Innovation and New Product Development Case Study

Will Nokia Keep Buzzing?

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Abstract:
In mid-2004, Nokia faces stagnant revenues and falling market share. Olli-Pekka Kallasvuo (Kallasvuo), Nokia new CEO, undertakes several initiatives to increase Nokia’s market share and revenue growth. He pushes snazzier products to market faster and works towards bringing out more models that appeal to status and trend-conscious buyers. To make up for a shortage of flip phones, Kallasvuo turns to outside manufacturers in Taiwan. To overcome the difficulty of making different handsets for individual operators without a reorganisation of its logistics chain, Nokia decides to customise handsets through software rather than hardware modifications. Nokia has also agreed to operator customisation. It is committed to including Wi-Fi in virtually all future devices from its multimedia and enterprise products groups. It is offering FM radio in some phones. Next on cards is Digital TV, new variations of 3G, support for RFID, and faster alternatives to Bluetooth. Kallasvuo wonders if Nokia should focus its research and resources solely on cellular technology or should it invest in various alternatives to cellular phones.

Pedagogical Objectives:

• The case traces Nokia’s growth strategy over the years
• It discusses Nokia’s product and marketing initiatives taken to regain its market leadership.

Keywords : Nokia; Ollila; Strategy; Kallasvuo; Mobile phone; US; Europe; N-Series; Wi-Fi; Innovation Management Case Study; Wi-Max; Nokia BusinessCentre; RIM; Marketshare; Developing world; 3G

Contents:

• Background
• Nokia under Ollila
• The Challenges
• Nokia under Kallasvuo
• Looking Ahead