Nokia and the Global Mobile Phone Industry
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR167
Case Length : 12 Pages
Period : 1999-05
Organization : MG Rover
Pub Date : 2005
Teaching Note : Available
Countries : Global
Industry : Mobile Phone
To download Nokia and the Global Mobile Phone Industry case study (Case Code: BSTR167) click on the button below, and select the case from the list of available cases:
OR
Buy With PayPal
|
Price:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
"We want to be the company that brings this industry to
the next phase. And if we have a little bit of a bump in the road in 2004,
that's immaterial."
- Jorma Ollila, CEO of Nokia, in mid 2004.1
"Nokia didn't have the coolness factor. They didn't really
do flip phones; they were a little late with cameras, and they didn't push them.
Coolness in the consumer space is a big deal, and they were stodgy."
- Jack Gold, vice president of Meta Group, a
Connecticut-based technology consulting firm, in 2005.2
Positive Signs
|
The announcement of Nokia Corporation's (Nokia) quarterly results in April 2005
was a much awaited event as far as the global mobile phone industry was
concerned. The company, which had emerged as an industry leader in the late
1990s, had run into rough weather in 2003-2004, with sales and earnings falling
below expected levels. So much so that when the company announced poor results
in the first quarter of 2004, several analysts declared that it was the
beginning of the end of Nokia's dominance in the industry.
However, Nokia was not ready to throw in the towel quite so easily. The company
put up a tough fight over the second half of 2004 to recapture its lost position
in the market.
|
|
It introduced several new models, modified designs, and aggressively promoted
products with a view to increasing its market share, which had fallen to a
low of around 28 percent in early 2004 from an average of 35 percent over
the previous three years.
|
|
Nokia's efforts started paying off by late 2004. The
company announced satisfactory results for the fourth quarter of 2004
and market share for the year 2004 also stabilized at 32 percent by the
end of the year. Jorma Ollila (Ollila), Nokia's CEO, while acknowledging
that 2004 had been a challenging year, declared that the company was
poised to recover in 2005. Ollila's prediction came true when the
company announced better than expected results for the first quarter of
2005, ending March 31.
In the first quarter of 2005, Nokia's sales increased 17 percent over
the corresponding quarter of the previous year to $9.65 billion. |
Nokia and the Global Mobile Phone Industry
- Next Page>>
|
