Case Study of Nokia

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Nokia Growth Partners have more than $1 billion under management, 4 billion-dollar exits, 70 portfolio companies, 24 Exits and 4 Geographies.

Porter’s 5 Force Model

- Threat of new entrants- The threat of new entrants into the mobile phone industry is high for Nokia since nowadays the technology needed to produce the latest generation of smartphones is very advanced it is difficult enough for the entrants to differentiate from each other. Huge capital had spent in order to become at par and compete with the established players. Q Mobile, Xiaomi, OPPO, Micromax with the help of huge investments and decreased production costs due to economies of scale has been able to enter the market successfully.

- Bargaining Power of Suppliers- Nokia have a trustworthy relationship with its suppliers especially in the case of hardware and Nokia having a good brand name cannot have any problem in getting a supplier as per their requirements so the bargaining power of suppliers is moderate.

- Bargaining Power of Buyers- Due to the extensive growth and development in the mobile phone technology, the bargaining power of the buyers in this industry has increased a lot. It has become a very competitive market where there are many choices for the buyers: making them very powerful as they can choose to easily go to any rivals of Nokia if products are not good enough for them.

- Threat of Substitute Products-Is high for Nokia since mobile phones today offer so much to the buyer.

- Competitive Rivalry- The threat of competitive rivalry is very high for Nokia as they are still behind others in the smartphone industry.