Nokia

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Business

School

University of Sunderland

Course

PGBM 16

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Case Study 1

Student Name

12/23/2020

Nokia Case Study

Case Study 2

1. Using the information in of the case study, and relevant data/information from

company annual reports critically evaluate the nature of the competitive

landscape of Nokia faced from its most relevant competitors. Discuss the extent to

which you believe that industry dynamics had a significant impact on Nokia's

profitability. Explain using relevant analytical tools like, PESTLE, and Porter's

five forces and any other relevant analytical tools

Nokia, a renowned name in the mobile phone industry had the largest market share.

However, it started facing a downfall. In October 2011, Nokia launched its first

smartphone. It was named as Lumia 800. Nokia had launched the new smartphone after it

joined its hands with Microsoft (Nokia-Microsoft alliance: Joining forces in the smartphone

wars, 2011). This was a response to Apple’s IOS and Google’s Android software, which

had started gaining market share after 2007. Nokia was one of the leading brands.

According to Exhibit 3 of the case study, the total mobile phone sales in 2010 was 352.6

million units all over the world. The share of total mobile phone sales was 32%. On the

contrary, the total smartphone sales in 2010 were 100.3 million units out of 352.6 million

units and the market share that smartphones had was 36% (Nokia-Microsoft alliance:

Joining forces in the smartphone wars, 2011). There was a huge decline in the sales of

Nokia’s mobile phones. Lack of innovation and the will to adapt and welcome change

caused problems for Nokia. If we look at the profit margins of Nokia in 2006, they were

€4,366 million; however, in 2010 they were reduced to €1,343 million (Nokia-Microsoft

alliance: Joining forces in the smartphone wars, 2011). The income statement of Nokia

shows the decline in the gross profit margins. Moving ahead to exhibit 4. Exhibit 4 shows

the market share of mobile operating systems (OS) for the third quarter. From the exhibit,

it can be seen that Android had capitalized the entire market as it had a share of above 50%

i.e. 53%. This was book android was sponsored by Google and it had looked forward to

innovating itself. Google saw Apple as its competitor and started making efforts to target

the market share. It relied on its innovation and its faith in the products. Moving ahead, we

can observe that the Symbian operating system had the second-highest market share i.e.

17%. Apple had a market share of 15%. It was relatively low in 2011. However, Apple

knew that they can attract the market and kept bringing innovation into their products.

Blackberry’s operating system had a market share of 11%. Windows Phone had a market

share of 3%. In the third quarter of 2011, Windows's market share was 3% only. It was not

known widely to the market. Bada had a 2% market share and 1% was shared by other

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Case Study 1 Student Name 12/23/2020 Nokia Case Study Case Study 2 1. Using the information in of the case study, and relevant data/information from company annual reports critically evaluate the nature of the competitive landscape of Nokia faced from its most relevant competitors. Discuss the extent to which you believe that industry dynamics had a significant impact on Nokia's profitability. Explain using relevant analytical tools like, PESTLE, and Porter's five forces and any other relevant analytical tools Nokia, a renowned name in the mobile phone industry had the largest market share. However, it started facing a downfall. In October 2011, Nokia launched its first smartphone. It was named as Lumia 800. Nokia had launched the new smartphone after it joined its hands with Microsoft (Nokia-Microsoft alliance: Joining forces in the smartphone wars, 2011). This was a response to Apple’s IOS and Google’s Android software, which had started gaining market share after 2007. Nokia was one of the leading brands. According to Exhibit 3 of the case study, the total mobile phone sales in 2010 was 352.6 million units all over the world. The share of total mobile phone sales was 32%. On the contrary, the total smartphone sales in 2010 were 100.3 million units out of 352.6 million units and the market share that smartphones had was 36% (Nokia-Microsoft alliance: Joining forces in the smartphone wars, 2011). There was a huge decline in the sales of Nokia’s mobile phones. Lac ...
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Tags: pestle nokia Analytical Tools Competitive Landscape smartphone wars