Transcript Emerging Nokia

Emerging Nokia
Kelompok 9
1. Rizziandrie Zairul
2. Viman Alfarizi R
3. Fery Purwaginanjar
Contents
Nokia in a Glance
Mobile Phone Industry
Nokia in Emerging Markets
Challenge for Nokia
Recommendation
NOKIA IN A GLANCE
A Glance
Pre Telco
1865-mid 20th cent
• Paper, electricity, rubber
boots, computers
Kari Kairamo & Jorma Ollila
(1977 – 2006)
• 1981: Telenokia (51% share)
• 1982: First digital telephone system
(Sweden)
• 1990 – 1993: Financial distress (collapse of
Soviet Union & recession in Finland)
• 1992 – 2006: Jorma becomes CEO, making
Nokia profitable, focus on
telecommunications (esp. services),
becomes global brand (5th most valued
brand in 2000, Interbrand)
A Glance
Olli-Pekka
Kallasvuo (2006 –
2010)
• Facing intense competition:
iPhone launch in 2007,
Chinese producers in
emerging markets
• Transform/restructure
Nokia: Mobile Solutions,
Mobile Phones, Markets
• 2007: Nokia Siemens
Network (joint venture with
Siemens), full control on
July 2013
Stephen Elop (2010
– 2013)
Sept 2013
• Decline of Nokia. During
tenure: revenues fell 40%,
profits fell 92%, market
share in smartphone drop
from 34% to 3.4%, credit
rating drop from A to junk,
share price drop 60%,
market cap lost USD 13
billion)
• 2011: Exclusive deal with
Microsoft to use Windows
Phone for smartphone
• Microsoft acquires
Mobile Device
business
• Nokia now: HERE
mapping service,
NSN, &
develop/licensing
advanced
technology
MOBILE PHONE INDUSTRY
Mobile Phone Industry
1st Generation (early 1980s)
• Monopolies
• Post-paid, high monthly & per-minute fees
• Analog system
2nd Generation (1990s)
•
•
•
•
Digital: GSM & CDMA
Better call quality, new services (SMS, call forwarding, etc.)
Liberalization in industry, subscriber grew 52% annually (1990 – 2000)
1998: Nokia becomes global industry leadeR
3rd Generation (2000 – now)
•3G & 4G
•Operators also focuses on services & data
•Severe competition in platform:
•Rise & fall of BlackBerry (2002 – now)
•Rise of iPhone (2007) & Android (especially Samsung)
•Apple & Samsung takes almost all smartphone profitability (peak: Q1-2012, 99%)
•Market share (Q3-2013): Android (81%), iOS (12.9%), Windows Phone (3.6%), BlackBerry (1.7%), Others
(0.6%)
NOKIA IN EMERGING
MARKET
NOKIA IN EMERGING MARKET
Lower income
Intense competition among
operators
Device manufacturer: sold directly to
consumer
Services as key selling point
Mostly pre-paid (low ARPU)
NOKIA IN EMERGING MARKET
• 2009: 55% revenues
• Q3-2013: drive WP market growth in India 229% YoY mostly due to
Focus on low- low-end Lumia 520 (note: Nokia = 90% WP market share)
end phones
• China, Brazil, Mexico, India (Chennai)
Extend
production
facilities
Understand
locals by
anthropologist
• Result: importance of groups in device usage
• Services tailored to local markets
NOKIA IN EMERGING MARKET
CHALLENGE FOR NOKIA
CHALLENGE FOR NOKIA
What
to do
Next??
• Focus on Developed
Countries,
Developing
Countries, or both?
• What strategy to
use?
RECOMMENDATION
CHALLENGE FOR NOKIA
Look at
Developed: Higher GDP, post-paid & bundling
Market &
Industry
Developing: Low GDP, pre-paid & deviceCharacteristics operator separation
Smartphone: People buy ecosystem, not
device
Focus on:
Low-priced phones in emerging markets (Lumia
520)
Extraordinary phones in developed countries (Lumia 1020),
especially to enhanced brand image as high quality
manufacturer
Get top apps to be present in WP (though Microsoft)
CHALLENGE FOR NOKIA
Know &
build
relationships
with
customers
Social medias (Facebook, Twitter for news,
teasers, etc.) , blogs (including brand
community blogs such as WP Central, WM
Power User)
Ask for ideas, inputs, complaints
Know each markets better
Product & services focus on market needs (e.g.
dual-SIM for emerging markets)
CHALLENGE FOR NOKIA
HERE
Maps
Added value now: offline turn-by-turn
navigation worldwide, no need for data
(GPS only)
Becomes the best mapping app worldwide,
including its value-added services (traffic
sharing a la Waze, route sharing), updated
regularly to ensure complete roads
worldwide
Can be sold to different platforms (WP, iOS,
Android) as additional apps
CHALLENGE FOR NOKIA
NSN
(Nokia
Solutions
Network)
Focus on building customer loyalty
by giving added value not offered by
competitors
Avoid price wars with Chinese
companies such as Huawei
Focus in the markets where lag
behind globally, but will catch up,
e.g. Indonesia’s move to 4G
Focus on R&D to provide high-quality
equipment with optimal price, such
as for future generations (5G)
TERIMA KASIH