SWOT AND PESTEL ANALYSIS

OF

SUBMITTED BY:
MEGHA MIGLANI
ROLL NO.-11
PGDM(SEM-II)
IITM
DATE OF SUBMISSION:27/01/11
I. COMPANY HISTORY
Nokia Corporation is a Finnish multinational communications corporation that is
headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.

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 and 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 30% in the third quarter 2010, down from an estimated 34% in the third
quarter 2009 and an estimated 33% in the second quarter 2010.

Nokia's estimated share of the converged mobile device market was 38% in the
third quarter, compared with 41% in the second quarter 2010.

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.

Nokia is a designer, manufacturer, and service provider of mobile devices, creating

the world's first handheld mobile phone in 1987, as well as an active player in the
internet and communication industries. As of the end of FY2009, Nokia is the
largest vendor of telephone handsets in the world, with 38% of the global market
share for mobile devices and €41.0 billion in FY2009 net sales. Since the 1970's,
the company has pioneered much of the technology used in handsets throughout
the world, especially the Global System for Mobile Communications.

With increasing competition chipping away at its profitability, Nokia has made an
aggressive push into new initiatives to differentiate itself, if not keep up with, other
handset makers. It launched online services and applications market through Ovi
applications platform, which has gained traction and has reached 3 million app
downloads a day from over 165 million users as of November 2010. It has looked
to penetrate the mobile social networking space, having acquired Cellity in July
2009 and Dopplr in September 2009. In response to Google's open-source Android
system, Nokia announced a partnership with Intel at the 2010 World Mobile
Congress to release MeeGo, an upgraded, Linux-based, open-source operating
system that will serve as a platform for third-party app development and work
across a range of hardware architectures and devices.Its entry into mobile hardware
outside of its traditional product portfolio has been ineffective; it has struggled in
the PC netbook business after launching the Nokia Booklet in October 2009.
Nonetheless, Nokia remains optmistic, announcing the future launch of aniPad-
like tablet device powered by an ARM processor.

NOKIA’S FIRST CENTURY(1865-1967)

Nokia started by making paper – the original communications technology
The history of Nokia goes back to 1865. That was when Fredrik Idestam built
a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A
few years later, he built a second mill by the Nokianvirta river – the place that
gave Nokia its name.

1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's
rubber business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and
electronics businesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable
Works.

1960: First electronics department

Cable Works establishes its first electronics department, selling and operating
computers.
1962: First in-house electrical device
The Cable Works electronics department produces its first in-house electrical
device - a pulse analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge
to create Nokia Corporation.

THE MOVE TO MOBILE(1968-1991)

The newly formed Nokia Corporation was ideally positioned for a pioneering role
in the early evolution of mobile communications. As European
telecommunications markets were deregulated and mobile networks became
global, Nokia led the way with some iconic products.

1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia
and leading Finnish television maker Salora.

1981: The mobile era begins

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

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into
operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the world’s first GSM call.
MOBILE REVOLUTION(1992-1999)
In 1992, Nokia decided to focus on its telecommunications business. This was
probably the most important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the
head of the mobile telephone industry’s global boom – and made it the world
leader before the end of the decade.

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on
telecommunications.

1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the Nokia 7110.

NOKIA NOW(2000-TODAY)
Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices
and a look to the future...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia
Siemens Networks.

2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences 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.

2010
Since January 2010, high-end car and pedestrian navigation has been available for
free on Nokia smartphones.

II. FACTS AND FIGURES

1.Head office in Finland; R&D, production, sales,marketing activities around the
world.

2.World’s number 1manufacturer ofmobile devices

3.Mobile device volumes 432million units

4.Reported net sales EUR 41.0 billion

5.Reported operating profit EUR 1.2 billion

6.123,553 employees at year end (includingNokia SiemensNetworks)

7.Strong R&Dpresence in 16 countries

8.R&Dinvestment EUR 5.9 billion

9.37,020 employees in R&D(approximately 30%ofworkforce, includingNokia

SiemensNetworks)
10.Sales in over 160 countries

III. VISION AND STRATEGY

The convergence of the mobile, internet and PC are a reality. Consumers want
complete solutions not just devices, and technology to be invisible. Consumer
relationships are the new unit of value in this converged industry as consumers
"consume" services as they are created.

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.
STRATEGY
1.Customer remains the top priority

Nokia’s priority is to be the most preferred partner to operators,retailers and

enterprise.The brand goal for Nokia is to become the most loved brand by the
Customer.

2.Nokia’ s business strategy focus on 5 areas:

- create winning devices
- embrace consumer internet service
- Deliver enterprise solution
- Build scale in networks
- expand professional services

3.Three strategic assets in which Nokia invest and prioritize:

- Brand and Design
- customer engagement andfulfillment
- Technology and architecture

4.Nokia now has separate marketing strategies.

-Customised products and advertising -- to address the needs of each segment.Live,

for instance, offers basic handsets low on features and price. It is aimed at first-
time userswhose basic need is to stay in touch with voice asthe main driver.
-The second segment, Connect, focuses on moreevolved users who seek
functionality, features and connectivity. Accordingly, phones in this
segment offer GPRS, camera and music capabilities.

-The next two categories, Achieve and Explore,are aimed at high-end users and
include top-end handsets like Nseries and Eseries.They target multimedia
applications, imaging,mobile TV, music, Internet service and gaming to
next segments.
IV. STRUCTURE

1.Devices is responsible for developing andmanaging our portfolio ofmobile

devices,which we make for all major consumer segments.
2.Services designs and develops Internet services that enrich the experience people
havewith theirmobile devices and the web. Messaging, music, maps, media as well
as Ovi developer tools are key focus areas as we continue to expand our services
offering to consumers and create opportunities for developers and content
providers.
3.Mobile Solutions is responsible for developing and managing our portfolio of
smartphones and mobile computers. The team is also busy developing a world-
class suite of internet services under the Ovi brand, with a strong focus on maps
and navigation, music, messaging and media. Mobile Phones is responsible for
developing and managing our 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.

4.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.

5.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.

6.Markets manages our supply chains, sales channels, brand andmarketing

activities and is responsible for delivering our devices, services and solutions to the
consumer.

7.CorporateDevelopment provides operational support toDevices, Services,

solutions and Markets,and is also responsible for exploring corporate strategic and
future growth opportunities.
V. BUSINESS GROUPS

1.Mobile Phones aims to make user-friendly mobile devices with many features
for different segments of the global market. It currently offers mobile phones and
devices based on the three global cellular technologies: GSM/EDGE, CDMA and
TDMA.

2.Multimedia brings connected mobile multimedia to consumers in the form of

advanced mobile devices and solutions. The business group is also responsible for
exploring and developing business models and systems, applications and new
sales channels for the growing mobile multimedia market.

3.Enterprise Solutions is dedicated to helping businesses and institutions improve

their performance by extending their use of mobility from mobile devices for
voice and basic data to secure mobile access and use of their content and
applications. Its solutions range from business-optimized mobile devices for end
users to a broad portfolio of IP network perimeter security gateways and mobile
connectivity offerings.
4.Networks is a leading provider of network infrastructure, communications and
networks service platforms and services to operators and service providers. It
focuses on the GSM family of radio technologies, including GSM, EDGE and
WCDMA networks, core networks with increasing IP and multi-access
capabilities, and services.The business group enables mobility for mobile voice,
consumer multimedia and enterprise solutions.

Horizontal groups and corporate functions

1.Customer and Market Operations includes Nokia’s sales and marketing

organization as well as manufacturing, logistics and sourcing for Mobile Phones,
Multimedia and Enterprise Solutions mobile devices. The Networks business
group continues to have its own dedicated sales and marketing, logistics and
sourcing activities. The group is responsible for three of Nokia’s environmental
focus areas: Supplier Network Management, Environmental Management Systems,
and End-of-Life Practices.

2.Technology Platforms is responsible for Nokia-wide technology management

and research and development process development. It delivers leading
technologies and platforms to Nokia’s mobile device business groups and external
customers.

3.Corporate Functions include e.g. the Corporate Relations and Responsibility

Unit, part of which is corporate level environmental support function, and Nokia
Workplace Resources that is responsible among other issues for environmental
management related to real estate and facilities and the collection of global
facilities’ related environmental data.

Markets
The market penetration of mobile communication is growing much faster than
was predicted only a couple of years ago. The number of mobile phone subscribers
has passed 1.7 billion. By 2006, one third of the world population will own a
mobile phone, and the ratio is predicted to go up to one half by 2015.

VI. GLOBAL REACH

The 10 largest markets are US, UK, China, Germany, Italy, France, UAE,
Thailand, Brazil and Poland, togetherrepresenting 60% of total sales.

•Nokia has appointed JWT as its global network marketing agency

•JWT will support the lead creative agencies in the implementation and
localization of global campaigns.

•Also, as a strategic global partner, the agency will support local marketing
activities in over 80 markets worldwide.

VII. GLOBAL COMPACT

Nokia is committed to the principles of the United Nations Global Compact and
has been a signatory and active member since The Global Compact’s inception.
The Global Compact provides a framework of responsible business practices
relating to labor, human rights, anti-corruption and environmental issues. The
Global Compact is the world’s largest corporate citizenship initiative, with over
4,300 companies belonging to the network.

VIII. PRODUCTION UNITS

Networks technology
China
Finland
Germany
India

Mobile devices and technology

Brazil
China
Finland
Great Britain
Hungary
India
Mexico
Romania
South Korea

IX. PRODUCTS OF NOKIA

X. NOKIA’S VALUE NETWORKS

XI. MARKETING MIX

PRODUCT
1.Latest technology.
2.Text messaging and games like Snake and Memory.
3.Bulky and quite unattractive but now they are all quite sleek and stylish.
4.Accessories that consumers buy with them (carry cases, hands free kits and in-
car chargers).

PRICE
1.Penetration Pricing
2.Competitor Based Pricing
PLACE
1.Mobile phone dealerships
2.Retailers and electrical suppliers.

PROMOTION
1.One Big Advertising Campaign.

XII. BCG MATRIX

XIII. PRODUCT LIFE CYCLE