Market Survey Report On “Factors responsible for declining market share of Nokia” Submitted in Partial Fulfillment for the Award of Post Graduate Diploma in Management (Session 2009-11) Submitted to: Submitted By: Mr. Balraj Mr. Anil Kumar PGD09022 PGDM – 2 nd yr 1
Factors responsible for Declining market share of Nokia
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Market Survey Report
On
“Factors responsible for declining market share of Nokia”
Submitted in Partial Fulfillment for the Award of
Post Graduate Diploma in Management
(Session 2009-11)
Submitted to: Submitted By:
Mr. Balraj Mr. Anil Kumar
PGD09022
PGDM – 2nd yr
DEPARTMENT OF MANAGEMENT
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
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DECLARATION
I hereby declare that this Project Report entitled: Factors responsible for declining market share of Nokia in India. Submitted by me to IMS Noida is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.
Name: Anil Kumar
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ACKNOWLEDGEMENT
I would like to thank Nokia Care, for constant guidance to conduct the present arduous project
and untiring cooperation which they extended to me throughout my market survey.
Getting a project ready requires the work and effort of many people. I would like all those who
have contributed in completing this project. First of all, I would like to send my sincere thanks to
Mr. Balraj for their helpful hand in the completion of my project.
Last but not the least I am grateful to all the respondents who spared their valuable time &
responded my questions. This project would not be completed without their support & help.
I would like to take an opportunity to thank all the people who helped me in
collecting necessary information and making of the report. I am grateful to all of
them for their time, energy and wisdom.
(Anil
Kumar)
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Preface
As a part of course curriculum of PGDM we were asked to undergo a market survey on any
organization so as to give us exposure to practical management to get us familiar with various
activities taking place outside the organization.
I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite all
limitations, obstructs, hurdles and hindrances, I have toiled and worked to my optimum potential
to achieve desired goals. Being a researcher in the highly competitive world of business, I came
across some difficulties to make my objective a reality. Now with the kind help and genuine
interest and the guidance of my supervisor, I am presenting this hand carved effort. I tried my
level best to conduct a research to gain a thorough knowledge about the project on topic,
“Factors responsible for declining market share of Nokia”. I put the best of my efforts and
have also tried to be justice with available. If anywhere something is found unacceptable or
unnecessary to the theme; you are welcomed with your valuable suggestions.
Anil Kumar
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TABLES OF CONTENTS
Chapter No. Chapter Name Page No.
01 Executive Summary 5
02 Introduction of project 6
03 Objectives 7
04 Research design & methodology 8
05 Data collection & sampling plan 9
06 Cell phone & Nokia’s History 14
07 Nokia in India 27
08 Product mix & market segmentation 31
09 Nokia climate strategy 34
10 Expanding market 37
11 Competitors 40
12 Data analysis & interpretation 42
13 Smartphone market share 51
14 Findings 53
15 Limitations 54
16 Recommendations & conclusion 55
17 Bibliography 56
18 Questionnaire 57
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EXECUTIVE SUMMARY
This report is based on the facts that have been come out during the market survey. It tells us
about the factors which are responsible for declining market share of Nokia. This report also
provides details about the Nokia Company with the data extracted from the company website &
the information received from consumers.
On the basis of a questionnaire, respondents were interviewed, which is present at the end of the
report. The results of each question are presented in the form of graphs. On the basis of answers
a conclusion is obtained. And on the basis of that recommendations are made for the
consumption of the company.
And I hope that company finds this report useful & it helps company in expanding its market
share by implementing the changes recommended in the report.
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INTRODUCTION OF THE PROJECT
This market survey is related to identify the factors which are responsible for declining market
share of Nokia. It means that why market share of Nokia is declining every quarterly.
Under this survey I interviewed with many respondents.
This survey was assigned me to find out:-
1. To find out the factors responsible for declining market share..
2. To study the buying preferences of consumers..
For attaining the objectives of the survey & I had to fill up questionnaire by contacting
respondents. This project is based on primary data. The data collected through survey provide
better results..
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Objectives
1. To find out the various reasons/factors responsible for the declining market share of
Nokia in Indian market.
2. To study the buying preferences of consumers.
3. Customer perception about Nokia & other’s with respect to price, features, quality.
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RESEARCH DESIGN / METHODOLOGY
Research methodology/ Design mean the procedure used & method applied for the collection of
data used in the completion of the project report. The research design spell out how you are
going to achieve the stated research objectives. The way in which researchers develop research
designs is fundamentally affected by whether the research question is descriptive or explanatory.
It affects what information is collected.
Data collection Method.
Specific research instrument.
The sampling plan that the researcher uses for collecting the data.
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DATA COLLECTION METHOD
For preparing this report the researcher used primary data which was gathered through market
survey by using questionnaire. Since the researcher had to prepare this report on the basis of
current market position of Nokia. So the researcher decided to gather the primary data rather
taking help from the secondary data gathered by the researchers in the past. The researcher had
visited different retailers & colleges to gather the information for completing this project.
The researcher had another options also to collect the primary data e.g. Telephonic interview or
oral interview. But he selected survey method using questionnaire to gather the required
information because the researcher found it the best among other method available to me.
The researcher found it easier to approach the retailers by going directly to them at the time
when they are free specially in the lunch hour or in the evening when they are free to spare their
time to respond to my questions rather than asking them on telephone to spare some time for
responding or taking appointment & fixing the meeting. It would be a time consuming process.
So the researcher decided to do for market survey using questionnaire.
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RESEARCH INSTRUMENT
The researcher had used Questionnaire, as the research instrument to conduct the market survey.
The questionnaire consisted of a mixture of open & closed questions designed in such a way that
it should gather maximum information possible.
The questionnaire was a combination of 10 questions. The researcher had designed more closed
ended questions because the dealers do not have much time to respond from their own. If choices
are given it is easier for the respondent from the choices rather they think & reply also takes
lesser time. Because they keep on responding & one has tick mark the right choice accordingly.
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SAMPLING PLAN
Sample plan means the area you selected to gather the information.
Information was gathered from a sample drawn from students.
Atta Market
IMS Noida
3C Company
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SAMPLING UNIT
Sample unit refers to the respondents from whom a researcher is going to gather the information.
It is very important for a researcher that he chooses a right unit from whom the required
information can be gathered. Selections of wrong unit can spoil the whole report.
The researcher’s objective was to find out the reasons responsible for declining market share. So
retailers & students were the best source from where the researcher could get the desired
information.
The researcher referred students, youngsters‘s data to select the unit for survey.
SAMPLING SIZE:-
Sample size refers to the numbers of respondents the researcher have selected for the survey..
Universe sampling size = 50
Researcher has selected = 30
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SELECTION OF SAMPLING UNITS
It means on what basis the researcher have selected the sample unit.
SAMPLING MEDIA:-
My sampling media is questionnaire, consisting of 10 questions .Questionnaire was selected as
the sampling media because in such kind of survey where the respondents don’t have time to
respond. It is better to approach them with a prepared list of questions in the form of
questionnaire, so as to save the time of your respondents as well as yours.
Analysis of the data (Data analysis):-
After gathering the data from various sources the researcher has to analyze it to sort out relevant
information. The unwieldy data should necessarily be condensed in to a few manageable groups
and tables for further analysis.
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Cell phone History
Dr. Martin Cooper of Motorola, made the first US analogue mobile phone call on a larger
prototype model in 1973.
First generation
On April 3, 1973, Motorola employee Dr. Martin Cooper placed a call to Dr. Joel S. Engel, head
of research at AT&T's Bell Labs, while walking the streets of New York City talking on the first
Motorola DynaTAC prototype in front of reporters. Motorola has a long history of making
automotive radios, especially two-way radios for taxicabs and police cruisers.
Second generation
In the 1990s, 'second generation' (2G) mobile phone systems such as GSM, IS-136 ("TDMA"),
iDEN and IS-95 ("CDMA") began to be introduced. In 1991 the first GSM network (Radiolinja)
opened in Finland. 2G phone systems were characterized by digital circuit switched transmission
and the introduction of advanced and fast phone-to-network signaling. In general the frequencies
used by 2G systems in Europe were higher than those in America, though with some overlap. For
example, the 900 MHz frequency range was used for both 1G and 2G systems in Europe, so the
1G systems were rapidly closed down to make space for the 2G systems. In America the IS-54
standard was deployed in the same band as AMPS and displaced some of the existing analog
channels.
Coinciding with the introduction of 2G systems was a trend away from the larger "brickle"
phones toward tiny 100–200g hand-held devices, which soon became the norm. This change was
possible through technological improvements such as more advanced batteries and more energy-
efficient electronics, but also was largely related to the higher density of cellular sites caused by
increasing usage levels. This decreased the demand for high transmission powers to reach distant
towers for customers to be satisfied.
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The second generation introduced a new variant to communication, as SMS text messaging
became possible, initially on GSM networks and eventually on all digital networks. The first
machine-generated SMS message was sent in the UK in 1991. The first person-to-person SMS
text message was sent in Finland in 1993. Soon SMS became the communication method of
preference for the youth. Today in many advanced markets the general public prefers sending
text messages to placing voice calls.
2G also introduced the ability to access media content on mobile phones, when Radiolinja (now
Elisa) in Finland introduced the downloadable ring tone as paid content. Finland was also the
first country where advertising appeared on the mobile phone when a free daily news headline
service on SMS text messaging was launched in 2000, sponsored by advertising.
Third generation
Not long after the introduction of 2G networks, projects began to develop third generation (3G)
systems. Inevitably there were many different standards with different contenders pushing their
own technologies. Quite differently from 2G systems, however, the meaning of 3G has been
standardized in the IMT-2000 standardization processing. This process did not standardize on a
technology, but rather on a set of requirements (2 Mbit/s maximum data rate indoors, 384 kbit/s
outdoors, for example). At that point, the vision of a single unified worldwide standard broke
down and several different standards have been introduced.
The first pre-commercial trial network with 3G was launched by NTT DoCoMo in Japan in the
Tokyo region in May 2001. NTT DoCoMo launched the first commercial 3G network on
October 1, 2001, using the WCDMA technology. In 2002 the first 3G networks on the rival
CDMA2000 1xEV-DO technology were launched by SK Telecom and KTF in South Korea, and
Monet in the USA. Monet has since gone bankrupt. By the end of 2002, the second WCDMA
network was launched in Japan by Vodafone KK (now Softbank). In March the first European
launches of 3G were in Italy and the UK by the Three/Hutchison group, on WCDMA. 2003 saw
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a further 8 commercial launches of 3G, six more on WCDMA and two more on the EV-DO
standard.
During the development of 3G systems, 2.5G systems such as CDMA2000 1x and GPRS were
developed as extensions to existing 2G networks. These provide some of the features of 3G
without fulfilling the promised high data rates or full range of multimedia services. CDMA2000-
1X delivers theoretical maximum data speeds of up to 307 kbit/s. Just beyond these is the EDGE
system which in theory covers the requirements for 3G system, but is so narrowly above these
that any practical system would be sure to fall short.
By the end of 2007 there were 295 Million subscribers on 3G networks worldwide, which
reflected 9% of the total worldwide subscriber base. About two thirds of these are on the
WCDMA standard and one third on the EV-DO standard. The 3G telecoms services generated
over 120 Billion dollars of revenues during 2007 and at many markets the majority of new
phones activated were 3G phones. In Japan and South Korea the market no longer supplies
phones of the second generation. Earlier in the decade there were doubts about whether 3G might
happen, and also whether 3G might become a commercial success. By the end of 2007 it had
become clear that 3G was a reality and was clearly on the path to become a profitable venture.
Live streaming of radio and television [1] to 3G handsets is one future direction for the industry,
with companies such as RealNetworks [2] and Disney [3] recently announcing services.
Nokia’s History
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Introduction of Nokia:
Nokia Corporation is a Finnish multinational communications corporation that is headquartered
in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the
manufacturing of mobile devices and in converging Internet and communications industries, with
over 123,000 employees in 120 countries, sales in more than 150 countries and global annual
revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009.It is the world's largest
manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009,
up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about
40% in Q4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market
segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet
services such as applications, games, music, maps, media and messaging through its Ovi
platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipment, solutions and services. Nokia is also engaged in providing free digital map
information and navigation services through its wholly-owned subsidiary Navteq.
Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and
employed 37,020 people in research and development, representing approximately 30% of the
group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.
Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock
exchanges.Nokia plays a very large role in the economy of Finland; it is by far the largest
Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock
Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an
important employer in Finland and several small companies have grown into large ones as its
partners and subcontractors.Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In
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2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's
exports in 2003.
So,I select Nokia corporation as my project topic, and I will study finance ,marketing , human
resource deparments of nokia corporation and discuss how change mangement enters in nokia
corporation and how it whats are its effects on both the internal and external environment of the
company.
Nokia’s first century: 1865-1967
The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta
river. Between 1865 and 1967, the company would become a major industrial force; but it took a
merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to
electronics...
1865: The birth of Nokia
Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland,