MCROO7 Project management Assignment Sample


Project management success depends on strategic decision making and effective management. Failure to achieve these two prerequisite factors leads to affecting the quality of the project and its outcome. The following assignment is based on a project which failed named Nokia Lumia. Nokia Lumia operating system is a high-end smartphone which is developed by Nokia and it runs on Microsoft Windows phone. The assignment focused on analysis of various causes of its failure and loss incurred by the project. Besides this, this study aims to highlight what are the remedial strategies through which better results from the project can be ensured.

Description of project Nokia Lumia

Nokia has been the most influential telecommunication industry of all time which has a large amount of market value and a high customer base. In the mobile phone market, Nokia has been one of the leading companies with its competitors such as Apple. In order to maintain its supremacy in the market, the company has developed a new project named Nokia Lumia. As the company has a greater market value and around 150 million users this company is situated in only India which defines its customer base (, 2022). In order to serve its customers in a better way, this company launched a new model named Nokia Lumia. Various features of this mobile gadget allow users to experience a high quality of service from its company. Smart features like WOA deploy allow users to deploy with an easy Windows desktop. Moreover, at the time of their launch, these electronic gadgets consist of high-quality cameras which make them more attractive. Colour and quality of photos by this handset make it more special and highly demanded at the time of its launching.

Objective of this launching is to gain a reputation of Nokia and procure those qualities of a product that are consistent with developing technology and innovation in telecommunication industry (, 2022). However, in order to make its project successful, it is quite necessary for a business and organization to have an effective marketing strategy. In this case, due to lack of an effective decision-making strategy leads to affecting its project outcome. Though Nokia Lumia gained early success because of its company market value and its customer base, it cannot be able to compete in long term. However, a large number of competitors and lack of marketing strategy leads to a huge loss from Nokia Lumia project.

Analysis of Nokia Lumia project loss  

This segment of study has a highlighted amount of loss borne by the company due to the launch of project Nokia Lumia. Nokia Lumia was launched in the year 2011 and in the year 2012, its total sales have fallen by 19% which stood at 7.54 billion Euros ( 2012). This figure shows its ineffective marketing strategy and product weakness due to this, it is not able to gain market demand. In this figure reduction in sales of smartphones has also included which stood at 34% of total sales reduction. Reduction in sales of a smartphone of Nokia Lumia stood at 1.54 billion Euros in last three months old its launch.

In order to tackle this loss, the company reduced the price of Nokia Lumia 900 which aims to compete with its rival companies such as Samsung and Apple. However, this strategy has failed as Nokia Lumia was not able to compete with products of Samsung and Apple. On analysis of this major failure, it has been noticed that due to lack of marketing research this company was unable to know customer demand. Thus, due to a lack of effective marketing strategy and management strategy this company incurred a huge loss from its project and rival companies optimize this opportunity which has affected the market value of Nokia and its customer base. While analysis of loss of Microsoft due to this launch, it has been assessed that this organization made loss of 3.2 billion Euros which is the biggest loss incurred by this company with Nokia (, 2013). Based on this it has been noted that due to this project failure companies not only bear financial loss but also bear non-finance, loss such as reputational loss. Failure of Nokia Lumia project caused a 4% reduction in its share value in market; a reduction in share value highlights stakeholders’ prospects.

Other than this, share price of Nokia has also been reduced by 3.8 per cent to 3.82 USD due to loss by Nokia Lumia (, 2012). At the time of launching Nokia Lumia, there were a large number of competitors such as the Chinese mobile network which strengthened the Asian country. As Nokia has a higher customer base in Asian countries, expansion of the Chinese network affects its customer base. Other than force is another major factor that causes a major reason for the failure of the Nokia Lumia project. A high number of rival companies such as Samsung and Apple are continuously developing their products and procuring them at lower prices. However, Nokia’s pricing strategy seems quite ineffective as compared to these rival companies.

Apart from this, the Chinese mobile network continuously decreases the price of its products. Due to this, the average price of Nokia Lumia products has fallen by 18%. Reduction in price of product negatively impacts the margin from product (, 2012). Under these circumstances, the company is not able to gain expected margin from the Nokia Lumia project. On analysis of overall loss from Nokia Lumia project, it has been found that Microsoft bears a loss of 8 billion USD on Nokia Lumia project as the company has failed to provide a third alternative for iPhone and Android users.

Evaluation of various reasons for incurring losses of Nokia Lumia launch   

Resistant to smartphone users

One of the major failures of Nokia Lumia is its resistance to smartphone users. As Nokia has a large market value and a high customer base global it is not primarily focused on taking advantage of Android phones which are new to the world market. Other rival companies such as Samsung are focusing on the production of smartphones to its customers, though it is able to capture the market (Bhalodiya and Sagotia, 2018). On the other hand, analysis of Nokia’s marketing strategy it has been noticed that at that time this company remained stubborn.

After some time Samsung launched it’s first-ever smartphone which captured the whole market and increased its market value. On the other hand, this launch caused both reputational as well as financial loss to Nokia. Customer engagement of this company has been affected which can be seen in the launching of new product Nokia Lumia (Lamberg et al. 2021). Ignorance of its new technology caused Samsung to be emerged as a leading industry to provide smartphones to customers. This leads to a reduction in its brand value in the global market which causes a loss on launch of Nokia Lumia.

Overestimation of strength

Another major cause of failure of this project is an overestimation of strength though Nokia has led the telecommunication industry for decades, it is quite necessary to estimate its current position in the market. This company believes that even after the late launch of smartphones it can be able to gain market demand and customers. As it has been noticed that before launching smartphones by Samsung the company has found that customer buying and perception toward his company has been changed. As argued by Kienzler et al. (2021), overestimation of business strength causes financial damage for business. Thus, overestimation of this company on late launch of smartphones causes a huge amount of loss. Other than this, launching a smartphone with the help of Microsoft is not compatible with the android phone. As consequences of customer expectation towards this company have been affected. This can be seen from the loss incurred on launching Nokia Lumia. Customers faced various issues from this product such as bugs and clunk due to its ineffective software. Because of Nokia Lumia has suffered a huge amount of loss, which signifies its misappropriation of its strength and market value.

Figure 1: Vvarious reasons for incurring losses of Nokia Lumia launch

(Source: Clò et al. 2020)

 Lack of innovation in project

One of the major causes of Nokia Lumia’s failure is lack of innovation. In this study it has been noted that previously Nokia was very late in launching its smartphone in the market, this company added innovation in the product of Nokia Woes. On the other hand, brands like Samsung; Apple continues adding new technology and new innovative methods to their products. However, the launching of Nokia Lumia shows a positive impact on the market but due to lack of innovation, this project has also failed to gain market demand (Clò et al. 2020). On analysis of Nokia’s strategy regarding innovation it has been noted that in the era of 4G, Nokia did not have 3G gadgets which show its rigid growth in respect of innovation. Due to this its customer base and revelation in the market is replaced by Samsung which is not good for the financial prospects of this company.

Weak marketing strategy

Marketing strategy is a significant tool through which better results from projects can be achieved. In order to enhance its brand value in the market, it is quite necessary for a business to have an effective marketing strategy. However ineffective marketing strategy of a business leads to an effect on total revenue of the company and its profit earning ability (Olson et al. 2018). At the time of launch of Nokia Lumia, various companies such as Samsung and Chinese mobile networks procure innovative mobile gadgets at a lower cost. In this situation, Nokia Lumia reduced its price by 18% which led to a reduction in its profitability. Based on this it has been found that due to ineffective marketing strategy this company is not able to compete with its rival company. High competition and ineffective marketing strategy cause reputational damage to its brand value and position in market.

Recommendation to gain better result

Use of porter’s five forces for competitive advantage

Based on the analysis of the cause of failure of Nokia Lumia project it has been noted that high competition and marketing strategy of the company is the major cause of this project’s failure. In this situation Porter’s five forces model allows Nokia to use an effective strategy through which optimisation of competitive advantages can be possible (Min et al. 2018). As though the whole study it has been noted that Samsung and Apple are the main competitors for this company which gave a tough competition in market, in this situation five forces of porter named power of supply, power of customer and threat of substitute allows a wider range of scope through which increase in its competitiveness can ensured. Prior to the launching of Nokia Lumia, a detailed analysis of Porter’s five forces allowed management to assess various aspects such as competition in the current market and impact of buyers.

MCROO7 Project management Assignment Sample

Figure 2: Porter five Forces

(Source: Juliana and Nyoman 2019)

Analysis of the threat of substitutes provides guidance about substitute products in the market which assist in a better product development process. Other than this, analysis of customer power allows the company to highlight customer demand and their perception towards products to be launched, based on this the company can be able to know potential outcomes from this project. As opined by Juliana and Nyoman (2019), evaluation of other forces of porter’s five forces which is potential of new entrants provides scope for this company regarding new entrance of company in market. Based on this, it can be able to manage potential risk in an effective way. Based on this it can be said that with the help of porter five forces automatic launching of new products such as a Nokia Lumia in market can be possible.

Detail marketing analysis

Marketing analysis is quite necessary for sustainable growth in the business market. However, due to a lack of market research and analysis technique, Nokia Lumia can not be able to meet customer expectations which cause a huge loss for its company. In this situation, it is quite necessary for the company to have an effective marketing analysis that assists management to know actual demand of customers through which better quality of a product can be procured (Rosyada et al. 2020). In this situation 4P of marketing strategy allows the company to make the Nokia Lumia launch in an effective way. Components of 4P such as product price place and promotion allow management to develop those kinds of products that meet customer expectations.

MCROO7 Project management Assignment Sample

Figure 3: 4P of marketing mix

(Source: Rosyada et al. 2020)

Products in 4P provide detailed information about products that attract customers and meet their demands. Other than that, this price in 4P mitigates the Nokia Lumia pricing process. Due to a weak pricing strategy, Nokia Lumia may not be able to attract customers and increase its sales. As stated by Mustaqimah et al. (2019), using 4P in its marketing strategy allows Nokia to set an attractive price through comparison of prices of its rival company. Based on this strategy, the ultimate objectives of Nokia Lumia can be fulfilled. Moreover, this marketing mix proves a wider range of promotional strategies through which better customer engagement can be possible. Thus, implementation of the 4P marketing mix in Nokia Lumia launch enables management to attain better project outcomes.

More focus on customer engagement and innovation

Detailed analysis of the reason for failure of Nokia Lumia, it has been noticed that lack of innovation in its project causes loss on launching of product. In this situation, it is quite necessary for Nokia to enhance its customer engagement policies through which it can be able to analyze patterns of consumer demand and their perception towards its product. As argued by Alvarez-Milán et al. (2018), a better consumer engagement process allows a business to know various issues in the current product and make necessary management. Other than this, a better customer engagement process also keeps its customer more motivated and loyal towards its product. Based on this, it is possible for Nokia to procure great quality products at great prices. Other than this, lack of innovation in its product cause reputation and financial damage in market. Thus, focusing on innovative methods and use of advanced technology leads to retaining its customer and providing scope to compete in an effective way. Apart from this, continuous analysis of customer demand and implementation of advanced technology in its product ensures a better marketing position and high customer engagement.


On analysis of various causes of failure of Nokia Lumia, it can conclude that due to lack of innovation in its project a huge amount of loss is born by the company. Furthermore, weak marketing strategy and tough competition affect its financial position and launching of products in the market. In this situation, it is quite necessary for this company to have an effective solution through which these business constraints can be mitigated. The use of porter’s five forces seems quite beneficial in this aspect as it provides competitive advantages to the company through which symptomatic launch of Nokia Lumia can be possible. Moreover, this strategy allows this company to manage its potential risks in an effective way that minimizes the chance of loss from this launch. Another effective strategy which is 4P is suitable for this company by which it can be able to meet customer expectations in a better way.



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Clò, S., Florio, M. and Rentocchini, F., 2020. Firm ownership, quality of government and innovation: Evidence from patenting in the telecommunication industry. Research Policy, 49(5), p.103960. Available at:

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Lamberg, J.A., Lubinaitė, S., Ojala, J. and Tikkanen, H., 2021. The curse of agility: The Nokia Corporation and the loss of market dominance in mobile phones, 2003–2013. Business History, 63(4), pp.574-605. Available at:

Min, C., Liangwen, L. and Yue, X.G., 2018. New Thoughts on Porter’s” Five Forces Model” from the Perspective of Innovation. IETI Transactions on Social Sciences and Humanities, 1, pp.105-113. Available at:

Mustaqimah, A., Hartoyo, H. and Nurmalina, R., 2019. Marketing mix effect towards customer satisfaction and loyalty: Case study of Rejuve cold-pressed drinks. Indonesian Journal of Business and Entrepreneurship (IJBE), 5(3), pp.310-310. Available at:

Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73. Available at:

Rosyada, D., Elpawati, E., Sari, F.R., Nugraha, A.T. and Hasanati, N.U., 2020. Business Process Analysis For Marketing Honey Bee Products. Available at:

Websites 2012 loss on Nokia Lumia Available at: [accessed on 7 marches 2022], 2022 about Nokia at:, 2012 loss on Nokia Lumia Available at: [accessed on 7 marches 2022], 2013 Nokia Lumia Available at: [accessed on 7 March 2022]


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