EXECUTIVE SUMMARY

In this report we focus on nokia as a corporation,its products ,its management

systemBasically this report covers the business strategy, The SWOT Analysis Of
Nokia ,The growing Factors and The Competitive Landscape. Moreover it is also
explained in the report the competitors of nokia in the market when they launched
product and how nokia compete with them. The strategies adopted by nokia to keep
environment smooth are also dicussed in this report.
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.

Introduction
Nokia is currently the leading mobile telecommunications company. It is known for
innovating and supplying mobile phones as well as fixed broadband and IP networks.
Nokia is registered as NOK, and has listings at the Helsinki, New York, Stockholm, and
Frankfurt stock exchanges.

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 Nokia’s History
The roots of Nokia go back to the year 1865 with the establishment of a forest industry
enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the
year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish
Cable Works began operations. Gradually, the ownership of these two companies and
Nokia began to shift into hands of just a few owners. Finally in 1967 the three companies
were merged to form Nokia Corporation.

At the beginning of the 1980s, Nokia strengthened its position in the telecommunications
and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and
Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part
of the component business of the German Standard Elektrik Lorenz, as well as the French
consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable
machinery company Maillefer.

In the late 1980s, Nokia became the largest Scandinavian information technology
company through the acquisition of Ericsson's data systems division. In 1989, Nokia
conducted a significant expansion of its cable industry into Continental Europe by
acquiring the Dutch cable company NKF.

Since the beginning of the 1990's, Nokia has concentrated on its core business,
telecommunications, by divesting its information technology and basic industry
operations.

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 MISSION

Connecting people

“By connecting people, we help fulfill

A fundamental human need for social
Connections and contact. Nokia builds
Bridges between people – both when
They are far apart and face-to-face – and
Also bridges the gap between people
And the information they need.”

Our Vision- Life goes mobile

Benefiting from differences is an important aspect of Nokia`s business for many reasons:
increasing creativity, mirroring our marketplace and improving attraction and retention
are particularly noteworthy.
While Nokia believe that diversity and inclusion are critical to business success, they are
also at the heart of Nokia Values and the Nokia Way.
To Nokia a company culture that seeks, respects, and values differences characterize an
inclusive work environment. Nokia want to ensure that everyone has the opportunity to
participate in the organization. Nokia believe that people with varied educations and
perspectives bring different experiences to the table enabling us to be more flexible and
successful.

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Inclusiveness is visible in the way Nokia do business - in the way It relate to each other,
to customers and to business partners. Nokia want to build constructive relationships
based on trust and respect for individual differences thus allowing us to achieve greater
productivity, innovation and organizational flexibility.
Ten years ago, It had a vision that seemed revolutionary for the times: Voice Goes
Mobile! As history shows, this vision became reality in an incredibly short amount of
time. With more than 1.6 billion mobile phone subscriptions globally – and more mobile
phones than fixed-line phones in use – we see that mobility has transformed the way
people live their lives.

Today, Nokia sees mobility expanding into new areas such as imaging, games,
entertainment, media and enterprises. There are new mobile services already taking our
industry forward and creating new opportunities. At the same time, major opportunities
still exist in bringing mobile voice to completely new users.

Products or Business Segments:-

Nokia’s four business groups were created to closely manage its four business Products:
Mobile phones, Multimedia, Enterprise solutions, and Networks. Nokia
defined each segment according to functions and features offered to consumers. Mobile
phones are communicating tools using mobile voice. The company’s goal is to expand
mobile voice and data capabilities given the growing population of mobile phone users.
Multimedia brings connected mobile multimedia experiences to consumers in the form
of advanced mobile services and applications”.Enterprise Solutions are products and
services especially designed for businesses. In line with this, Nokia offers enterprise-
mobile devices and softwares. In partnership with other companies, it delivers “fixed IP
network security, mobilize corporate email, and extended corporate telephone systems”.

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The last segment on Networks, include infrastructure, communication and service
platforms, and services to operators and service providers

Competitors
Following are the main competitors of nokia;
1. Sony Ericsson
2. Motorola
3. Sonyericsson

Samsung :
Samsung is a rising star in the mobile handset market. Samsung's global market share of
the mobile handset market has gone from strength to strength.Samsung Electronics Co.,
Ltd. is a global leader in semiconductor, telecommunications, flat panel display and
digital convergence technology. Samsung Electronics employs approximately 75,000
people in 89 offices across 47 countries. The company is the world's largest producer of
CDMA mobile phones, memory chips, TFT-LCDs, monitors and VCRs. Samsung
Electronics consists of six main business units: Corporate Technology Operations, Digital
Media Business, Telecommunication Network Business, Digital Appliance Business,
Semiconductor Business, and LCD Business.
It has come from nowhere to grab a global market share of around 12.5% at end of
1Q2004 and rising to 14.5% by end of 2Q2004.Samsung is now in third place just behind
Motorola (15.4%) at end of 2Q2004 and is about to overtake Motorola for 2nd position
by end of this year 2004.Meanwhile Nokia's global market share has been in free fall
from 38% (2003) to 28.9% (1Q2004) to 27.7% (2Q2004).At this rate, Samsung will
topple Nokia to take the Number 1 position within the next 5 years.

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 Motorola:
Motorola’s role as pioneer, innovator and visionary in mobile communications is well-
known. Originally founded as the Galvin Manufacturing Corporation in 1928, Motorola
has come a long way since introducing its first product, the battery eliminator. For more
than 75 years, Motorola has proven itself a global leader in wireless, broadband and
automotive communications technologies and embedded electronic products, and has
become a company recognized for its dedication to ethical business practices and
pioneering role in important innovations.
Motorola has kept moving at the pace people are living. Its products have grown and
changed over the years, and its drive for excellence has strengthened and intensified.
From the five pound Handie-Talkie™ radio to the lightweight models of today, Motorola
has been the leading provider of two-way radio services to public safety, government,
transportation, utility and manufacturing enterprises.. In personal communications,
Motorola changed the way the world communicates, from the introduction of the
DynaTAC cell phone in 1983 to today’s sleek handsets and innovative technology for
mobile telephone service. It is also a key supplier of integrated systems for automobiles,
portable electronic devices and industrial equipment.
Throughout its history, Motorola has transformed innovative ideas into products that
connect people to each other and the world around them. Moving forward, the company
strives to keep its commitment of making things better and life easier.

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Sony and Ericsson merged to make a new company in 2001. They are in the process in
using 3G technologies to improve their mobile phone handsets even more. Before this
they were just two companies, Sony involved in consumer electrics and Ericsson
involved in the telecommunications industry.

The company has its global management in London, its R&D in Sweden, Japan, China,
US and UK, and approximately 3,500 employees around the world.

Their mission is to establish Sony Ericsson as the most attractive and innovative global
brand in the mobile handset industry. Sony Ericsson's press resources section contains
recent press releases, the press release archive and the photo library with images of
mobile phones and accessories.

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 SWOT ANALYSIS:-

STRENGTHS OPPORTUNITIES

• Has a global team composed of experts • Communication over long distances,

all over the world.
• High quality products
• Encourages venturing
• Trains public and other corporations
with Nokia technology
• Enjoys the public loyalty as being one
of the trusted brands
• Multicultured workforce (ownership is
all over the world) – more creative ideas
even across continents, now a necessity
for many people
• Market is now composed mostly of
technology savvy crowd
• Raw materials for production of better
chips gets cheaper through time
• 3 billion Mobile users in 2010 across
the world.

WEAKNESSES THREATS
• Due to good quality, models are also
higher priced • Competition from other mobile
telecommunications companies
• Competition with other
communication gadgets i.e.
telephone, Internet

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 Regional Presence:-

Nokia has production units in thirteen countries across the world. It has Network
Technology offices in China, Finland and India. Mobile Devices and Enhancements are
located in Brazil, China, Finland, Germany, Great Britain, Hungary, India, Mexico and
South Korea. Customization and Logistics Centre is solely in the United States
(Production Units).
Nokia’s head office is in Keilalahdentie, Finland but it has two regional offices in
Irving, Texas and Alexandra Technical Park, Singapore. According to Espicom Business
Intelligence, Nokia’s ownership had been distributed all over the world as of December
2005. 46% of ownership is in the United Sates, 51% in Europe, 1% in Singapore, 1% in
Japan, and 1% in Canada.

Growth and Success of the Company :-

The rise of Nokia to become the leading mobile telecommunications corporation is due to
its strong organizational structure and goal-oriented management. Its continued progress
and growth despite the growing competition may be accounted to its focus on following
factors:-

 INNOVATION

 SPECIALIZATION TRAINING

 VENTURE PROGRAMS

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  UNWAVERING COMMITMENT TO QUALITY

a) INNOVATION:-

Telecommunications is an industry that leans towards change and

innovation. Consumers are always waiting for novel products or latest promotions while

other clients rely on the company’s ability to solve problems for them. That is why,

Nokia has developed RESEARCH AND DEVELOPMENT DEPARTMENT which is

always a busy place. For Nokia, “we invest substantial portion of our resources in

research and development activities within our principal business groups”. The company

is prioritizing right now innovative ideas that will help realize “Life Goes Mobile.” The

company confirmed that its R&D department represents 12.8% of the company’s net

sales or EUR 3.7 billion. 20,722 employees, as of December 21, 2005, are hired in R&D

in twelve countries, which is about 37% of the company’s workforce.

b) VENTURING PROGRAMS:-

Venturing is one of Nokia’s key activities designed for “the renewal of Nokia”

(Venturing). The organization admits that through venturing they were able to create new

businesses and developments not within the scope of their current business segments.

Research and development is still applied in venturing since the process requires

exploration and generation of new knowledge. Venturing is done with several research

partners like other research centers, the academes, and fellow enterprises.

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 c) Specialized Training:-

As part of its principle on progress and advancement, Nokia offers Nokia Training, an

educational program to other companies particularly its subsidiaries. By teaching its

markets all about Nokia technologies, it widens its base of product knowledge and

supports technical solutions. In South Africa, Nokia recently offered its Graduate

Training Programme wherein 50% of the program’s graduates were hired or placed for

internships. This initiative, a part of the company’s CSR, uplifts unemployment, provides

the graduates and opportunity to apply their learning, and readies them for professional

life (Skills Training Prepares Graduates for Work and Life).

d) QUALITY FACTOR:-

The last yet very important aspect of Nokia is its “three dimensions of quality,” which are

 quality in process

 quality in products

 quality in management

Quality in process is maintaining or improving productivity. It tackles complexities and

invents efficient ways of doing things. Quality in products is meeting or surpassing

consumer expectations. “Quality in product is equal to customer experience and

perception,” said Nokia, therefore it becomes their task to keep consumer’s perception

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always positive. The third dimension is Quality in management, which is striking a

balance between “value-based” leadership with “people based” facts. This facet therefore

guards the implementation of corporate values in a way that it answers the realities of the

market.

Competitive Analysis:-

Although Nokia is successful in many aspects, it is not without competition and

challenges. BBC News reported last October 2005, that Nokia hosted a competition of

photography using camera phones. Mobile phones with built in camera are the new trend

lately and analysts predict that 77% of all phones would soon have camera in 2010.

Nokia’s hosting of the contest is of course an advertising stint to its own set of camera

phone models. Mobile phone manufacturer now have undergone consecutive releases of

new models, each with camera features. Every model is trying to surpass one another

when it comes to picture quality. Photography through camera phones also compete with

traditional photography, hence, many of the participants and speculators of the contests

are eager to see the results.

Competition is not only with fellow mobile phone companies, but also with

traditional communication choices. A consumer may opt to settle for a cheaper fix-line

connection than subscribe to a mobile phone. For some, the computer or the laptop is

providing almost every form of connection with others, through electronic mail,

broadband chatting, and chatting with voice so a cellular phone would only provide

secondary services. Nokia, therefore, in an effort to become the best choice incorporates

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the benefits of all other communication devices in its handheld, stylish mobile

technology.

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REFERENCES

. < http://news.bbc.co.uk/1/hi/technology/4307982.stm>

“Corporate Governance.” Nokia. Homepage. Apr 2006. 29 May 2006.

Espicom Business Intelligence. “Nokia.” ITI. 29 May 2006

<http://www.espicom.com/web3.nst/structure/tel_bkscnokia?OpenDocument>

“History.” Nokia. Homepage. 29 May 2006.

Nokia. Nokia in Brief. Mar 2006. 29 May 2006. <http://www.nokia.com/nokia_com_1/

About_Nokia/SideBars_new_concept/Nokia_in_brief/In-Brief_05.pdf>

“Nokia Research Centers.” Nokia. Homepage. 29 May 2006.

“Production Units.” Nokia. Homepage. May 2006. 29 May 2006.

“Skills Training Prepares Graduates for Work and Life.” Corporate Social Responsibility

Newswire Service. 29 May 2006. <http://www.csrwire.com/

print.cgi?sfArticled=958>

“Quality.” Nokia. Homepage. 29 May 2006.

“Venturing.” Nokia. Homepage. 29 May 2006.

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