NOKIA CASE ANALYSIS

Team Name :Holy Cow Name of Team Members : Siddharth Prakash Kumar Anchit Name of the B School: IMT Ghaziabad Email Id(s) of members : sid1582@gmail.com anchit08@gmail.com Phone Numbers : 9910303679 9910036855

Case Analysis Flow diagram

Instillation of Ecobehavior Mobile Environmental Solutions as a way to create overall effect Study of approaches and value creation

Eco System for approaches to work

Value Web

Nokias strategy and fit

Conclusions

Positive Attitude But Eco behavior needs to be instilled

Consumer Attitude towards Environment
10-market global study by international communicati on firm Edelman

100 50 Consumer Attitude towards Environment China Japan India

Individuals attitude towards environment(high as the study suggests 88 percent Indians having positive attitude towards Environment)

Group Level dynamics

Ecobehavior changes

Media/Global warming /physiological effects

Change Agent Mobile Technologie s (Nokia)

Eco behavior gets instilled

Mobile technology(Innovators)

Unbalanced associations +

Mobile technology(Innovators)

Consumer

Environment

Consumer

Environment

Positive associations between Consumer and Mobile Technology (Innovators)(Already existing) Positive Associations needed between Mobile technologies(Innovators) and Environment (Mobile Environmental Solutions) Helps bring about a positive association between the Consumer and environment (Fritz Heider Balance Theory)

Positive Associations between Mobile technologies(Innovators) and Environment (Mobile Environmental Solutions)
Green Phones consume less energy and Biodegradable Mobiles as a tool for spreading environmental awareness Mobiles used for creating environmental value and conservation

Behavior

A function of

Attitude Attitudinal Change

Motivational Change Knowledge Function Value Expressive Function Change in Evaluation of attributes

Resolving Conflicting attitudes

Using the functional approach (For bringing about motivational change) The value expressive function A cool, stylish mobile with latest features having associations with environment will help reinforce the relation between stylish attitude and being environmentally aware. Eg Nokia 3110 associates cool and stylish features with green features The knowledge function The mobiles can be used as knowledge devices for providing effective tips and awareness Eg- Nokias MobileEdu helps consumers become cognizant of environment around them.

Resolving attitude conflicts

Problem - People might have positive attitude towards green environment but they have negative attitude towards green products as they link them with higher cost and lesser performance Solution - Emphasis should be given on cost saving through efficient chargers and on personal benefits such as better health proposition

Mobile Solutions Environmental Benefit Curve

Mobile Ecological reporting, Energy Conservation by mobile, Environment conservation policies communication through mobiles Social and Environmental benefits by taking part in green programs of the future by helping the governments and NGOs in environment conservation

Biodegradable phones, Renewable Energy Chargers , Carbon footprint measures Mobile Edu , Green Gaming , Educational Manuals , Green technologies

Initially awareness levels are raised by the education and behavioral changes induced by using mobile technology that is found in daily life

Mass changes in product and mobile technology that creates a green technology environment and creates mass user base

Mobile Environmental Solutions

Value Creation Nokia Mobile Usage

Brand Image improvement

Environment conservation

Consumer and social value creation

78.8 percent of 415.25 million users in India

Leader in the mobile technology and new innovations

Introduced Nokia 3110 at low price for environmental solutions

High mobile usage by users amounting to nearly two hours

A process based approach for Innovative Mobile Solutions for Nokia and India in perspective
Fundamental Ideation keeping a set objective in mind They incorporate the present usage of mobiles as it happens in India and also the future technologies expected to come into being

Ideas

Values

Benefits to the customer Benefits image based and monetary value benefit to Nokia Benefits to the environment

Feasibility

Major problems in the implementation Factors needed to make the idea feasible Future concerns if any

Idea:
The idea is to have e-manual in mobile phones rather than having a separate physical manual. Moreover when exploring the features of Mobile phone, a user could be guided to feature specific information page in e manual

Value Proposition
Value Creation Process
Nokia -Cost saving by smaller packs and savings arising out of lesser manufacturing and transportation costs Customers will get ease of use by browsing feature specific information in e-manual just with a click on key pad For environment value is created through lesser paper and fuel usage leading to 15% reduction in CO2 emissions . Protection from Environmental degradation

Feasibility
Around 2 MB of memory would be needed for e-manual which could be easily available at nominal cost of Rs. 2-3.

Idea Interactive Mobile Gaming

Interactive Mobile Gaming which helps spread the message of environment. Free Gaming software could be obtained from NGOs as they have tie up with Application providers A Perspective on the Idea The average length of a session is 28 minutes with India (39 minutes).India tops with over half (56%) playing at least once a week and one in four playing everyday.(Nokia 2006 press release Mobile gaming Habits)

Value proposition
Value Creation Process

Brand image improvement due to green marketing and innovative green games. Free gaming software from NGOs

More free gaming software from Nokia. Social value creation by environmental education

Environment benefits due to behavioral changes and awareness induced by eco friendly games

Feasibility
Interfacing with Greenpeace/Other Green NGOs for making a Java Game with embedded information specially designed for Indian users Gamers may lose interest in the game continuous innovation for uninterrupted interest Gamers may not like the game at the outset. Need to emphasize on the wider social benefits for increased usage Trade offs Game play main lead to increased power usage in mobiles v/s Environmental benefits

 Idea - Mobile Ecological Reporting

The idea is to use a mobile for reporting ecological damages. A central server manages the reports and conveys it to Ministry of Environment. The damages are rated at five threat levels and action taken accordingly A level 5 ecological damage would be an industrial leak. A level 1 threat could be improper disposal of waste The ideas serves to use mass reporting by individuals to keep in check the ecological damage and help in conservation The idea also encompasses to warn offenders and give them information about the violations Compensation/fine could be obtained from offenders under National Environmental Tribunal Act section 2 Govt. could reward certain amount of money out of fine to the mobile ecological reporter

 Value proposition

Value Creation Process

Brand image improvement due to green and social marketing. Nokia becomes part of govt. efforts and earns leverage

Consumers can get compensation and rewards. Consumers create value by saving environment and being the guardians of their own environment

Government can offset damage by investing fine in preserving environment. Environment conservation and Losses are prevented by this methodology. Environmental efforts of government are complimented

Feasibility
A good IT infrastructure is needed for processing of data and information An interface to link the law making agency to the information for action Communication to the reporters as well as the violators for any action taken

 Futuristic Ideas
Independent light control ( Dial4Light) for lighting systems in villages and urban colonies using mobile technology to save 20tonnes of carbon emissions for a small colony of 200 people and a reduction of annual electricity usage by 25%
Automatic carbon footprint reader Carbon Diem technology that measures carbon footprint of a person using the GPS navigation systems and intelligent embedded systems. Nokia can go into a partnership agreement for manufacturing phones with this technology as in future carbon footprint measure may become a necessity for all human beings

Value proposition
Nokia earns green image and creates monetary value by helping at local level. Carbon footprint technology innovated for use in futuristic world by every individual. Gets first mover advantage

Value Creation Process

Consumers create value by saving environment and being the guardians of their own environment

Environment conservation and Energy saving. Environmental tracking will help in better control of environmental changes

 Feasibility
The projects mentioned will be of a high cost and adoption will be a problem as the ecoawareness is still to seep to the backward regions of India Lot of research and feasibility analysis needs to be done before widespread use of GPS systems These projects seem a reality in the future to come and with a time lag of 20-25 years they seems a certain addition to the growing list of mobile based environmental solutions for saving the planet Carbon footprint measure is a catchy phenomenon and its measure may become an important part of our lifestyle in the future thus a different technology could emerge for the same. Nokia needs to be alert to such changes and should try to take lead in developing such technologies for the future Initial Investment cost huge in both the technologies for mass usage purposes Value creation is possible only if the approach is appreciated by early adopters

Nokias present efforts and Strategic fit

Vision A world where everyone connected contributes to sustainable development Objective Leading Company in Environmental Performance Strategy Minimizing own footprint
Nokias Present Strategy Substance Management Withdrawing use of harmful substances Energy Efficiency through efficient chargers and tapping non-renewable energy Recycling Packaging Our Solution fit E-manual will also decrease use of paper Future technologies such as Eco sensor Smaller packaging because of e-manual Alerts on Unplugging Chargers Work with WWF and WBCSD Focus is on making an impact through large user base rather than minimizing Nokias carbon footprint. Keeping in view the Nokias strategy of leveraging technology, futuristic concepts of Dial4Light have been introduced. In sync with present strategy, solutions for increasing awareness and reducing co2 emissions through mobile applications has been proposed

Making an impact through large user base

Nokias Present Strategy Raising Awareness e.g. eco zone and mobiledu Walk with Nokia Maps Our Solution fit Mobile Gaming based on environmental issues Carbon diem technology to measure footprint during travelling and offsetting it Futuristic concept of Dial4Light Independent Light control Alerts through Mobile Ecological Reporting Work with Greenpeace and other NGOs, ministry of Environment and Power Suppliers contribute by altering the OS, Chip Design, providing content and applications and technology

Making suppliers also environment friendly

Sustained Development and Eco-System

Value chains create value but Ecosystem generates Sustainability
Cooperation in making the market E-manual or content Providers UI flow and design Players- Sony Ericsson, Motorola W233, Samsung W510

Ministry of Environment or other govt. regulatory bodies

Media or other reporting agencies

IT Infrastructure Provider Investors and other stake holders Mobile Games or Application Providers Green Peace and other NGOs Society Rural and Urban lightning Ministry of Power Operating System and Chipset Design

Nokia
Carbon Diem Technology Provider

Competition in dividing the market

GPS navigation System integration

Actors Customers Markets (Green Environment Friendly Segment) Govt. (Ministry of Environment, Ministry of Power and other regulatory bodies) Stakeholders ( Investors , Employees and Society) NGO Suppliers (Providers for Application, UI, Content, Operating system, IT infrastructure and Carbon Diem along with GPS technology)
Dynamics : The ecosystem is just in pioneering stage. Focus will be on instilling eco-behavior, understanding and leveraging governments environment friendly policies, tie up with NGOs and strategic partnership with suppliers. Later on shift to expansion and leadership stage Keystone Strategy: Stress on improving the ecosystem by cooperating with various entities along with competitors to develop green market, creating and sharing value resulting in Value Web for society

Aspects of Ecosystem

Performance of Ecosystem
Value Web for Society
Brand Image of Green Company E-manual Cost saving Ecological Reporting Increased Revenue Rural Lightning CSR Initiative E-manual Ease of Use Ecological Reporting Clean Environment Mobile games Entertainment Rural Lightning Control Reduce Taxes

Value for Nokia, Govt., Customers, Suppliers and NGO creates a Value Web for ENVIRONMENT

Nokia
Increased value for Nokia with their help increases value for them also

Customers Value Creation Government NGO

Value Web Creates Value for NGO

Satisfied customers in turn creates value for Nokia Better Corporate and social world creates value for Govt.

Suppliers

Joint Learning or Co- Evolution : Joint learning and Cooperation of different Entities result in co-evolution of green environment

Conclusions
Mobile environmental solutions can be used to instill eco-behavior in the consumer . Various behavior models (Fritz- Heider balance theory and motivational functions) have been used to suggest ways to instill eco behavior among people Various Mobile Environmental solutions have been suggested each with a different purpose in sync with Nokias current strategy by giving stress on making impact through large user base E-manual Environmental Prevention Mobile Gaming Environmental Awareness Ecological Reporting Environmental Conservation Carbon Diem Technology - Environmental Offsetting Dial4Light Futuristic Concepts Healthy eco-system generates sustainability by creating value web through enhancing value in different value chains. Suppliers, Government, Customers and NGOs through joint learning and cooperation aim toward green evolution of Environment. They create value for each other and for environment as a whole