Nokia- Ken & Mel

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Introduction

Story Of Nokia:

y Nokias First century 1865-1967

y The move to mobile 1968-1991

y Mobile Revolution 1992-1999

y Nokia now: 2000- today

Nokias First century:

The first Nokia century began with Fredrik Idestam's paper mill on the banks of theNokianvirta 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 thenewNokia Corporation on the path to electronics.

1865: The birth of NokiaFredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-westernFinland, where the Nokia story begins.

1898: Finnish Rubber Works foundedEduard Poln founds Finnish Rubber Works, which will later become Nokia's rubberbusiness.

1912: Finnish Cable Works foundedArvid Wickstrm starts Finnish Cable Works, the foundation ofNokia's cable andelectronics businesses.

1960: First electronics departmentCable Works establishes its first electronics department, selling and operating computers.

1962: First in-house electrical deviceThe Cable Works electronics department produces its first in-house electrical device - a

pulse analyzer for nuclear power plants.

1967: The mergerNokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create

Nokia Corporation.

The move to mobile:

The newly formed Nokia Corporation was ideally positioned for a pioneering role in theearly evolution of mobile communications. As European telecommunications markets

were deregulated and mobile networks became global, Nokia led the way with someiconic products.


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1979: Mobira Oy, early phone makerRadio telephone companyMobira Oy begins life as a joint venture between Nokia and

leading Finnish television maker Salora.

1981: The mobile era begins

NordicM

obile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switchThe Nokia DX200, the companys first digital telephone switch, goes into operation.

1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman birth of a classicNokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM a new mobile standard opens upNokia equipment is used to make the worlds first GSM call.

Mobile Revolution:

In 1992, Nokia decided to focus on its telecommunications business. This was probablythe most important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head ofthe mobile telephone industrys global boom and made it the world leader before the

end of the decade

1992: Nokias first GSM handsetNokia launches its first GSMhandset, the Nokia 1011.

1994: Nokia Tune is launchedNokia launches the 2100, the first phone to feature the Nokia Tune.

1994: Worlds first satellite callThe worlds first satellite call is made, using a Nokia GSMhandset.

1997: Snake a classic mobile gameThe Nokia 6110 is the first phone to feature Nokias Snake game.

1998: Nokia leads the worldNokia becomes the world leader in mobile phones.

1999: The Internet goes mobileNokia launches the world's first WAP handset, theNokia 7110.


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Nokia Today

2002: First 3G phoneNokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-GageM

obile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is bornNokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is soldNokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone

subscriptions pass 2 billion.

2006: A new President and CEO Olli-Pekka Kallasvuo becomes Nokias Presidentand CEO; Jorma Ollila becomes Chairman ofNokias board. Nokia and Siemens

announce plans forNokia Siemens Networks.

2007- Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networkscommences 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.

Nokia is indeed a Truly Global organization:

y Nokia has their Head office located in Finland, Europe

y

They have manufacturing facilities for devices in as many as 9 countries. Sales inmore than 150 countries

y Nokia has a Strong R&D presence in 10 countries

y Nokia has sales in more than 150 countries worldwide.

Hence from this we see that Nokia is present in almost all the countries across the world

which definitely makes it a global organization.

Nokia vision:"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 isneeded to help make the world a better place for everyone.


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Nokias Organizational structure is designed to position Nokia for a world where themobile device, the Internet and the computer are fusing together. It is made up of various

divisions as can be seen from the diagram above viz. Mobile solutions, Mobile phones,markets, nokia Siemens Networks, NAVTEQ.

Mobile Solutionsis responsible for developing and managing the portfolio of

smartphones and mobile computers.

Mobile Phonesis responsible for developing and managing the portfolio of

affordable mobile phones, as well as a range of services that people can access

with them.

Markets manages our supply chains, sales channels, brand and marketing

activities, and is responsible for delivering our mobile solutions and mobile

phones to the market

Nokia Siemens Networks, jointly owned by Nokia and Siemens, provides

wireless and fixed network infrastructure, communications and networks service

platforms, as well as professional services to operators and service providers

NAVTEQ is a leading provider of comprehensive digital map data and related

location-based content and services for automotive navigation systems, mobile

navigation devices, Internet-based mapping applications, and government and

business solutions.

NOKIA In India

Nokia entered India in 1994 and the first even GSM call was made from a Nokia phone;

The Nokia 2110.Since its inception in India, Nokia has built a huge network pan India and has been very

successful in the country until now when it is facing competition from many newInternational and Local players. Nokia has their operating offices in New Delhi, Mumbai,

Kolkata, Bangalore, Hyderabad, and Ahmadabad


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Nokias Indian operations comprise of mainly 2 functions: Handsets andNetworkinfrastructure businesses. They have their R&D facilities located at prime and important

cities in the country. These facilities are located at Bangalore, Hyderabad andMumbai.Nokia recently acquired their 10th manufacturing facility in Chennai.

Initial Hurdles faced when Nokia entered India:

All was not rosy when Nokia entered the Indian market. They faced a lot of tough times.

At that time India was just opening up to the world and a lot of rules and regulations werestill very stringent and rigid as compared to how they are today.

y When Nokia entered India, telecom policies were not conducive for growth of

mobile phone industry.

y Tariffs levied on importing mobile phones were as high as 27%.

y Usage charges Rs.16 per minute, at these high rates, consumer did not take to

mobile phones.

y

Competition from other powerful global players likeM

otorola, Sony, Siemens,Ericson.

Nokias Infrastructure business in India

Nokias Infrastructure business in India is under Nokia Networks (now called NokiaSiemens Network). Nokia has now become the key supplier to all the top GSM operators

including Airtel, Vodafone, BSNL & IDEA. Nokia has also set-up its Global NetworksSolutions Center in Chennai. Solutions Center performs network operation tasks for

operators in Asia Pacific, Europe, Middle East and Africa.

Huge opportunity In India

Nokia sees India as a huge opportunity and hence were ready to take the risk of enteringIndia.

y India has second largest market after China.

y Today, India has 6-7 million new subscribers every month.

y Indian consumers tend to change their phone very fast.

The year 2008 has been a very successful year forNokia in India due to the following

reasons:y India is only country where Nokia is present in the entire range- R & D, retail,

manufacturing and services.

y 75000+ outlets to sell Nokia products.

y Nokia has 62.5% share in mobile handset market in India.

y Launched a new service brand Ovi for Internet services


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FINDINGS AND RECOMMENDATIONS

Findings:

Good brand name- Millward Brown, 43: Nokia has good brand equity. It has top

of mind recall. According to a study by Millward Brown, it has been ranked the

43rd

most recalled brand in the world.

Good R & D: Nokia has good R&D facilities. It has strong R&D presence in over

10 countries world wide. This can help it gain a competitive advantage through

cost cutting or product differentiation. Cost cutting is possible as it can go for

more efficient processes etc. Also integration of processes is possible. Product

differentiation is possible as it can go for better designs or some up gradation of

technology.

Hindi SMS: Nokia has been offering services to regional customers i.e. services

with regards Hindi speed messaging services. Thus the brand is popular even

among vernacular customers. So it gives a boost to the sales of the product.

Recommendations:

Diversification and more tie ups: Nokia could have many tie ups with other

brands to offer better services. It could go for concentric or even horizontal

diversification as it has good brand name. Also good R&D spells good technology

in place. Even inter conglomerate diversification is a possibility as it could rake in

more revenue. It could go in for video games etc.

Environment friendly mobile: Nokia could, thanks to its good R&D facilities

come up with an environmental friendly mobile. This would add to its good will.

Other regional languages: Nokia could provide speed messaging services in

other regional languages.


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CONCLUSION

Nokia v/s Micromax: In the wake of the recent Nokia Micromax locking of

horns, we see that the latter is, though not as large a player as the former, a

contender nonetheless. Nokia needs to pull up its socks. Micromax has come up

with dual sim technology. Also it is catering in a huge way to the untapped but

highly potential market of rural India. Nokia has also provided a lot of rural hand

pieces. Nevertheless it needs to take care of the competition and take measures to

stave it off.

Symbian v/s Meego: Nokia has replaced Symbian technology withMeego.

All said and done, Nokia is a brand to stay. It is a market pioneer in the mobile industry

and it looks like it will stay that way for a long time to come!


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Nokia- Ken & Mel

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