the Country Finland. After this computer production, the company launches the wireless mobile phones targeted specially to government services. The Chief Executive Officer of the Nokia was Kari Kairamo. The company shows its fast and profitable growth phase from the 1977 to 1988. In the year 1983, the CEO of the Nokia announces the Nokia is the international company.

Problem Statement

From the year 2000, the position of Nokia as the market leader in telecommunication threatened by competitors. From the start of 2000, many competitors enter the market with high-quality products with low costs.

For understanding the Case, the below analysis is explained in Situation Analysis.

Situation Analysis

In the situation Analysis we cover all the cases like Swot, Pestel analysis, target market, products of Nokia.

Internal Analysis

Internal analysis shows the internal environment and capabilities of the Nokia that what are the strengths and weaknesses of the Telecommunication Company.

Strengths of Nokia

At the start of 2000, the Nokia was the largest producer of mobile phones with high innovation.Nokia has over 80000 Employees over the world.Nokia has a diversified product portfolio including laptops, Mobile phones and computers. The Nokia is listed on the Helsinki Stock Exchange. Nokia has a very durable heritage meanwhile its assessment in late 1865.

Weaknesses of Nokia

The major weakness of the Nokia was to not stand in-front of new competitors in Mobile Phones production. The smart phones of competitors create a huge weakness for Nokia. Past legal issues affect the brand image of Nokia.

Marketing and Sales

Marketing and sales portion define the Target market of Nokia, Market opportunity and Sales Approach.

Target Market of Nokia

Nokia in start target the office workers when they introduce first office computer, after changing in production and trends Nokia introduce variety of mobile phones for all age groups but Specially Target to age of 18-38 years for attracting the younger audience to purchase mobiles which increase the sales of the company.

Market Opportunity

The sales of the Nokia d4ecrease day by day after entry of different competitors in the market from 2000. The market value and shares of the company decline, but now the current Market opportunity for the Nokia is to do acquisition with a well-known electronic or telecommunication company which increase the growth and image of the company.

Sales Approach

Nokia Sales approach for increasing the sales of corporation. Nokia’s sales strategy was directly with consumed with no third party they encourage and reinforce to their brand by themselves without involvement of any external party. In the market in Europe, Nokia generates more profit through this sales approach.

Operations

Operational Strategy of Nokia to meet Customer Needs

The operational strategy of the Nokia is to reach to customers by identifying their needs and expectations from the product of Nokia. Nokia creates great value for the Customers as compared to other mobile phones. The Nokia is weak in smart phones but on Keypad mobile phones the Nokia is still earning a good revenue. The company Manufacture the products and distribute them through their different channels now Nokia also gives online home delivery services and in Pandemic Situation Nokia offers online products.

Key Components for the Ops Strategy

The Ops Strategy of the Nokia is mainly depending on the 04 key components which they offer for the customers in the marketplace.

The Nokia deliver clear way for the stockholders’ value with return on Equity used as a basic matric. These four components are Mobile networks, Network Infrastructure, cloud and network services and technology of Nokia. The Net sales of the Nokia decrease year to year because the competitors introduce modern technological, innovative Smartphones which attract all the attention of customers towards the competitors. So, the Equity of the company reduced.

Product Definition

Define the Product

The products of the Nokia fall in all three types of products core product, Actual product and Augmented Product. The Nokia solves the basic problem of customer like he is purchasing Mobile for call or message purpose so these both features satisfy the need of customer and comes in the category of Core product. Now, adding in the same case, the customer wants additional benefits from the product like play game, sending emails. Watching videos and photos so the Nokia also offer the smart phone which satisfy these all needs of customers from one product. The Nokia also offer the warranty of 12 months in Mobile phones means after selling services it shows company also launch the augmented products.

Development Plan of Nokia

Nokia announces the first phase of a newly designed strategy, which shows that the company change the operating model and grouping of leadership teams. The company wants to grow and improve the market position by changing the existing plan. Nokia trying to understand the behaviour of customers and study the market and competitors that how to overcome the weakness of the firm and regain the market share. The Development Plan of the Nokia has also the Four Profit and loss groups which overview the customer needs and offer them uniqueness to become again the market leader.

IP Protections

Nokia is the first company to deliver the many-sided IP security with its IP secure network architecture. The Network Security of the Nokia starts from the layer of silicon with the FP4 chip, that is the major part of the 7750SR and 7950XRS series of routers. FP4 completely supports the line rate access to packet buffer memory for the availability of 100 space of chip. This security chip enhances the services and network performance high straight during the greatest strong DDOS outbreaks.

Financial Plan

Key Financial Information

The Net Sales of the Nokia Company is shown in the graph from the 2000 to 2018. The highest sales of the Nokia are in 2008 whereas in 2014 the Net Sales are very low.

External Analysis

Opportunities for Nokia

Nokia expands the business by introducing new smart phones which have more features compare with other competitors’ smart phones. Nokia makes Acquisition with other corporation of telecommunication or electronics. The company can introduce more compatible products if it has a strong research and development department.

Threats for Nokia

Strong competition in the industry of telecommunication. Worldwide changes in economic factors are also the threat to Nokia. High range of competitors with strong Market value.

Competition

The rate of competition of Nokia with other companies is high now in the market. Many companies offer the high-quality products which customers purchase with full satisfaction. The competitors of the Nokia are:

Apple
Oppo
Panasonic
Lenovo
Vivo
Samsung
Sony
Redmi

These all are the companies which compete with Nokia in electrical appliances and mobile phones.

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“Rise and fall of Nokia Corporation” Harvard Case Solution & Analysis