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Nokia's strategies
Rise and Fall of Nokia case study
Rise and Fall of Nokia case study
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Introduction
Nokia was founded in 1865 as a Paper mill company by Fredrik Idestam who is from Finland. It was located in rural south-western Finland. Idestam teamed up with Leo Mechelin who was eventually the co-founder of Nokia in 1871. It was that same year that the Paper mill company was named Nokia. The name “Nokia” is derived from a river named Nokianvirta which was located near the Paper mill. The Nokianvirta river also got its name from an animal called the “Nokia” (a small mammal related to the weasel). The company expanded to working with latex from trees then processing it into rubber, electricity and cables. In the 1960s Nokia began to diversify from paper products and ventured fully into making electronics. Since 1960, the company started operating in the telecommunication industry and also went on to become the powerhouse in the mobile phone industry. Nokia had its headquarters in Finland and others branches dispersed all over the world. Nokia made the radio phone organization Mobira Oy as a joint wander with Finnish TV creator Salora in 1979, and in 1981 it propelled the Nordic Mobile Telephone (NMT) administration, the world's first global cell system and the first to permit worldwide wandering.
In 1982 Nokia presented the first auto telephone - the Mobira Senator - to the system, and later that same year the Nokia Dx200 - the organization's first computerized phone switch - went into operation.
In 1984, Nokia propelled the Mobira Talkman compact auto telephone and in 1987 the Mobira Cityman, the first handheld cellular telephone for NMT systems, was presented.
In 1987, it created its first versatile (despite the fact that at very nearly 1kg in weight, maybe "convenient" might be more precise) telephone, the Mobira ...
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...kia Windows Phone items arrived, the Lumia 800 and 710. In that year, Taiwanese handset maker HTC (which concentrated on Android handsets), surpassed Nokia in business sector esteem. In Q1, 2012, Samsung overwhelmed Nokia as the world's greatest handset producer, transporting 93m telephones, contrasted and just about 83m by Nokia.
In promptly 2012, Nokia had propelled its last Symbian handset, the 808 pure view, a camera phone with a 41-megapixel sensor. Nokia's Symbian operations were later outsourced to Accenture.
Presently, we have the last conclusion: the offer of Nokia's handset business to Microsoft. Both organizations have attempted to make their imprint in the versatile business sector, and IDC says that in Q2, 2013, Android represented 79 for every penny of cell phone shipments, ios 13 for every penny, and Windows Phone simply under four for every penny.
Motorola developed and introduced the 'flip phone' with the MicroTAC and the 'clam phone' with the StarTAC in the mid-90s. The RAZR model gave it unprecedented success selling over a 110 million units, but with the emergence of other players, and grossly over relying on the Razr and its derivatives, it lost significant market share in the
The company expanded in the 1950aê¡?s and 1960aê¡?s and became semiconductor producers for other manufacturers. Motorola also became a global company in the 1960aê¡?s. In the 1970aê¡?s Motorola introduced the companyaê¡?s first microprocessor and a prototype for the worldaê¡?s first commercial portable phone. In the 1980aê¡?s and 1990aê¡?s Motorola provided the worldaê¡?s first computerized engine control, invented the Six Sigma quality improvement process, launched the MicroTac which was then the smallest and lightest cellular phone on the market. In the 21st century Motorola has provided the worldaê¡?s first GPRS cellular system, the worldaê¡?s first wireless cables modem gateway, and the MOTORAZR V3 cellular phone.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
Radio Telephone technology started in 1977 when Motorola, American Radio Telephone, and AT&T were licensed by the FCC to develop a high capacity radio telephone system for shortwave radio bands. In 1978 AT&T began the first radio telephone system test operations in Chicago. The Japenese inaugurated the first commercial cellular telephone system in Tokyo in 1979. In the United States, the Federal Communications commission authorized commercial cell phones in 1982 and the first system was set up by Ameritech in Chicago the following year. AT&T and Motorola followed in 1984 with their own systems in New York and Washington D.C.. The amount of customers and potential customers rapidly expanded and by 1990 there were systems in place, or close to being completed in every market in the United States. As the graph shows the early 1990's gave way to an exponential growth in ownership of cell phones especially as the new digital lighter weight phones became available in 1992.
Manufacturers and service providers of cell phones are located throughout the world, although, as inCode, a wireless business and technology consulting firm, suggests, “Not many wireless carriers today have a truly global presence.” However, the company predicts that “the top 10 wireless carriers are going to make a push for globalization in the coming years” (“InCode releases…”). Most especially, inCode foresees service providers reaching to “unconquered markets like China, which is the fastest growing wireless market in the world” (“InCode releases…”). Some companies have already tapped into the global marketplace, spreading areas of coverage across continents. The cell phone manufacturer Nokia, for example, is rooted in Finland, but sells cellular phone products virtually everywhere on the globe. Service providers, although most often more less expansive in scope, are also trying to provide more global coverage.
flagship Samsung Galaxy S7. The flagship phone was also meant to compete with arch-rival Apple's iPhone
Many of the early cell phones were considered “car phones” because they were extremely bulky and too big to fit into one's pocket. The first mobile phone due to its smaller size would still be considered overly large in today’s world. It was called the Motorola DynaTAC 8000x and arrived on the market in 1983. “You always have the trendsetters who are not afraid of trying new things and then everyone else follows. They were primarily used in the sales and business world, but not often for personal use like you see today” ("Ai InSite"). As technology advanced, companies invented new ways to pack all their customer’s desired features into smaller, portable, and more affordable models. Companies started with a cell phone size as big as a computer and have now created small enough devices to keep in a pocket. They have created bigger screens, built-in cameras, phones with less buttons, and many have touch screens now days. The shape of cell phones have drastically changed over the years.
why Lenovo K80, the top phone on this list was developed, and both phones are believed to be
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
31 years ago since the “DynaTAC 8000X”, the first cellular telephone, was release by Motorola that was created in the Unites States. The DynaTAC 8000X or the “brick” phone is bulky because it is most battery body. Its hardware parts and design’s features a revolutionary “rubber whip” antenna which delivers a perfect reception to users, a vibrant LED display capable of displaying the status of the telephone and the numbers as you press in its 3x4 keypads (Recombu, 2011). From this invention the history of mobile phone we uses today started. The main problem about DynaTAC 8000X wasn’t if function that time but was the form factor of the telephone. It was heavy with 28 ounces or 794 grams and because of that Motorola had a concept, a design that is greatly different to their the world first telephone. The StarTAC was release on 1996. Its design’s feature a clamshell design which make it a small, sleek and stylish phone at that generation. But even before that clamshell design phone and the phone that revolutionize whole phone industry, the first ever touch screen-based cell phone actually debuted, the IBM’s Simon Personal Communicator in 1994. This phone’s hardware features a pressure sensitive black and white screen, a stylus for taking memos and note and even more can send faxes and its design was a clamshell type covering the touch panel with the keypad above it. Even though this product of IBM is quietly similar to the phone we use today it was not considered as smart phone and that recognition was given to Ericssons R380 back in 2000. And then another major design innovation was the SL10 of Siemens which a slide phone. Its design was inspired by touch screen phone with its keypads hidden beneath the screen which can be accessi...
Back in the late 70s and early 80s phones did not have cameras or web browsing or anything like that. They were basically just plastic boxes with wiring inside unlike today’s smartphones with glass touchscreens HD camcorders, video calling, and web capability, but if not for the first cellphone we would not have come so far since then. In 1973 the founder of Motorola Martin Cooper made it easier to call and chat with people and made the worlds first mobile phone. However, it was not approved by the FCC until September 21, 1983, when it became the first commercial portable cellphone. At a cost of $3,995 people thought of this as the future of communication and everyone wanted to get their hands on one though looking back on it now they might have been a little over priced compared to todays modern cellphone prices. We have come a long way since the 70s phones have become more compacted easier to take on the go and today mankind is still coming up with ever newer ways to stay close to ...
The next smartphone to be invented was the Nokia 9110 Communicator in 1998. This phone resembles the look of today's smartphones. The flip-out keyboard sets an example for present-day phones, like smartphones that utilize sliding keyboards.... ... middle of paper ...
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.
Microsoft wasted almost 8 billion for Nokia’s mobile business. The deal was handled under the