Competitors

Nokia is the world’s #1 maker of cell phones. Visually, there is no any key competitor to
NOKIA as comparing its vast market and demand, but still, we can consider the following
companies as its competitors:-

· Samsung
· Motorola
· Sony Ericson

Samsung is Nokia’s main competitor in mobile market. They are always trying to surpass Nokia.
They have developed their technologies. Their selling percentage has increased a lot.

Quantity Market Share by Gartner

(New sales)

Brand Percent

Nokia 2009 36.4%

Nokia 2010 28.9%

Samsung 2009 19.5%

Samsung 2010 17.6%

Motorola is one of the major competitors of Nokia. It has increased its handset sales by more
than 50% from last year’s figures. They are progressing amazingly. If they keep doing it then it
is not impossible that they will surpass Nokia in a several years.

Although Nokia remains the largest manufacturer of mobile telephones in the world, the
development is worrisome from the company’s point of view. Combined sales of the world’s
second and third-largest manufacturers - Motorola and Samsung - exceeded those of Nokia in
January - March.

Lately, things are a little rough for the Finnish giant Nokia with fresh competition from red-hot
brand names like Apple and Google. Although these competitors' smart-phone market share
tends to be either small (in the case of Apple's iPhone) or non-existent (Google's Android
platform) yet, the problem for Nokia is the buzz. In a fast-moving consumer world, hot and new
trumps tried and true.

They quickly took over the market, and criticized Nokia for being slow to respond to changes in
trends.
Nokia's chief executive Stephen Elop has said that the mobile phone giant (Nokia) is "standing
on a burning platform" surrounded by a fire of competition,

The unusually frank document, sent by newly appointed Stephen Elop, suggests the company is
not doing enough to compete with Apple's iPhone or Google's Android Smartphone, and that a
radical change is necessary.

He compared the situation faced by the company to a story of a man who jumps into freezing
waters to escape a burning oil rig.

The BCG Growth Share Matrix

The major activity in strategic management is business portfolio analysis whereby management
evaluates the business making up the company. The company will want to put strong resources
into its most profitable business and phase down or drop its weaker ones.

In 1992 Nokia’s main business units were Nokia Consumer Electronics (31 per cent of total
sales), Cables and Machinery (25%), Nokia Mobiles Phones (20%), Nokia Telecommunications
(17%) and Other Operations (7%).

Nokia’s turnover was 3043 million €, and net losses 121 million €. (€ = EURO, 1€ ~ 1USD)

Nokia’s strategy is to invest in telecommunications and closely associated business operations. It

focuses on industry segments and geographic regions that have good opportunities for growth
and profitability.

In 1999 Nokia had 100 per cent of its operations in the telecommunications and mobile phones.

Turnover was 19772 million € and net profit 2557 million €.

Nokia is the world's largest manufacturer of mobile phones: its global device market share was
31% in the fourth quarter 2010, up from an estimated 30% in third quarter of 2010 but down
from an estimated 35% in the fourth quarter of 2009. Nokia's estimated share of the converged
mobile device market was 31% in the fourth quarter, compared with 38% in the third quarter
2010. Nokia produces mobile devices for every major market segment and protocol, including
GSM, CDMA, and W-CDMA (UMTS).