CASE STUDY ON NOKIA

By :-
Harbir Singh Banga
Roll No. 302
Mba(Tech.)Manufacturing
INTRODUCTION
Nokia Corporation (Nokia) is a Finnish multinational communications corporation incorporated in 1967
that has its headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is
the leading manufacturer of mobile devices and mobile networks in the world. From the year 1865,
Nokia has evolved from a pulp, rubber and cables manufacturing company to a major manufacturer of
wireless devices and networks. Nokia offers a wide range of mobile devices with features including
music, navigation,video, television, imaging, games and business mobility facilities.

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.

Through Nokia Siemens Networks (NSN), a joint venture between Nokia and Siemens, it provides
equipment, solutions and services for network operators, and telecom service providers Nokia produces
mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA
(UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging
through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications
network equipment, solutions and services. Nokia is also engaged in providing free digital map
information and navigation services through its wholly-owned subsidiary NAVTEQ.

ABOUT NOKIA
Nokia has sites for research and development, manufacture and sales in many countries throughout the
world. . Nokia is engaged in the manufacturing of mobile devices and in converging Internet and
communications industries, with over 123,000 employees in 120 countries, sales in more than 150
countries As of December 2009, Nokia had R&D presence in 16 countries and employed 37,020 people
in research and development, representing approximately 30% of the group's total workforce. Besides
its research centers, in 2001 Nokia founded (and owns) Nokia Institute of Technology, a R&D institute
located in Brazil. Nokia operates a total of 15 manufacturing facilities. Nokia's industrial design
department is headquartered in Soho in London, England.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock
exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish
company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX
Helsinki) as of 2007, a unique situation for an industrialized country. Nokia increased Finland's GDP by
more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for
almost a quarter of Finland's exports in 2003.

In 2008, Nokia was the 27th most respected brand among Finns, down from sixth place in 2007. The
Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the
Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company). It is the number one
brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable company worldwide in
Fortune's World's Most Admired Companies list of 2010 (third in Network and Other Communications
Equipment, seventh non-US company), and the world's 85th largest company as measured by revenue
in Fortune Global 500 list of 2009, up from 88th the previous year. As of 2010, AMR Research ranks
Nokia's global supply chain number nineteen in the world.

PRODUCTION UNITS:

Networks technology
China
Finland
Germany
India
Mobile devices and technology
Brazil
China
Finland
Great Britain
Hungary
India
Mexico
Romania
South Korea
REVENUE
Nokia has a global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is
the world's largest manufacturer of mobile telephones. Its global device market share was about 33% in
Q2 2010, down from 35% in Q2 2009 and unchanged from Q1 2010. Nokia's converged device market
share was about 41% in Q2, unchanged from Q1 2010.

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 is needed to help make the world a better
place for everyone.

MISSION
We have built value by addressing efficiency, and we continue to do that. But we also need to address
the customer’s need for a better experience, because it’s experience that builds relationships, and
relationships that build value.

SWOT ANALYSIS OF NOKIA

STRENGTH:
 Strong Brand Name- Nokia has the strong brand name which is its one of the most important
strength because it is then favorable for Nokia to launch its new products because it is reliable
for the customers by establish as strong brand.

 Large distribution network- Its distribution network is wide globally so the products are easily
available for the target customers. Nokia also has its own manufacturing units.

 Tecnology and innovations - Nokia has also strong finances which make it possible to make
innovations easily. Nokia products are easy to use for everyone, even an illiterate person in
some developing countries use Nokia easily.

 Company stucture- Nokia has a de-centralised company struture , innovative and creative
employees andCharismatic strong leader, such as: Jorma Ollila.

 Large product range- Nokia has high range of products which is attractive for the customers.
Nokia mobile sets have high re-sell value as compared to others which is favorable for Nokia as
well as for the customers.
  Market leadership in the mobile industry gives it a competitive edge. Nokia has a global market
share of 35% double to that of its next competitor.

WEAKNESSES:
 Expensive Products- Nokia have high prices as compared to others but its good quality and
reliable products somehow cover this weakness of Nokia but still it is weakness and lower class
is unable to purchase Nokia products.

 After sale services- Nokia’s sales and service centers are very few therefore its after sale service
is not impressive. If the customers face the problem in the product then they have to face
difficulty.

 Product failure- Some of the Nokia products are not user friendly which didn’t get success in the
market such as the Ngage.

 Few alliances- Company sticks to its standing in the market and does not want to cooperate
with the operators. Nokia does not collaborate with the network service providers.

OPPORTUNITIES:
 Emerging new market- The emerging market in developing countries, such as China, India is a
huge opportunity for Nokia to grow its global market share and establish its brand name in the
upcoming market as well.Nokia can expend its market share by introducing brand in new market
and by catering new target market as well.

 Changing customer demand- There is a large market emerging for high-end mobile phone such
as business user phone for Nokia to capitalise on and thus the company has introduced its
Eseries handsets as a step towards it.

 Dominating market share- It can also capture more market share and attract more customers in
existing market by changing price and introducing new product range and also by innovating
product features of existing products.

 Growing market- Telecommunication market is growing rapidly and more people are being
interested towards the industry so it is great opportunity for Nokia to expand market share and
to grow as well.

 Brand building- Through excessive advertisement and effective market communication it can
strong its reputation and increase its sales and also create good brand image among the people.

 Nokia itself becoming the item of everyday convenience the day is not so far that it will become
the item of every day use.
Threates:
 Threat of entry- Microsoft Corp announced its decision to enter the mobile phones market, it
could bring the big threat to Nokia.New network operators can supply the customized,
operator-specific handsets.New emerging competitors from Asia. So, Nokia will meet more
intensive competition than before.

 Rivalry among existing competitors -There is intensive competition in mobile phone industry.
The competitors include Samsung, LG, Sony Ericcson and other new emerging manufactures.The
completion is getting explosive with the growth of the market. More and more competitors are
entering in the market which is a big threat for Nokia.

 Saturated market- The market is getting very saturated witha lot of competition from other
companies thus leading to the loss in the share holding in the market of the company. Some
competitors offer products at low prices and as the economy is falling down the customers are
more attracting towards the products of low prices. So those competitors can take away the
market share of Nokia.

 Growth of WLL network- Another threat for Nokia is the growth of WLL network because Nokia
provides CDMA cell phones so its products can go toward the down fall with the rise of WLL
network.

 As the telecommunication industry is increasing with that not only opportunities increasing but
also threats are equally increasing with the growth of the telecom industry.

CONCLUSION
Based on the above analysis, I agreed that Nokia has the potential to remain a major

presence in the global mobile phone industry in the following years. The external mobile

phone market environment is dynamic, Nokia has lost its market share due to the

misinterpretation of the market trends and customer needs. But the market also brings the

big potential opportunities to Nokia, such as the market in developing countries,

customized business user mobile phones and so on. Moreover, the most important of

Nokia’s internal strengths, such as the advanced technology, innovative products,

economy of scale, could let it surpass the competitors and solidify its market leader

position; Furthermore, Nokia can benefit further from its strong brand name and
company image. While the fall in 2004, to some degree, just reminds Nokia of the need

to overcome its complacency and arrogance and to be more sensitive to customer needs.

So, Nokia can maintain its market leader position in the following year in the global

mobile phone industry. In fact, Nokia’s market share in handset market has increased to

39% in 2007 (BBC New, 2007).