downfall of nokia by wajahat

DOWNFALL OF NOKIA

ESTABLISHMENT OF NOKIA

• FOUNDER WAS FREDRIK IDESTEM.

• PREVIOUSLY STARTED AS RUBBER AND CABLE INDUSTRY.

• IN YEAR 1967, ELECTRONIC SECTION WAS FOUNDED.

• IN LATE 1970’S, NOKIA INVOLVED INTO TELECOMMUNICATION INDUSTRY.

THE FIRST DIGITAL SWITCH USED BY NOKIA

ONE OF THEIR PHONES IN LATE 1970-1980’S.

GROWTH

• EARLY INVESTMENT IN GSM TECHNOLOGIES MADE THE COMPANY THE LARGEST MOBILE PHONE MANUFACTURERS.

• BETWEEN 1996 TO 2001, NOKIA’S TURNOVER INCREASED FROM £6.5 BILLION TO £31 BILLION.

• THE GROWTH CONTINUED AT ITS PEAK UNTIL 2011.

NOKIA’S BEST SELLING PHONE WORLDWIDE

OPERATING SYSTEM• SYMBIAN WAS NOKIA’S SMART PHONE

OPERATING SYSTEM UNTIL 2011.

• NOKIA USED LINUX IN SOME INTERNET TABLETS AND IN THE NOKIA N900

• BY THE END OF 2011, NOKIA GOT INTO AN ALLIANCE WITH WINDOWS AND ANDROID.

LOSS OF MARKET SHARE

• IN 2007, OFFICIAL LAUNCH OF iPHONE CONTINUED TO BE OUTSOLD.

• IN 2010, DRASTICALLY THE SHARE OF MARKET DROPPED WHEN ANDROID AND iOS CONTINUED TO GAIN THE MARKET SHARE.

• SYMBIANS SHARE IN THE MARKET DRIPPED TO 32% BY 2010.

ALLIANCE WITH ANDROID AND WINDOWS

• LAUNCH OF LUMIA CAME INTO EXISTENCE IN 2011.

• SOME PHONES IN NOKIA CAME WITH ANDROID OPERATING SYSTEM.

• ALLIANCE HELPED IN INCREASE IN SALES.

FINANCIAL DIFFICULTIES

• In 2012, Nokia shut down its production and research sites in Finland, Germany and Canada.

• By the end of 2013, 24,500 employees were laid off.

• Company’s inability to foresee the rapid changes in mobile industry were on of their problems.

WORLDWIDE SALES OF DIFFERENT PHONES

SALE OF BUSINESS TO MICROSOFT

• ON 2ND SEPTEMBER 2013, MICROSOFT ANNOUNCED A DEAL WORTH €3.79BN, ALONG WITH ANOTHER €1.65BN TO LICENSE NOKIA'S PORTFOLIO OF PATENTS FOR 10 YEARS, A DEAL TOTALLING AROUND €5.4BN.

• MICROSOFT ACQUIRED ASHA AND LUMIA BRANDS.

• THE FUTURE LUMIA DEVICES WOULD BE BRANDED WITH MICROSOFT’S NAME AND LOGO.

CORPORATE AFFAIRSNokia Leadership Team (as of May 2014)

Rajeev Suri (Chairman), b. 1967President and CEO since 1 May 2014Joined Nokia on 1995

Samih ElhageExecutive Vice President and Chief Financial and Operating Officer of Nokia NetworksJoined Nokia Networks 2012Michael Halbherr, b. 1964CEO of HEREJoined Nokia 2006, Nokia Leadership Team member since 1 July 2011

Timo Ihamuotila, b. 1966Executive Vice President and Group Chief Financial OfficerWith Nokia 1993–1996, rejoined 1999, Nokia Leadership Team member since 2007

Henry Tirri, b. 1956Executive Vice President and Acting Head of Nokia TechnologiesJoined Nokia 2004, Nokia Leadership Team member since 22 September 2011

2014 TO PRESENT

• NOKIA AND CHINA MOBILE SIGNED A DEAL OF $970 MILLION FRAMEWORK DEAL FOR DELIVERY BETWEEN 2014 AND 2015.

• LICENSING IN HOUSE AND HARDWARE DESIGNS ARE GIVEN TO THIRD PARTY MANUFACTURERS.

SOME OF THE MICROSOFT PHONES

LUMIA 535 LUMIA 830

LUMIA 1520

THE END

BY WAJAHAT & IRFAN