Why Nokia Sales Are Declining?

Topics: Mobile phone, Sampling, Smartphone Pages: 13 (2410 words) Published: August 22, 2013
Table of Contents
1.1 Background of the study2
1.2 Statement of the problem3
1.3 Objectives of the study4
1.4 Hypothesis4
1.5 Significance of the study5
1.6 Scope of the study5
1.7 Limitations6
1.8 Assumptions of the study6
2.6 BUDGET10


1.1 Background of the study

A mobile phone, to begin with a mobile phone is a device used to make and receive phone calls. Over the years the technology has been advancing and this has allowed us to send text messages by the use of our mobile phones. We can now access internet on out mobile phones, send emails receive pictures, play games and so much more. The first mobile phone device was introduced in 1973 by Motorola and by 1983 it was available all over. Cell phones have immensely advanced not only in function but also design and size.

The telecommunication device market over the years has largely grown with the various types of brands coming into the market. Today the top mobile phone vendors include Samsung, Nokia Apple LG and Sony Ericsson. As compared to a few years back when the mobile phones were introduced there were just a few limited brands mainly Motorola, Nokia, Sony which merged which Ericsson and is now called Sony Ericsson.

Nokia was founded in the year 1865 in the town of Nokia in central Finland it was originally a manufacturer of pulp and paper. During the 1960s Nokia began to make its way in the telecommunication market and by the end of the 1980s the company diversified to the electrical sector which improved the revenue sales by 60% from the year 1980-1988.

In 1994 Nokia introduced the 2100 series mobile phone, the company’s target was to sell 500,000 units but surprisingly the company sold 20 million. Nokia now is one of the major shareholders market competing side by side with apple and Samsung one of the biggest shareholders in this market too

Nokia is responsible for the following things:

• The promotion and marketing of its product all over the world making sure its product reaches the potential market and makes the required sales.

• Engaging with the consumers and making them feel like part of the “Nokia family” by sending out emails on special offers or invitations for events they may host in that country.

• Basing their branches in different locations in the world.

1.2 Statement of the problem

Early this year Nokia has suffered a major blow with the declining sales. One of the reasons as to the declining sales was due to the operating system Nokia has adopted Symbian, which is a mobile operating system designed for Smartphone’s. Consumers today prefer Apple, windows mobile, Blackberry O.S and android. Over the years Nokia has faced some new and tough competitors which mainly include IPhone and Samsung. This has not only been the main threat, there have been counterfeits that have been made that look exactly as the original and operate as the original and some consumers have switched over to this since they are cheaper.  Another reason is Nokia has been in the market for very many years but did not move as fast as it should have and its competitors took advantage of this by bringing totally new products for example the iPhone which was introduced with a full touchscreen function. This research is therefore conducted to determine the factors affecting promotion and sales strategies adopted by Nokia.

1.3 Objectives of the study

The main objective of the study is to investigate the factors that affect promotional and sales strategies in Nokia

The following are the specific objectives of the study: -

i. To investigate how costs affect...
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