The paper “ Nokia- in the Face of Avid Competition and Declining Sales” is a thoughtful variant of the research paper on marketing. Nokia corporation provides equipment in telecommunication, internet services, applications, music, digital media, and digital map information. The company is located in Finland as its headquarters. Nokia Corporation has always enjoyed a huge market share in the manufacture and sale of mobile phones under the Nokia brand globally. The company has an employee base of more than 100000 people spread over 120 different nations across the globe. The revenues of the company in the fiscal year 2012 were recorded at 30 billion Euros, a decline from the previous year.
The company has an asset and equity base of 30 million Euros and 8 million Euros respectively. Currently, the company is being faced with a possible 7 billion dollars acquisition from Microsoft Inc after a decline in the volume of its sales and revenues. Business problemFor the past five years, Nokia Company has been observing a worrying trend of decline in its volume of sales and revenues. Despite the fact that the company’ s products have a large market presence and market share, the company seems to have lost its competitive edge.
One of the major reasons for this decline has been brought about by the great level of competition that the brand has faced from other telecommunication companies such as Apple, Samsung, and HTC. The new hype in the mobile market and the advent of smartphones running on the Android operating system has led to a huge drop in the volume of sales of Nokia mobile phones. People are now rushing to buy phones that run on the android system.
The android operating system has the capacity to run multiple applications on one device and this has made phones running on the system become more appealing. Efforts by the Nokia Company to produce smartphones to march those in the market have proved futile. Apple Corporation continues to grow stronger despite not using android because it has an appeal to a select market. Nokia on the other hand has to compete with other mobile phone manufacturers for the already flooded market.
The results of financial data recorded in the last five fiscal years for the company have shown a declining trend. The company intends to analyze the future of the company using the research that will be carried out here.
Ahmed, R & Hassan, A 2013, ‘Competition Strategies between Five Cell Phone
Service Providers in Pakistan’, International journal of multidisciplinary sciences and engineering, vol. 4, no. 4, pp. 18-22.
Anderson, M & Jonsson, M, E ‘The Mobile Handset Industry in Transition’, viewed 16
Falaki et al 2010, ‘Diversity in Smartphone Usage’, MobiSys’ vol.10, pp.15–18.
Husso, M 2011 ‘Analysis of Competition in the Mobile Phone Markets of the United States and
Europe’, viewed 16 November 2013, http://epub.lib.aalto.fi/en/ethesis/pdf/12638/hse_ethesis_12638.pdf
Koski, H & Kretschmer, T nd, ‘Entry, standards and competition: firm
strategies and the diffusion of mobile telephony’, viewed 16 November 2013, http://dev3.cepr.org/meets/wkcn/6/699/papers/kretschmer.pdf
Mason, R 2007, ‘The external environment’s effect on management and strategy, A
complexity theory approach’, Management Decision Journals, vol.45, no.1, pp. 10-28.
Mesnard, L 2011,‘More Firms, More Competition? The Case of the Fourth Operator in France’s
Mobile Phone Market’, International Journal of Production Economics, vol. 130, no. 2,
Milne et al 2013, ‘Microsoft in 5.4bn Euros deal with Nokia’, viewed 16 November 2013,
Nokia website 2013 ‘about us’, viewed 16 November 2013, www.nokia.com
Prasad, V & Sahoo, P, K 2011, ‘Competitive advantage in mobile phone industry-Focus on
Value Chain and Core Competency’, International Journal of Computer Science and Communication, vol. 2, no. 2, pp. 615-619.
Romaniuk, J, & Sharp, B 2004, ‘Conceptualizing and measuring brand salience’, Marketing
theory, vol. 4, no. 4, pp. 327-342.
Sherif, K 2006, ‘An adaptive strategy for managing knowledge in organizations’, Journal
of Knowledge Management, vol. 10, no.4, pp. 72-80.
Singh, K 1998, ‘Guided Competition in Singapore's Telecommunications Industry’, industrial
and corporate change, vol. 7, no. 4, pp. 585- 599.
Taylor, D 2005, ‘Value chain analysis: an approach to supply chain improvement in agri-food
Chains’, International Journal of Physical Distribution & Logistics Management, vol. 35, no. 10. pp. 744 -761.
Varadarajan, R 2010,‘Strategic marketing and marketing strategy: domain, definition,
fundamental issues and foundational premises’, Journal of the Academic Marketing
Science, vol.38, pp. 119–140. DOI:10.1007/s11747-009-0176-7.
Vehovar, V, Sicherl, P, Hu sing, T & Dolnicar, V 2006, ‘Methodological Challenges of
Digital Divide Measurements’, The Information Society, vol. 22, pp. 279–290.
Wolf, L & MacKinnon, S 2002, ‘What is digital divide?’ TechKnowLogia, pp.1-9.