Nokia Case Study
Nokia Case Study
February 27, 2011
I. Introduction
This case study will examine the development and implementation of corporate strategy of the Nokia Corporation. This case study will examine in particular recent events involving Nokia’s cellular phone business.
Nokia is a Finnish company that is the world’s largest manufacturer of mobile devices. In addition, Nokia offers communication services, software, as well as, phone and internet based content. Nokia includes a network management segment called Nokia Siemens Networks which offers network based products and services. This case study will focus primarily on the mobile device market.
II. Porter Five Force Analysis
Rivalry Among Existing Competitors
Nokia has the largest piece of the mobile device market but has seen very strong challenges by RIM’s Blackberry, Apple’s iPhone and a myriad of smartphones running Google’s Android. Nokia’s Symbian operating system is showing its age compared to these newer smartphone offerings. During 2010 Nokia went from 36.6% of the mobile phone market to 27.1%. In the fourth quarter of 2010 Nokia’s Symbian OS was replaced by Android as the most widespread platform (Nagamine, 2011). The top three competitors to Symbian are beginning to take a serious bite of Nokia’s smartphone market share. Table 1 below shows a comparison of 2009 vs. 2010 smartphone OS market sales. Nokia took a big hit to its market dominance to due increased competition from Android and Apple (iOS) sales (Sandstrom, 2011).
Table 1: 2010 smartphone sales by Operating System, units in thousands
|OS |2010 |2010 Mkt Shr |2009 |2009 Mkt Shr |Chg |
|Symbian |111,577 |37.6% |80,878 |46.9% |-9.3% |
|Android |67,225 |22.7% |6,798 |3.9% |18.8% |
|RIM |47,452 |16.0% |34,347
February 27, 2011
I. Introduction
This case study will examine the development and implementation of corporate strategy of the Nokia Corporation. This case study will examine in particular recent events involving Nokia’s cellular phone business.
Nokia is a Finnish company that is the world’s largest manufacturer of mobile devices. In addition, Nokia offers communication services, software, as well as, phone and internet based content. Nokia includes a network management segment called Nokia Siemens Networks which offers network based products and services. This case study will focus primarily on the mobile device market.
II. Porter Five Force Analysis
Rivalry Among Existing Competitors
Nokia has the largest piece of the mobile device market but has seen very strong challenges by RIM’s Blackberry, Apple’s iPhone and a myriad of smartphones running Google’s Android. Nokia’s Symbian operating system is showing its age compared to these newer smartphone offerings. During 2010 Nokia went from 36.6% of the mobile phone market to 27.1%. In the fourth quarter of 2010 Nokia’s Symbian OS was replaced by Android as the most widespread platform (Nagamine, 2011). The top three competitors to Symbian are beginning to take a serious bite of Nokia’s smartphone market share. Table 1 below shows a comparison of 2009 vs. 2010 smartphone OS market sales. Nokia took a big hit to its market dominance to due increased competition from Android and Apple (iOS) sales (Sandstrom, 2011).
Table 1: 2010 smartphone sales by Operating System, units in thousands
|OS |2010 |2010 Mkt Shr |2009 |2009 Mkt Shr |Chg |
|Symbian |111,577 |37.6% |80,878 |46.9% |-9.3% |
|Android |67,225 |22.7% |6,798 |3.9% |18.8% |
|RIM |47,452 |16.0% |34,347
References: Datamonitor: Nokia Corporation. (2010). Nokia Corporation SWOT Analysis, 1-10. Retrieved from EBSCOhost. Doz, Y., & Kosonen, M. (2008). The Dynamics of Strategic Agility: Nokia 's rollercoaster experience. California Management Review, 50(3), 95-118. Retrieved from EBSCOhost. Hernandez, W. (2010). Nokia to Add NFC Chips to Its Phones in 2011. American Banker, 175(95), 11. Retrieved from EBSCOhost. Lawton, C., Lublin, J. S., & Sandtrom, G. (2011, February 10). Nokia, Microsoft talk cellphones. Wall Street Journal - Eastern Edition. pp. B1-B5. Retrieved from EBSCOhost. Parker, A., & Ward, A. (2011, February 25). Downwardly mobile. Financial Times,9. Retrieved February 27, 2011, from ABI/INFORM Global. (Document ID: 2276441441). Sandstrom, G. (2011, February 09). Nokia market share slides - gartner . The Wall Street Journal, Retrieved from http://online.wsj.com/article/BT-CO-20110209-705792.html Sorrel, C Yoshida, J. (2010, February). Symbian lacks 'newborn ' cachet in U.S. market. Electronic Engineering Times,(1576), 4,6. Retrieved February 27, 2011, from ABI/INFORM Trade & Industry. (Document ID: 1994260201).