Essay About Nokia Case Study And Nokia Corporation

Nokia Case Study
Nokia Case Study 1
Nokia Case Study
February 27, 2011
Nokia Case Study 2
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).
Nokia Case Study 3
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 19.9% -3.9%
iOS 46,598 15.7% 24,890 14.4% 1.3%
Microsoft 12,378