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Nokia and Motorola - Case Study Example
This paper focuses on which would be the best company to invest in and we choose Nokia and Motorola to make a decision on which is the best to invest. There is a need for investors to forecast on possible earnings in the future using historical data of a company, we therefore analyze the two companies comparing the dividends paid, share prices, future growth and strategies, financial ratios and profitability.
The Nokia Company has emerged a market leader in the industry. The two companies are quoted in the London stock exchange and using the financial ratios and historical dividends paid we will be in a position to determine which is the best investment option.
Nokia has a larger global market size than Motorola, in the second quarter of 2008 Nokia had a 40% global market share and this was a 2% increase in market share from the 2nd quarter of 2007. Motorola on the other had has a 9% market share today which is a decline from the market share in 2007 which was 18%. Therefore from the market share size it is evident that Motorola is loosing out and Nokia is expanding its market size, it is also clear that Nokia has a larger market share than Motorola and for this reason it is better to invest in the Nokia company due to the growth in the market share of the company which signify an increase in the profit levels in the near future.
Nokia employs over 100,000 employees worldwide and over 30,000 of these employees are in research and development, therefore this means that the company has a large market area that requires more employees to serve consumers and that the research and development expenses incurred are ...