TECHNICAL FEASIBILITY

MATERIALS
About 65-80% of material content can be recycled and reused .Also, the recyclers recovers energy by
using plastic as a fuel. This raise total recovery rate up to 90 percent. Metals contained in the mobile
phone can also be successfully recycled.

INGREDIENTS USED
BATTERY 22%
METALS 26%
GLASS AND CERAMICS 7%
PLASTICS 44%
OTHER MATERIALS 1%

PACKAGING
It is important because it protects the products as they make their way from factory till the end user.
Nokia has attractive, good and secure packaging. During 2007, 15000 tons of material has been saved by
using smaller packaging and company has also started to increase level of recycled content.

SUPPLY CHAIN
The supply chain of nokia is quite effective and target different types of customer segments as shown
with the help of figure below
 Figure 1 SUPPLY CHAIN

TECHNOLOGY
Nokia uses latest technology especially in its flagship models like use of latest snapdragon processors
(snapdragon 845),full vision displays with full hd resolution, sufficiently large ram and internal storage,
sony camera lens, latest android software(Oreo).

SWOT ANALYSIS

STRENGTH
 Has a established and trusted brand name.
 Products are available in all price range.
 Good availability of products at online and offline stores.
 South Korean country image is better in electronic hardware as compared to its Chinese
competitor like mi.

WEAKNESS
 Very late to enter android market.
 Could not retain its initial large customer network.
 Get updates later than competitors like google’s own phone(pixel).
  Lags behind apple and Samsung when it comes to innovation in the flagship phones.

OPPORTUNITIES
 Can come up a distinct product by reviving its windows phones as it had tie up with Microsoft.
 Bring in some new features.
 Launch good product specifically targeting middle income group people as well as providing
latest technological innovations in its flagship.

THREATS
 Strong competition from other smart phone companies in every segment, in mid segment by Mi,
Huawei, asus, Samsung and in flagship segment by Samsung, apple and one plus.
 Could not retain its large customer network which shifted to other brands so its difficult to bring
them back with the presence of other smart phone companies.

FINANCIAL FEASIBILITY
The net sales of the nokia year wise has been shown in the figure below

Figure 2: sales
From the income statement of the company the 2017

Year Sales Profit before tax Profit EPS

2017 23147 510 1458 0.26
2016 23641 1369 927 0.13
2015 12560 1540 2468 0.32
BREAK EVEN POINT
Total sales for 2017 = 23147 Total sales for 2016 = 23641

PBT =510 PBT = 1369

Total cost =Sales - PBT= 22637 Total cost 2016 = 22272

Variable cost for 2017 = (delta of total cost/delta of sales)*sales of 2017 = 365/494* 23147 =17102.54

Fixed cost 2017 = Total cost – variable cost = 22637-17102.54 = 5534.45

The breakeven point will be calculated by dividing total fixed cost by difference between price per unit
and variable cost per unit.