Reasons for Downfall of NOKIA
Suggestions to Improve Market Share
Muhammad Faizan Abuzar
January 14, 2018
January 14, 2018
To: Rajeev Suri, CEO Nokia
From: Muhammad Faizan Abuzar, Marketing
SUBJECT: Reasons for downfall of
NOKIA and suggestions to improve market share
On January 5,
2018, Mr Rajeev Suri asked to submit my recommendations to improve the current
situation of NOKIA after the downfall of it. The report is now finished and
attached to this cover memorandum.
to improve the current situation of Nokia is to change according to the
customer’s requirement. Because if customers are satisfied only then Nokia will
get back to the position where it used to be.
made by me after the intense hard work of past one month. I personally met a
couple of people who used to use Nokia but now they have moved on to some
different companies products. The main reasons I got were very clear. People
want to have more friendly phones they are more conscious about software as
compared to hardware. They want to have Android on their phones. They want more
battery life with quality software. I thank them all who help me to create this
additions questions, I personally want to meet your team for some time if you
have. It will be an honour for me.
I want to thank
you for giving me the opportunity to let me contribute helping the company.
Letter of Transmittal 2
CHAPTER 1: INTRODUCTION.. 5
1.1 About the NOKIA:. 5
1.2 startup of NOKIA:. 5
1.3 Current Situation:. 5
CHAPTER 2: BACKGROUND.. 5
2.1 HISTORY:. 5
2.2 STARTUP IN TELECOM:. 5
CHAPTER 3: RISE OF
3.1 Nordic Mobile
Telephone Network:. 6
3.5 GSM TECHNOLOGY:. 6
OF MOBILE WORLD:. 6
4: DOWNFALL OF NOKIA.. 7
4.2 APPLE IOS ENTRY:. 7
SYMBION MARKET CRASHED:. 7
FAILURE OF LUMIA SERIES:. 7
ACQUIRED By MICROSFT:. 8
5: Suggestions to Improve Market Share. 8
5.1 BE IN THE POWERFUL ECOSYSTEM:. 8
5.2 KEEP AN EYE ON COMPETITORS:. 8
5.3 PROVIDE WHAT CUSTOMERS NEED:. 8
Nokia is a company which produces
mobile phones. It was not started as Nokia but as a paper factory in 1865.
After that, it opened 2 other branches which produced electricity and hydropower.
Then after some time, they all merged into one company named as Nokia which
started producing cellular mobiles phones like Mobira Senator, Mobira talk Man,
Mobira City and other GSM technology mobiles. It also launched its mobiles for
gamers and N series mobiles. In 2001 Nokia was the king of the mobile industry.
In 2008 first version of Android 1.0 was launched and became very popular. All
other mobile companies like Samsung, Sony, and L.G used Android in their
mobiles but Nokia did not use it. Nokia relied on its own operating System
which was known as Symbian. By the end of 2011, there were thousands of Android
app developers and apps but Nokia was there without any progress in its Symbian
OS. Even at that time Nokia did not move to Android and kept to use its own
operating system. People started liking Android more than Symbian, as a result,
there was a very low sale of Nokia handsets in the market and other companies
like Samsung, Sony made their roots strong in this industry. At last CEO of Nokia
had to sell Nokia to Microsoft.
CHAPTER 1: INTRODUCTION
This chapter is going to provide the briefing on Nokia that how it
started and what is current situation of it.
1.1 About the NOKIA:
Nokia is a company which produces mobile phones. It used to have a
name in mobile market so over the top.it produces quality mobiles which were
liked by its users very much and their market sale was high enough.
1.2 startup of NOKIA:
Nokia did not start as Mobile Phone Company but it was started as a
paper factory in 1865 and after some time it opened its 2nd branch
near Nokianvirta River that was the reason they changed their name to Nokia.
This branch produced electricity at that time. They opened their 3rd
branch after some time which worked in hydropower. After some time these three
companies merged to make a new company known as Nokia and started producing
cellular mobiles networks.
1.3 Current Situation:
Currently, Nokia is not in the top sellers but it is trying to come
back. They have now moved to Android Operating System.
This chapter is going to provide the briefing on Nokia’s history
that how it was started and how it moved itself to telecom.
is a company that produces mobile phones but it was not started as a mobile
company it was started in 1865 as a paper factory. After that, it opened 2
other branches which produced electricity and hydropower. Then after, sometime,
they all merged into one. Company named as Nokia which started producing
cellular mobiles phones.
STARTUP IN TELECOM:
As soon as Nokia formed it made its first network known as Nordic
Mobile telephone network. This network joined four cities Denmark, Sweden,
Finland and Norway. After the success of this network Nokia world’s first car
mobile named Mobira Senator which weighed 10kgs. Soon after the success of
Mobira senator, it launched Mobira talkman which was easier to carry as it weighed
only 5kgs. After it, they launched Mobira city man which was only 900g only and
was very popular. By the end of 1996, Nokia
was unstoppable as it already has launched its GSM mobile, 6100 series, 9000
communicator for gamers and n series.
CHAPTER 3: RISE OF NOKIA
This chapter is going to provide the briefing of Nokia that how it
achieved the success and name in the market.
3.1 Nordic Mobile Telephone Network:
Nordic mobile telephone network was specified by Nordic
telecommunications administrations it was opened on October 1st,
1981. It was mainly created to join Denmark, Sweden, Finland and Norway. Its
first phones were designed to be attached on trucks with the keyboard on driver’s
seat. It was a great success but as we know at that time the biggest problem
was the battery life. But still, it was a great project which encouraged Nokia
to go for more.
3.2 MOBIRA SENATOR:
Senator was the first portable mobile phone launched by Nokia. It weighed 10kg.
It looked like a big box with a handle on it. People can carry it from one
location to another one. There was a keypad on its front. The main problem was
3.3 MOBIRA TALK:
Mobira senator in 1984, they launched Mobira Talkman to overcome the problem
faced in the previous mobile that was weight. It weighed only 5kg and was easier
to carry with yourself.
3.4 MOBIRA CITY:
In 1987 Nokia came up
with a new mobile called Mobira Cityman and it was one of the greatest success
by Nokia as they have almost overcome the problem of weight. It was only 760
gram. It was most easy to carry it with you. The real success of Nokia started
just after Mobira Cityman 900.
3.5 GSM TECHNOLOGY:
Nokia 1011 was the first
GSM technology based mobile introduced by Nokia. Its compatible networks are GSM
900. It was sold by the name Mobira Cityman 2000. It had a monochromic LCD and an extendable
antenna. The memory can store 99 phone numbers. The phone was even able to send
and receive SMS.
3.6 N SERIES:
N Series was a great success by Nokia. These mobiles were present between
2005-2012. They used Symbian operating system. They also introduced front and
rare cameras in this series. They were sold without any advertisement their customers
so much relied on Nokia sets as they were very powerful in all aspects.
3.7 KING OF MOBILE
this much success, Nokia became the king of the mobile world till 2008 and have
more than 50% hold on mobile the market no other the mobile can compete this
beast which has grown so much string roots in the industry of modern mobiles.
CHAPTER 4: DOWNFALL OF NOKIA
This chapter is going to provide the briefing that how Nokia lost
their name in the industry and lost the game.
4.1 ANDROID ENTRY:
began to lose the game when Android entered the mobile market. Android was so
easy attractive powerful that no other mobile operating system can defeat it.
It gave opportunities to local people to create and add their applications to Android
play store. In no time there were thousands of Android phone applications
developers and same case with the number of applications. Customers were attracted
very much by Android and started buying the Android phone, on the other hand, Nokia
did not move its mobiles to Android.
4.2 APPLE IOS
Along with Android apple also, started getting fame due to its IOS
which provides the highest security to its customers. Also, it has created its
own ecosystem in which thousands of developers took part and there where a
great no of applications.
the end of 2009, Nokia was not the only company selling mobiles. It got many
strong competitors like Samsung, Sony, Motorola and L.G etc. All the above they
all used Android on their mobiles which attracted people very much. But Nokia
did not change itself and keep using that Symbian operating system.
4.4 SYMBION MARKET
there were thousands of Android and IOS mobile applications developers that
made the Android and IOS strong in the industry on the other side there were
very less Symbian application developers so they have a very low number of
applications. So that was the reason Symbian market crashed badly and there was
the name of Android and IOS everywhere.
4.5 FAILURE OF
the 2011 Nokia realized that Symbian Operating system could not stand anymore
so they thought to build a new ecosystem apart from Android. They contracted
with Microsoft and used their windows in Nokia. But again the problem remains
the same the mobile windows applications developers were not increased as they
expected. Once again they failed to stand in the market with their own
4.5 ACQUIRED By
Elop was the CEO of Nokia in 2012 when he realized that it’s too late to maintain
the company anymore he sold it to Microsoft in 7.2 billion $. At that time Nokia was totally crashed a 50
billion $ worth company was sold only for 7.2 billion dollars.
CHAPTER 5: Suggestions to Improve Market Share
This chapter is going to explain that what steps should be taken to
get back the market share.
5.1 BE IN THE
should not create its own echo system in the current situation. It should go
with the flow of currently working ecosystem of Android. It is not the time to
take any of further risks.
5.2 KEEP AN
EYE ON COMPETITORS:
should keep an eye on its competitors that what they provide to the customers.
Also, they should compare their prices with the prices of their competitors.
5.3 PROVIDE WHAT
should satisfy its customers. It should keep in mind what is the need of
customers. If they keep going using their own operating system regret will be a
must fate of Nokia. It should move on to Android.
Nokia is a
company which produces mobile phones. It was not started as Nokia but as a
paper factory in 1865. After that, it opened 2 other branches which produced
electricity and hydropower. Then after some time, they all merged into one
company named as Nokia which started producing cellular mobiles phones like
Mobira Senator, Mobira talk Man, Mobira City and other GSM technology mobiles.
It also launched its mobiles for gamers and N series mobiles. In 2001 Nokia was
the king of the mobile industry. In 2008 first version of Android 1.0 was
launched and became very popular. All other mobile companies like Samsung,
Sony, and L.G used Android in their mobiles but Nokia did not use it. Nokia
relied on its own operating System which was known as Symbian. By the end of
2011, there were thousands of Android app developers and apps but Nokia was
there without any progress in its Symbian OS. Even at that time Nokia did not
move to Android and kept to use its own operating system. People started liking
Android more than Symbian, as a result, there was a very low sale of Nokia handsets
in the market and other companies like Samsung, Sony made their roots strong in
this industry. At last CEO of Nokia had to sell Nokia to Microsoft.
Accessed 15 January 2018