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Nokia

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Hitesh Malhotra - Head of Marketing
Hitesh Malhotra - Head of Marketing

Nokia's CEO faces challenges in maintaining the company's leading market position. Nokia plans to use Windows Phone as its platform through a partnership with Microsoft. This may help Nokia regain lost market share by leveraging Microsoft's ecosystem and lower costs compared to developing an in-house system. Nokia also reorganized its structure to speed innovation and better compete against rivals. If Windows Phone can build out an ecosystem and compete with established OSes, it may help Nokia's WP7 phones dominate the smartphone market.

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Nokia CEO’s DilemmaHitesh Malhotra
Nokia Losing Market ShareNokia plans to build a new global mobile ecosystem; Windows Phone would serve as Nokia's platform.
Nokia stock was down 4.1 percent at 6.715 euros by 1429 GMT on a flurry of analyst downgrades
Nokia estimated market share shrunk to 31 percent in the fourth quarter of last year
Nokia has a long product development cycle.
Nokia has renewed an approach to capture volume and value growth to connect “the next billion” to the Internet in developing growth markets
Nokia has focused investments in next-generation disruptive technologies; Meegoand Nokia Research Center
Nokia has a new leadership team and organizational structure with a clear focus on speed, results and accountability
Focused competitors taking market share with: -An entire ecosystem -Several price ranges -Production/InnovationThe new version of Windows Phone OS is still under construction.
Microsoft’s share of the U.S. smartphone platform market dipped 1.7 percent between October 2010 and January 2011, from 9.7 percent to 8.0 percent SituationComplicationKey IssueCan Nokia keep its leading position in the market?Issues Analysis Can Nokia keep its leading position in the market?231Will Nokia benefit from partnership with Microsoft?Can Nokia’s Windows Phone dominate the smart phone market?Can Nokia benefit from reorganizing its corporate structure?3.23.12.11.22.21.11.22.13.1Can Nokia’s partnership with Microsoft increase revenue and market share?Will Microsoft help Nokia regain trust in its investors?Is outsourcing operating system cheaper than developing in-houseIs Windows Phone going to create an ecosystem (as its rivals)?Could Nokia apply the new structure successfully?Can the Windows platform compete with the already established OS?
Work PlanLength of the project
Issues AnalysisNokia can regain its leading position in the market1.Nokia will benefit from the partnership with Microsoft.2.Nokia will benefit from reorganizing its corporate structure.3.Nokia’s WP7 can dominate the smart phone market.
Issues Analysis1. Nokia will benefit from its partnership with Microsoft1.1 Nokia’s partnership with Microsoft will increase revenue and market share1.2 Microsoft will help Nokia regain trust in its investors
1. Nokia will benefit from the partnership with Microsoft1.1 Nokia’s partnership with Microsoft will increase revenue and market share
1. Nokia will benefit from the partnership with Microsoft1.2 Microsoft will help Nokia regain trust in its investors
2. Can Nokia benefit from reorganizing its corporate structure2.1 Outsourcing operating system is cheaper than developing in-house.2.2 Nokia can apply the new structure successfully
2. Can Nokia benefit from reorganizing its corporate structure?2.1 Outsourcing operating system is cheaper than developing in-house

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Nokia

  • 2. Nokia Losing Market ShareNokia plans to build a new global mobile ecosystem; Windows Phone would serve as Nokia's platform.
  • 3. Nokia stock was down 4.1 percent at 6.715 euros by 1429 GMT on a flurry of analyst downgrades
  • 4. Nokia estimated market share shrunk to 31 percent in the fourth quarter of last year
  • 5. Nokia has a long product development cycle.
  • 6. Nokia has renewed an approach to capture volume and value growth to connect “the next billion” to the Internet in developing growth markets
  • 7. Nokia has focused investments in next-generation disruptive technologies; Meegoand Nokia Research Center
  • 8. Nokia has a new leadership team and organizational structure with a clear focus on speed, results and accountability
  • 9. Focused competitors taking market share with: -An entire ecosystem -Several price ranges -Production/InnovationThe new version of Windows Phone OS is still under construction.
  • 10. Microsoft’s share of the U.S. smartphone platform market dipped 1.7 percent between October 2010 and January 2011, from 9.7 percent to 8.0 percent SituationComplicationKey IssueCan Nokia keep its leading position in the market?Issues Analysis Can Nokia keep its leading position in the market?231Will Nokia benefit from partnership with Microsoft?Can Nokia’s Windows Phone dominate the smart phone market?Can Nokia benefit from reorganizing its corporate structure?3.23.12.11.22.21.11.22.13.1Can Nokia’s partnership with Microsoft increase revenue and market share?Will Microsoft help Nokia regain trust in its investors?Is outsourcing operating system cheaper than developing in-houseIs Windows Phone going to create an ecosystem (as its rivals)?Could Nokia apply the new structure successfully?Can the Windows platform compete with the already established OS?
  • 11. Work PlanLength of the project
  • 12. Issues AnalysisNokia can regain its leading position in the market1.Nokia will benefit from the partnership with Microsoft.2.Nokia will benefit from reorganizing its corporate structure.3.Nokia’s WP7 can dominate the smart phone market.
  • 13. Issues Analysis1. Nokia will benefit from its partnership with Microsoft1.1 Nokia’s partnership with Microsoft will increase revenue and market share1.2 Microsoft will help Nokia regain trust in its investors
  • 14. 1. Nokia will benefit from the partnership with Microsoft1.1 Nokia’s partnership with Microsoft will increase revenue and market share
  • 15. 1. Nokia will benefit from the partnership with Microsoft1.2 Microsoft will help Nokia regain trust in its investors
  • 16. 2. Can Nokia benefit from reorganizing its corporate structure2.1 Outsourcing operating system is cheaper than developing in-house.2.2 Nokia can apply the new structure successfully
  • 17. 2. Can Nokia benefit from reorganizing its corporate structure?2.1 Outsourcing operating system is cheaper than developing in-house
  • 18. 2. Can Nokia benefit from reorganizing its corporate structure?2.1 Outsourcing operating system is cheaper than developing in-houseCost of acquiring WP7 for one handset= $6.99
  • 19. Cost for converting 461 million = $6.99X 461 = $3.2 billion which is less than Nokia’s R&D expenditure of $3.9 Billion in 20102. Nokia can benefit from reorganizing its corporate structure2.2 Nokia can apply the new structure successfullyIts cheaper to execute outsourcing than to develop
  • 20. Existing Symbian users are looking for WP7 features
  • 21. Nokia can capture additional market share of WP7 users.3. Nokia’s WP7 will dominate the smart phone market3.1 Windows Phone is going to create an ecosystem (as its rivals)3.2 The Windows platform can compete with the already established OS
  • 22. 3. Nokia’s WP7 can dominate the smart phone market3.1 WP7 is going to create an ecosystem (as its rivals)
  • 23. 3. Nokia’s WP7 can dominate the smart phone market3.1 WP7 is going to create an ecosystem (as its rivals)Can the Windows platform compete with the already established OS
  • 24. 3. Nokia’s WP7 can dominate the smart phone market3.2 The Windows platform can compete with the already established OS
  • 25. SummaryNokia can regain its leading position in the market1.Nokia will benefit from the partnership with Microsoft.2.Nokia will benefit from reorganizing its corporate structure.3.Nokia’s WP7 can dominate the smart phone market.