2. Q1: How Nokia Microsoft alliance will recapture market share.
Q1
Source: Compiled from “ worldwide smartphone 2011-2015
2
forecast & analysis” IDC
3. BRAND REBUILDING
• Nokia have to rebuild its image as the
country's most popular smartphone
NOKIA make and even though it will take some
work, the Lumias have helped its cause a
Connecting little.
People . • According to a report conducted by the
Economic Times, Nokia is currently the
most exciting youth brand in India
followed by Coca Cola and 7Up.
• The main things a customer needs to
consider when thinking about a
refurbished mobile phone, then, are
quality, warranty and price.
NOKIA Connecting People 3
4. CRITICAL SUCCESS
FACTOR
Development of
competitive product
Technology Customer Support
Investment on R&D Product information
Patent After sale support
NOKIA Connecting People 4
5. Analysis of New Strategies implemented by Stephen Elop
Strengths Weaknesses
SWOT Scale of operations
Acquisitions to drive
Market share losses
Ineffective R&D
ANALYSIS organic growth investments
Opportunities Threats
Smartphone market Tough competitive
Feature phones will landscape
continue to have Margins will be impacted
relevance in short to as the average
medium term price of devices decline
Rapid technological
changes and short life
cycles
NOKIA Connecting People 5
6. NOKIA’S NEW MISSION
Taking New • Globally accountable
Guard: business units.
STEPHEN
• Local empowerment.
ELOP
• Revised services mission.
• Performance based culture.
• Simplified decision making.
Source: compiled from “The Architecture of a company being rebuilt from within”
The Financial Times, April 14, 2011, Via Factiva.
NOKIA Connecting People 6
7. THREATS FROM NEW ENTRANTS
Patents, Rights
Porter’s 5 Brand Building
Absolute Cost Advantage
Force
Model
BARGAINING POWER OF
COMPETITIVE RIVALRY
BARGAINING POWER OF CUSTOMER
SUPPLIER Google Inc.
Bargaining Leverage
Apple Inc.
Suppliers Switching Cost Price Sensitivity
Diversity in Industry
Supplier To Firm Ratio Substitute
Intensive Advertising
THREATS OF SUBSTITUTE
Relative Cost Performance
Buyers Tendency Towards Substitute
White-Box Industry
7
NOKIA Connecting People
8. Three Prong Approach to make Nokia
& Microsoft alliance a Success
• Customer
perceptions
• Operating
efficiencies
/economies of
Scale
• Structure
NOKIA Connecting People 8
9. How right is Nokia in choosing
Windows over Android
NOKIA Connecting People 9
10. Cons of the Alliance
NOKIA Connecting People 10
11. From Consumer Point
Of View
• The Need for new Ecosystem i.e.
Windows in addition to
iOS, Android makes sense as it will
drive enough competition and
surging innovative developments
thus ultimately benefitting users to
select from a large variety of
options available.
• With Smartphone market set to
grow Nokia has adopted the right
strategy where it avoids being
lagged behind, and also it has got
the time to rebuild Symbian OS for
future.
NOKIA Connecting People 11
