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CONTENTS
INTRODUCTION : NOKIA……………………………………………….……....3
HISTORICAL BACKGROUND…………………………………………………..4
AREAS OF FOCUS…………………………………………………………..…....29
SWOT ANALYSIS…………………………………………………………..……..30
PEST ANALYSIS………………………………………………………….…….....33
STP ANALYSIS…………………………………………………………………....36
COMPETITOR PROFILING…………………………………………….…..…..38
LOOPHOLES…………………………………………………………………….....43
RECOMMENDATIONS…………………………………………………………..44
BIBLIOGRAPHY…………………………………………………………..………46
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INTRODUCTION
Nokia is a world leader in mobile communications, driving the growth and sustainability of the
broader mobility industry. Nokia connects people to each other and the information that matters
to them with easy-to-use and innovative products like mobile phones, devices and solutions for
imaging, games, media and businesses. Nokia provides equipment, solutions and services for
network operators and corporations.
Nokia Today
Reported net sales of EUR 40,984 million (EUR 50,710 million in 2008)
Reported operating profit of EUR 1,197 million (EUR 4,966 million)
Nokia estimated mobile device market share 38%
Nokia had strong R&D presence in 16 countries
Nokia employed 1,23,553 people at year-end.
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NOKIA was established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on the banks of
the Tammerkoski rapids in the town of Tampere, in south-western Finland. The company was
later relocated to the town of Nokia by the side of Nokianvirta river which had better resources
for hydropower production. That is where the company got the name that it still uses today. The
name Nokia originated from the river which flowed through the town. The river itself,
Nokianvirta, was named after the old Finnish word originally meaning a dark, furry animal that
was locally known as the nokia, or sable, or later pine marten.
Finnish Rubber Works established its factories in the beginning of 20th century nearby and
began using Nokia as its brand. Shortly after World War I, Finnish Rubber Works acquired
Nokia Wood Mills as well as Finnish Cable Works, a producer of telephone and telegraph
cables. These three companies were merged to form Nokia Corporation in 1967.
The new company was involved in many sectors, producing at one time or another paper
products, bicycle and car tires, footwear (including Wellington boots), personal computers,
communications cables, televisions, electricity generation machinery, capacitors, aluminium, etc.
The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river.
Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a
cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...Fredrik
Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia
story begins. Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia
Corporation.
The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early
evolution of mobile communications. As European telecommunications markets were
deregulated and mobile networks became global, Nokia led the way with some iconic products...
In 1992, Nokia decided to focus on its telecommunications business. This was probably the most
important strategic decision in its history. As adoption of the GSM standard grew, new CEO
Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it
the world leader before the end of the decade...
Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to
the future...
2007: Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences
operations. Nokia launches Ovi, its new internet services brand.
2008: Nokia's three mobile device business groups and the supporting horizontal groups are replaced by
an integrated business segment, Devices & Services.
PRODUCTION UNITS
Networks technology
China
Finland
Germany
India
"Connecting people" is now connecting people to what matters - whatever that means for each
person - giving them the power to make the most of every moment, everywhere, any time.
Connecting the "we" is more powerful than just the individual. That's how Nokia is needed to
help make the world a better place for everyone.
Mission Statement
Business – To ensure the team has a complete understanding of all Mobile Network
Internal Systems and Procedures and that each team member is responsible for
compliance with the Business Management System.
Training – To develop ongoing training strategies to empower personnel with skill levels
essential for future company success.
The Team – To create the best possible working environment, promoting career
enhancement and job security, encouraging trust in the company and loyalty to the
customer.
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Marketing Strategy
What makes them unique is the way they do it. Based on the same approach that guides the rest
of their activity – ‘The Nokia Way’ - their corporate responsibility is developed through logical
steps, with much of the work concentrated inside the company, much of the work built on
existing programs, and many stages taken forward in parallel.
For them, corporate responsibility is an integral and continuous part of decision-making in all
parts of their business; taking responsibility for the consequence of their actions. It’s a belief that
by focusing on issues over which they have most influence and which their stakeholders consider
important, they will be able to mobilize more of company resources, be more proactive, and
ensure long-term programs.
The Nokia Strategy continues to focus on three activities to expand mobile communications in
terms of volume and value:
Expand mobile voice
Drive consumer multimedia
Bring extended mobility to enterprises
PRODUCTS OF NOKIA
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AND
ITS FEATURES
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Nokia 1208
Key Features
Experience enhanced visual with the 65,536 color display
Dust and splash proof with rubberized keypad and anti-slippery back cover
Operating Frequency
GSM Dual band EGSM 900/1800 MHz
Dimensions
Volume: 67.3 cc
Weight: 76.9 g
Length: 102 mm
Width: 44.1 mm
Thickness (max): 17.5 mm
Display
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User Interface
S30 user interface
Messaging
Text messaging: Supports concatenated SMS, picture messaging, SMS distribution
list
Distribution list - create and manage your personal list
Predictive Text Input: Support for all major languages in Europe and Asia Pacific
including Indian dialect
Large SMS storage for up to 60 SMS on phone memory
Ringing Tones
32-chord/voice polyphonic ringing tones with MP3-grade sound
Call Management
Large contact storage - up to 200 entries in built-in phonebook
Voice Features
Integrated handsfree speaker
Analog/digital clock
Reminders
Stopwatch
Calculator
Calendar
Converter
Countdown timer
Power Management
Nokia 1650
Key Features
Easy one-touch key to activate FM radio in an instant
Enjoy easy viewing with the 65,536 colors, large screen display and large font type when
dialing
Personalize your phone ring with quality MP3-grade and 32 Polyphonic ringtones
Extend your talk time with Power Saver mode
Convenient one-touch key to switch on built-in flashlight
Operating frequency
GSM Dual band EGSM 900/1800 MHz
Dimensions
Volume: 69 cc
Weight: 80 g
Length: 104.2 mm
Width: 43.8 mm
Thickness: 17.8 mm
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Display
65,536 colors, 128 x 160 pixels CTSN display
User interface
S30 user interface
Multimedia
Integrated FM radio
Messaging
Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list
Chat
Language Support
18 Input languages: Bahasa Indonesia, Bahasa Malaysia, Bengali, Simplified Chinese,
English, Gujarati, Hindi, Kannada, Marathi, Pilipino (Tagalog), Punjabi, Tamil, Thai,
Vietnamese, Khmer, Malayalam, Sinhalese, Telugu
Ringing Tones
Supported file formats: MP3-grade, 32-chord polyphonic MIDI ringing tones
Connectivity
Headset connector: Standard 2.5mm headset connector
Call Management
Time Tracker
Call Duration Log
Voice Features
Integrated handsfree loudspeaker
Power Management
Nokia 2626
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Key Features
Stand out from peers and friends with colored covers
Listen to and share your FM radio music through the integrated handsfree speaker
Record sound on the move and send to friends with Nokia Xpress Audio Messaging
Download wallpapers & ringing tones via GPRS
Stay updated on work and play with one inbox for SMS and MMS messages
Operating frequency
GSM Dual band EGSM 900/1800 MHz
Dimensions
Weight: 91 g
Length: 104 mm
Width: 43 mm
Thickness (max): 18 mm
Display
65,536 colors display
Multimedia
Integrated FM radio
Nokia Xpress Audio Messaging
Memory functions
2 MB Gallery to store downloaded files
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Messaging
Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
Email: Supports SMTP, POP3 and IMAP4 protocols. Support for attachments
Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list
Browsing
WAP* 2.0 xHTML/HTML browser
Data Transfer
GPRS: Class B, multislot class 6
Call Management
Large contact storage – 300 entries in built-in phonebook
Voice Features
Voice recorder
Integrated handsfree speaker
Power management
Nokia 2600Classic
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Key features
Capture images and videos in dazzling color with the digital VGA camera and video
recorder
Personalize your phone with MP3, ringtones and user-created ringtones
Operating frequency
Dual band GSM 850/1900 MHz
Dual band EGSM 900/1800 MHz
Dimensions
Volume: 63.5 cc
Weight: 73.2 g (with battery)
Length: 109.6 mm
Width: 46.7 mm
Thickness: 12 mm
Display
65K color, 128 x 160, TFT
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Imaging
VGA camera
TFT color display
MMS
Multimedia
Digital VGA camera with video recorder for pictures and video
FM radio
Messaging
Email supports POP3, IMP4 and SMTP protocols
Nokia Xpress Audio Messaging (sends greetings with short voice clips)
Java™ Applications
xHTML over TCP/IP, WAP 2.0
MMS 1.2 (supports 300KB size)
Connectivity
Photo and data sharing with Bluetooth 2.0
Browsing
WAP 2.0 web browser (xHTML)
Power Management
Battery: BL-5BT
Capacity: 870 mAh
Key Features
An elegant, large, glossy black 1.8" smoked screen makes viewing all your photos a
pleasure.
A solid metal rim around the phone protects the screen from scratches
Display
Main display: 128x160, up 262k colors. TFT (active area 1,8")
Imaging
2 megapixel camera
8 x digital zoom
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Messaging
Email client with attachments (Java version)
MMS: OMA MMS 1.2 (300 KB MMS size)
Instant Messaging
Multimedia
Media player supporting MP3, MP4, AAC, AAC+ eAAC+, H.263, H.264
FM Stereo radio
Connectivity
Bluetooth
Micro SD memory slot up to 2GB
Mini-USB connector
Other features
Themes including animated wallpapers, screensavers, color schemes & ringing tones
Voice recording, voice commands, speaker independent name dialing
Bearers supported
DARP
EDGE class 10; GPRS class 10
Power Management
Key features
Take high quality pictures with a 3.2 megapixel camera with Carl Zeiss optics, auto focus,
and 8x digital zoom
3G video calling helps you feel even closer to the people you care about
Connect directly to Flickr™ website to share your photos with all your friends
Macroshot, landscape mode, sequential shots, and dedicated 2-step capture key
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Horizontal mode with capture and zoom keys allows you to use the phone like a digital
camera
Use PictBridge™ to print copies of your favorite images
Add finishing touches to your pictures with Adobe PhotoShop software
Video recording: VGA (15fps) and QCIF (30fps) resolutions with 4x smooth zoom.
Supports H.263 MPEG-4 in .3gp format
Secondary camera for video calling (QCIF resolution, 15 fps)
Add a new dimension to your conversations with 3G TV video calling and TV
conference via TV-Out
Video: Video recording and playback in MPEG4
Browsing
WAP* 2.0 browser with XHTML support over HTTP/TCP/IP stack
Opera Mini browser
OMA Digital DRM 2.0 - including forward lock for content protection, combined
delivery, separate delivery and super distribution.
Connectivity
Bluetooth 2.0
Data transfer*
EDGE Release 4 multi-slot class 31 (5RX+2TX: maximum 6 slots)
GPRS multi-slot class 31 (5RX+2TX: maximum 6 slots, class B&C)
Digital services
Display
16 million colors QVGA 240 x 320 pixels 2.2" LCD display
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Memory functions
20 MB user free internal memory
Options to expand up to 4 GB with microSD memory card
Visual Radio: Listen to music and interact with your favorite radio stations
Find out what song is playing, who sings it, and other artist information
Enter contests and answer surveys, vote for your favorite songs
Video streaming: H.263 & MPEG4 (up to QVGA, 15 fps), and H.264 (QCIF 15fps)
Local video playback: up to 30fps in QVGA for H263 and MPEG-4 with 2048 kbps bit rate.
Up to 15fps QCIF for H264 with 128 kbps
Integrated FM Radio
Operating frequency
Quadband GSM 850/900/1800/1900 MHz
Dual band WCDMA 850/2100 MHz
Power management
Nokia N72
Key Features
"Slide and shoot" print quality photos with 2 megapixel camera with up to 20x zoom
Dedicated music keys for access to digital music player
Operating Frequency
EGSM 900/1800/1900 MHz
Automatic switching between bands
Dimensions
Volume: 95.4 cc
Weight: 124 g
Length: 108.8 mm
Width: 53.3 mm
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Display
262,144 colors TFT QVGA 176 x 208 pixels display
Active standby main services always on top
Ambient light detector - used to optimize display brightness and power consumption
User Interface
S60 user interface 2nd Edition
Dedicated Music keys for direct access to digital music player
Imaging
Integrated 2 megapixel camera (1600 x 1200 pixels) with up to 20x digital zoom and
close-up mode
Slide for lens protection and camera activation
Multimedia
Visual Radio
Memory Functions
Up to 512 MB* internal dynamic memory for contacts, text messages, multimedia
messages, ringing tones, images, video clips, calendar notes, to-do list and applications
Messaging
Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
Email: Supports SMTP, POP3 and IMAP4 protocols. Support for attachments (view jpg,
3gp, mp3, ppt, doc, xls, pdf files)
Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list
Connectivity
Pop-Port™ interface with USB 2.0 full speed
Bluetooth 2.0
Browsing
WAP* 2.0 xHTML/HTML multimode browser
Data Transfer*
EGPRS, Class B, multislot class 10 (UL/DL = 118.4/236.8 kbps)
Speech codecs supported: FR, EFR, and AMR
Data transfer application for moving data from compatible old Nokia S60 device over
Bluetooth connectivity
Voice Features
Voice dialing
Voice commands
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Power Management
Nokia N73
Key Features
3.2 megapixel camera with Carl Zeiss optics
Large, bright 2.4-inch display
Operating Frequency
Quadband EGSM 850 / 900 / 1800 / 190 MHz
Dual mode WCDMA / GSM
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Dimensions
Weight: 116 g
Length: 110 mm
Width: 49 mm
Thickness (max): 19 mm
Display
Up to 262,144 colors, 2.4 inch QVGA 240 x 320 pixels display with automatic brightness
control
Imaging
3.2 megapixel camera (2048 x 1536 pixels) with up to 20x digital zoom
Camera Specifications
o CMOS sensor, 3.2 megapixel (2048 x 1536 pixels) with autofocus and digital
zoom up to 20x
o Carl Zeiss Optics, Tessar™ lens
Video
o Video: play, record, stream
o Video stabilization
Multimedia
Visual Radio
RealPlayer Media Player
Memory Functions
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Messaging
Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
Email: Supports SMTP, POP3, IMAP4, and APOP protocols. Support for attachments
(view jpeg, 3gp, MP3, .ppt, .doc, excel, and .pdf files)
Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list
Java™ Applications
Java™ MIDP 2.0, CLDC 1.1 (Connected Limited Device Configuration (J2ME))
C++ and Java SDKs
Connectivity
Pop-Port™ interface to USB 2.0
Infrared (IR)
Bluetooth 2.0
Browsing
WAP* 2.0 xHTML/HTML multimode browser
Data Transfer*
EGPRS, Class B, multislot class 11 (UL/DL = 118.4/236.8 kbps)
WCDMA 2100 with simultaneous voice and packet data (PS max speed UL/DL=
128/384 kbps, CS max speed 64 kpbs)
Dual transfer mode (DTM) support for simultaneous voice and packet data connection in
GSM/EDGE networks
WCDMA packet data rates: UL 384kbps, DL 384kbps
Circuit data to 64kbits/s for video call
Speech codecs supported: FR, EFR, WCDMA, and GSM AMR
Voice Features
Voice dialing
Voice commands
Power Management
AREAS OF FOCUS
To achieve their business objective, their strategy focuses on: being the preferred provider of
solutions for mobile communications; creating personalized communication technology; driving
open mobile architecture enabling a non-fragmented global mobile services market;
strengthening and leveraging Nokia, the trusted brand; and expanding our business and market
position on a global basis.
Driving Open Mobile Architecture— Nokia’s key commitment is to create a global and
open mobile software and services market. They aim to achieve this through strong
partnering with customers, suppliers and industry participants, and solid focus on end-to-
end solutions in all their development activities.
Strengthening the Brand-- According to a variety of consumer surveys, the Nokia brand is
associated with well-designed, high quality and technologically advanced products and
customer services that are also user-friendly. Having invested considerable resources in
establishing the Nokia name as the leading brand in mobile communications, they intend
to sustain and enhance the brand through aggressive advertising, sponsorship and other
marketing activities in all of their principal markets. It’s a belief that the leading market
position provides significant opportunities for Nokia to better understand and respond to
the usage patterns of end users, and thus enhance the Nokia brand.
Expanding The Business-- For more than a decade, they have actively expanded their
business globally. They, therefore benefit from strong economies of scale throughout the
organization. Nokia’s strategy is to continue focused pursuit of global business
opportunities by cultivating a strong local presence in all growing markets and pursuing
partnering and acquisition opportunities in order to obtain complementary technologies
and market positions.
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Analyzing the effectiveness of strategies, strength and weaknesses can be defined as internal to
an organization. The businesses do not necessarily have to correct all its weaknesses however; it
should be able to retain its strengths. The key success factor for operating in the targeted market
depends on the external factor, i.e. Opportunity. Nokia has numerable opportunities to enlarge its
market share, however, they could be faced with a threat which could be challenge posed by an
unfavourable trend or development that may lead into absence of defensive marketing action and
thus diminish sales and profit.
SWOT ANALYSIS
STRENGTHS
Global Products and Image – Nokia is a global company. It not only sells its products to 130
countries but also sets up research and development departments in fifteen countries to
produce its products in different culture and language needs. For example- English,
Dutch, German and Chinese.
High Quality Products – Nokia concerns about product quality which is the most important
factor to satisfy customer’s needs. Nokia adds more values by superior quality or
differentiated features to the market. Meanwhile, it also continuously improves upon the
existent markets.
Serving new designs and trends – Nokia launched a wireless game which by use of sms, TV,
print media, radio and internet provides clues to help players to solve a mystery. This
helps Nokia to attract customers to use its products.
Wide range of products – Nokia has the highest number of product line (more than 10
models) compared to its competitors Samsung, Ericsson, Motorola etc.
Product Warrantee Worldwide – No matter where Nokia’s customers are, if they got a
problem with their mobile phones, they can approach any of the Nokia’s centres.Thus,
ensuring a good customer service.
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WEAKNESSES
High Price – Nokia offers a good range of high quality products at high prices Though
the high prices may be justified in terms of the costs to the company but this can act as a
weakness in certain sections of the market e.g the middle-low income group people.
Demand is skyrocketing but the price pressure is high.
New product developing problems – Although Nokia provided colour screen mobile
phones in September 2002, this was late as compared with its competitors such as Sony
Ericsson and Samsung. This acted as a weakness as the people had already accepted the
range introduced in the market and didn’t want to switch.
OPPORTUNITIES
Joint venture in Technology – Nokia has joined with Hewlett Packard (HP) Company in
technology which has a very good reputation for many years. Nokia thus, has a
considerable opportunity to enlarge their market size into PC users who prefer mobile
phones compatible with PC device.
Product launch continuously - Nokia uses Total Quality Management (TQM) which
mentions more about training worker program, and makes product of high quality. All
employees are well-trained and motivated and consecutively production processes are
also developed as well. Nokia has established Research and Development department
(R&D) which develops its product line into modern modification as well quality as the
existing products.
New Software Market – As known, the amount of data traffic in mobile networks is
growing at a tremendous rate. People around the world are using new mobile services,
which are directly relevant to personal needs. Nokia has already added value through
MMS for Messaging and E-mail, Java for download any applications and HTML
especially for content search. So it may attract those businessmen and teenagers who are
interested in the new software market.
Easy Availability - Many mobile phone retail stores, such as, the link, Phone4U and
Carphone warehouse, have spread across London in every street. And, of course, every
store has not missed the opportunity to choose Nokia as their product line. Consequently,
all the customers can be guaranteed that any damage or loss of Mobile phone will be
serviced through these retail shops.
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THREATS
Threats in PC Markets - Due to fierce competition in mobile phone market it has caused
new technology compatible with PC computer. Sony Ericsson specializes on PC
computer now. Sony applied their computer system into mobile phone as well as PC
computer on hand at the same time. Furthermore, nowadays people are interested in
advance of computer as similar as mobile phone market. In this sharp competition, it is
going to be harder for Nokia to grasp customers’ attention and they will have to focus on
outstanding imagination and creativity in their marketing plans.
Fluctuations in Euro exchange rates – Most of the European countries have joined the
European Union and thus because of the varied economic conditions, the currency will
fluctuate a lot finally effecting the profits of the company.
Blurring of product boundaries – This implies new entrants in the same industry like Sony,
Motorola etc. who are producing almost the same product range as Nokia and thus, there
is a need to change their models.
Keeping in mind the weaknesses and threats, Dan Steinbock in an article called the
‘Nokia revolution’ outlines the secrets behind the success of Nokia.
Apart from the SWOT analysis, the effectiveness of Nokia’s strategies can also be
analysed looking at the environment in which it operates.
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PEST ANALYSIS
Political Factors
It is important of a company to acquire certain kind of policies from its government, such as the
economic policy, and science and technology policy. Finnish policies assist Nokia to advance its
products.
The Finnish policies are the most important factors behind Nokia’s success. To operate
efficiently, a modern knowledge- and technology-based economy that is highly specialized,
internationalized and undergoing rapid structural change requires active support from the public
sector. In its widest sense industrial policy and science and technology (S&T) policy comprise
all those measures by which the public sector shapes the operating environment for business and
thus fosters public welfare. Both policies pursued by Finnish government and the Parliament are
crucial for the development of both, the Finnish Economy and of national information society.
General macroeconomic stability, low interest rates, stable currency conditions and the
international competitiveness of the tax system form the foundation for the growth of business
and improvement in employment. As the result of this, not only Finnish Government but also
international companies, such as Nokia, have to play very important roles to develop their
information society and national technology strength.
Economic Factors
According to the fact that Russian Federation was collapsed in early 1990s and it clashed with
Finnish economics. Nokia also faced problems, and changed its functions from single market and
overall products to global market and focusing mobile phone market.
During the first half of the year 2001, Nokia continued to perform strongly in the global mobile
communications market and was able to strengthen its leading market position. However, the
general economic slowdown in the US has recently shown signs of extending to other regions
and to the wireless telecommunications industry as a whole. The slowdown could be a result of
general market deterioration - driven by economic uncertainty, the ongoing technology transition
and less aggressive marketing by the operators.'
In a press release on June 12,2001 it was quoted that ‘Nokia saw slower market growth
affecting second quarter results and was to take up actions to expand leadership while
maintaining strong profitability’.
Nokia will continue to take determined actions in all areas of the business to align its operations
with the changing market conditions. Previously announced moves to increase the company’s
efficiency and competitiveness include operational changes to further enhance customer focus in
Nokia Networks.
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While market deterioration has had an inevitable impact on Nokia's sales growth, their products
have remained strong, their market position has strengthened and they have been able to find
further efficiencies through tight control of their own performance.
Nokia has countered changing market conditions by accelerating ongoing programs and
generating efficiencies and cost savings. This, in combination with the current financial health
and proven performance, should enable them to exit the current slowdown in a stronger position
than before.
Social
At Nokia, their whole business is based around communication and connecting people. One of
Nokia's aims is to make it as easy as possible for their people to be satisfied working with them.
Thus, it keeps various stakeholders interests in mind.
Nokia develops products and services that encourage communication and learning among people
and societies. They are using their strengths - connecting and communicating - to help make a
difference. It complements the core business and their vision to be involved with the youth and
education issues around the world, preparing young people for their future.
The goal is to be a good corporate community member wherever they operate, as a responsible
and contributing member of society. Sharing in the belief that prevention is better than cure, they
take part in long-term projects aimed at helping young people to create a firm foundation for
themselves and to find their place in the world.
Technological Factors
In the 1980s, there was a trend towards microcomputers and Nokia tried to match this tendency
by producing its main products as computers, monitors and TV sets. Due to the changes in
1990s, Nokia also changed its functions to mobile phone market. .
Sustainable development and environmental protection have various effects on the operation of
the innovation system. Innovation also creates new opportunities for promoting sustainable
development.
Nokia always improve their product line through Research and development process, beside this
Nokia also has multimedia compatible improvement with mobile at the same time, such as,
GPRS and WAP Service. Nokia has numerous technologies which can satisfy those end-users
need, such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java. Nokia employed
more than 17,000 people in R&D department over fourteen countries worldwide. They also
provided customers to choose the features and service that they personally want and need. It
means Nokia does not develop only their product line, but they also improve their service
process to provide the most appropriate service to those customers efficiently.
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Price:-
Price is a key factor in the selling of a product, and is usually the one that is open to the
most change based on different pricing strategies, for example, competitor based, penetration or
skimming. The three main factors affecting the amount charged for a product or service, are; the
cost of production, customer demand and competition. Since its entry into Indian mobile market
in 1995, it focused on manufacturing of mobile handsets based on GSM technology. Nokia built
a strong brand image with focused marketing and distribution network. It started focusing on the
low-cost mobile phone segment for rural markets in India, but, faced stiff competition from Sony
Ericsson, Samsung, and Motorola who also started offering low-cost handsets. Nokia has come
up with the perfect prices for each and every consumer segment in the market. A lower middle-
class person can go for a Nokia 1200 costing around Rs. 1200 while an executive can opt for N-
96 costing around Rs. 33,000.
Place:-
This refers to the chosen outlets for a product or service, for a product to be very
successful it must be easy to access, Nokia mobile phones are very easy to access nowadays,
they are sold in supermarkets, Nokia Priority, Nokia Care and specialized outlets (eg.: The
Mobile Store).
Promotion:-
This involves providing information to the customer over a variety of media platforms,
using radio, television and print advertising as well as using other promotional tools such as
"money off deals" and "free giveaways". The advertisements that Nokia comes up with are very
successful in targeting the customers in a consumer market. The advertisements are made in such
a way that it appeals to the psychology of the consumer. They also have various sale promotion
P a g e | 37
schemes like offering discounts on special occasions and giving free gifts along with a purchase
of a mobile phone.
STP ANALYSIS
POSITIONING:-
Positioning of a product refers to creating an image about a particular product. Nokia has
been very successful in this strategy.
Slogan:
Standard Ringtone
Standard message tone.
Long battery backup.
User friendly mobiles.
The specific message that is conveyed to the customers in every advertisement is:
“Nokia enable you to get more out of life”.
These specific aspects have been embedded into the mindset of the consumer in such a way that
every time they saw the logo or heard the ringtone they associate it with a Nokia product. Hence
Nokia has been very successful in positioning it products in the market.
Ranked as the No. 1 telecommunications equipment vendor in the country by Voice &
Data for five consecutive years –2008, 2007, 2006,2005 and 2004
Ranked as the 9th Most Powerful Brand by Millward Brown’s BrandZ 2008
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COMPETITORS PROFILING
Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics
company Sony Corporation and the Swedish telecommunications company Ericsson to make
mobile phones. The stated reason for this venture is to combine Sony's consumer electronics
expertise with Ericsson's technological leadership in the communications sector. Both companies
have stopped making their own mobile phones.
The company's global management is based in Hammersmith, London, and it has research &
development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and
the United Kingdom.
While Sony Ericsson has been enjoying strong growth recently, its South Korean rival LG
Electronics overtook it in Q1 2008 due to the company's profits crashing significantly by 43% to
€133 million, sales falling by 8% and market share dropping from 9.4% to 7.9%, despite
favourable conditions that the handset market is expected to grow by 10% in 2008. The situation
is getting worse as Sony Ericsson announced another profit warning in June 2008 [1], leading to
wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola.
Sony Ericsson has approximately 8,000 employees worldwide. The company's current President
is as of November 1 Hideki Komiyama who has replaced Miles Flint, and the Corporate
Executive Vice President is Anders Runevad.
HISTORICAL BACKGROUND
Ericsson, which had been in the cellular phone market for decades, decided to divest this
business in 2001 following huge losses. Ericsson had decided to source on chips for its phones
from a single source, a Philips facility in New Mexico. In March 2000 a fire at the Philips factory
contaminated the sterile facility. Philips assured Ericsson and Nokia (the other major customer of
the facility) that production would be delayed by less than a week. When it became clear that
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production would actually be compromised for months, Ericsson was faced with a serious
shortage.
Motorola is known around the world for innovation and leadership in wireless and broadband
communications. Inspired by their vision of Seamless Mobility, the people of Motorola are
committed to helping you get and stay connected simply and seamlessly to the people,
information, and entertainment that you want and need. They do this by designing and
delivering the "must have" products, "must do" experiences and powerful networks - along with
a full complement of support services. A Fortune 100 company with global presence and
impact, Motorola had sales of $47.8 billion in 2007.
Motorola provides integrated, end-to-end systems that reliably deliver digital entertainment,
information, and communications services over a variety of wired and wireless broadband
network architectures. The world's leading provider of digital video set-tops and cable
modems, Connected Home Solutions empowers consumers by connecting their homes, keeping
the people, content, and services important to them always within their reach.
Mobile Devices
Offers market-changing icons of personal technology - transforming the device formerly known
as the cell phone into a universal remote control for life. A leader in multi-mode, multi-band
communications products and technologies, Mobile Devices designs, manufactures, sells and
services wireless subscriber and server equipment for cellular systems, portable energy storage
products and systems, servers and software solutions and related software and accessory
products.
Networks
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Delivers proven capabilities in cellular, wireless broadband and wireline access technologies,
with recognized leadership in integrating core networks through wireless IP, wireless softswitch
and IP multimedia subsystems. The Networks group is advancing seamless mobility with
innovative technology solutions, as well as a billion dollar services business with an expanded
portfolio delivering support, integration, applications and management.
In spite of the presence of big names in consumer electronics like Samsung, LG, Sony-Ericsson
and Motorola, Nokia really rules the mobile phone market all over the world with nearly 40% of
the market share with no close competitors. Nokia is certainly the king when it comes to brand
value, service and experience. The Finnish mobile giant is clearly No. 1 choice in South East
Asia including India and China. How they could reach the top position?
1. Call Quality
Nokia is known for its circuitry to handle the RF Reception and providing the best call reception
quality. You won’t see users complaining much about the noise or the disturbances within Nokia
phones unless it’s a problem of the telecom service provider. So, the primary objective of a
mobile phone i.e. to serve us with better and clearer sound when we talk , is served by Nokia
perfectly. And if you are a person who is accustomed to other mobile phone manufacturers, then
you know that even Apple iPhone and Sony Ericsson are guilty of it.
2. Hardware
You can be assured of the quality that Nokia provides in your phone hardware. The circuits are
far more durable and reliable than any of the other mobile phone available in the market. I am
using a single Nokia phone for 6 years and I had to take it to the service centre only once during
this period for a trivial problem. That speaks for the truth I am talking about.
3. Battery
The Battery life of Nokia mobile phones is longer than many other cellphones available in the
market. People who talk a lot prefer Nokia than any other brands. They always know that the
battery will not run out in the middle of the call. iPhone has had this problem with battery life in
the past and that hasn’t been solved yet. Nokia leaves others miles behind when we consider the
longevity of the battery.
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4. Robustness
Everyone knows that Nokia mobiles are truly rock solid. I want to share my experience with
respect to this. I dropped my Nokia the very next day I bought it. I dropped it on the staircase and
it bounced to nearly 12 steps down. My heart pumped out with the fear of losing the phone on
the second day. But what I found when I reached downstairs is that the phone is fully functional
and it only had a few scratch in its body. Since then, it slipped off my hand many a times but it
did not refuse to function. Thanks to Nokia for making such rugged phones. It would really be
the worst thing if I had to take my phone to service centre or had to buy a new one every time I
dropped my phone.
6. Customer Service
The Customer Care of Nokia which they call the Nokia Care, handles the complaints very
efficiently satisfying their customers. I had a problem with the display of my Nokia Phone. I took
it to the Nokia Care and they very quickly fixed it and gave it back. Its just the trust they
implement on the customer’s mind, is really appreciable.
Hope you remember the battery bursting incidents of Nokia mobile phones in India. The BL-5C
battery, which was the culprit in this case, was promptly replaced with no questions asked. They
also helped people with a temporary site to go and put their unique manufacturing id and see if
they needed to change the battery or not. Believe me, the call wasn’t that easy keeping in mind
the number of battery parts they had to change.
7. Reliability
Nokia really has become a brand that people can trust upon. The error rates or crash rates of
Nokia phones are very low. It will not dump you when you need this phone. And petty may this
be but still; Nokia has this trust thing going in favour of it. People can blindly trust Nokia in
Asian Countries and not to mention, Nokia has deservingly earned this place.
8. Price
The price tag of every Nokia mobile phone is very reasonable. I mean, I can still get a GSM
mobile phone for as less as Rs. 1200 in India with all the basic features and that will last long
enough to pay me back with my dues.
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9. Experience
Nokia is the largest cell phone manufacturer in the world with about 40% of market shares with
its competitors nowhere near its sales volume. They know the world of mobile phone more than
any other. They have ages of experience, hundreds of success stories and dozens of smart
handsets in current portfolio. That helps them to evolve and thereby nourish our needs.
One of the main reasons behind the success of their mobile phones is their marketing strategy.
The main source of earning is the popularity of their phones in the Asian market. China is
making phone designs/software specific for the region. For instance, since many rural Chinese
aren’t familiar with the Romanized transliteration system that most cell phones use to input
Chinese for text messages, Nokia developed two phones with software that lets them write
characters with a stylus. And for India, Nokia launched two India-specific models, which
included a flashlight, dust cover, and slip-free grip (handy during India’s scorching, sweaty
summers). They also included some software in several regional languages which made Nokia a
success.
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LOOPHOLES
No doubt that the products from the Finnish company, Nokia, are some of the very best in
the world, but the company still hasn’t found a profitable way to market its goods. The very
reason that other mobile phone companies are fast eating up Nokia’s market share is their
superior (yet simple) marketing practices.
Motorola and Samsung must now be in the FUW (frequently used words) list in Nokia’s
board meetings. These companies have made Nokia pay dearly for its rudimentary approach in
marketing its phones. The aggressive marketing practices followed by Motorola have hit Nokia
very hard and it is losing very crucial global market share every month to its American
competitor.
Nokia, quite alarmed by the dropping sales of its phones, is now putting all its weight
behind the N-Series range. The N-Series is packed with multimedia features and Nokia believes
that these phones might woo the costumers back to the big daddy of the mobile phone world. But
Espoo, we have a problem!! (Nokia is headquartered at Espoo, Finland).
While Motorola (quite intelligently) gives a dashy-flashy name to every phone it brings
into the market, Nokia tends to do the exact opposite. Nokia from the very start has relied on
numbers rather than names. This strategy worked very well in the past, but only because there
wasn’t much competition back then. But times have changed. Every month the market sees at
least a dozen new handsets from an equal number of manufacturers. Consumers now have more
than they can choose.
Consumers are more attracted by names because they can thus easily relate to the features
of the phone. This is evident from the success of the MotoRazr, MotoSlvr, MotoRizr and
MotoKrzr. These phones are not packed with heavy multimedia features like the N-Series; still
they are selling like hot cakes. Just by reading the name of the handset, one gets a broad idea
what the phone looks like or what its features are.
Nokia advertises more than Motorola. Still its market share is dropping. Motorola does
not need to spend much money for the promotion of its products and it doesn’t have to worry
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about the marketing of these phones; it just simplifies its job by naming its products right. Take
the example of Apple. It did not have to do much to promote its iPhone.
RECOMMENDATIONS
Naming of Phones
It is high time that Nokia starts applying some sense to its marketing strategies. It doesn’t have to
do anything great, other than just naming its phones. A few months ago, a highly placed Nokia
official told Reuters that his company would soon go the Motorola way and start using names for
its new phones. It is in Nokia’s best interest that it takes to this path as early as possible,
otherwise the once market leader might see its market share plummeting to even lower depths
With mobile handset penetrating through the mass market, it is becoming increasingly difficult
for handset makers to sell additional mobile phones and sustain growth. This is especially true
for a market leader like Nokia. With the market approaching saturation, the only viable source of
growth for the mobile handset industry is the replacement market. The replacement market
customers will be pickier about their next handset and will demand data services (MP3 player,
GPS, Mobile Vending Machine, just to name a few) in addition to voice communications from
their mobile handset. Therefore, Nokia must concentrate its efforts on convincing existing users
of the need to purchase the next generation of handsets. One way to effectively achieve this goal
is to segment the existing customers into different groups based on their collective characteristics
and employ different marketing strategies to the different target groups. Two groups of
customers naturally come to mind for the replacement market, youth and professional users. For
the youth market, the handset should add services with an emphasis on entertainment. For
instance, MP3 players, short message services, chatting, and mobile gaming are some promising
examples. Also for the youth market, careful attention should be paid to the design of the
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handset. Teenagers and young adults simply won’t buy if the new handset does not look “cool”
or “hip.” For professional users, Nokia should provide the ability to remotely access their data
and files through the handset. Calendars, conference schedules, e-mails, PowerPoint
presentations, spreadsheet, and word processing documents should be obtained with the touch of
a button, at least in the corporate site, if not nationally. Due to the limited memory capacity
available to handsets, Nokia should also provide the means to transfer information from the
handset to a computer or PDA. Professional users are known to pay premium prices for
convenience; Nokia will see huge margins for its new handsets if they can provide seamless data
access services.
BIBLIOGRAPHY
Kotler Philip, Keller K.L., Koshy A., Jha M. (13th Edition, 2009), Marketing Management- A
South Asian Perspective, Prentice Hall of India.
http://www.nokia.com/about-nokia/company/vision-and-strategy
“Nokia says 40%-plus handset market share possible”, Paul de Bendern, infoworld.com, May
4, 2001.
http://www.nokia.co.in/about-nokia
“Nokia expects to meet estimates” CNET Tech Sites: By Reuters, September 12, 2001.
Johnson Gerry and Scholes Kevan, Exploring Corporate Strategy, 6th edition, Prentice Hall
London, New York.
http://www.news.bbc.co.uk/1/hi/sci/tech/1723738.stm
http://www.amanet.org/books/catalog/081440636x_history.htm
http://reinholm.com/strategic%20management.htm