CURRENT Issues in Nokia

and The FUTURE

Group: 7

Rishabh Rastogi (H047)

Karan Rathi (H048)
Ramnath Prabhu (H043)
Deepanshu Sharma (H053)
Anant Katyayni (G039)
Dheeraj Kapoor (D028)
I have learned that we are standing on a burning platform.

And, we have more than one explosion - we have multiple points

of scorching heat that are fueling a blazing fire around us.
Why did we fall behind when the world around us evolved?
Some of it has been due to our attitude inside NOKIA. I believe we
have lacked accountability and leadership to align and direct the
company through these disruptive times. We haven’t been
delivering innovations fast enough.

- Stephen Elop
The Myopia
Rejecting Android as a software
platform.
Investing recourses into R&D of
Symbian.
“Burning cash” over a dying
product.
Lumia’s Un-upgradable OS
Launching a series of “Jumbled”
smartphone offerings.
The Media
“But a closer examination of how the press has treated Nokia shows that they have
been extremely critical about Nokia and how Nokia has been doing business.

At the same time, these same people have had an opinion about Apple and the
iPhone and there is no doubt that the attention the iPhone has received from the
press has been much more positive, despite Apple still being a marginal market
player in a global perspective. For some reason, a great deal of the global press
corps have simply been totally uncritical about Apple and the iPhone market.”

--(an excerpt from research paper) Strand Consult

 Nokia’s deal with Microsoft
Some quick facts:
✓ Deal happened in 2013
✓ MS to acquire Nokia’s phone making unit+ patents.
✓ Deal was valued at $7.2 Bn
✓ MS wanted to expand its Windows Phone Ecosystem
✓ Increasing its Phone Market Share
✓ Deal will be split into $5 bn for Phone Making Unit and Rest $2.2
for Patents
✓ About 40K employees will be joining MS
✓ Stephen Elop will head this new Phone Making Unit
✓ Nokia will give MS a 10 year license on its patents
✓ Nokia shareholders to decide on this deal
✓ MS to build a datacentre in Finland. It will cost about $750 mn.
 Issues in windows phone

Apps:
✓Its a great phone but no apps.
✓Partially true . About 75%-80% apps of iOS/Android
✓Perception from Symbian OS
✓Windows Phone 7 – the first Window Phone OS in 2010
Marketing Problem:
✓Large portion of sales happens from Mobile Retail Stores.
✓No Pulls from consumers + No Push from Stores
✓Availability of devices at certain stores.
✓An average customer with no preference will walk out with
Apple/Samsung.
 Platform Positioning:
✓Windows OS is simple to use, Catchy GUI
✓Issues in background updates when screen off(Windows Phone 7).
✓Issues solved in WP8 but still manually enable WiFi
✓Issues in Notifications as well.
✓SmartPhones user’s frustation.

Pricing and Halo Effect:

✓Windows Phone built on non-expensive hardware. Had a chance to
catch on mid-range markets. Still they couldn’t do it. Except- Lumia 520
in India.
✓Nokia N95 – N Series. E71 – E Series. iPhones.
✓Androd’s S3,S4.
✓Windows Phone lacked such halo devices.
 Customer:
✓Lack of Awareness amongst customers
✓Neglect from smartphone users of Andriod/iOS.
✓Twice he thinks before the purchase.

Google:
✓The most ubiquitous name.
✓Gmail, Google Now, Chrome, Analytics, AdSense, Drive, YouTube,
Maps, Calendar, Google+. A vast ecosystem. Microsoft’s ecosystem
is relatively less talked. (Outlook, Bing, Skydrive).
✓A big competitor to take on.
Future

Nokia is now concentrating on its three

remaining businesses after its deal with
Microsoft in 2013.
The Networks unit,
The Here Mapping subsidiary, and
The Technologies business.
Nokia went through years of ‘difficult change’
Nokia experiences its first period of year on
year growth in 2014 after continuous decline
since 2011.
Networks

Networks would lead an era of growth change at Nokia

Currently dominated by Nokia, Huawei and Ericsson
Increased spending on 4G to offset declines in older
networks
Rise of Internet of Things to help bolster networks
Other nascent technologies on the radar include 5G,
cloud radio access networks, intelligent antennas and
small cells
HERE Mapping

Application of Kaizen and Lean to improve

operational efficiency
Addition of fleet and smart asset management
products onto its existing enterprise automotive
products
Reliance on partners like Yahoo, Amazon and
Microsoft to take its consumer mapping offerings
to the end users (B2B2C strategy)
HERE expected to grow after a period of flat sales
and break-even results
Technologies

This is the patents and licensing business of Nokia

Licensing to remain a priority
Upping royalty payments as existing licensing deals expire
Striking patent licensing deals with big handset manufacturers
Opening discussions with mid and low-tier device companies, as
well as non-phone related hardware businesses, including those
making set-top boxes and digital cameras
Nokia brand would return to the consumer world through
licensing deals in the longer term