nokia

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BY TEAM – 3 SAM PITRODA

BATTERY RECALL : THE NOKIA WAY : 

BATTERY RECALL : THE NOKIA WAY BATTERY RECALL : THE NOKIA WAY

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HISTORY OF NOKIA COMPANY BRAND & INDUSTRY Nokia’s Battery Recall Steps taken by Nokia After effects OF BATTERY RECALL SWOT ANALYSIS Conclusion OVERVIEW

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NOKIA STARTED BY MAKING PAPER -The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. In 1868, Idestam built a second mill near the town of Nokia, fifteenkilometers (nine miles) west of Tampere by the Nokianvirta river,which had better resources for hydropower production The Nokia Research Center, founded in 1986 HISTORY OF NOKIA

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Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia is with over 123,000 employees in 120 countries, sales in more than 150 countries. It is the world's largest manufacturer of mobile telephones: its global device market share was about 33% as on march 2010.

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NOKIA MOBILE REVOLUTION

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Nokia :World Leader in Mobile Industry (Market Share: 35% in Q3 2006) Deals in wired and Wireless Telecommunications Other Players: Source : From the case Nokia focused on building customer, relationship and trust. Building friendship and trust is the heart Nokia brand. Logo shows their brand personality. BRAND INDUSTRY ANALYSIS

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BCG MATRIX OF NOKIA Premium Series N-Series Entry Level N-Gage Premium Series N-Series Entry Level N-Gage

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BL5C batteries were manufactured by Matsushita, between December 2005-November 2006 BL5C batteries were getting overheated on charging and at timed caused the battery to dislodge August 14, 2007: Nokia announced the replacement of phone batteries of all Nokia models in which BL5C batteries were used Reported 100 incidents from a batch of 46 million batteries. Nokia assured the replacement of affected batteries. Nokia called it a Voluntary Product Advisory and not a Recall NOKIA’S BATTERY RECALL CASE OVERVIEW

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The replacement of 46 million batteries was estimated to be $172 million Nokia entered into an agreement with Matushita wherein the Japanese vendor covered the Direct costs (Logistics costs, call centre costs, replacement battery costs) related to the replacement of the faulty batteries Source: http://www.zdnet.com.au/nokia-overheating-battery-issue-not-a-recall-339281198.htmL CONT’D

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Batteries produced by Matsushita. The following steps were taken: Instructions on Company’s website on “How to detect whether a battery is affected”. Qualifying customers were provided new replacement battery free of charge. Information on Defective Batteries via Phone Nokia set up a product advisory for the Defective Battery STEPS TAKEN BY NOKIA

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In the second quarter of 2007, Nokia sold 101 million mobile phones, a 29% increase from the previous year. Nokia continued to be the market leader. Nokia’s strong sense of Social responsibility Preventive measures in crisis were worth applauding. Nokia won the hearts of customers to successfully defuse a crisis that could have arisen outside of the decision. AFTER AFFECTS

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SWOT ANALYSIS

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Durability Brand Loyalty Nokia could manage the entire recall process without doing any damage to its brand image remained to be seen Nokia encourages all to take social responsibility and dispose used products properly STRENGHTS

WEAKNESS : 

WEAKNESS Recalls for both new and existing products have serious impact on the company’s image and its brand Benefits the rival phone makers Heavy Sets High Price

OPPORTUNITY : 

OPPORTUNITY Targeting right customers at right time. Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge. Tax Reduction Introduce messenger Facility

Threats : 

Threats Strong Competition China Mobile Challenges of Continuous Technological Development Benefits the rival phone makers Customers might change their brand Customers might change their brand

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Targeting Millions of internet users Low cost web enabling in 2010 Focusing on the lower end of the society. Exchanging Nokia 3BL-C battery for free Nokia acted swiftly and transparently in the best interests of the consumers and came out with this fiasco unscathed After this Nokia sold 101 million mobile phones ,29% increase from pervious year because of the best customer service . CONCLUSION