A project report
On
The Success Strategy of NOKIA
Submitted
By
Roshni, MBA, Scholar Id –
Isha, MBA, Scholar Id –
Rihana, MBA, Scholar Id –
Yogesh, MBA, Scholar Id –
Rinky, MBA, Scholar Id –
Madhurjya, MBA, Scholar Id –
Submitted to
Prof. Dr. Rama Koteswara Rao Kondasani
Assitant Professor, Department of Management
Studies
NIT Silchar
Department of Management Studies
National Institute of Technology, Silchar
NIT Road, Fakiratilla, Silchar, Assam, 788010
Introduction:
.
Company Overview
Nokia is a Finnish multination who works in telecommunications,
information technology, and consumer electronics. Founded back
in 1865, Nokia operates over 150 years.
Early Years
Nokia started its journey as a paper mill before gradually
expanding and launching their own lines in rubber and electronic
items. From the 1960s onwards, Nokia began emphasizing more
on telecommunication and electronics.
Rise to Prominence
Nokia experienced its big break during the 1980s when they started
launching mobile phones, their first being the Mobira Senator.
Thanks to their unique style, high quality, and advanced
technology, it became a household item around the globe.
Golden Years
Starting from the late 90s till the early 2000s, Nokia completely
monopolized the telephonic market with their popularised devices
such as the Nokia 3310 and Nokia 8110.
Challenges and Transformation
With strong competitions from Apple and Samsung in
smartphones, Nokia suffered severely in their market share. They
sold their Devices & Services section to Microsoft in 2014 and
have since concentrated on their network infrastructure.
The business model of NOKIA
1. Introduction
- Brief history: Established in 1865, transformed from a pulp mill
to telecom leader.
- Current focus: Telecommunications infrastructure, 5G, and
digital services.
2. Business Model Overview (Using Business Model Canvas)
3. Key Partners
- Telecom operators (AT&T, Vodafone, etc.)
- Governments & regulatory authorities
- Technology partners (Google Cloud, Microsoft Azure)
- Suppliers and manufacturers
- Research institutions (for innovation)
4. Key Activities
- Research & Development (heavy emphasis on 5G/6G)
- Manufacturing telecom equipment
- Licensing intellectual property & patents
- Network solution software development
- Customer service and support
5. Key Resources
- Robust patent portfolio (mobile technologies, 5G)
- Brand name & legacy
- Talented human capital (researchers, engineers)
- International network and infrastructure
6. Value Propositions
- Next-generation 5G and future-proof network solutions
- High security and dependable telecom infrastructure
- Licensing of leading-edge mobile technology patents
- Sustainability and green technology emphasis
7. Customer Segments
- Telecom operators (B2B)
- Businesses (private networks, IoT)
- Governments (public safety networks)
- Tech partners (licensing IP)
8. Channels
- Direct sales teams
- Partner networks & system integrators
- Licensing agreements
- Online platforms and digital services
9. Customer Relationships
- Long-term contracts & partnerships
- Dedicated account management
- Customization and co-development for large clients
- After-sales services and support
10. Revenue Streams
- Sale of telecom equipment (5G base stations, routers)
- Licensing fees from patents/IP
- Software & digital services (cloud solutions, IoT platforms)
- Maintenance and support services
11. Cost Structure
- High R&D investment (more than 20% of revenue in certain
years)
- Manufacturing and supply chain expenses
- Marketing and sales costs
- Personnel and operations expenses
12. Future Strategies
- Developing 5G & investigating 6G technology
- Enhancing enterprise and private network solutions
- Emphasis on sustainability and energy-efficient solutions
- Monetizing patents and digital services
Conclusion
- Nokia has made a successful transition from mobile phones to a
network technology leader.
- It stays ahead by innovating in 5G/6G, software, and digital
services
Why did Nokia Fail?
Once, a renowned leader for the mobile phone industry, Nokia
suffered a setback that was hard to overcome. Some primary
reasons for this failure include strategic blunders, lack of
adaptability, and intense competition.
1. Failure to Keep up With Market Trends: Nokia's constant
refusal to modernize is what lead to their downfall. While
companies like Samsung and Apple started using
touchscreens and compartmentalized operating systems,
Nokia stayed preoccupied with its old Symbian software.
Their refusal to switch to android and not building a
competitive smartphone ecosystem stunted their growth.
2. Inefficient Software Strategy: The iPhones and androids had
no competition when it came to user experience and Symbian
struggled to match those standards. Because the platform was
so complex for developers, innovative apps were non-
existent. By the time Nokia decided to switch to Windows
Phone OS, the competition had already captured a significant
portion of the market.
3. Flawed Leadership Choices: Nokia management paid no
attention to the ‘smartphone’ craze and decided to put all
their faith into their previously established market reputation.
This careless attitude towards innovation kept them hands off
the steering wheel and the company ended up missing a
number of beneficial opportunities.
4. Absence of Ecosystem Apple, iPhone and Google smart
phone ecosystem.
5. Poor Marketing and Branding Strategy
Nokia couldn't compete with iPhones and Androids in positioning
its Windows Phones. The advertising didn't emphasize why
Windows Phones were superior.
Samsung's Android advertisements were more persuasive to
customers.
6. Competition Was Too Strong
While Nokia was learning, Samsung, Apple, and other companies
moved in.
Samsung, however, utilized Android to good effect and inundated
the market with various models. Apple's ecosystem (iPhone, iPad,
Mac) kept customers on board, whereas Nokia had nothing
comparable.
7. Inability to Innovate in Time
Nokia possessed the resources to innovate but acted too late.
It came up with excellent ideas (such as touchscreen phones and
app stores) too late.
When it finally did so, the customers had switched to Apple and
Android.
Success Strategy for Nokia
The business model that worked well for Nokia at his peak years
was the strong investment in R&D, ability to respond to the
market, and great business skills. These were the points that drove
its success.
✅ 1. Strong R&D and Innovation.
Break-through technology: Nokia mobile had powerful hardware
and dependable software since the company poured funds into
research and development (R&D) and manufactured advanced
mobile devices.
Dominating early on: The firm was among the first to embrace
GSM technology, which eventually became the de facto standard
for mobile networks throughout the world.
Focus on end users’ needs: Nokia's phones were sturdy, practical,
had long battery lives, and were easy to use. As a result, they
gained significant popularity across the globe.
📈 2. Brand and Market Expansion.
Global presence: Nokia’s quick intrusion into new markets with
affordable entry-level phones with basic features won over many
customers in parts of Asia, Aftica, and Latin America.
Widely accepted: During its peak, Nokia was a trusted household
name because it focused on quality and reliability.
⚙️3. Supply Chain and Manufacturing Efficiency.
Economies of scale manufacturing: Efficient supply chain
management enabled Nokia to produce devices in bulk at low cost.
4. Collaborations and Carrier Connections
Carrier agreements: By collaborating with telecom providers
worldwide, Nokia expanded the availability of its phones through
service agreements, greatly increasing sales.
In addition to mobile phones, Nokia was a significant player in
telecom infrastructure, offering carriers networks and services.
5. Services and the Software Ecosystem
Symbian OS: The Symbian operating system, which was used by
Nokia's first smartphones, was well-liked for a while because of its
extensive app store and adaptability.
Ovi services: In an effort to establish an ecosystem akin to Apple's
iTunes, Nokia unveiled Ovi, a collection of services that include
music, maps, and app download.
