Weakness—Nokia in UK
1 Burning cash
( Nokia: Three Big Problems, 2012)
Nokia’s Net Cash went down 24% in one year. From page 5 of the earnings Release: “Year-on-year, net cash and other liquid assets decreased.
‘The company’s prospects in both phone categories don’t look stellar. And bad things happen to cash when the market loses confidence in a company’s future: vendors want to be paid more quickly, customers become more hesitant, all precipitating a crisis’( Nokia: Three Big Problems, 2012)
2 System defects
Nokia isn’t fast enough on its software development.
‘Symbian’s architecture is complicated and weird, and its attempts at running a touchscreen horrendously lousy.’ (Nokia’s ...view middle of the document...
With its full touch screen and app-based operating system, the iPhone changed the very definition of what a Smartphone should be. Now a days, consumers opted for pocket-sized mini-computers instead of “feature” phones with tedious WAP browsers.’(Chang,A, 2012)
Nokia did not recognized what they are facing now and has slow reaction on this kind of new competitive and new market.
Political---UK mobile phone industry
Political condition seems stable in UK.
1 Mobile phone transmitter stations (Base Stations/Masts)
UK government published that they would invest £150m to the MIP project as a national infrastructure plan to develop the economic growth in November of 2011.
‘Mobile phone coverage too many homes and businesses in 'not-spots' is to be extended by building new mobile sites. The DCMS was reported to be in discussions with all four mobile operators to provide mobile voice services from all MIP sites.’ (Politics, 2013)
2 Government interventions to ensure competition
‘The mobile phone industry in the UK is one of the most competitive ones in Europe.’(Terrelonge, 2012)
The competition policy aims to promote competition, give customer more choice, technological innovation and effective price competition.
‘There are four key pillars of competition policy in the UK and in the European Union: Antitrust and cartels, Market liberalization, State aid control and Merger control.’(Government intervention - competition policy, 2012)
Regulators in UK are the office of fair trading and EU competition commission in order to monitoring and regulating price, standards of customer service, opening up markets and surrogate competitor. (Government intervention - competition policy, 2012)
3 3G license selloff
The government put 22.5 billion pounds for selling the 3G license.
‘The auction ran from 6th March to 27th April 2000, and was frequently described as the “biggest ever”.’ (Binmore, K, 2011)
‘The proportion of the population using a portable phone was rising rapidly5 and, as in other parts of the world, the cellular telephone industry was regarded as a runaway success; the industry was set to become even more important with the introduction of the “third generation” of portable telephones that would allow high-speed data access to the internet.’(Binmore, K, 2011)
4 Introduced a voluntary code of practice for marketing and selling mobile phone contracts.
‘Ofcom has established a single mandatory Code of Practice with minimum standards...