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INTERNATIONAL HUMAN RESOURCES

PROJECT ON “NOKIA”

PRESENTED BY:
GROUP – 2
SUBMITTED TO:
DR. NILANJAN SENGUPTA

Institute of Finance & International Management

Group Members:
Imran Hassan

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CONTENTS:
1. ACKNOWLEDGEMENT…………………………………………….. 3

2. OVERVIEW – ABOUT NOKIA……………………………………… 4

3. NOKIA AND ITS HEADQUARTERS………………………………. 5

4. ITS SUBSIDIARIES………………………………………………….. 6-7

5. HRM IN INTERNATIONAL CONTEXT………………………….. 8

6. GLOCALIZATION…………………………………………………. 10-19

7. CONCLUSION………………………………………………………. 20

8. REFERENCES………………………………………………………. 21

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ACKNOWLEDGEMENT

Completing a task is never one man’s effort it is often the result of in valuable
contribution of number of individuals in direct or indirect way in shaping success
and achieving it.

We would like to convey our sincere thanks to Mr. Nilanjan Sengupta our
organizational behaviour faculty who supported and helped us, under take this
study by providing us with the right guidance.

Last but not the least, we would like to thank all of our group members without
whose constant effort it would have never been possible and our institute IFIM
-Bangalore, as well ,who have been a constant source of encouragement.

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ABOUT NOKIA
Nokia Corporation, 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 128,445 employees in 120 countries, sales in more than 150 countries and global annual
revenue of EUR 50.7 billion and operating profit of 5.0 billion as of 2008.It is the world's largest
manufacturer of mobile telephones: its global device market share was about 37% in Q1 2009,
down from 39% in Q1 2008 and unchanged from Q4 2008.Nokia produces mobile devices for
every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).
Nokia offers Internet services that enable people to experience music, maps, media, messaging
and games. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipment, solutions and services. The company is also engaged in providing digital map
information through its wholly-owned subsidiary Navteq.
Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and
employed 39,350 people in research and development, representing approximately 31% of the
group's total workforce.The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists.It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.
Besides its research centers, in 2001 Nokia founded (and owns) INdT – Nokia Institute of
Technology, a R&D institute located in Brazil.Nokia operates a total of 15 manufacturing
facilities,located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and
Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico;
Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.
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. It is an
important employer in Finland and several small companies have grown into large ones as its
partners and subcontractors.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.
Finns have consistently ranked Nokia as both the best Finnish brand and the best employer. The
Nokia brand, valued at $35.9 billion, is listed as the fifth most valuable global brand in
Interbrand / BusinessWeek's Best Global Brands list of 2008 (first non-US company).It is the
number one brand in Asia (as of 2007) and Europe (as of 2008), the 42nd most admirable

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company worldwide in Fortune's World's Most Admired Companies list of 2009 (third in
Network Communications, seventh non-US company), and the world's 88th largest company as
measured by revenue in Fortune Global 500 list of 2008, up from 119th the previous year. As of
2009, AMR Research ranks Nokia's global supply chain number six in the world.

NOKIA AND ITS HEADQUARTERS


In today's multinational corporations the headquarters-subsidiary link remains the primary
channel by which the firm is managed. It facilitates strategy, control and coordination, and
smoothes the progress of inter-unit product, personnel and factor and knowledge flows of every
kind. Using data from CEOs of a large sample of Australian subsidiaries of foreign firms, this
book brings new insights into the nature of this vital corporate relationship.

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 128,445 employees in 120 countries, sales in more than 150 countries and global annual
revenue of EUR 50.7 billion and operating profit of 5.0 billion as of 2008. It is the world's
largest manufacturer of mobile telephones: its global device market share was about 37% in Q1
2009, down from 39% in Q1 2008 and unchanged from Q4 2008. Nokia produces mobile
devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA
(UMTS). Nokia offers Internet services that enable people to experience music, maps, media,
messaging and games. Nokia's subsidiary Nokia Siemens Networks produces
telecommunications network equipment, solutions and services. The company is also engaged in
providing digital map information through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and
employed 39,350 people in research and development, representing approximately 31% of the
group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.
Besides its research centers, in Nokia founded (and owns) INdT – Nokia Institute of
Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing
facilities, located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and
Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico;
Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.

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

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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. It is an
important employer in Finland and several small companies have grown into large ones as its
partners and subcontractors. 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.

Finns have consistently ranked Nokia as both the best Finnish brand and the best employer. The
Nokia brand, valued at $35.9 billion, is listed as the fifth most valuable global brand in
Interbrand/BusinessWeek's Best Global Brands list of 2008 (first non-US company). It is the
number one brand in Asia (as of 2007) and Europe (as of 2008), the 42nd most admirable
company worldwide in Fortune's World's Most Admired Companies list of 2009 (third in
Network Communications, seventh non-US company), and the world's 88th largest company as
measured by revenue in Fortune Global 500 list of 2008, up from 119th the previous year. As of
2009, AMR Research ranks Nokia's global supply chain number six in the world. The following
logos show that how Nokia has changed its idea by changing its strategy starting from 1865 to
the present day.

ITS SUBSIDIARIES

Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia Siemens
Networks and Navteq. Other notable subsidiaries include, but are not limited to Symbian
Limited, a software development and licensing company that produces Symbian OS, a
smartphone operating system used by Nokia and other manufacturers; Vertu, a British-based
manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-based software
company, and OZ Communications, a consumer e-mail and instant messaging provider.

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NOKIA SIEMENS NETWORKS
Main article: Nokia Siemens Networks

Nokia Siemens Networks (previously Nokia Networks) provides wireless and wired network
infrastructure, communications and networks service platforms, as well as professional services
to operators and service providers. Nokia Siemens Networks focuses in GSM, EDGE, 3G/W-
CDMA and WiMAX radio access networks; core networks with increasing IP and multi access
capabilities; and services.

On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their mobile
and fixed-line phone network equipment businesses to create one of the world’s largest network
firms, called Nokia Siemens Networks. The Nokia Siemens Networks brannd identity was
subsequently launched at the 3GSM World Congress in Barcelona in February 2007. As of
March 2009, Nokia Siemens Networks serves more than 600 operator customers in more than
150 countries, with over 1.5 billion people connected through its networks.

NAVTEQ
Main article: Navteq

Navteq, which was acquired by Nokia on October 1, 2007, is a Chicago, Illinois-based provider
of digital map data for automotive navigation systems, mobile navigation devices, Internet-based
mapping applications, and government and business solutions. Navteq’s map data will be part of
the Nokia Maps online service where users can download maps, use voice-guided navigation and
other context-aware web services.
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HRM IN INTERNATIONAL CONTEXT
Wireless wizard Nokia is the world leader in mobile communications. Nokia is the world's
leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks
including related customer services, ahead of Motorola, Siemens, and Samsung among many
others. Today, the Nokia Group comprises Nokia Telecommunications, Nokia Mobile Phones
and Nokia General Communications Products. Nokia's corporate world headquarters are located
in Helsinki, Finland, and Nokia is listed on the New York, Helsinki, Stockholm, London,
Frankfurt and Paris stock exchanges, has sales in over 130 countries and employs more than
47,000 people worldwide. In the last few years, the company has experienced explosive growth
in terms of both profit and headcount. In 1998, net sales totaled EUR 13.3 billion. Frankly, It is
hard to believe that less than a decade ago, one of the world’s leading innovators in the field of
mobile communications today, Nokia Mobile Phones, was hardly known. However now it is one
of leading mobile phone brands worldwide. Here, the essay concerns that how a clear and stable
human resource strategy to achieve such phenomenal growth and become the giant among the
communication rivals.

“HRM in the new economy ought to be human centric with a strong technology focus. We need
to leverage on emerging technologies to better satisfy the wants and needs of the knowledge
workers, and in the process, build a competitive advantage that lasts.”
Attraction and retention of talent have become the main external influence on Nokia’s human
resources strategies, as other companies also strive to be the employee r of choice.
At Nokia, the development of human resources is a business proposition, which endeavors to
delight its customers, motivate its employees and increase the agility and flexibility of the
management to address specific HR needs.. The HR manager is also challenged with the task of
providing the skills, cultures, atmosphere and processes necessary for e-knowledge and
capabilities

Firstly, according to customer satisfaction, many companies are aiming for high satisfaction to
get high customer loyalty. They Create customer satisfaction by manufacturing and delivering
products, solutions and services to meet customer needs. All of these are Nokia’s employees’
basic action; they must respect and care their customer, and create them get the most value from
Nokia, both of products and service. In china, Nokia promise repair service within one hour, you
can get a present for regret if the repairing works were beyond one hour. And there are over 250
Nokia customer services. The hot lines for Nokia customers are available 365 days one year.

Secondly, Nokia is a global and multicultural company, in which individuals have a great deal of
responsibility and freedom to make independent decisions. Nokia believes in the importance of
the individual, whether he or she is an employee, business partner or customer. Nokia has nine

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markets in the world, distributing the entire world. Therefore in different place, there is different
culture, language, value system, and business customs. So Nokia provides diversity opportunities
for different people who want to enjoy themselves. Making handsets profitably is one challenge.
Figuring out what increasingly confused customers want is another. Mobile phones used to be
about talking--anytime, anywhere. Now they're becoming devices for sending and receiving data
as well. More than half of new phones come with built-in browsers, and a growing number
include digital cameras or music players. Leaders in the PC business, including Microsoft and
Intel Corp. (INTC), have concluded that this is their moment to barge in. "The trends are playing
to our expertise," says Intel Vice-President Ron Smith, who is spearheading the chipmaker's bid
to sell processors and other technology to phone makers.

Nokia is committed to having a positive impact on society that extends beyond the advanced
technology, products and services the company creates. Through its cooperation with IYF and
other regional philanthropic and social responsibility programs, the company prepares young
people to embrace opportunities and possibilities created by the global economy and new
technological advancements. The company has been an active regional contributor to youth and
education causes for many years , with Nokia employees making their own contributions as
volunteers in a range pr programs throughout the world. or Nokia’s corporate citizenship
program Make a Connection was kicked off today in Seoul, Korea. The two-day conference on
20-21 November 2003 is designed to boost the degree of regional cooperation in the Make a
Connection Network and encourage the cross-utilization of best practices in corporate
community involvement. Nokia’s Korean Youth Program has reached more than 4000 Youth
Families and Friends after its first year.

Siemens eroded the position of the world's biggest handset maker, Nokia, whose global strength
is based on its position in Europe. Nokia's share fell to 34.2 percent from 35.9 percent a quarter
ago and 35.5 percent a year earlier. Nokia's weakness in Europe was partly offset by its
strengthening position in other regions, like Russia, India and China, but also by its new range of
cheap CDMA phones used in the Americas and parts of Asia.

Gartner's (which published third-quarter statistics for the industry) numbers confirmed a trend
also spotted by rival research firm Strategy Analytics on Friday, which noted that Nokia's
European market share had dwindled to 42.1 percent in the third quarter from 48.8 percent in the
second quarter. Strategy Analytics measures sales to distributors, while Gartner measures sales
to end-users.

The market for mobile phones could reach half a billion units this year, but its leaders, Nokia and
Motorola, are increasingly under pressure from rivals Siemens, Samsung and LG,
Nokia's strong performance with its CDMA products in the United States and China could help

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offset the pressure from Siemens. Nokia's strong ties with component makers could also help it
overcome supply problems more easily than Siemens.

GLOCALIZATION
Globalization as a contemporary issue has been critiqued because of its possibly negative socio-
cultural effects on local and regional communities. While globalization is a powerful force in the
early 21st century, finding an approach to moderate globalization in regional contexts is
considered a major issue in many areas such as sociology, management etc. The concept of
Globalisation represents such a moderating approach. The term Glocal, which is a combination
of Global and Local, indicates how this concept represents an attempt to find optimal and
sustainable solutions to local and/or regional problems in the era globalization. In addition,
products with cutting edge technologies play an important role at this time. Portable
digital devices and consumer electronics facilitate communication regardless of their users’
physical locations and create a new digital lifestyle on a global scale. This important role of
advanced products and especially consumer electronics in the globalization process shows the
importance of this phenomenon, and that related concepts like Glocalization should be
considered in product design/development and design research. This research will, after
reviewing the background of Glocalization as seen in different areas, especially sociology focus
on product design and development. Then two global producers, each with different product
design and development strategies, are compared. This comparison is mainly based on their
regional strategies and their success in regional markets. The results of these studies can show
the importance of regional contexts and also the advantages or disadvantages of the concept of
Glocal product design.

BACKGROUND

The concept of Glocalization was first created by Japanese companies in the 70s as they planned
to expand to different parts of the world by customizing their products to target regional markets.
However, the term Glocal as a combination of Local and Global was first coined by famous
sociologist Roland Robertson (Robertson 1995). Glocalization has also been known as a
sustainable alternative to the process of globalization, as Localization has itself been defined in
terms of Globalization and the two concepts are strongly connected. The disadvantages of
Globalization were of greater concern than its possible advantages . This pessimism led many
theorists to identify more moderate and sustainable alternatives to globalization, such as
Glocalization. Since the mid-90s, many international companies like Sony and Coca Cola have
been using the simplified notion “Think Global, Act Local”, but Glocalization is more complex
(Medeni 2004). The term Globalization is based on a macro-sociological perspective.
Globalization directs attention to .The birth of the concept of Glocalization in Japan and its

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effects on Japanese marketing strategies in the 70s shows the importance of this concept in
product design and development.

One of the biggest implications of globalization for companies seeking to expand to foreign
shores is the task of balancing standardization with customization. From a branding perspective,
this issue assumes even more significance. When some of the world’s biggest brands expand
beyond their home markets, they are tempted to repeat their tried and tested formula in the new
market as well. In fact this has been the path followed by many brands. The assumption in such a
case is that customers would be too eager to consume the great brand because of its authenticity,
heritage and associations.
BRANDS AS CHANNELS OF SELF EXPRESSION IN CASE OF GLOCALIZATION
Brands in the current globalized world signify more than just products with recognizable logos.
Brands have transcended the commodity trap and have seeped into peoples’ lives in many
aspects. Brands have come to signify avenues through which people tend to express their
personalities, attitudes, likes and dislikes, association to groups/ communities and so on. As
such, brands succeed if they offer customers opportunities to express. Being global brands with
entrenched identities and personalities and still be able to adapt to local demands is a Herculean
task. The following steps would facilitate brands to make a smoother transition:
1. Understand the local market: Companies would do themselves a huge favor if they do
not generalize the markets based on some superficial parameter. Each market has its own
subtleties, unique characteristics and customer preferences. Many of these unique
characteristics are deeply inspired by the cultural underpinnings of the society. To
understand these underlying parameters would allow companies to effectively target the
customers.
2. Finer segmentation for faster adaptation: Segmentation though a very basic exercise
in marketing, is indeed one of the fundamental tools that can equip a company to
effectively channel its resources. With emerging economies integrating into the global
market, the diversity is bound to multiply. This not only offers companies a huge
increase in potential customers but also an opportunity to segment finer and leverage the
market situation. Companies must decide on the segment that they wish to target.
3. Channels – A strategic brand component: In many markets, reaching the customer at
the right place at the right time differentiates success from failure. In China and India,
channel management is the key to success. Many global brands that are used to huge
supermarket chains such as Wal-Mart, Sears, K-Mart and others tend to think in similar
terms in foreign and developing markets as well. In many Asian markets unorganized

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retail still dominates. In such scenarios, global brands would succeed if they recognize
the criticality of building strong channels and adapting their model to ground realities in
the market they are present.
4. Bottom of the pyramid customers: In spite of the growing economy and increasing
spending power, emerging markets and still developing countries are characterized by a
sizeable bottom of the pyramid segment. This segment mainly consists of customers who
are gradually aspiring to integrate into the main stream. This segment shows the promise
of being a very lucrative segment in the long run. But majority of this segment are not
ready to pay high prices. Customers always look for a proper quality-price balance.
Customers in this segment seek products that offer considerably good quality at an
affordable price. This poses new challenges for global brands that are used to offering
customers either a highly priced high quality products or low priced goods with an
average quality. Further, with many local brands in many countries already offering
products with quality comparable to global brands but with half or even one third the
price, the success of global brands depends on their ability to adapt to the local
conditions and respond to the local demands.
5. Global brands’ local act: Developing countries are finally seeing light at the end of the
tunnel. Countries especially in Asia are in a boom phase. The economies are booming,
global trade has increased, technical and knowledge outsourcing has given birth to
millions of jobs, disposable income is on the rise and governments have taken the lead to
integrate many such countries with the global economy. These factors have led to the
emergence of customers who no longer look to the West to build an identity. These
customers are confident and satisfied with many local brands. Though these customers do
like and purchase many global brands, they also have a strong preference for many local
brands that have managed to provide high quality products with a distinct local feel. This
once again compels the established global brands to balance the global identities with
local subtleties. This balance will allow global brands to be successful.
These guidelines will facilitate a smoother transition for global brands into localizing part
of their experience to suit the local subtleties in order to attract and retain the local
customer. Further, these guidelines will also offer global companies reason to think about
the possible challenges that a complete lack of localization will bring to the fore.
Unilever and Nokia, two global giants have also proved the point discussed in this article
by globalising and winning in their game.
Unilever is a classic example of a global brand which has pioneered serving the locals
with products that address the local sensitivities. Unilever’s Indian subsidiary Hindustan
Level Limited (HLL) has been the leader in recognizing the tremendous opportunity

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lying at the bottom of the pyramid. The customer base that aspires to consume products
but in smaller quantities and at lesser prices. HLL literally invented the shampoo sachets
– small plastic packets of shampoo for as less as INR 1 (USD0.022). This became such a
rage among the rural consumers that many other brands started offering products such as
detergent, coffee and tea powder, coconut oil and tooth paste in sachets. Even though the
unit price was higher, rural consumers were able to afford to purchase the smaller
quantity at their convenience.
Another example is of the leading mobile brand Nokia. Nokia also recognized the
growing importance of rural customers in the Indian mobile telephone market which
grew from a mere 300,000 subscribers in 1996 to a whopping 55 million subscribers in
2004. Nokia introduced its dust-resistant keypad, anti-slip grip and an inbuilt flash light.
These features, albeit small, appealed to a specific target of truck drivers initially and
then to a broader segment of rural consumers. These features endeared Nokia to the
Indian consumer as Nokia displayed a genuine commitment in responding to local
customer needs. The process by which global brands strive to appeal to local customers
in spite of maintaining their global aura is also referred to as globalisation.
Globalization is a part of the process of being culturally sensitive. Global brands are
usually adamant to continue their winning structure into every market they enter. After
all it is these structures that have made these brands so powerful. But in the process of
being dominant and refusing to budge from the standardized procedures, these brands
tend to ignore the underlying force that drives customers and their purchase decisions in
diverse markets. As markets integrate and customers migrate, there is a possibility of the
emergence of a much similar force that is common among markets.
But this is a far fetched thought. As Late Professor Theodore Levitt of the Harvard Business
School wrote in his landmark article Globalization of Markets, markets across the globe may one
day become similar in literally every aspect and then the global corporations would rule. But
despite the confidant march of globalization across the world, markets still continue to be
unique. Till such a time arrives when differences cease to exist, global brands must continue to
honour local cultures and adapt their brands to such conditions in order to be successful.

Nokia's Strategy in the Emerging Markets


In the emerging markets, Nokia's business strategy is to:
• Increase mobile usage in rural areas
• Reduce the mobile phone ownership and operating costs
• Bring the benefits of mobile telephony to people in emerging markets
• Bring the power of the Internet to these markets

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An end-to-end player with a product for everyone
Nokia caters to the mass-market and also the high-end market and has a product for everyone.
The company's focus would continue to be driving demand and foster brand aspiration.
In November 2008, in India, Nokia introduced handsets (prices ranging from €25 to €90 -
Nokia's lowest cost handset to date at €25) and a range of services (available from first-half of
2009). The services will be expanded to other countries in Asia and Africa later.

Nokia's Market Positioning: Different price points and value propositions


Nokia's service offerings
The services being introduced include:
• Nokia Life Tools: Farmers and students can get relevant local information on seeds,
crops, markets and weather through SMS. Advantages include information in two
languages simultaneously, easy icon-based user interface and availability of critical
information without a GPRS connection.
• Mail on Ovi: An email service directly on the mobile phone. No PC required.
• Education Services: Users can opt for an English word a day and learn how it is
pronounced and its meaning in their native language.
SHARE OF MARKET

According to Gartner Inc., in the third quarter of 2006, Nokia had a 35.1 percent share of the
global market, which was the first position worldwide, whereas BenQ and Siemens were in the
world’s sixth position (Milanesi et al. 2006).

GLOBAL EXPANSION OF COMPANY

Nokia has a presence in almost all countries (Nokia Corp. 2007). In most of the countries around
the world Nokia has at least one subsidiary, but Siemens is mainly a European player. According
to an official report, Siemens’s parent company BSH, has more than 40 subsidiaries worldwide,
only about 18 of which are outside Europe (BSH Gmbh 2006).

BRAND IDENTITY

A research at the Graduate School of Design Management, Ming Chuan University in Taiwan
shows that the brand identity of mobile phones is connected to the share of market of each
company (Chen and Yang 2003). The results of the research were based on both graphical and
contextual questionnaires and covered five brands: Nokia, Motorola, Ericsson, Siemens, and
Acer (BenQ). The conclusion showed that Nokia had the strongest identity, while Siemens and
Acer (BenQ) were in the last places.

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CULTURAL APPROACH

On the Design fairs official website, the first sentence about this design house is: “We draw our
inspiration from Europe's cultural basement and the knowledge of socio-cultural differences.”
(Design fairs 2007). Although they understand socio-cultural differences, there is an emphasis
on Europe's cultural basement. By comparison, according to Eero Miettinen, senior designer at
Nokia Design, designers at the Nokia design center in Helsinki are from 20 different countries:

• "Working with designers from 20 different countries and their resulting different cultural
• Backgrounds can only be a good thing." (Jeffrey 2005)

Nokia India - The Most Trusted Brand


Nokia, India's leading mobile handset marketer was voted as India's Most Trusted Brand in
Brand Equity's annual Most Trusted Brands survey. Olli-Pekka Kallasvuo, president & CEO,
Nokia Corp responded positively to this brand recognition and said that,

"Becoming the No 1 trusted brand in India is a very prestigious achievement for us. Our team in
India has worked very hard to achieve this, ... together with investments in marketing and
distribution that have helped differentiate the brand from the competition".

The survey was conducted across 12 Indian cities and had over 8,000 respondents. Nokia was
placed No 71 in 2005, No 44 in 2006 and No 4 in 2007. Nokia replaced Colgate as the No 1 this
year. India is a critical market and this achievement certainly augurs well for Nokia which
recently launched the Nokia N78 in the Indian market. Nokia has been investing in India since
1996 and the Indian mobile market has become the No 2 market, up from No 3 in 2006 and No 4
in 2005. Nokia India has a factory in Chennai, a design studio in Bangalore and managed a
turnover of Euro 36 billion last year.

Nokia in India
Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia
2110 mobile phone on its own network in 1995. When Nokia entered India, the telecom policies
were not conducive to the growth of the mobile phone industry. The tariffs levied on importing
mobile phones were as high as 27%, usage charges were at Rs.16 per minute and, at these high
rates, consumers did not take to mobile phones. Nokia also had to face tough competition from
other powerful global players like Motorola, Sony, Siemens and Ericsson.

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The Problems Faced in Indian Market
In spite of its strong marketing, Nokia's problems at the global level had an impact on the
company's Indian venture. Globally, Nokia had been experiencing tough times with revenues
falling to 29 billion euro in 2004 from 32 billion euros in 2001. The company's operating profits
decreased from 5 billion euros in 2003 to 4.3 billion euros in 2004.
Bouncing Back
Nokia was quick to learn from its mistake adopted strategies to regain its lost market share.
Globally, during the first quarter of 2005, the company's sales reached 7.4 billion euros, with the
company selling 54 million phones during the period. In India, Nokia continued its leadership in
GSM with a market share of 74% in March 2005. Nokia also surpassed Samsung in color
mobiles in the GSM segment, recording a share of 55% in the same month (Refer Table VIII for
share of major mobile phone brands in the GSM segment and their market shares).
Nokia reorganized itself at the global level in 2004. At this point, a multimedia division was
formed. The division's Indian operations concentrated on promoting the concept of high-end
telephones in smaller towns while going in for higher volumes in larger cities. The marketing
divisions of the company concentrated on making distributors in small towns sell high-end
products.
The Future Prospects
According to industry analysts, by 2010, the mobile phones industry in India will be driven by
voice, multimedia and mobile services for organizations. The teledensity in India was estimated
to increase to 18.2% by March 2009, with mobile subscription rising to 148.77 million by that
time. In many instances, the cell phone has become the only basic telephone link of a
household/enterprise in India, rather than a landline phone. It was turning out to be more
economical and efficient than fixed line telephones. So, there was great scope for further
expansion with reduction in the cost of ownership.
Nokia India - Tapping the rural market

Nokia, the Finland-based mobile phone maker is planning to come up with Internet-based
services for the rural Indian market according to Nokia Corporation's President and CEO Olli-
Pekka Kallasvuo. This will help it to position itself effectively in the non-urban markets. The
services to be offered (in Nokia's mid-level mobile devices as well) include:-

• Micro-finance
• Distribution
• Agricultural services and
• After sales and support services.

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Mobile penetration in India stands at 26 per cent at present and Nokia is looking at the micro
finance initiative big time to increase the mobile penetration in India. Nokia is running pilots and
trials to gauge consumer response in select markets. Other efforts made by Nokia towards
glocalisation in India includes:

• Different ranges of mobile phones to suit the needs of different section of the society.
While at one hand its coming up with highly techie mobile phones for high end users its
also looking to target the lower income group by providing them with cheaper mobile
sets with basic features.
• It has a good distribution channel and extensively spread service centres, its reach is
really good as its presence can be seen in smallest towns.
• To facilitate the rural and regional community it has come up with nine different
languages.
• To target and facilitate the farmers from rural community its also providing weather
reports, prices of seeds, fertilizers etc.

CHINA

Nokia 6102, which is a Chinese version of Nokia 6101 (Figure 3), is the result of a regional
design. This model is also produced in China (Nokia Corp. 2005). The Nokia 6102 design
doesn’t address. Chinese cultural specifications or motifs effect directly. Its Chinese identity
is mostly in the form of hidden features, for example, red color for the background of menus
and more curvy lines in comparison with the original Nokia 6101.

AFRICA

Nokia has emerged as the top brand in the East African region according to a survey
commissioned by Super brands East Africa and co-ordinated by London based Centre for
Brand Analysis (TCBA). Cheliotis said ’Nokia has performed strongly with both the
marketing experts and the consumers within East Africa who believe that it fulfills the
requirements inherent within a Super brand, namely offering quality and reliable products
that are truly distinctive. “It has outperformed global power brands and local hero brands
alike, which is truly a remarkable feat that the local Nokia team can be very proud of. This
survey reaffirms its strong position in the market against new comers”. For local brands,
such as Milo and Kimbo, which both make the top ten, the survey reaffirms that they are able
to compete with their multi-national counterparts, which is excellent news for the economies
of East Africa.It fundamentally proves that businesses in this region are able to build and
maintain brands that can compete with the best from around the world.

NOKIA IN U.S.

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The Finnish company has grown into the world's largest mobile-phone maker by conquering
country after country. But in the U.S., Nokia has steadily lost ground in recent years,
watching its market share shrivel to single digits. The largest wireless carrier in the U.S.,
plans to announce it will soon carry Nokia's e71x, the thinnest smart phone available in the
U.S. It has a Qwerty keyboard, allowing for Web browsing and corporate e-mail access via
regular wireless networks and Wi-Fi hotspots at cafés and airports. The device also has a
built-in Global Positioning System, a music player, a video camera, and a memory card slot.
The Nokia e71x is expected to hit the U.S. market in May and should cost $100 after rebate
with a two-year contract.

"We believe this is a great opportunity for Nokia," says Hugo Hernandez, Nokia's head of E-
series marketing for North America. "We are bringing in a device with the right [features]
and the right price point."

Recent stories tagged with "Emerging markets


Dabbling in alchemy in pursuit of greater performance with less power
Berkeley, USA - There’s no disguising the fact that we’re shameless fans of what the teams over
at the Nokia Research Center do, applaud NRC’s open innovation approach, and hurl praise at
its many collaborators and radical thinkers. From recent developments such as Nokia Locate
Sensor and indoor positioning trials to battery bending and face sketching, this is one of the
most exciting divisions within Nokia, so it’s great to see another collaboration and new
laboratory pop up recently in Berkley, California in the USA. The new Nokia Research Center in
Berkley is tasked with some fascinating projects coupled with important ambitions that could
help alter (for the better) what our devices are capable of achieving in the future. One of the core
areas of research is the alchemy of squeezing better performance from mobile products using
less power consumption. Read on to find out more about this and the other fields of research that
will be explored at Nokia’s latest research
Nokia Life Tools and other cool things
GLOBAL - I’ve been a watcher of mobile phone use in emerging markets ever since Chris
Heathcote planted the thought in my head many years ago. Back then, there were two billion
mobile phone users globally and we were facing the prospect of one billion more being added
over 18 months, of which 80 per cent of those will be first-time users in emerging markets
without PCs. Indeed, the kernel of my Club 1100 thoughts come from that time, and with the
reception the Nokia 1202 (very similar to the Nokia 1209 I am using) is having (see below), I
think Nokia is onto something.

Nokia 1202: cheapest phone ever


NEW DELHI, India - Today Nokia unveiled a stable of new handsets tailored to emerging
markets. It almost goes without saying that affordability is a key aspect for everyone in any
country, but it’s a factor that’s amplified in poorer and more remote areas of India and Africa, so

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it was hugely encouraging to see the Nokia 1202 was announced bearing a price tag of just 25
Euros, making it the cheapest handset the company has ever launched.
Announcing The 1100 Club (aka ‘Ditch your smartphone. Go dumb!’)
LONDON, UK - Do we really need smartphones? Indeed, why are they called smartphones? Are
all other phones dumb? we come to see that, in the end, it’s connecting to people (where have I
heard that line?) that matters most to me and, for the most part, voice and text seem to do the
trick.
Fresh gaming possibilities for emerging markets
INTERNATIONAL- N-Gage might be stealing the mobile gaming limelight, but it turns out that
new videogame horizons could stretch far beyond high-spec wireless mobile multiplayer.
Growing together: Cameras and Internet
JOHANNESBURG, South Africa - Four new devices were announced aimed at emerging
markets. Whilst there’s nothing unusual in itself about that, what is different is how, and why,
those devices come packing good quality cameras.Whilst doing surveys in rural India,
researchers discovered the importance of cameras on phones for emerging markets.
Nokia phone sharing begins in Kenya
KENYA, Africa –
Release of the Nokia 2600 Classic in Kenya.A low-cost handset tailored to suit the common
phone sharing way of life existent in many emerging markets including Africa, this device marks
the beginning of a brand-new breed of device.

CONCLUSION
Through its subsidiaries the Company operates as a global provider of business information and
tools and insight about mobile phones with new technologies. The quality process provides
customers with quality business information. This quality information is the foundation on which

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customers rely on to make critical business decisions. Their Business Solutions is to help
customers convert prospects to consumers faster.

This article illustrates the importance of inculcating the element of culture – local practices,
customer preferences, local pressures and purchasing patterns – into the brand’s DNA. The
process by which global brands strive to appeal to local customers in spite of maintaining their
global aura is also referred to as glocalization.
Nokia's official corporate culture manifesto, The Nokia Way, emphasizes the speed and
flexibility of decision-making in a flat, networked organization, although the corporation's size
necessarily imposes a certain amount of bureaucracy. Until May 2007, the Nokia Values were
Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its
values after initiating a series of discussions worldwide as to what the new values of the
company should be. Based on the employee suggestions, the new values were defined as:
Engaging You, Achieving Together, Passion for Innovation and Very Human.

REFERENCES

1) http://en.wikipedia.org/wiki/Nokia

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2) http://www.51lunwen.org/details/lw200701011706353769-4.html

3) http://news.cnet.com/8301-17938_105-10249724-1.html

4)http://www.venturerepublic.com/resources/Brand_culture_brand_strategybrand_leadership.as
p

5) http://www.sd.polyu.edu.hk/iasdr/proceeding/papers/Glocal

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