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Porter’s 5 Forces Analysis

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Porter’s 5 Forces Analysis
Pankaj Saharan September 2012



Over the past 150 years, Nokia has evolved from a small paper mill in south-western Finland to a global telecommunications leader connecting over 1.3 billion people. Nokia has disrupted into various industries before becoming a telecommunications giant from making rubber boots, car tyres, generated electricity, even manufactured TVs etc. Nokia’s own mobile phones’ platforms included Symbian (60 & 40), MeeGo (open-source Linux based platform) and Meltemi (low end Linux based platform) Nokia announced a Broad Strategic Partnership with Microsoft to build a new Global Mobile Ecosystem (with Windows Phone) in Feb 2011. Currently, Nokia’s phones strategy focusses on Windows Phone platform (for Smartphones) and Symbian 40 (for low-end feature phones segment). Nokia has decided not to continue development of MeeGo and Meltemi along with divesting from long time cash-cow Symbain 60 devices.













Main competitors (mobile phone manufacturers) are Samsung (took over Nokia as global mobile phones market share leader in 1Q12), Apple, RIM, HTC.

Organization Structure

© 2012 Nokia

Net Sales

Operating Profit

Net sales per region

© 2012 Nokia

© arstechnica.com

Key elements of Nokia’s strategy:  build a new winning mobile ecosystem in partnership with Microsoft  bring the next billion online in developing growth markets  invest in next-generation disruptive technologies  increase our focus on speed, results and accountability
© 2012 Nokia

HIGH

Barriers to Entry

Power of Suppliers

Rivalry between Competitors

Power of Buyers

MODERATE

HIGH

HIGH

LOW

Threat of Substitutes

Market entry as a global* mobile phone manufacturer is getting extremely tough because of various reasons.  Proprietary learning curve: Mobile phone manufacturing requires patents and proprietary knowledge. Even leading mobile phone companies are currently engaged in battles over patent
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