Description
The ppt covers topics like PEST analysis of Nokia, product life cycle of Nokia, SWOT analysis of Nokia E series, nokia C series, nokia N series, nokia X series. It also includes SWOT analysis of Samsung, porter five forces applied to cellular industry.
1950’s Radio PhonesWorldWar 2 1946 – 1st mobile telephone call made from a car
1956 - World’s first partly automatic phone system, Mobile System A (MTA)
1962 - MTB was launched. The weight of the apparatus 10 kg
1971 - MTD version was launched
History of NOKIA
•Nokia started of as a pulp, rubber & cable manufacturing company by Knut Fredrik Idestam
1865
•Finnish Rubber Works acquired Nokia Wood Mills ? Telephone & Telegraph cables
•Nokia Corporation created - 1967 - paper products- car tires- personal computers cables
1967-70 •In 1970, Nokia started taking an active interest in the power & electronics businesses
•1987 - Consumer electronic became Nokia’s major business
1987-91
•1991 - Nokia - agreements to supply GSM networks - nine European countries
•Between 1992 & 1996, the company exited from the rubber and cable businesses
1992 - 97
•August 1997 Nokia - GSM systems to 59 operators in 31 countries
3
History of NOKIA
A leading player in mobile communications all over the world, NOKIA first started operations in the early 1980s
NOKIA Company logo. Founded in Tampere in 1865, logo 1966.
The NOKIA arrows" logo before its Connecting People logo. "Connecting People" slogan, invented by Ove Strandberg.
Finnish Rubber Works Ltd, Helsinki:1898
Mission @ NOKIA
Market Share 2008
History of NOKIA
Political Factors Social Factors– Political Economic • Telecom equipment manufacturing was de-licensed in • No perceived societal impacts to cellular 1991 Economic Factors – industry •Technological manufacturing units to Sriperumbudur, • Nokia shiftedplays a key role in the Economy its Factors– • Chennai in is quite receptive to by drastic in Society 2008 • profitability of the smart phone industry Cellular Industry is marked advances technology wary • Nokia demand for of the labour laws and its political technological smartphones is elastic • The has to be changes • implications (Nokia factory was society has made Rise of the information shut for 2 weeks at • and hence any economic downturn might Innovation and new product launches telecommunications because of employee strike)increasingly more faster rate sales of the smartphones success hamper theare India has made it mandatory for all Social in key attributes forterms of Technological • Govt regulations consumer, both in important to in this industry mobiles and leisure number work to have an IMEI
• SAR (Specific Absorption Rate)
In India Placed here Rs .
Globally Placed Here
Time Product life cycle
In India Nokia is in growth stage because there is still a lot of market share (Rural) which need to be covered. And along with this Nokia being a market leader is trying to sell against various competitors with its continuous innovative products.
?
The below graphs shows nicely how the interest in the respective Nokia product grows over time with adoption and then finally drops back down with new products being introduced
?
In the Explanatory Video it is shown that Nokia 1100 has all the features of normal mobile (Points of Parity) and in addition it is designed specifically for rough Indian conditions and torch (Points of Differentiation)
POP
Nokia is fast catching up with its competitors through 1998 - Saare Jahaan 1995 – First launched 2000 - First phone exclusively mobile phone ‘OVI Store’. The strategy of Nokia is Se Acchha, first call made in India on a with Hindi menu Indian ringtone in a not to be leading applications provider for smart phones, Nokia phone (Nokia 3210) Nokia 5110 but to ensure that its competitors do not gain sufficient competitive advantage through applications.
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2004 - First Wi-fi Phone- Nokia Communicator (N9500)
2003 - First Made for India phone, Nokia 1100
2002 - First Camera phone (Nokia 7650)
Nokia decided to enter open source operating system through Symbian OS in 2009. Further launched Maemo and Meego OS.
2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal
?
Revenues of Indian mobile handset manufacturers grew by 15% to Rs. 33,171 crore in FY 2011.
STP
Segment
Target Group
Low-High end mobile phones market
Serves high to low end phone market
options of Dual-SIM phones with basic functionality using Nokia's brand name to replace Lesser quality, new manufacturers' handsets , Widely spread Service centers
SWOT ANALYSIS
Strength
1. Smartphones with dual SIM capability . 2. Wide range of options - basic to smart phones . 3.Nokia established name and reach . 4. Very large memory card support to low end phones 1. 2. 3. 4. Touch competition from myraid of dual –SIM makers in the low end market . Android phones in the mid high end mobile market . Similar product range with similar features . Declining market share
Positioning Aimed at giving reliable
Weakness
.
Opportunity
1. 2.
Trying to capture the Dual SIM low end phones market by using it’s trusted name . Better servicing .
COMPETITION Competitors 1.Micromax 2.Lava 3.Samsung Guru series 4.Videocon
Threats
1. Competitive pricing has led this phones to face difficulties in this segment 2. Substitute mobile phones with better features
STP Segment Mid-High end Business-cum-Smart phones Business professionals aged 25 - 50 with upper middle class income
serve a dual purpose of entertainment as well as business with it's unique design of fitting in a keypad.
SWOT ANALYSIS Strength
1. Successful E series phones 2.Good quality and features 3.Strong brand name and excellent distribution 1.Symbian 3 OS not accepted by masses 2.All E Series models are similar 3.Declining market share 1.Redeem it's hold in the smart phone market which it has never properly addressed in the past 2.Better advertising and price competitiveness 1.People are more focusing on OS than on brands and Symbian 3 has got bad publicity since launch 2.Low end competitors with similar features at a lower price
Target Group
Weakness
Positioning A device which could
Opportunity
COMPETITION Competitors 1.Blackberry 2.HTC 3.Samsung 4.Apple
Threats
STP
Segment
Medium-High End Smart Multimedia phones
Young Generation from the upper middle class
SWOT ANALYSIS Strength
1.Truly smartphones 2.N-Gage gaming 3.Most phones have Carl-Zeiss Lens 4.Strong Nokia brand name 5.Excellent distribution 1.Bugs due to complicated software/hardware linkage 2.Similar product range 3.Declining market share 2.Innovation in features and OS 1.New smartphones by competitors
Target Group
Positioning A device packed up with
Weakness
all must have features like music, connectivity, photography etc
Opportunity 1.More brand visibility
Threats
COMPETITION Competitors 1. Blackberry 2. Sony Xperia 3. Samsung Galaxy
STP
Segment
Mid-High end Music phones
SWOT ANALYSIS Strength
1.Integrated SNS apps 2. Looks, Large Inbuilt memory, Dedicated Music keys 3.Strong brand name 4.Excellent distribution and availability
Target Group
Young Generation from upper middle class
Weakness
1.some phones lags in the fields of office applications and positioning 2.Declining market share 3.Similar product range
flexibility 2.Better innovation in OS and features
Positioning Phones with access to integrated Social N/w sites COMPETITION Competitors 1.Samsung Galaxy series 2.Samsung Wave series
Opportunity 1.Phones with Touch-n-Type
Threats
1.Other substitute brand with similar features which are less costly
The Made For India advertisement for the Nokia 1100
Comparison of Samsung & Nokia’s Strategy in India
? Customization, eg. 1100 model ? Rural penetration ? Bring extended mobility to enterprises ? Clearly defined objectives and goals ? Right timing of decisions ? Determination and risk taking ? Foreseeing and using rising market opportunities
? Introduction of smart features and handsets of different price ranges ? Nationwide distributor and retail presence in the domestic consumer durables market. ? Samsung has been associated with the Lakme India Fashion Week (LIFW) for its Mobile Phones. ? Set up a handset manufacturing facility in India in 2005.
? Creating the future
Strengths:
Heavy Investment in R&D and Human Resources Innovative Products for High end market Sensitive to consumer wants
Weakness
Lack of Product Differentiation Not User Friendly Designs No focus on niche segment
Threats
Chinese handsets I Phones Economic Crisis
SWOT Analysis of Samsung
Opportunities
Decreasing the price incase of highly sensitive market Differentiate itself in terms of services Offer Product Variation Tie up with Service Providers
Strengths:
Powerful Brand, Design & Technology Effective advertisement & Communication User Friendly
Weakness
Poor after sales service Increasing dissatisfaction levels with its smartphones Not good at software Very weak market share in US
The best distribution
network
SWOT Analysis of Nokia
Opportunities
Huge loyal customer base
Threats
Rapidly changing industry
Huge presence in developing countries Can use its infrastructure business (Nokia Siemens) to reduce the bargaining power of mobile operators
New entrants
Changing Technology
?
Bargaining of Buyers & Sellers
Buyers
Vast choices & limited product differentiation
Sellers
Software Provider ( Moderate ) Hardware Provider ( Moderate )
Relatively low switching cost
Buyer Information & Price Sensitivity Buyer Concentration Impact of Differentiation and degree of importance Threat of forward integration
Porter Five Forces, cont…
• Product difference Threat of new entrants • Brand Identity • Economies of scale • Capital requirement
Power of Substitutes • Other substitutes include PDA, Tablets, smart phones
• Depends on the impact of substitutes
Competit ive rivalry
• Limited product differentiation • Exit barriers to be evaluated in correlation with value chain analysis • Intense Rivalry in the industry
Age Group
Gender
Monthly Income
Profession
After Sales service 6%
Advertisement
2%
Appearance 11%
Price
23%
Brand image 20%
Features 38%
Trends over the year
Market Share 2008
40
41
? ? ? ?
Apple iPhone and subsequent upgrades
Samsung gained market share – Adopting Android OS
LG’s market share increased marginally from 4.5% to 5.9%. Losers include Sony Ericsson (market share fell from 6% to 3%), Motorola (3.5% to 1%), ZTE (5.6% to 1.9%). Micromax has been one of the major winners, from nothing to 4.1% [driven by huge advertising during IPL]. Karbonn’s market share too increased to 3% Not just market share, Nokia is losing mind share too and is desperately looking for 1100 magic !
?
? ?
Decrease in market share
Decrease in brand visibility
Challenges
Increasing presence of new competitors
Strategic alliances of other players
?
?
?
?
?
Strategic partnership with Microsoft Accenture to support Symbian till 2016 A renewed approach to capture volume and value growth Focused investments in next-generation disruptive technologies A new leadership team and organizational structure
46
47
THANK YOU!
48
doc_488339476.pptx
The ppt covers topics like PEST analysis of Nokia, product life cycle of Nokia, SWOT analysis of Nokia E series, nokia C series, nokia N series, nokia X series. It also includes SWOT analysis of Samsung, porter five forces applied to cellular industry.
1950’s Radio PhonesWorldWar 2 1946 – 1st mobile telephone call made from a car
1956 - World’s first partly automatic phone system, Mobile System A (MTA)
1962 - MTB was launched. The weight of the apparatus 10 kg
1971 - MTD version was launched
History of NOKIA
•Nokia started of as a pulp, rubber & cable manufacturing company by Knut Fredrik Idestam
1865
•Finnish Rubber Works acquired Nokia Wood Mills ? Telephone & Telegraph cables
•Nokia Corporation created - 1967 - paper products- car tires- personal computers cables
1967-70 •In 1970, Nokia started taking an active interest in the power & electronics businesses
•1987 - Consumer electronic became Nokia’s major business
1987-91
•1991 - Nokia - agreements to supply GSM networks - nine European countries
•Between 1992 & 1996, the company exited from the rubber and cable businesses
1992 - 97
•August 1997 Nokia - GSM systems to 59 operators in 31 countries
3
History of NOKIA
A leading player in mobile communications all over the world, NOKIA first started operations in the early 1980s
NOKIA Company logo. Founded in Tampere in 1865, logo 1966.
The NOKIA arrows" logo before its Connecting People logo. "Connecting People" slogan, invented by Ove Strandberg.
Finnish Rubber Works Ltd, Helsinki:1898
Mission @ NOKIA
Market Share 2008
History of NOKIA
Political Factors Social Factors– Political Economic • Telecom equipment manufacturing was de-licensed in • No perceived societal impacts to cellular 1991 Economic Factors – industry •Technological manufacturing units to Sriperumbudur, • Nokia shiftedplays a key role in the Economy its Factors– • Chennai in is quite receptive to by drastic in Society 2008 • profitability of the smart phone industry Cellular Industry is marked advances technology wary • Nokia demand for of the labour laws and its political technological smartphones is elastic • The has to be changes • implications (Nokia factory was society has made Rise of the information shut for 2 weeks at • and hence any economic downturn might Innovation and new product launches telecommunications because of employee strike)increasingly more faster rate sales of the smartphones success hamper theare India has made it mandatory for all Social in key attributes forterms of Technological • Govt regulations consumer, both in important to in this industry mobiles and leisure number work to have an IMEI
• SAR (Specific Absorption Rate)
In India Placed here Rs .
Globally Placed Here
Time Product life cycle
In India Nokia is in growth stage because there is still a lot of market share (Rural) which need to be covered. And along with this Nokia being a market leader is trying to sell against various competitors with its continuous innovative products.
?
The below graphs shows nicely how the interest in the respective Nokia product grows over time with adoption and then finally drops back down with new products being introduced
?
In the Explanatory Video it is shown that Nokia 1100 has all the features of normal mobile (Points of Parity) and in addition it is designed specifically for rough Indian conditions and torch (Points of Differentiation)
POP
Nokia is fast catching up with its competitors through 1998 - Saare Jahaan 1995 – First launched 2000 - First phone exclusively mobile phone ‘OVI Store’. The strategy of Nokia is Se Acchha, first call made in India on a with Hindi menu Indian ringtone in a not to be leading applications provider for smart phones, Nokia phone (Nokia 3210) Nokia 5110 but to ensure that its competitors do not gain sufficient competitive advantage through applications.
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2004 - First Wi-fi Phone- Nokia Communicator (N9500)
2003 - First Made for India phone, Nokia 1100
2002 - First Camera phone (Nokia 7650)
Nokia decided to enter open source operating system through Symbian OS in 2009. Further launched Maemo and Meego OS.
2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal
?
Revenues of Indian mobile handset manufacturers grew by 15% to Rs. 33,171 crore in FY 2011.
STP
Segment
Target Group
Low-High end mobile phones market
Serves high to low end phone market
options of Dual-SIM phones with basic functionality using Nokia's brand name to replace Lesser quality, new manufacturers' handsets , Widely spread Service centers
SWOT ANALYSIS
Strength
1. Smartphones with dual SIM capability . 2. Wide range of options - basic to smart phones . 3.Nokia established name and reach . 4. Very large memory card support to low end phones 1. 2. 3. 4. Touch competition from myraid of dual –SIM makers in the low end market . Android phones in the mid high end mobile market . Similar product range with similar features . Declining market share
Positioning Aimed at giving reliable
Weakness
.
Opportunity
1. 2.
Trying to capture the Dual SIM low end phones market by using it’s trusted name . Better servicing .
COMPETITION Competitors 1.Micromax 2.Lava 3.Samsung Guru series 4.Videocon
Threats
1. Competitive pricing has led this phones to face difficulties in this segment 2. Substitute mobile phones with better features
STP Segment Mid-High end Business-cum-Smart phones Business professionals aged 25 - 50 with upper middle class income
serve a dual purpose of entertainment as well as business with it's unique design of fitting in a keypad.
SWOT ANALYSIS Strength
1. Successful E series phones 2.Good quality and features 3.Strong brand name and excellent distribution 1.Symbian 3 OS not accepted by masses 2.All E Series models are similar 3.Declining market share 1.Redeem it's hold in the smart phone market which it has never properly addressed in the past 2.Better advertising and price competitiveness 1.People are more focusing on OS than on brands and Symbian 3 has got bad publicity since launch 2.Low end competitors with similar features at a lower price
Target Group
Weakness
Positioning A device which could
Opportunity
COMPETITION Competitors 1.Blackberry 2.HTC 3.Samsung 4.Apple
Threats
STP
Segment
Medium-High End Smart Multimedia phones
Young Generation from the upper middle class
SWOT ANALYSIS Strength
1.Truly smartphones 2.N-Gage gaming 3.Most phones have Carl-Zeiss Lens 4.Strong Nokia brand name 5.Excellent distribution 1.Bugs due to complicated software/hardware linkage 2.Similar product range 3.Declining market share 2.Innovation in features and OS 1.New smartphones by competitors
Target Group
Positioning A device packed up with
Weakness
all must have features like music, connectivity, photography etc
Opportunity 1.More brand visibility
Threats
COMPETITION Competitors 1. Blackberry 2. Sony Xperia 3. Samsung Galaxy
STP
Segment
Mid-High end Music phones
SWOT ANALYSIS Strength
1.Integrated SNS apps 2. Looks, Large Inbuilt memory, Dedicated Music keys 3.Strong brand name 4.Excellent distribution and availability
Target Group
Young Generation from upper middle class
Weakness
1.some phones lags in the fields of office applications and positioning 2.Declining market share 3.Similar product range
flexibility 2.Better innovation in OS and features
Positioning Phones with access to integrated Social N/w sites COMPETITION Competitors 1.Samsung Galaxy series 2.Samsung Wave series
Opportunity 1.Phones with Touch-n-Type
Threats
1.Other substitute brand with similar features which are less costly
The Made For India advertisement for the Nokia 1100
Comparison of Samsung & Nokia’s Strategy in India
? Customization, eg. 1100 model ? Rural penetration ? Bring extended mobility to enterprises ? Clearly defined objectives and goals ? Right timing of decisions ? Determination and risk taking ? Foreseeing and using rising market opportunities
? Introduction of smart features and handsets of different price ranges ? Nationwide distributor and retail presence in the domestic consumer durables market. ? Samsung has been associated with the Lakme India Fashion Week (LIFW) for its Mobile Phones. ? Set up a handset manufacturing facility in India in 2005.
? Creating the future
Strengths:
Heavy Investment in R&D and Human Resources Innovative Products for High end market Sensitive to consumer wants
Weakness
Lack of Product Differentiation Not User Friendly Designs No focus on niche segment
Threats
Chinese handsets I Phones Economic Crisis
SWOT Analysis of Samsung
Opportunities
Decreasing the price incase of highly sensitive market Differentiate itself in terms of services Offer Product Variation Tie up with Service Providers
Strengths:
Powerful Brand, Design & Technology Effective advertisement & Communication User Friendly
Weakness
Poor after sales service Increasing dissatisfaction levels with its smartphones Not good at software Very weak market share in US
The best distribution
network
SWOT Analysis of Nokia
Opportunities
Huge loyal customer base
Threats
Rapidly changing industry
Huge presence in developing countries Can use its infrastructure business (Nokia Siemens) to reduce the bargaining power of mobile operators
New entrants
Changing Technology
?
Bargaining of Buyers & Sellers
Buyers
Vast choices & limited product differentiation
Sellers
Software Provider ( Moderate ) Hardware Provider ( Moderate )
Relatively low switching cost
Buyer Information & Price Sensitivity Buyer Concentration Impact of Differentiation and degree of importance Threat of forward integration
Porter Five Forces, cont…
• Product difference Threat of new entrants • Brand Identity • Economies of scale • Capital requirement
Power of Substitutes • Other substitutes include PDA, Tablets, smart phones
• Depends on the impact of substitutes
Competit ive rivalry
• Limited product differentiation • Exit barriers to be evaluated in correlation with value chain analysis • Intense Rivalry in the industry
Age Group
Gender
Monthly Income
Profession
After Sales service 6%
Advertisement
2%
Appearance 11%
Price
23%
Brand image 20%
Features 38%
Trends over the year
Market Share 2008
40
41
? ? ? ?
Apple iPhone and subsequent upgrades
Samsung gained market share – Adopting Android OS
LG’s market share increased marginally from 4.5% to 5.9%. Losers include Sony Ericsson (market share fell from 6% to 3%), Motorola (3.5% to 1%), ZTE (5.6% to 1.9%). Micromax has been one of the major winners, from nothing to 4.1% [driven by huge advertising during IPL]. Karbonn’s market share too increased to 3% Not just market share, Nokia is losing mind share too and is desperately looking for 1100 magic !
?
? ?
Decrease in market share
Decrease in brand visibility
Challenges
Increasing presence of new competitors
Strategic alliances of other players
?
?
?
?
?
Strategic partnership with Microsoft Accenture to support Symbian till 2016 A renewed approach to capture volume and value growth Focused investments in next-generation disruptive technologies A new leadership team and organizational structure
46
47
THANK YOU!
48
doc_488339476.pptx