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It was almost buried in the wake of the sale in the fall of 2013, his American to Microsoft mobile activity. But, a little less than two years after this, Nokia is revival phase. The Finnish group has swapped his clothes moribund phone manufacturer for those of OEM telecommunications networks growing. With some success. The point of being able to make a takeover offer for Alcatel-Lucent enterprise suffering, former flagship of French and European telecommunications.
molts, it is true that historic jewel of the Finnish industry has known. Not least. The group, which started with making paper also produces electricity, before moving on to the consumer electronics in the 1960s, then to televisions, computers …. before giving up all these activities successively in 1980 and especially in 1990, to focus on telecommunications. But in this sector also, the Finnish industry had to resolve to make radical choices.
“A smart plan, well executed”
change begins September 3, 2013, when Nokia announced the sale of its terminal division to Microsoft for $ 7.5 billion (then 5.4 billion euros, today 7 billion). The group is well rid of what made his fame and fortune in previous years, but also nearly caused his fall: mobile phones, of which he was the first vendor worldwide in the mid 2000s.
Unable to turn the corner of the smartphone and especially tactile, popularized by Apple’s iPhone, Nokia saw its customers and shun the sales declined dangerously. He therefore chose a radical weight loss program.
Only then rest of the company that the division telecommunications network equipment, set up jointly with Germany’s Siemens in 2007 and named Nokia Siemens Networks. This activity is considered for many years as the “sick man” of Espoo group.
As with Alcatel-Lucent, NSN faces competition from increasingly fierce Chinese manufacturers Huawei and ZTE. The economic crisis and the continued decline in revenues grow also require operators to more competitive prices.
In July 2013, shortly before the sale of its mobile devices division, the group takes the option to ensure control of the entire business equipment, buying out Siemens for € 1.7 billion. The rest of the strategy then rests, according to Sylvain Fabre, the research firm Gartner, the “an intelligent plan, very well executed.”
Success in Asia
Become equipment manufacturer, Nokia continues its first weight loss program. The Espoo firm separates all activities that are not profitable. First victims, fixed Internet, fiber optic devices, or everything related to WiMAX. Added to this are a rigorous cost management and several waves of job cuts.
“They cut all product lines on which they were not the best to concentrate on what they do “ says Sylvain Fabre. That Nokia knows (yet), the infrastructure equipment for mobile networks.
The group devotes entirely at the top and mobile broadband (3G and 4G) winning contracts in Europe and Asia. Particularly in South Korea and Japan, where operators are less discriminating the expense. And when Chinese manufacturers have yet to set foot.
“They also removed from all tenders where the prices were too low and would have had sacrificing margin. Preferring the latter to growth “, says one expert in the sector. In doing so, the supplier manages to reach the critical size where it was needed and to economies of scale
In the end, the stock market has welcomed this new processing Nokia. Course action, fell to disastrous levels doubled between 2013 and 2015, from 4 to 8 euros.
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