Nokia

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NOKIA INTRODUCTION

Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is an international communications company, focused on the key growth areas of wire line and wireless telecommunications. Nokia is currently the world's largest manufacturer of mobile telephones, with a global device market share of approximately 38% in Q2 of 2007. Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephony, ISDN, broadband access, voice over IP, and wireless LAN.

Nokia's headquarters are located in Espoo, a neighbouring city of Finland's capital Helsinki. It has R&D, manufacturing, and sales representation sites in many continents throughout the world. Nokia Research Center, the corporation's industrial research laboratories, has sites in Helsinki; Tampere; Toijala; Tokyo; Beijing; Budapest; Bochum; Palo Alto, California and Cambridge, Massachusetts. Major production factories are located at Salo, Finland; Beijing, China; Dongguan, China; Chennai, India; Komárom, Hungary and the Ruhr region at Germany. In March 2007, Nokia signed a memorandum with Cluj-Napoca City Council, Romania to open a new plant near the city in Jucu commune. Nokia's Design Departure has stayed at Salo.

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network.

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Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad.

The Indian operations comprises of the company’s handsets and network infrastructure businesses, R&D facilities in Bangalore, Hyderabad and Mumbai and manufacturing plant in Chennai. The handset business is supported by a team of professionals across 3 business groups namely Mobile Phones, Multimedia and Enterprise solutions.The company has grown manifold over the years with its manpower strength increasing from 450 people in the year 2004 to close to 6000 people currently.Nokia is having 35 percent market share and is almost twice as big as No.2 Motorola with 17.8 percent global market share. Nokia's highest ever market share was in 2005 when it achieved 35.8 percent for the year. Its highest market share in a single quarter was 36.9 percent in the fifth quarter of 2001. According to research agency ORG Gfk, Nokia's market share, as of February 2006, is a staggering 78.8 per cent. Relatively, Samsung's is 6.4 percent, Motorola 4.6 per cent, Sony Ericsson is at 5.1 percent and LG's share is 2.5 per cent.

Nokia’s Market Share in India (2006)

SOME FIRSTS FOR NOKIA IN INDIA

1995 – First mobile phone call made in India on a Nokia phone on a Nokia network

1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2004 - First Wi-fi Phone- Nokia Communicator (N9500)

2005 – Local UI in additional local language

2006 – Nokia manufacturing plant in Chennai.

2007 – First vernacular news portal.

DISTRIBUTION NETWORK

COMPETITORS

Its competitors include LG, Motorola, Sony Ericsson and Samsung all of which are heading towards to become the world class manufacturers.

FACTORY RETAILER CUSTOMER

ADVERTISEMENT

Advertising media used by Nokia are all sorts of Electronic and Mass Media such as Television, Radio, Hoardings, Internet and Newspapers

SEGMENTS

Knowing the market demand of customers for different types of value added services, the mobile phones developed by Nokia can be classified into different sections such as –

i) Games : For Teenagersii) Media & Music Developers : For Common Customersiii)Enterprise Developers :For Corporate

MERGERS AND ACQUISITIONS

Nokia and Siemens have agreed to combine the bulk of their telecom equipment businesses to create one of the biggest players in the industry, sending shares in both firms higher.

PRODUCT STRATEGY

Nokia provides its customers with a wide variety of products. As per the income band, a series of phones have been produced to meet the customer demand. Here are some examples of various products in different product levels offered by Nokia.

Companies Basic Product: Nokia 1100- This is a simple phone having core benefits as they will as certain added benefits such as a calculator, alarm, games, etc.

Companies Expected Product: Nokia 6610- This product has certain features which the consumer expects to be present in the handset. It

has a colour display, a radio, some value added games, and many more such features.

Companies Augmented Product: N Series- This series has been lately introduced and has some extraordinary functions but for a cost which is its price. These phones can adapt to various devices, further some of these phones are Wi-Fi enabled.

Companies Potential Product: Nokia provides its users with even the option of customization. Though these phones are not officially

launched but they are sold under the same brand Nokia. Examples: Voice operated phones, Nokia Sirocco Gold phones, etc.

PRICING STRATEGY

Nokia uses a pricing strategy that best suits the product. Keeping the product in mind the company may go for mass distribution (Penetration) or else may just tap a selected group (Skimming).

Market Skimming- N-95: As in case of this phone Nokia deliberately focuses on only a selected rich group of consumers. The price is kept high as their target is only to sell a limited number of phones at a higher margin.

Market Penetration- Nokia 1100: The price of this phone is kept nominal. The objective that Nokia wants to achieve through this phone is high market penetration. The desired profits are attained by dealing in volumes.

SWOT ANALYSIS OF THE COMPANY: NOKIA

STRENGTHS:

Nokia has largest network of distribution and selling as compared to

other mobile phone company in the world. It is backed with the high

quality and professional team in the HRD Dept. The financial aspect is

very strong in case of Nokia as it has many more profitable business.

The product being user friendly and have all the accessories one want

that is why is in great demand making it No-1 selling mobile phones in

the world. Wide range of products for all class. The re-sell value of

Nokia phones are high compared to other company’s product.

WEAKNESS:

Nokia has many strengths and some weakness. Some of the weakness

includes the price of the product offered by the company. Some of the

products are not user friendly. Not concern about the lower class f the

society people. Not targeting promotion toward them. The price of the

product is the main issue. The service centers in India are very few and

scare. So after sales service is not good.

OPPORTUNITY:

Nokia has ample of opportunity to expand its business. With the wide

range in products, features and different price range for different

people, it has an advantage over the competitors around. With the

opportunity like ‘Telecom penetration in India’ being at the peak time,

Nokia has an opportunity to increase its sales as well as the market

share. As the standard of living in India has increased the purchasing

power of the people as increased as well, so Nokia has to target right

customer at right time to gain the most out of the situation.

THREATS:Nokia has many threats to tackle to maintain its position

as market leader. The threats like emerging of other mobile companies

in the market. The companies like Motorola, Sony Eriksson, Cingular

Globally Placed Here

In India Placed hereRs.

Time

Product life cycle

(U.S) etc. these companies have come to the stand of tough

competition with Nokia in the field of Mobile Phones. Threats can be

like providing cheap phones, new features, new style and type, good

after sales service etc. So, Nokia has to keep in mind the growing

competition around. Nokia has to make strategies to tackle problems

in the present and the near future. The growing demand of WLL

network can cause drop in sales for Nokia, as Nokia provides many less

CDMA phones to the customer.

PROMOTION MIX TOOLS

a) ADVERTISING

One of the strongest aspects of Nokia is its advertising strategy. Nokia’s ad campaigns are have a short shelf life as they are known to be coming up with one new model for each class(basic, mid, high end) in two months. So they have something or the other new for the consumers, thanks to their excellent innovation.

Nokia also come up with customised ads during specific events and festivals. For example, they came up with an ad for Nokia 1110 during Holi last year, with the concept that it’s a colour phone for the festival of colours.

b) SALES PROMOTION

Nokia does not stress much on Sales Promotion. This is because today the cell phone market is moving really very fast with new models coming up every third month, and even the consumers are ready to change at such a short period.

c) PUBLIC RELATIONS (PR)

Nokia has strong PR. They keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity.

One of the instance is they sponsored the COUNTDOWN event for NEW YEAR 2007, wherein they used Nokia 5200 as their prime product. The event featured NELLY FURTADO performing live. The event also concentrated on GLOBAL WARMING.

d) DIRECT MARKETING

Nokia does not perform Direct Sales activities on its official their website www.nokia.com. However, they do have contractual tie ups with other e-commerce their websites like www.ebay.com, www.amazon.com etc.

Nokia does use DEMO style of Direct Marketing. They set up kiosks extensively at various locations such as malls; business parks etc. and had its latest product N 95 for demo.

Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.

EMPLOYEE RELATIONS

WORKING AT NOKIA:

A career that you can be proud of: "Connecting people" is the heart of their brand. Nokia is committed to enhancing the quality of life around the world. They make mobile communications possible for everyone in every market. Their people shape and create future technologies; they are redefining the mobile industry. This is why Nokia is respected and recognized worldwide. This is something they are proud of and so will everyone be.

They offer a dynamic learning culture that nurtures openness, transparency, with endless opportunities for competence development. Global colleagues and projects in the mobile solutions space offer you robust opportunities to enhance their competencies. They reward the results of their success.

Resources to lead a balanced life: They nurture a flexible culture that embraces the uniqueness of everyone's life. Their Resources support

the mobile way of working and the opportunity to arrange their day in the way it suits their career and personal demands.

Their success depends on the talent and commitment of all of their employees. They strive to create an inclusive workplace that welcomes men and women of different cultural or ethnic backgrounds, skills and abilities, lifestyles, generations and perspectives. They provide excellent opportunities for career development, and are strongly committed to the highest standards of ethical conduct towards everyone who works with us. This has helped us to build the diverse and robust community that is Nokia today.

COMMUNITY

NOKIA AS AN EMPLOYER

The values of their company make us different. They provide a sense of direction for their employees and guide us in their quest to be a great internet company. Their values are defined by their employees; they serve as a foundation for their evolving culture and are the basis for their way of working. Living them out on a daily basis is their shared philosophy.

They provide their employees with a platform for personal growth in a fast-paced environment with a clear vision, goals and shared management principles –the Nokia Way. The Nokia Way brings together talented people who share these principles, and share in their success.

A flat, networked organization, as they speed and introduce flexibility in decision-making, characterize the Nokia Way. Equal opportunities and openness towards people and new ideas are also key elements they want to accomplish.

Nokia is transparent with the people they serve and their suppliers. They embrace innovative ways of creating and introducing products and solutions to the market.

As the company has grown so have the dimensions of their work force. At the end of 2009.Nokia’s total headcount was approximately 55,000 employees from 115 nationalities.

Within their workplace profile, the proportion of women has grown to 41 percent of all employees, with 13.8 percent holding senior management positions. Moreover, half of the senior managers at Nokia are non-Finnish.

They are operating in more markets than ever before, which has impacted the cultural fabric of their workforce and ways of working. With a global reach, their actions have the potential to greatly impact economies throughout the world and they try to ensure that work methods correlate into ethical business practices. The strong message they want to send across every level and geographical area of their organization is: They take their responsibilities seriously, and they support each other in achieving their ethical goals through their Code of Conduct.

They believe that diversity and inclusion in the workplace brings competitive advantage. Diverse teams are more creative and find better solutions. Employees from diverse cultures and backgrounds bring insights into their customer base around the world, adding value to their business. Nokia is committed to equal opportunities and does not condone discrimination of any kind. This commitment is embedded in their Code of Conduct.

RESEARCH AND DEVELOPMENT

Nokia has three R&D centres in India, one each in Bangalore, Mumbai and Hyderabad. The centres are focused on next-generation packet-switched mobile technologies and communication solutions to enhance corporate productivity. While all the three centers are an integral part of Nokia’s global R&D infrastructure and therefore work on global projects, these centres do play a pivotal role in assimilating local flavors from the market and act as a conduit for information to the global product development teams

Of the three, the Bangalore R&D centre is the largest Nokia site in India. It was established in 2001 with the acquisition of Amber Networks. Over the years it has played a pivotal role in the development of new applications, software platforms and chipsets for high-end Nokia mobile devices. The software platform group works on development of parts of the base services for the platform, application frameworks, user interfaces and test tools. On the chipset side the work done in India is mainly in the area of ASIC design, hardware design, integration and verification, protocol software design and integration, speech and video codec design and integration.

The facility today houses over 1300 employees across all teams namely the S60 Software Organization, Common Technologies, Next Generation (now called Maemo Software), Production and Software and Services, and other enabling functions. The vision of the center is to drive operational excellence and innovation in hardware, software and internet services with a great sense of pride. There is a strong intent to make it a growth site for Nokia through development of knowledge, Resources and infrastructure building. To achieve this, the centre manages and fosters an environment that encourages people to be connected to social networks; flexibility, sharing of best practices and spawning of new ideas with both internal and external customers.

One of the focus areas of the center is to increase the S60 invention flow through intense training and focus. There have been other key initiatives which have contributed significantly to the overall development of products and services. An example is S60 Their services and video programs have qualified to the semifinals in the Product Excellence Category of the Nokia Quality Award 2008.

NOKIA'S HUMAN RESOURCES MANAGEMENT

Nokia: Human Resources Management (HR) – Personnel managementTo maintain a healthy, successful and efficient environment Nokia collaborates with its employees under the main goal to create an environment for all its employees where they can fulfill their potential. Motivation, management and maintaining employees satisfaction and their well-being at work is vital for Nokia to perform at its best. As a

goods manufacturer Nokia collaborates with its employees within formal and informal networks to allow ideas to be exchanged easily. To encourage their employees, Nokia has adapted various HR techniques including pay system, training and developing employees, and fringe benefits.

REWARDSThe total compensation of employees aims to not only maintain a healthy working environment, but to also fulfill Nokia’s goal to fulfill employees potential. Nokia rewards its employees for good performance, competence development, and company success rewarding higher performance and contribution with higher rewards. Every employee receives an annual base salary according to his or her position in the firm. Together with the annual base salary come bonuses such as the Nokia Connecting People Bonus programme. There are also various short-term incentives both individual, team and project/program incentives. Together with annual base salary, bonuses and short-term incentives, Nokia also includes overtime pay and call-out pay as a payment system. There is also the possibility for Nokia employees to buy stocks or performance shares. To ensure a healthy work environment Nokia also gives its employee health and pension benefits.Professional and Personal GrowthThe employees of Nokia are engaged to fulfill their potential. Nokia tries to achieve this by encouraging employees to develop their own competencies and to stay up-to-date with technology to allow maximum performance.

NOKIA IN CRISIS MANAGEMENT MODE OVER FAULTY

'BL-5C' BATTERIES

Nokia Corporation (Nokia) has made connectivity truly ubiquitous. It has emerged as a world leader in mobile technology and progressively moving towards the company's vision of creating a world where everyone is connected.

Albeit the strong strategic growth and transformation, in mid-2007

Nokia encountered a problem with the malfunctioning of its handsets due to faulty batteries which might get overheated, especially the BL-5C batteries which are used in most of Nokia's low-end models. The Finnish company was searching these batteries from the Matsushita Battery Industrial Co Ltd. (Matsushita) of Japan and several other suppliers.

On August 13, 2007, Nokia issued a warning over its BL-5C batteries across the world, stating that these batteries may get overheated while charging. It said that about hundred such incidents of overheating had been reported globally but there are no reports of the batteries being associated with any serious injuries or damage to property.

A product defect related to BL-5C batteries used in many Nokia mobile phones has put Nokia in a crisis management mode. The company is trying to prevent any consumer confusion arising out of its product advisory with respect to the batteries. It has offered to replace all the affected batteries that it contends is limited to the 46 million BL-5C batteries manufactured by Matsushita between December 2005 and November 2006.


For downloading this report and many other assignment,

project and reports for marketing, management, human

resource management, supply chain management,

engineering and medical available absolutely free online

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Nokia

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