Evolution of Nokia

18651967

Post
1967

Early
1990s

Start up with Wood Paper mill in Southwestern Finland.

Second mill on the bank of Nokianvirta River, named as Nokia AB.
Finnish Rubber Works founded in 1898.
Finnish Cable Works Ltd founded in 1912.

Introduced first fully-digital local telephone exchange in Europe.

Worlds first car phone for the Nordic Mobile Telephone analog
standard.
Form Nokia Corporation with merger of other subsidiaries.
Five major businesses: rubber, forestry, cable, electronics and
power generation

Took strategic decision to make telecommunication core business.

Diversification of basic industry and non-telecommunications
operations.
Become world leaders in mobile phones.

Evolution Continue..

Post 2006- Current

Acquired Gate5, a mapping software
specialist and NAVTEQ, the US based maker
of digital mapping and navigational
software.
Combined its telecoms infrastructure
operations with Siemens, named as Nokia
Siemens Network.
Joined hand with Microsoft to strengthen its
position in the highly competitive
smartphone market i.e. Windows OS.
Changes to its operations and culture to
shortened development time and improve
product quality and better responsiveness.

Telecommunication sector of Nokia Rising Phase

1960
Production
of Radio
Transmissio
n
Equipment

1982:
Fully Digital
Local
Telephone
Exchange

1991:
First GSM call
with a Nokia
Phone

1998:
World
Leader in
Mobile
Phones,
A position it
enjoyed
more than a
decade

Telecommunication sector of Nokia Declining Phase

2006:
Acquisition of Gate5
a mapping software
Specialist

2007:
Formed a Joint venture with
Siemens and become leading
global provider of
telecommunications
infrastructure 2013:
2011:
1. Purchase of
Siemens stake in
Joint venture with
NSN
Microsoft, to establish
a alternative ecosystem
2. Sale of Nokias
to iOs and Android
Mobile devices
and Services
business to
Microsoft

New Vision and Strategy:

1. Nokia Networks
2. HERE maps
3. Nokia Technologies

What went Wrong?

Failed to match speed of Apple and Samsung in

innovation.
Could not improve software.
Microsoft over Android.

Rise & Fall of Nokia in

Mobile Sector

Rise To The Top

The success of Nokia originated with the Nordic
decision to create the common standard Nordic
Mobile Telephony (NMT).
The European Unions decision to create a
common European standard for mobile telephony
GSM, helped Nokia take its advantage.

Emergence In The Mobile Sector

Nokia's mobile phones got a big publicity boost in
1987, when a Soviet leader was pictured using a
Mobira Cityman to make a call from Helsinki to his
communications minister in Moscow. This led to
the phone's nickname of the "Gorba"
In 1988, The Nokia-Mobira Oy became Nokia
Mobile Phones.
Nokias dominance in the mobile market at the
time was challenged by Motorola who was the
leader was because of its management, capital
structure and smart decisions taken, technological
or operational.

Leading The Market

Increased investments and expanded in China.
Nokia understood that design and being user
friendly was more important than being overengineered.
It provided a wider product line.

THE SMARTHPHONE ERA

Samsung Android OS, iPhone and Blackberry

were flooding the market.
Nokia using Symbain OS had to upgrade.

NOKIA & MICROSOFT PARTENERSHIP

Diversified markets.
Nokia maps integrated with Bing and ad
Centre.
Microsofts development tools to create
applications .
Integrate application store and Marketplace.

EVENTUAL SALE TO MICROSOFT

Microsoft closed a $7billion deal to acquire Nokia.

Owns Nokias Device and Service division, supply
chain, plants, Mapping
Stephen Elop, Ex-CEO of Nokia will head Microsofts
hardware line.
25000 Nokia employees recruited
Few companies skeptical about the merger.

POSSIBLE PROBLEMS WITH THE

MERGER

Will Microsoft keep all 25000 Nokia employees?

Will Lumia phones get updates before other
Windows phone?
Will Microsoft drop Nokia X which runs on Google
OS?

Best Practices
Stylish Design based on cutting edge
technology : Nokia had a highly evolved device design and
manufacturing process. It was their reliable performance and
extreme ease of use that made them huge hits around the
world.

Highly Qualified personnel and Out of Box

Thinking : It introducedSquare phones, models withQwerty
keypads, handsets with circularand swirled keypads, a twisting
phone, transparent modelswith paper faceplates.

Unique production technology, strong technical

strength and perfect quality control system
Strongest distribution network
First-class customer service and Affordable
sets

Worst Practices

Strategy Sticking with the Symbian OS

Workforce and technology

Leadership failure

Failed to Implement Umbrella Branding Strategy

References

http://company.nokia.com/en/about-us/our-company/our-story
http://www.gizmofancy.com/2012/08/nokia-wrong/
http://techcrunch.com/2012/12/31/nokias-long-drawn-out-decline
/
http://www.newyorker.com/business/currency/where-nokia-wentwrong
http://www.hbs.edu/faculty/Pages/item.aspx?num=46041

Thank You