ABOUT NOKIA :

• In 1871 Fredrik Idestam opened his second

mill on Nokianvirta river which gave the
name Nokia Ab in 1871.
• Nokia began with making paper –
incidentally one of the first communication
technologies.
• In 1898, Eduard Polón founds the Finnish
Rubber Works, which later becomes Nokia’s
rubber business, making everything from
galoshes to tires.
• In 1912, Arvid Wickström sets up the Finnish
Cable Works, the foundation of Nokia’s cable
and electronics business.
• In 1963, starts developing radio telephones
for the army and emergency services –
Nokia’s first foray into telecommunications
• And by 1987, Nokia is the third largest TV
manufacturer in Europe.
RISTO SIILASMAA
Chairman of Nokia

Rajeev Sure
President and
CEO
NOKIA IN NEW AGE:
• In 1992, Nokia launches its first digital handheld GSM phone,
the Nokia 1011.
• In 1994, Nokia launches the 2100 series, the first phones to
feature the Nokia Tune ringtone
• The Nokia 2100 series goes on to sell 20 million phones
worldwide. Nokia’s target was 400,000.
• By 1998, Nokia is the world leader in mobile phones.
• Between 1996 and 2001, Nokia’s turnover increases almost
fivefold from EUR 6.5 billion to EUR 31 billion.
Nokia- The leader in mobile technology
• In 1999, Nokia launches the Nokia 7110, a phone capable of
rudimentary web-based functions, including email.
• Then in November 2001 Nokia launches its first phone with a built-
in camera, the Nokia 7650, and in September 2002 its first video
capture phone, the Nokia 3650.
• In 2002 nokia 6650 is launched with the 3g technology.
• In 2005, Nokia sold its billionth phone – a Nokia 1100 – in Nigeria,
and global mobile phone subscriptions passed 2 billion. Two years
later, Nokia is recognized as the 5th most valued brand in the world.
The tumble down!

First hit when competition started. Second hit when Competitors took over
Competition…

• While it was not totally unexpected, what caught Nokia off-

guard is the rate at which competitors where innovating new
technology.
• Since the launch of the iPhone/Android phones, Nokia failed to
keep up with the industry. While other kept proceeding ahead
aggressively by ‘hook or crook’.
Competition…
• If analyzed through the Technology Lens, Nokia primarily failed
to innovate attractive technology and features.

• For example, though Nokia had touchscreen phones, it did not

attract customers as much as compared to Apple iPhones.

• The software being developed were using old development

models and newer concepts such as User Experience and User
Interface were being neglected.

• Nokia was clinging onto Symbian OS

for too long. It had reached its peak.
Time for Change?
• With the company facing fierce competition, Nokia started
reporting financial losses and started loosing grip on the
market.
• Olli-Pekka Kallasvuo, as President and CEO, saw the company's
rise to become the world's preeminent mobile brand — but
was also at the helm as Nokia fell distantly behind a new wave
of competition.
• He was seen off by the management and he was succeeded
by Stephen Elop on September 21, 2010.
Redrafting Strategies
• In 2011, Nokia joined forces with Microsoft to strengthen its position
in the smartphone market.
• The strategic partnership saw Nokia dump Symbian OS and adopt the
Windows Phone operating system and establish an alternative
ecosystem to rivals iOS and Android. But it was too late.
• Under the leadership of the Stephen Elop, Nokia decided to stick to
only and only Windows OS while Android was a free alternative.
• Nokia launched Windows Phones series dubbed as the Nokia Lumia.
Fast-forward to 2013, Nokia has a full portfolio of great Windows
Phone 8 smartphones, from a 520 through the award-winning Lumia
920 and the ground-breaking Lumia 1020, which enables
photography never seen before in a smartphone.
 Redrafting Strategies
• In September 2013, Nokia announces that it has entered into an
agreement with Microsoft whereby Microsoft would purchase
substantially all Devices & Services, the Nokia business which
makes mobile phones and smartphones.

• Stephen Elop facilitated this

deal and his role in it has been
questionable.
• Though Nokia is now
reporting profits, it had lost its
glory in the market it once
dominated single-handedly.
 Android weakened roots of Nokia?
• In 2008, brands like Samsung, HTC, and Sony found roots to extend
their market.
• Samsung's Android phones are user friendly and budget friendly too.
• When every manufacturer is busy in making touchscreen mobiles,
Nokia felt that touch wouldn't have a scope in the near future but
customers overwrote their expectations.
• Nokia's entrance into Windows platform is quite late
• Finally Nokia gave up for a 7.1 billion to Microsoft.
Wrong decisions.
• While the entire smartphone OS industry was evolving,
manufacturers moved on and adopted various operating
systems like Android, Windows, Bada, Meego, et cetera, Nokia
decided to stick to Windows OS only.
• As Android and iOS became more popular, Nokia and its
windows phones failed to attract any attention.

• Though the new technologies

developed by Nokia were ground
breaking, they were not promising
enough.
Results
• During the 3 years Elop was Nokia CEO, Nokia revenues fell
40%, Nokia profits fell 95%, Nokia market share collapsed in
smartphones from 34% to 3.4%
• Nokia's credit rating went from AAA to junk, Nokia's share
price dropped 60% in value and Nokia's market capitalization
lost a minimum of $13 Billion in value.

• The Financial Times calculated that

Nokia shareholders ended up
paying Elop a bonus of 1 million
Euros for every 1.5 Billion in market
capital that Elop was able to destroy
while Nokia CEO
NOKIA NEW LAUNCH IN 2017

NOKIA 3 NOKIA 3310

Conclusion
• From Technology perspective, Nokia did not deliver as per
expectations based on previous performance
• From the Strategy perspective, though Nokia did eventually
come up with nice lucrative products, it lost in the race against
time due to poor strategies and sly competition.
• From the organizational and people perspective, the new
CEO’s attitude and competency proved to be fatal for the
company.
• The entire Rubik of Organization , people and strategy failed to
deliver for Nokia.