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Nokia Lumia Final_07oct1

Date post: 03-Apr-2018
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  • 7/28/2019 Nokia Lumia Final_07oct1


    Presented by

    Shobha PanickerJaspreet BhagtanaSushil Kumar SapateMahesh Gaikwad

    Gunaranjan Menon

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    Nokia is a Finnish Multinational communications mobilemanufacturer whose headquarters is based in Finland.

    Nokia has around 122,000 employees across 120 countries,sales in more than 150 countries and annual revenues of around

    38 billion.

    Nokia is a public limited-liability company listed on the Helsinki,Frankfurt, and New York stock exchanges

    Nokia was the world's largest vendor of mobile phones from1998 to 2012

    Entered into a Strategic Alliance with Microsoft in Feb 2011 toprovide a new Operating system as Microsoft Windows whichwas incorporated in the Smartphones.

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    On 11 February 2011, Nokia announced a partnership with Microsoftwhere all future Nokia smart phones will be powered by the WindowsPhone 7 (WP7) announced it would replace Symbian and MeeGo withWindows Phone 7.

    Decline in the stock price by 11%

    July 2010, drop in profits by 40%, which turned into an operatingloss of EUR 487 million in Q2 2011 On 26 October 2011.

    Nokia unveiled its first WP7.5 powered handsets Lumia 710 and 800

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    Reduce spending on research and development, instead refocusingon customizing and enhancing the software line for Windows Phone7.

    Nokia`s "applications and content store" (Ovi) will be integrated intothe Windows Phone Marketplace, while Nokia Maps will be at theheart of Microsoft`s Bing and AdCenter.

    Microsoft will provide developer tools to Nokia, to replace the Qtframework which will not be supported by Windows Phone 7 devices

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    Unveiled its First Windows Phone handsets : Lumia 710 & Lumia800

    Nokia reported "well above 1 million" sales for its Lumia line upto January 26, 2012

    Lumia 800 was the flagship Windows Phone device when Nokiaannounced that it would move from its original Symbianoperating system to Windows Phone, and the larger 900 offers abigger screen and faster speeds on American 4Gnetworks.

    Running on the latest version of Windows Phone 7.5, Lumia

    comes preloaded with Nokia's suite of experiences includingNokia Maps, Nokia Drive and Nokia Transport in addition to over1,00,000 apps to choose from on the Windows marketplace, thebuilt-in Microsoft Office app and Xbox Live

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    Microsoft is trying to position this phone as an androidreplacement

    No fragmentation : Tight control on hardware

    Hardware has all best features of iPhone / Android

    Operating system is equally good

    But is it enough to compete?

    Smart phone ecosystem has changed while Microsoft was on along vacation A phone is only as good as the apps I can run on it

    Users have seen that apps extend the power of the phone and wantmore and more

    Biggest challenge for Nokia, Microsoft :How to match all the great apps in iTunes Store / Android Market / OVIStore etc ??

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    Sony Ericsson, HP, Dell

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    According to the study by International Data Corporation (IDC), thelatest Q3 for 2012 numbers are :

    Android has a 68% market share dominance.

    Apples iOS comes in at second place globally with a mere 17%.

    After Google and Apple, RIMs BlackBerry comes in at 4.8%,

    Symbian at 4.4%

    Microsofts Windows Phone is in last place at at 3.5%.

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    Get latest updates from social media channels

    People Hub pulls contact info from sim card, facebook, Twitter,email accounts, etc.

    Groups: easy to organize work, family and friends Pin a person or group to front screen and get Live Tile updates

    All SMS and other Chat communications linked in one thread

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    Marketplace hosts all apps, games, etc.

    Collect achievements and play with friends from XBOX Live ID.

    Unique 3D avatar for Gamer Profile

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    Word, Excel, Powerpoint and One Note in Microsoft Office.

    Sync with SkyDrive and Sharepoint to access edits on any device.

    Google Mail, Outlook, Nokia Mail and Yahoo Mail supported.

    Mail Live Tile shows incoming messages

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    Internet Explorer 9 and HTML 5

    Text, email and social networks linked with IE for easy sharing

    Voice Recognition

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    Nokia Drive supported across 95 countries Nokia Drive provides turn-by-turn navigation

    Real-time GPS means accurate speed and distance covered

    Free Nokia Maps gives smart routes for walking, driving and publictransportation

    Find places to see, eat and local highlights with a 3G or wi-ficonnection

    Review where you visit and share across social networks

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    1. Regain Market Share

    2. Rebuild brand equity

    3. Target Youth

    4. Maintain Hold in Rural India5. Attract Customers to new technology

    6. Enhance Distribution

    7. Maximize our revenues

    8. Re-bridge Customers Loyalty

    9. Change current App-stores positioning.

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    Current Target Market:The profile for Nokia customer consists of the following

    geographic and demographic.

    Geographic:a. the immediate geographic target is youth of India.

    b. Office goers in metros.c. The total targeted population is estimated at 100 million.

    Demographic:a. Male and female.b. Ages 16-25/25-50, this is the segment that makes up 80% of theNokia mobile phone market according to the NOKIA India Ltd.c. Professionals and College students.

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    Immediate Actions- NewNokia Lumia 610, the most affordable Lumia, an ideal introduction to

    Windows Phone- Award-winningNokia Lumia 900being made available in various markets.-Nokia PureViewelevates industry standard in Smartphone imaging-New Ashafeature phones and services grow increasingly 'smarter'

    The new strategy will be the adoption of Windows 8 Phone as Nokia's primarySmartphone platform, major changes to its feature phones, and additionalemphasis on location-based services with the launch of its Location & Commercebusiness.

    Lumia portfolio extends, availability expands :Nokia has to extend the range of products with Windows Phone by introducingthe Nokia Lumia 610, the most affordable Lumia yet, as well as targetingavailability of the widely acclaimed Lumia 900 to additional markets.

    Aimed at young people who want an affordable introduction to Lumia andWindows Phone, the Nokia Lumia 610 provides easy access to social networks;web browsing, music, games, navigation and tens of thousands of apps in theWindows Phone Marketplace

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    PRODUCT Produce more sexy smart phones with slim, lightweight and

    fashionable designs to attract customers (e.g. the unique curved all-touch screen of Nokia Lumia 800 & 900).

    Focus on extending the Nokia App store which was earlier knows as

    OVI store (including music, games, apps, map etc) with theassistance of partner Microsoft and its advantages (e.g. officeapplication)

    Design more series of smart phones so that customers will havemany choices based on their ages, characteristics and hobbies

    The average age of people in India is around 40. Therefore, it is a

    suitable market to put up for sale business smart phones such asNokia E7, Nokia Lumia900 + 800 and Nokia 701, Nokia Asha.

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    Attach value-added Services to differentiate the companys offers aswell as support higher Prices (rather than cutting prices to matchcompetitors).

    Offering reasonable quality and good service at a fair price, discountfor customers in some special event (e.g. Diwali)

    Reduce prices for customers buying a new product when they giveback an old one, encourage them to buy products as well as protectthe environment.

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    Center on expanding current branches in potential markets (e.g.Mumbai as it get the fastest 3G mobile broadband speed inIndia with an average of 3.86Mbps, according to newresearch)

    Focus more on selling products directly to consumers via thewebsites to save distribution and labor cost

    Franchising in some places that appropriate and convenient for thecustomer to come and buy the products (e.g. near the shoppingcenters, famous sight-seeing, high living standard areas).

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    PROMOTION Associate with major providers in India like Vodafone, Airtel,

    Docomo, which have all launched 3G services.

    Advertise new products on the media (official website, televisions,newspapers, magazines) and Microsofts products.

    Sign advertising contract with famous Cricket clubs in India (e.g.Mumbai Indians, Chennai Superkings)

    Create advertising videos and images outdoor (in public transportlike buses, tubes, trains or in the cinemas) to attract customers.

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    Great phone designing capability and great product quality reputation.

    Great price point coverage.(Very low to Very High)

    Supply chain and distribution experience.

    Strategic Alliance with Microsoft will be a key to define success


    Poor marketing skills. (excluding few markets like India)

    Could not use its global presence to create a viable ecosystem.

    Not able to leverage production and software knowledge to create otherproduct families (Camera and Tablets could have a natural choice) Poorcompetitor and market analysis. (Apples iphone and USA market)

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    Nokia has a great market disruption and it has a great chance ofcreating unique winning product category. (Example is iphones ownsmall but disruptive start).

    Windows phone platform has already got all the ingredients for apowerful ecosystem.


    Android ecosystem covers all the bases from low to high-end pricepoints and has a booming ecosystem.

    Apples iphone is still a big threat in high-end market.

    Very bad press coverage and poor image projection by tech media.

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    Mobile Device Sales to End User India







    Share (%)



    Change in


    Share (%)

    Nokia 23 25 2Samsung 14.1 18 3.9

    RIM 12.3 14 1.7

    Micromax 5.8 4 -1.8

    Sony 5.3 5 -0.3





    Smartphone Sales to End User India






    Market Share(%) 2013


    Change in


    Share (%)

    Samsung 40.4 43 2.6

    Nokia 25.5 26.8 1.3

    Apple 3.2 4 0.8

    Sony 7 5 -2

    HTC 2.7 3 0.3

    RIM 11 12.3 4

    Others 10.2 5.9 -2.4

    Total 100 100

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    The figure of $250 million for Q1 is the same as the amount Nokiareceived for platform support in Q4 2011. This means Microsofthas paid $500 million over two quarters.

    Nokia shipped approximately three million Windows Phone devices.The average cost to Microsoft to acquire a Nokia Windows Phoneuser is therefore $167 per user. This is down from$250/user in thelast quarter.

    For the first two quarters iPhone and Lumia have sold at roughparity.] iPhone sold 1.4 million in its first quarter (including openingweekend sales of 270k in previous quarter) while Nokia sold

    approximately one million Lumias in its first quarter. In the second quarter Nokia cited 2 million Lumia units and Apple

    had 2.3 million iPhone sold in Q4 07. So far Lumia is slightly underthe iPhone ramp, but lets give it the benefit of doubt.

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    To maintain a healthy, successful and efficient environment, Nokiacollaborates with its employees under the main goal to create anenvironment for all its employees where they can fulfill theirpotential.

    Nokia rewards its employees for good performance, competencedevelopment, and company success rewarding higher performanceand contribution with higher.

    Nokia does not accept CVs, profiles, biographies, or resumes of anykind from recruitment agencies or 3rd party suppliers outside of our

    approved or preferred supplier lists/agreements.

    Nokia accepts no responsibility or financial liability for any feesrelated to unsolicited resumes.

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    Fundamental to our success is the "Nokia Way" for all our people.The Nokia Way is a philosophy of attracting and retaining only thebest people and maintaining continuous renewal.

    Nokia Way and Values: fact-based management/value-basedleadership, code of conduct, equal opportunities, diversity, internalcommunications and feedback channels.

    Extensive performance-based rewarding: base pay, equity-basedinstruments, comprehensive incentive system through Nokia"Connecting People" bonuses and individual, team andproject/program incentive payments.

    Our executive compensation programs have been designed toattract, retain and motivate talented executive officers that driveNokias success and industry leadership worldwide.

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    Continuous learning provides employees with the opportunity todevelop them and stay technologically current. Employees areencouraged to share experiences, take risks and learn together.

    At Nokia, continuous learning means that employees support eachothers growth, developing and improving relationships through theexchange and development of ideas.

    Most of the programs involve strategic projects (action learning) thatparticipants are responsible for completing given to them byTraining and Development Team.

    Nokia`s top management is committed to continuous learning whohire experts to actively participate throughout the programme whoare also known as designers of program content.

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    Nokia Lumia being a good Smartphone had not been the pick forcustomers.

    Nokia needs to wait till their new plans and strategies work.

    Since Nokia is eager to retain its Leadership in the market they will

    need to be innovative with their future products.

    If Windows Phone fails to help turn Nokia around, it has to adoptAndroid Platform.

    The Lumia series is a perfect example of what the companysindustrial design team is capable of building, hence Nokia shoulduse Android as their OS. Nokias problem was its software Symbian,which was outclassed by Android and iOS

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    Main priority should be to increase market share and fight offcompetitions from Samsung, Apple, HTC & other smartphonemakers.

    Nokia needs to reinvent, reposition itself as a serious OS, design andinnovation developer as in it did withN97.

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    www.wikipedia.org www.compareindia.com



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