Analyzing Nokia's Entrepreneurial Venture: Smartphone Market Re-entry

This report examines Nokia's strategic re-entry into the smartphone market, focusing on the launch of its new branded phones (Nokia 6, 5, and 3). It begins with an executive summary and includes a literature review utilizing PESTLE and SWOT analyses to provide a comprehensive understanding of the market landscape. A case study methodology is employed, alongside data collection methods, to present findings and insights. The report analyzes the collected data, offering a reflective study on the implications of Nokia's comeback, emphasizing its brand recognition, reliability, and durability. The findings highlight the importance of perception and brand value in attracting customers. Recommendations include exploring opportunities in the smartphone segment, leveraging brand value, and implementing strategies to capitalize on customer loyalty. The report concludes with a discussion of the company's future prospects and strategies for success.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Author Note

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Executive Summary
The report takes into account Nokia’s return to the market as a Smartphone manufacturer
with the launch of trio three of Nokia branded phones, namely Nokia 6, 5 and 3. Through the
report, a Literature Review would be conducted by carrying out PESTLE and SWOT analysis
and that shall help present substantial findings with theoretical and methodological
contributions to this topic. This would be followed by a research, where Case Study Method
and Data Collection Method will be used and accordingly the findings would get presented.
Case Study Method aims to analyze specific issues within the boundaries of a specific
environment, situation or organization. According to the way things are presented, case study
method can be divided into three categories, explanatory, exploratory and descriptive.
Explanatory method deals with the presentation of data in such a manner which would
themselves explain how the collected data has helped to carry out the research and their
findings. Exploratory method requires approaching data and analyzing to understand their
main characteristics. Finally descriptive method helps in describing certain situations, where
the predictions might not be accurate. Then an analysis would be carried out on the data
collected through the research and accordingly, a reflective study on findings and
implications shall be done. Findings would basically deal with the key takeaways from the
analysis of data. The takeaways would help form conclusion that for a brand like Nokia, the
effort to position themselves in the minds of the customers for their smartphones’ segment
would be far less. With their trio three of branded phones, running on Android, they would be
looking to target the customers based on their reliability and durability. These strengths of
Nokia are the base on which the customers get the assurance that they can use the product
with full confidence. The perception which Nokia has created on the customers’ minds over a
period of time would hold in good stead on their comeback, for targeting the right set of
customers by focusing on their values and brand. In getting products sold, perception plays a

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big role and a good perception of a particular brand would always let an organization fulfil
their goals and objectives in an efficient manner. The recommendations would include,
looking into the opportunities for Nokia in the smartphones segment, the strategies which
they could implement in order to attract customers through highlighting the brand value and
the loyalty they have gained from their customers. Nokia can utilize the growth in
smartphones’ sales along with the popularity to enter and cash on the rising demand. This can
provide massive opportunity to Nokia, with the blend of demand and popularity.

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Table of Contents
1. Introduction............................................................................................................................4
2. Literature Review...................................................................................................................4
2.1 PESTLE Analysis of Nokia.............................................................................................6
2.2 SWOT Analysis of Nokia...............................................................................................7
3. Research Methodology...........................................................................................................8
3.1 Case Study and Data Analysis.......................................................................................10
4. Marketing Mix.....................................................................................................................10
5. Presentation of findings:......................................................................................................11
6. Analyzing the data................................................................................................................15
7. Reflection on findings and implications..............................................................................16
8. Conclusion............................................................................................................................17
9. Recommendations................................................................................................................17
10. References..........................................................................................................................19

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1. Introduction
Entrepreneur is a person or an individual, who instead of working under someone as
employee, runs some small business, by making an assumption of all the rewards as well as
risks of a business venture. An entrepreneur of an organization is mainly seen as an innovator
of ideas and strategies regarding any business. Entrepreneurship is being regarded as a critical
component of economic growth and innovation. It is considered as an integral part in the
growth of economic strategies of national and local governments across the world (Priem,
Butler and Li 2013).
The report throws light on the opportunities of the telecommunications company,
Nokia for reintroducing its devices back to the market. Established in the year 1865, Nokia
Corporation is a Finnish company of communications and information technology. The
company is headquartered at Espoo and Uusimaa, with several divisions and avenues for
communication business. The handset division has a good reputation all across the world as it
provides its consumers with reliable and durable mobile phones, which has helped the
company gain wide acceptance in the market (Mishra 2017).
The report highlights the opportunities of the company on reintroducing its devices
back to the market. The report further will analyze the opportunities in the new market along
with the implications and recommendations on how it can work to successfully re-launch its
products and services.

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2. Literature Review
The Nokia nostalgia still exists within the market due to the consumer demands. The
corporation sold their division of handset to the Microsoft Company, in the year 2014.
Microsoft focused on the areas of telecommunication business, which gained appreciation in
the market. However, after three years, Nokia has decided to make a comeback into the
handset business, by introducing its new handset series which will run on Android OS. The
new series is named as Nokia 6, 5 and 3 (Becker et al. 2012). The company’s biggest
opportunity is its brand recognition and through that it can leverage its attempts for gaining
the market share again in the business of Smartphone. Majority of the customers, still
recognize the handset company due to its durability and reliability. Good consumer
perception plays a very crucial role in sales. Even if a company disappears for the time being
and decides to reintroduce its products, consumers will accept them gladly (Bojei and Hoo
2012). Nokia has managed to earn this position for a very long period; it has set a good brand
image in front of their target market and achieved international acclamation.
The handsets have higher value of sales in comparison with other brands which
already exists in market. The products are also simple and easier to handle and moreover, the
lower segments prefer this brand over others. The company produces its products keeping in
mind the behavior of the consumers (Dwivedi 2015). It has managed to gain popularity as it
keeps the price range on the basis of the consumers’ purchasing behavior. However, Nokia
lost its recognition in the past, as the competitors took control of the market (McQueen
2016). Partnership with Microsoft and upgrading to Windows mobile operating system
couldn’t help much and its market was being dominated by several competitive brands like
Samsung, Apple, Redmi, Motorola and others (Nosrati, Karimi and Hasanvand 2012). Taking
the year 2017 into consideration, it seems brighter for the company’s progress and growth.

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Nokia’s products have all the rights of ten year licensing agreement and some predicts that
the company will rise again.
Nokia will be spending five hundred million dollars on promotions and marketing of
its products and services for the next three years. Not only the customers, the industry will
still have a positive relationship with others and ensure that the marketing is done properly.
Despite all the existing competitors who have embarked its position in the market, Nokia is
all set to give tough competition to them (Bouwman et al. 2014). The company has already
seventy percent shares in countries like Europe, Middle East, America, Asia, China and
Africa, and therefore the company is having a long journey ahead. Moreover, brand equity
also plays a crucial role in this, as over the years, the company enjoys huge brand equity with
customer loyalty (Dwivedi 2015). The company can use this factor to push their services
forward into the flourishing markets and it has potential for capitalizing on it. The
telecommunications company has the ability to fulfill the consumers’ expectations and
demands, and thus it has strong chance of dominating the market second time (Gokhale and
Sharma 2016). The PESTLE and SWOT analysis are carried out as a part of the literature
review.
2.1 PESTLE Analysis of Nokia
The political factors affecting the company are hard to discover. The Finnish based
company had tough time in getting special favors from the government. This forced the
company to engage in an alliance with the Microsoft which was not so easy and thus, fallen
apart. Unlike other tech companies, the Nokia Corporation lacks a strong support from the
government as it a small country based organization. This can help as well as hurt the
company’s reputation as it lacks major power. Moreover, it will also prove beneficial for the
company as American and China based political rivals is minimal. Political unrest and other
changes of China can hamper and limit the company’s production as well as manufacturing

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capabilities. This would force the corporation to move its production unit to higher cost
countries like United States (Hagelüken et al. 2016).
Europe’s economic turmoil has hurt the company badly and limited its buying power
from the home markets. Unlike other established companies, Nokia had a tough time in
cooperating with the fast growing market of China. Moreover, the company also lacks vast
resources of economy, which are available to its competitors like, Apple, Samsung and
Google. The cultural factors affecting the company have been the wide adoption of the
Smartphone and growing usage of applications. Nokia’s decision of utilizing Microsoft rather
than Android, limited its progress and appeal to its customers. Furthermore, the technological
challenges of the company marred its progress to a huge extent, as the company faced many
social factors and barriers. The development of the open sourced OS such as Android along
with the invention of several applications radically changed the structure of the mobile phone
company. Handsets were hugely transformed to hand held computers from simple
communication devices (Zedtwitz et al. 2015).
Furthermore the company’s legal environment is also very challenging, as it operates
only within European Union. The government body’s regulators are investigating the
Google’s usage of Android system for the possibility of antitrust case. This could even lead to
radical changes for the market of Nokia and limit their popularity. The environmental factors
of the company are also affecting it to a huge extent. Nokia has faced severe problems in
economically and safely decomposing its used products and in an eco friendly manner.
Therefore, this might hamper its growth as it has no strong potential of decomposing and
recycling its used devices. Another factor which may affect the company is its increased costs
of components and materials, particularly usage of lithium for the batteries. Hence, increase
demand of lithium may limit the supply and as a result, raise costs (Anis et al. 2017).

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2.2 SWOT Analysis of Nokia
Strengths: It has huge market experience and a fantastic history, along with strong brand
recognition. Its user friendly factor has enabled it gain huge consumer appreciation and media
acclamation. Nokia’s huge investment for re-launching its products has managed to gain
strong consumer base. It has largest distribution as well as selling network and strong relation
with the consumers. The wide products’ range for all the classes has managed its resale
values in comparison to other competitive products. Moreover, its durability and reliability
has proved beneficial for the company. Other factors are global expansion, user friendly
handsets and long battery life (Scheer and Rubik 2017).
Weaknesses: Many handsets of Nokia are total flop, which hampered its impression.
Low voice quality and less stylish products proved disadvantageous for the company.
Moreover, taking the political, economical and other factors in mind; the company still has
loads to do, before entering the market. Heavy handsets have always been the company’s
weakness (Albrecht 2015).
Opportunities: New opportunities in the market include the company’s innovative
designs and re-introduction of the products. Stylish sets will help them approach the young
generation and with the presence of 3g in their new handsets, targeting the teenagers will
become easier. Moreover, the company should improvise on the mobile camera’s quality
along with introduction of mini notebooks (Sushil 2013).
Threats: The competition is higher as Iphone, Samsung and other companies have
already dominated the market. Therefore, it will prove to be a challenge for the company.
Smartphone have become a trend in the modern market, thus, Nokia needs to research a lot
and price their products in accordance with that (Trehan and Maan 2012).

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3. Research Methodology
This section of the report explains about the various methods of research, which are available
and applied in this study as well as their analysis for addressing the problems. They are
directed towards the research topic, that is, the opportunities of Nokia in reintroducing its
products in the market. Likewise, it also presents different procedures and strategies for
identifying the problems or issues related to this topic.
This chapter throws light on several research methods, which are used to establish this report,
the design of the research, collection of data, description of this study, the methods and
processes used for analyzing the references and the gathered data analysis. Qualitative
research method is employed, which helped in getting underlying opinions, motivations and
reasons. Survey and interview was not conducted due to limited time. However, secondary
data collected from the online available theses and academic journals, helped in gaining
useful insights (Leavy and Leavy 2017).
Multiple procedures are employed to this study, in order to examine the recent status of the
company, which includes the descriptive research methodology, literature review, SWOT and
PESTLE analysis; ensuring that the study is quick and cheap as well. In addition to this,
usage of qualitative analysis method has helped in the understanding of reasons, opinions and
motivations, while providing a thorough insight into the problem along with some rich data.
It has also helped in the development of opinions and ideas for the potential quantitative
analysis of this study (Sempels and Hoffmann 2013).
The research methodology required gathering relevant data from specified documents and
compiling databases. Secondary data is collected through internet, review of existing
literature, journals and research thesis related to the topic. The academic articles are referred

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and studied, for the detailed analysis of the topic and the interpretation of the data which are
being collected from the articles. The report contains Harvard style of referencing.
3.1 Case Study and Data Analysis
In this ever changing customers’ needs and demands, introduction of new
technologies and increasing competitors in the market, the company’s survival fully depends
on how well it develops, researches and implements innovative products in the market. In this
globalised world, international competition have increased and changed consumer behavior
and preferences. Nokia has huge opportunity in coming back to the market, if it reshuffles its
techniques and undertake innovative measures (Kraft et al. 2012). Introduction of new
products may help it gain the consumer base which the company had once. Nokia’s success
story is huge; in the year 2011 the company signed a partnership deal with the Microsoft
Company. The company gained huge profit and Microsoft helped Nokia in acquiring more
than five billion dollars. The stylish handsets helped in gaining a huge customer base,
especially the teenagers. They became the market leader and provided other companies with
tough competition. The market expanded and sales increased, as associating with Microsoft
proved to be beneficial for the company (Carvalho, Costa and Galina 2012).
4. Marketing Mix
Therefore, from the scenario, this is evident that Nokia can expand their market again
by manufacturing sleek and stylish models. They should emphasize more on its products,
along with advanced but easily understandable technology and good camera quality.
Moreover, they should also focus on the pricing. Over the decades, Nokia has been able to
target the customers of different class (Roberts 2014). Therefore, the company should keep in
mind the behavior and attitude of the consumers. One of the weaknesses of the company is
that they don’t have too many outlets across nations. They should focus on this segment of

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marketing and research accordingly. Nokia has spent huge in promoting its re-introduction of
the products and thus, it might not face problem in this particular segment (Gonzatto et al.
2013).
5. Presentation of findings:
Research was conducted on the basis of case study method and data collection
method. Through the case study method, a detailed analysis was done by looking into the
approach which Nokia would consider before entering the smartphones segment. The method
had primarily focused on doing extensive research through 4Ps of marketing, STP Analysis
which would highlight the areas which Nokia needed to focus upon (Mishra 2017).
The findings through the application of 4Ps of marketing are as follows:
i) Product –
In this case, Nokia is re-introducing their brand in the smartphones segment. Smartphones
nowadays are in great demand across various segments. The number of sales are increasing
on a day to day basis. More number of customers are getting inclined towards having
smartphones with them, as they have become a status symbol. The most important thing for
any organization is to launch launch their new product by highlighting the features, they are
offering more than what other companies in the same segment offer. Nokia can highlight
their feature phone segment to attract the attention of the customers (Nachbaur 2016). The
company needs to emphasize on the fact where they stand out from the crowd. Samsung has
had a fair share of the smartphones segment for quite sometime but now with Nokia
introducing themselves in this new segment, proper promotional strategies need to be
considered while meeting up the needs and demands of the customers. The Finnish Company
can highlight their strengths, like prompt service, quality phones with updated features and