Efforts for This Project is made by: Pankaj Kumar (BBA 6 th )
Submission on: 05 th August 2011
New DeIhi Institute for Information TechnoIogy
Index
1. About the Company 2. Nokia in the region oI Asia- PaciIic 3. Company`s ProIile 4. Product 5. Products that Nokia oIIers 6. New Products & Operating Highlights 7. Price 8. Price oI Some Most Selling Mobile Phones 9. Place 10. Promotion 11. People 12. Process 13. Pay Package 14. SWOT Analysis
About the Company
Nokia Corporation (NYSE: NOK) is one oI the world's largest telecommunications equipment manuIacturers. With headquarters in Keilaniemi oI Espoo. Finland. this Finnish telecommunications company is best known today Ior its leading range oI mobile phones. Nokia also produces mobile phone inIrastructure and other telecommunications equipment Ior applications such as traditional voice telephony. ISDN. broadband access. proIessional mobile radio. voice over IP. wireless LAN and a line oI satellite receivers.
Nokia provides mobile communication equipment Ior every maior market and protocol. including GSM. CDMA. and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks oI Nokia rapids. Finnish Rubber Works established its Iactories in the beginning oI 20th century nearby and began using Nokia as its brand. Shortly aIter World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works. a producer oI telephone and telegraph cables. All three companies were merged as Nokia Corporation in 1967. The name Nokia originated Irom the river which Ilowed through the town oI the same name (Nokia).
In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200. a digital switch Ior telephone exchanges. In the 1980s. Nokia oIIered a series oI personal computers called MikroMikko |1|. however. these operations were sold to International Computers. Ltd. (ICL). which was later merged with Fuiitsu-Siemens AG. Nokia also began developing mobile phones Ior the NMT network; unIortunately. the company ran aIoul oI serious Iinancial problems in the 1990s and streamlined its manuIacturing oI mobile phones. mobile phone inIrastructure. and other telecommunications areas. divesting itselI oI other items. such as televisions and personal computers.
In 2004. Nokia resorted to similar streamlining practices with layoIIs and organizational restructuring. although on a signiIicantly smaller scale. This. however. diminished Nokia's public image in Finland. and produced a number oI court cases along with. at least. one television show critical oI Nokia.
Recently. Nokia ioined other mobile phone manuIacturers to embrace Taiwanese Original Device ManuIacturers. Nokia signed a contract with BenQ. a Taiwanese Original Device ManuIacturer. to develop three high-end mobile phones. which are scheduled to retail by the end oI 2005.
Nokia in the Region of Asia - Pacific
A leading player in mobile communications in the Asia PaciIic. Nokia Iirst started operations in the region in the early 1980s. It has since established a leading brand presence in many local markets. and business has expanded considerably in all areas to support customer needs and the growth oI the telecommunications industry in the region.
Nokia's regional corporate headquarters is located at Alexandra Technopark in Singapore. As the regional hub Ior Nokia. it is a base Irom which over 700 staII provide leading-edge technology. product and solutions support to the 20 diverse markets and Nokia oIIices in the Asia PaciIic.
Nokia's regional treasury center - Nokia Treasury Asia - operates out oI Singapore as an in-house bank Ior Nokia subsidiaries in the Asia PaciIic region. while Nokia Research Centre - the corporate research unit - has oIIices in Japan and China. Nokia also manuIactures products out oI three maior Iacilities in Masan. Korea. and Beiiing and Dongguan in China.
As oI January 2004. Nokia streamlined its global organizational structure to strengthen its Iocus on convergence. new mobility markets and growth. To address emerging new business areas in the Mobility era while continuing to Grow its leadership in mobile voice communications; Nokia has Iour business groups to best meet the unique dynamics oI each business.
Mobile Phones oIIers a global range oI highly competitive mobile phones Ior large consumer segments. and develops mobile phones Ior all maior standards and customer segments in over 130 countries. It is responsible Ior Nokia's core mobile phones business. based mainly on WCDMA. GSM. CDMA and TDMA technologies. Mobile Phones Iocuses on bringing Ieature-rich. segmented mobile phones to the global market.
Multimedia brings mobile multimedia to consumers in the Iorm oI advanced mobile devices and applications. Its products have Ieatures and Iunctionality such as imaging. games. music. media and a range oI other attractive content. as well as innovative mobile enhancements and solutions.
Networks continue to oIIer leading-edge network inIrastructure. technology and related services. based on maior wireless standards to mobile operators and service providers. Focusing on the GSM Iamily oI technologies. the group aims at leadership in GSM. EDGE and WCDMA radio networks. Our networks have been installed in all maior global markets that have adopted these standards. Networks are also a leading provider oI broadband access and TETRA networks Ior proIessional users in the public saIety and security sector.
Enterprise Solutions provides a range oI terminals and seamless mobile connectivity solutions based on end-to-end mobility architecture. dedicated to helping businesses and institutions worldwide improve their perIormance through extended mobility. Its end-to-end solution oIIerings range Irom business optimized mobile devices on the Iront end. to a robust portIolio oI mobile business optimized gateways in the back end including: wireless email and internet. application mobility. message protection. virtual private networks. Iirewalls. and intrusion protection.
Company`s Profile
Nokia Corporation manuIactures mobile devices principally based on global system Ior mobile communications. code division multiple access (CDMA). and wideband CDMA (WCDMA) technologies. The company operates in three divisions: Multimedia. Enterprise Solutions. and Networks.
The Multimedia division Iocuses on bringing connected mobile multimedia to consumers in the Iorm oI advanced mobile devices. including 3G WCDMA mobile devices and solutions.
The Enterprise Solutions division enables businesses and institutions extend their use oI mobility Irom mobile devices Ior voice and basic data to secure mobile access. content. and applications. Its solutions include business-optimized mobile devices Ior end users. a portIolio oI Internet portIolio network perimeter security gateways. and mobile connectivity oIIerings.
The Networks division provides network inIrastructure. communications. and networks service platIorms and proIessional services to operators and service providers. Nokia connects people to each other and the inIormation that matters to them with mobile devices and solutions Ior voice. data. imaging. games. multimedia. and business applications. The company also provides equipment. solutions. and services Ior its operator and enterprise customers.
It sells its mobile devices primarily to operators. distributors. independent retailers. and enterprise customers worldwide. Nokia Corporation is based in Espoo. Finland.
Product
Historically. the thinking was: a good product will sell itselI. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. ThereIore the question on product has become: does the organization create what its intended customers want? DeIine the characteristics oI your product or service that meets the needs oI your customers.
Functionality: Quality Appearance Packaging Brand Service Support Warranty
Some of the Products that Nokia offers to Customers are:
Nokia N90
Nokia 9300
Nokia 8800
Nokia 7710
Nokia 7280
Nokia 7270
Nokia 6822
Nokia 6681
Nokia 6680
Nokia 6670
Nokia 6630
Nokia 6260
Nokia 6255
Nokia 6235
Nokia 6230i
Nokia 3230
New Products Launching & Operating Highlights
The Mobile Phones business group increased its consumer oIIering during the quarter with the introduction oI new models in a range oI Iorm Iactors and designs. Highlights include:
- Nine new GSM models. including the Nokia 6280. our Iirst mid- range WCDMA/3G phone.
- Four new CDMA models. growing our mid-range oIIering in CDMA.
- Premium category devices: the Nokia 8800 and Nokia 8801 stainless steel slide phones.
- The Nokia 6270 slide phone: one oI two new models with 2 mega pixel cameras.
- The Nokia 5140i camera phone: Nokia's Iirst mobile device to comply with upcoming EU environmental legislation.
- Two entry-level mobile phones. the Nokia 1110 and Nokia 1600. each oIIering technological Ieatures designed to reduce the total cost oI ownership Ior users.
Price:
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it iust happen! Even iI you decide not to ask (enough) money Ior a product or service. you must realize that this is a conscious decision and Iorms part oI the pricing strategy. Although competing on price is as old as mankind. the consumer is oIten still sensitive Ior price discounts and special oIIers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is Ior many companies not a very sensible approach.
List Price: Discounts Financing Leasing Options Allowances.
Price of the Most Selling Mobile Phones of Nokia In the Market
Model Price Approx in Rs Nokia 3230 Rs.15.000 Nokia 7610 Rs.16.000 Nokia 6230 Rs.12.000 Nokia 6630 Rs.22.000 Nokia 9300 Rs.28.000 Nokia 3660 Rs.11.000 Nokia 1100 Rs.3500 Nokia 6610 Rs.6000
Place
Available at the right place. at the right time. in the right quantities? Some oI the recent maior changes in business have come about by changing Place. Think oI the Internet and mobile telephones
Locations: Logistics Channel members Channel Motivation Market Coverage Service Levels Internet Accessibility
Promotion
How are the chosen target groups inIormed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising. selling. sales promotions. Public Relations. etc. While the other three P's have lost much oI their meanings in today's markets. Promotion has become the most important P to Iocus on.
Advertising:
Front Line Service Public Relations Message Direct Sales Sales Media Budget
People
All people directly or indirectly involved in the consumption oI a service are an important part oI the extended marketing mix. Knowledge Workers. Employees. Management and other Consumers oIten add signiIicant value to the total product or service oIIering.
Process
Procedure. mechanisms and Ilow oI activities by which services are consumed (customer management processes) are an essential element oI the marketing strategy.
Nokia has rapidly moved Irom Iunctionally oriented organisation to a business process oriented mode. and our inIormation systems have not Iollowed the change as Iast as they should. To Iill the gap. IM organisation must learn and implement working methods which enable the creation oI business process oriented inIormation systems. To satisIy these business needs. Nokia has introduced a new development approach Ior inIormation systems development. These processes have been created and tested during the SPI. In 1996. the starting point oI soItware engineering practices in Nokia Mobile Phones/InIormation Management was that there were no clearly deIined processes to guide the soItware development according to the business needs. Requirement analysis was usually done with an ad-hoc style without a pre-deIined process. For the technical design and implementation. there was a Iirst version oI proiect manual to Iollow.
Technical environment Irom IT point oI view at Nokia is great. Market`s leading brands are utilized in every part oI the company and personnel`s skill level is high in technical issues. In the SPI proiect. ICL ltd was selected as the vendor to provide a consulting point oI view and to deliver their skills Ior business analysis and requirements speciIication areas. Business environment in telecommunication industry is Iast moving and quite young. which means big challenges Ior inIormation management: timing is crucial. Because oI the changing environment. also organisation is changing rapidly. Change is an every day phenomenon at Nokia. which helps a lot when changing working practices as a part the SPI. Skill set needed Ior the business and requirements analysis and other parts oI the SPI is diIIerent Irom the technical expertise so common at Nokia. In order to succeed. some time Ior training was reserved during the SPI. The technical target environment Ior the SPI included a R/3 based standard package as the baseline proiect environment. a CASE tool to support the IM Process and an intranet environment where the results were shared.
Pay Packages of the Company
Key Executives In The Company Pay Exercised Mr. 1orma Ollila . 54 Chairman. ChieI Exec. OIIicer and Chairman oI the Group Exec. Board $ 4.64M $ 6.00K Mr. Pekka Ala-Pietil. 48 Pres. Head oI Customer and Market Operations and Member oI Group Exec. Board $ 1.63M $ 0 Mr. Olli-Pekka Kallasvuo . 52 Exec. VP. Pres oI Mobile Phones. Gen. Mang. oI Mobile Phones and Group Exec. Board Member $ 1.41M $ 0 Mr. Rick Simonson. 47 ChieI Financial OIIicer. Sr. VP and Member oI Group Exec. Board N/A $ 0 Mr. Pertti Korhonen . 44 ChieI Technology OIIicer. Sr. VP and Group Exec. Board member N/A $ 38.00K
SWOT Analysis of the Company: Nokia
Strengths:
Nokia has largest network oI distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and proIessional team in the HRD Dept. The Iinancial aspect is very strong in case oI Nokia as it has much more proIitable business. The product being user Iriendly 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 oI products Ior all classes. The re-sell value oI Nokia phones are high compared to other company`s product.
Weakness:
Nokia has many strengths and some weakness. Some oI the weakness includes the price oI the product oIIered by the company. Some oI the products are not user Iriendly. Not concern about the lower class I the society people. Not targeting promotion toward them. The price oI the product is the main issue. The service centers in India are very Iew and scare. So aIter sales service is not good.
Opportunity:
Nokia has ample oI opportunity to expand its business. With the wide range in products. Ieatures and diIIerent price range Ior diIIerent 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 oI living in India has increased the purchasing power oI the people as increased as well. so Nokia has to target right customer at right time to gain the most out oI the situation.
Threats:
Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging oI other mobile companies in the market. The companies like Motorola. Sony Eriksson. Cingular (U.S) etc. these companies have come to the stand oI tough competition with Nokia in the Iield oI Mobile Phones. Threats can be like providing cheap phones. new Ieatures. new style and type. good aIter 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 Iuture. The growing demand oI WLL network can cause drop in sales Ior Nokia. as Nokia provides many less CDMA phones to the customer.
~This Idea of Connecting People` by Nokia provides Service to people with the help of the Products