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MSD REPORT

COMPANY ANALYSIS OF NOKIA

Submitted To Submitted
by

MBA 2nd Semester


Dr. Ajay Pratap Singh MUHAMMAD SALIM (07217003909)
(Faculty, MBA)

SESSION: 2009 - 2010

TECNIA INSTITUTE OF ADVANCED STUDIES


(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24
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CONTENTS

• INTRODUCTION : NOKIA……………………………………………….……....3

• HISTORICAL BACKGROUND…………………………………………………..4

• MISSION AND VISION OF NOKIA……………………………………...…...….7

• PRODUCTS OF NOKIA AND ITS FEATURES……………………….….……9

• AREAS OF FOCUS…………………………………………………………..…....29

• SWOT ANALYSIS…………………………………………………………..……..30

• PEST ANALYSIS………………………………………………………….…….....33

• 4P ANALYSIS – MARKETING MIX…………………………………………....35

• STP ANALYSIS…………………………………………………………………....36

• SOME ACHIEVEMENTS OF NOKIA ……………………………………….….37

• COMPETITOR PROFILING…………………………………………….…..…..38

• WHY NOKIA RULES THE MARKET……………….....……………….……...40

• LOOPHOLES…………………………………………………………………….....43

• RECOMMENDATIONS…………………………………………………………..44

• BIBLIOGRAPHY…………………………………………………………..………46
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INTRODUCTION
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.

Nokia Today

Today, Nokia is a world leader in digital technologies, including mobile phones,


telecommunications networks, wireless data solutions and multimedia terminals .Backed by its
experience, innovation, user friendliness and secure solutions, the company has become the
leading supplier of mobile phones, fixed broadband and IP networks. By adding mobility to the
internet, Nokia creates new opportunities for companies and further enriches the daily lives of
people. Nokia is operating in over 130 countries and 15 factories over 9 countries. Nokia spends
20% of net sales in research and development. Nokia registers on an average 5 patents every day.

Chairman: Jorma Ollila


Vice Chairman: Dame Marjorie Scardino
Head Office: Finland
Revenue: US $ 83.27 billion (year ended May, 2008)
Establishment in India: 1995
Branches in India: Gurgaon, Mumbai, Kolkata, New Delhi, Bangalore, Hyderabad and
Ahmedabad.

 Reported net sales of EUR 40,984 million (EUR 50,710 million in 2008)
 Reported operating profit of EUR 1,197 million (EUR 4,966 million)
 Nokia estimated mobile device market share 38%
 Nokia had strong R&D presence in 16 countries
 Nokia employed 1,23,553 people at year-end.
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HISTORICAL BACKGROUND OF NOKIA

NOKIA was established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on the banks of the
Tammerkoski rapids in the town of Tampere, in south-western Finland. The company was later
relocated to the town of Nokia by the side of Nokianvirta river which had better resources for
hydropower production. That is where the company got the name that it still uses today. The
name Nokia originated from the river which flowed through the town. The river itself,
Nokianvirta, was named after the old Finnish word originally meaning a dark, furry animal that
was locally known as the nokia, or sable, or later pine marten.
Finnish Rubber Works established its factories in the beginning of 20th century nearby and began
using Nokia as its brand. Shortly after World War I, Finnish Rubber Works acquired Nokia Wood
Mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. These three
companies were merged to form Nokia Corporation in 1967.
The new company was involved in many sectors, producing at one time or another paper
products, bicycle and car tires, footwear (including Wellington boots), personal computers,
communications cables, televisions, electricity generation machinery, capacitors, aluminium, etc.

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river.
Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a
cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...Fredrik
Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia
story begins. Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia
Corporation.

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...

1981: The mobile era begins


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

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.
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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: 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’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.
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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.

PRODUCTION UNITS

Networks technology
China
Finland
Germany
India
Mobile devices and technology
Brazil China
Finland Great Britain
Hungary India
Mexico Romania
South Korea
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VISION AND MISSION STATEMENT

Vision of the future

"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.

Mission Statement

• Customer – To maintain customer confidence by continuing to provide quality service


specifically designed to meet their needs.

• Market – To be recognized as a market innovator in the mobile phone industry to


continuing to improve our business practice.

• Business – To ensure the team has a complete understanding of all Mobile Network
Internal Systems and Procedures and that each team member is responsible for compliance
with the Business Management System.

• Training – To develop ongoing training strategies to empower personnel with skill levels
essential for future company success.

• The Team – To create the best possible working environment, promoting career
enhancement and job security, encouraging trust in the company and loyalty to the
customer.
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Marketing Strategy

Nokia’s corporate responsibility strategy is to engage, improve and be accountable. They


constantly measure and review their performance in economic, environmental and social issues.
They engage in stakeholder dialogue and form partnerships that serve the areas they want to
improve upon. They pursue focused and practical improvement programs in relevant
organizational or geographical areas as part of business operations - this involves business
planning, internal communications, training. They increase accountability to stakeholders through
reporting, and informative internal and external communications activities.

What makes them unique is the way they do it. Based on the same approach that guides the rest of
their activity – ‘The Nokia Way’ - their corporate responsibility is developed through logical
steps, with much of the work concentrated inside the company, much of the work built on existing
programs, and many stages taken forward in parallel.

According to them it is essential to drive corporate responsibility through the company-wide


strategy process, support issue owners in building business cases for ethical improvement and
implementation, and increase accountability to both internal and external stakeholders.

For them, corporate responsibility is an integral and continuous part of decision-making in all
parts of their business; taking responsibility for the consequence of their actions. It’s a belief that
by focusing on issues over which they have most influence and which their stakeholders consider
important, they will be able to mobilize more of company resources, be more proactive, and
ensure long-term programs.

The Nokia Strategy continues to focus on three activities to expand mobile communications in
terms of volume and value:
Expand mobile voice
Drive consumer multimedia
Bring extended mobility to enterprises

PRODUCTS OF NOKIA
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AND

ITS FEATURES
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Nokia produces lots of varieties in mobile phones some of them as follows

Nokia 1208

Key Features

• Experience enhanced visual with the 65,536 color display


• Dust and splash proof with rubberized keypad and anti-slippery back cover
• Bright flashlight for convenience and emergency
• Timer tracker feature helps you controls the duration of each call
• Multiple phonebook makes sharing phone easier
• Easy–to-use menu in multi languages with calendars

Operating Frequency

• GSM Dual band EGSM 900/1800 MHz

Dimensions

• Volume: 67.3 cc
• Weight: 76.9 g
• Length: 102 mm
• Width: 44.1 mm
• Thickness (max): 17.5 mm

Display

• 65,536 color, 96 x 68 pixels display


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User Interface

• S30 user interface

Messaging

• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution


list
• Distribution list - create and manage your personal list
• Predictive Text Input: Support for all major languages in Europe and Asia Pacific
including Indian dialect
• Large SMS storage for up to 60 SMS on phone memory

Ringing Tones

• 32-chord/voice polyphonic ringing tones with MP3-grade sound

Call Management

• Large contact storage - up to 200 entries in built-in phonebook

Voice Features

• Integrated handsfree speaker

Personal Information Management (PIM)

• Multi phonebook
• Alarm clock
• Analog/digital clock
• Reminders
• Stopwatch
• Calculator
• Calendar
• Converter
• Countdown timer

Power Management

Battery Talk time* Standby time*


BL-5CA Up to 7 hrs Up to 15.2 days
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Nokia 1650

Key Features

• Easy one-touch key to activate FM radio in an instant


• Enjoy easy viewing with the 65,536 colors, large screen display and large font type when
dialing
• Personalize your phone ring with quality MP3-grade and 32 Polyphonic ringtones
• Extend your talk time with Power Saver mode
• Convenient one-touch key to switch on built-in flashlight

Operating frequency

• GSM Dual band EGSM 900/1800 MHz

Dimensions

• Volume: 69 cc
• Weight: 80 g
• Length: 104.2 mm
• Width: 43.8 mm
• Thickness: 17.8 mm

Display

• 65,536 colors, 128 x 160 pixels CTSN display


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User interface

• S30 user interface

Multimedia

• Integrated FM radio

Messaging

• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list
• Chat
• Large SMS storage on phone - up to 250 SMS
• Easy to create and send SMS – with local input method

Language Support

• 18 Input languages: Bahasa Indonesia, Bahasa Malaysia, Bengali, Simplified Chinese,


English, Gujarati, Hindi, Kannada, Marathi, Pilipino (Tagalog), Punjabi, Tamil, Thai,
Vietnamese, Khmer, Malayalam, Sinhalese, Telugu

Ringing Tones

• Supported file formats: MP3-grade, 32-chord polyphonic MIDI ringing tones

Connectivity

• Headset connector: Standard 2.5mm headset connector

Call Management

• Time Tracker
• Call Duration Log

Voice Features

• Integrated handsfree loudspeaker

Power Management

Battery Talk time* Standby time*


BL-5C Up to 8 hrs Up to 17.5 days
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Nokia 2626

Key Features

• Stand out from peers and friends with colored covers


• Listen to and share your FM radio music through the integrated handsfree speaker
• Record sound on the move and send to friends with Nokia Xpress Audio Messaging
• Download wallpapers & ringing tones via GPRS
• Stay updated on work and play with one inbox for SMS and MMS messages

Operating frequency

• GSM Dual band EGSM 900/1800 MHz

Dimensions

• Weight: 91 g
• Length: 104 mm
• Width: 43 mm
• Thickness (max): 18 mm

Display

• 65,536 colors display

Multimedia

• Integrated FM radio
• Nokia Xpress Audio Messaging
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• Preloaded polyphonic MP3 and MIDI ring tones

Memory functions

• 2 MB Gallery to store downloaded files

Messaging

• Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
• Email: Supports SMTP, POP3 and IMAP4 protocols. Support for attachments
• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list

Browsing

• WAP* 2.0 xHTML/HTML browser

Data Transfer

• GPRS: Class B, multislot class 6

Call Management

• Large contact storage – 300 entries in built-in phonebook

Voice Features

• Voice recorder
• Integrated handsfree speaker
• Set voice clip as ringing tone

Personal information management (PIM)

• Calculator
• Power organizer - week, month review with local calendar

Power management

Battery Talk time* Standby time*


BL-5C Up to 3 hrs Up to 300 hrs
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Nokia 2600Classic

Key features

• Capture images and videos in dazzling color with the digital VGA camera and video
recorder
• Personalize your phone with MP3, ringtones and user-created ringtones
• Enjoy music and news on the move with the FM radio
• Monitor call times with Pre-paid Tracker
• Share your photos and video clips with friends and family using Bluetooth
• Keep in contact with SMS, MMS, email, and Nokia Xpress Audio Messaging
• Keep all your contacts on hand with 1000-entry phone book

Operating frequency

• Dual band GSM 850/1900 MHz


• Dual band EGSM 900/1800 MHz

Dimensions

• Volume: 63.5 cc
• Weight: 73.2 g (with battery)
• Length: 109.6 mm
• Width: 46.7 mm
• Thickness: 12 mm

Display

• 65K color, 128 x 160, TFT


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Imaging

• VGA camera
• TFT color display
• MMS

Multimedia

• Digital VGA camera with video recorder for pictures and video
• FM radio

Messaging

• Email supports POP3, IMP4 and SMTP protocols


• Nokia Xpress Audio Messaging (sends greetings with short voice clips)
• SMS text messages
• MMS messaging with pictures
• Personalize SMS message alerts with your favorite ringtones

Java™ Applications

• xHTML over TCP/IP, WAP 2.0


• MMS 1.2 (supports 300KB size)
• Nokia Xpress Audio Messaging
• Java MIDP 2.0 applications
• OMA DRM 1.0 smart content download (forward lock)

Connectivity

• Photo and data sharing with Bluetooth 2.0

Browsing

• WAP 2.0 web browser (xHTML)

Power Management

• Battery: BL-5BT
• Capacity: 870 mAh
• Talk time: Up to 6 hrs
• Stand-by: Up to 24 days
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Nokia 3500 classic

Key Features

• An elegant, large, glossy black 1.8" smoked screen makes viewing all your photos a
pleasure.
• A solid metal rim around the phone protects the screen from scratches
• Splitline colouring in the keymat adds a touch of color
• Benefit from easy connectivity with Bluetooth, and a mini-USB port to connect to a PC
• Save more of your moments with the option to use MicroSD memory cards up to 2GB
• Ensure you’re always in touch with up to 2,000 contacts.
• Stay entertained with a music player and FM radio
• Make your handset unique with MP3 ringtones

Display

• Main display: 128x160, up 262k colors. TFT (active area 1,8")

Imaging

• 2 megapixel camera
• 8 x digital zoom

Messaging
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• Email client with attachments (Java version)


• MMS: OMA MMS 1.2 (300 KB MMS size)
• Instant Messaging

Multimedia

• Media player supporting MP3, MP4, AAC, AAC+ eAAC+, H.263, H.264
• FM Stereo radio
• Video streaming (3GPP)
• Video ringing tones
• MIDI ringing tones up to 64 polyphonies
• DRM release 2.0
• HXTML browser
• Java: MIDP 2.0

Connectivity

• Bluetooth
• Micro SD memory slot up to 2GB
• Mini-USB connector

Other features

• Themes including animated wallpapers, screensavers, color schemes & ringing tones
• Voice recording, voice commands, speaker independent name dialing
• User configurable right soft key and GoTo menu
• Organizer with calendar, To-do list and notes
• Alarm clock, Countdown timer (normal and interval timer)

Bearers supported

• DARP
• EDGE class 10; GPRS class 10
• GPRS/EDGE/HSCSD/CSD for browsing and as data modem
• Bluetooth

Power Management

Battery Talk time Standby time Capacity


BL-4C 300h 860mAh
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Nokia 6500 slide

Key features

Take high quality pictures with a 3.2 megapixel camera with Carl Zeiss optics, auto focus, and
8x digital zoom

A powerful double LED flash makes indoor pictures perfect

Share pictures or videos with friends and family via TV-Out

3G video calling helps you feel even closer to the people you care about

Connect directly to Flickr™ website to share your photos with all your friends

Imaging and video

• Integrated 3.2 megapixel camera with Carl Zeiss optics, auto focus, with up to 8x digital
zoom
• Integrated double LED flash
• Macroshot, landscape mode, sequential shots, and dedicated 2-step capture key
• Horizontal mode with capture and zoom keys allows you to use the phone like a digital
camera
• Use PictBridge™ to print copies of your favorite images
• Add finishing touches to your pictures with Adobe PhotoShop software
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• Video recording: VGA (15fps) and QCIF (30fps) resolutions with 4x smooth zoom.
Supports H.263 MPEG-4 in .3gp format
• Secondary camera for video calling (QCIF resolution, 15 fps)
• Add a new dimension to your conversations with 3G TV video calling and TV conference
via TV-Out
• Video: Video recording and playback in MPEG4

Browsing

• WAP* 2.0 browser with XHTML support over HTTP/TCP/IP stack


• Opera Mini browser
• OMA Digital DRM 2.0 - including forward lock for content protection, combined
delivery, separate delivery and super distribution.

Connectivity

Bluetooth 2.0

Micro USB connector with USB 2.0

2.5mm AV connector for headset and TV-Out

Local and remote SyncML synchronization using Nokia PC Suite software

Data transfer*

• EDGE Release 4 multi-slot class 31 (5RX+2TX: maximum 6 slots)


• GPRS multi-slot class 31 (5RX+2TX: maximum 6 slots, class B&C)
• CSD (circuit-switched data) transfer for browsing and as data modem

Digital services

Over-the-air (OTA) downloads for ringtones, themes, wallpapers, and screensavers

FOTA – firmware update over the air

Display

• 16 million colors QVGA 240 x 320 pixels 2.2" LCD display


• Active display area 33.5 x 44.7 mm
• Ambient light sensor

Memory functions
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• 20 MB user free internal memory


• Options to expand up to 4 GB with microSD memory card

Music and multimedia

Visual Radio: Listen to music and interact with your favorite radio stations

Find out what song is playing, who sings it, and other artist information

Enter contests and answer surveys, vote for your favorite songs

Download the songs you buy direct to your phone

Integrated music player supports MP3/MP4/AAC/eAAC+/WMA audio file formats

Video streaming: H.263 & MPEG4 (up to QVGA, 15 fps), and H.264 (QCIF 15fps)

Local video playback: up to 30fps in QVGA for H263 and MPEG-4 with 2048 kbps bit rate.
Up to 15fps QCIF for H264 with 128 kbps

Integrated FM Radio

Still picture to TV-Out in VGA

Video to TV-Out in QVGA 15 fps

Offline and demo modes

• Flight mode: all transmission-related activities turned off

Operating frequency

• Quadband GSM 850/900/1800/1900 MHz


• Dual band WCDMA 850/2100 MHz

Power management

Battery Talk time Standby time Capacity


Battery BP-5M Up to 6 hrs Up to 13.25 days 900 mAh
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Nokia N72

Key Features

• "Slide and shoot" print quality photos with 2 megapixel camera with up to 20x zoom
• Dedicated music keys for access to digital music player
• Ambient light detector optimizes display brightness
• Transfer data with Bluetooth wireless connectivity or via USB 2.0

Operating Frequency

• EGSM 900/1800/1900 MHz


• Automatic switching between bands

Dimensions

• Volume: 95.4 cc
• Weight: 124 g
• Length: 108.8 mm
• Width: 53.3 mm
• Thickness (max): 21.8 mm
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Display

• 262,144 colors TFT QVGA 176 x 208 pixels display


• Active standby main services always on top
• Ambient light detector - used to optimize display brightness and power consumption

User Interface

• S60 user interface 2nd Edition


• Dedicated Music keys for direct access to digital music player

Imaging

• Integrated 2 megapixel camera (1600 x 1200 pixels) with up to 20x digital zoom and
close-up mode
• Slide for lens protection and camera activation
• Integrated flash (operating range up to 1m)
• Flash modes: on, off, automatic
• Dedicated capture key
• Scenes: automatic, user defined, portrait, landscape, sport and night
• White balance: automatic, daylight, cloudy, tungsten, fluorescent
• Color tone: normal, sepia, black & white, negative
• Settings for brightness adjustment, image quality, self-timer, white balance and color
tones
• Advanced camera modes: still, sequence, video
• Video
o Video: play, record, stream
o Audio recording AAC
o Video clip up to 60 minutes (limited by available memory)
o File format .mp4 (high), .3gp (normal, MMS)
o Video capture: 352x288 (CIF) at up to 15 fps MPEG-4
• On device photo editor and video editors (manual & automatic)
• Home photo editing on compatible PC with Adobe Photoshop Album Starter Edition

Multimedia

Visual Radio

RealPlayer Media Player

Played formats: AMR-NB, AMR-WB, AAC, RealAudio, RealVideo, H.263, MPEG-4

Memory Functions
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• Up to 512 MB* internal dynamic memory for contacts, text messages, multimedia
messages, ringing tones, images, video clips, calendar notes, to-do list and applications

Messaging

• Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
• Email: Supports SMTP, POP3 and IMAP4 protocols. Support for attachments (view jpg,
3gp, mp3, ppt, doc, xls, pdf files)
• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list

Connectivity

• Pop-Port™ interface with USB 2.0 full speed


• Bluetooth 2.0
• Local synchronization with PC using PC Suite

Browsing

• WAP* 2.0 xHTML/HTML multimode browser

Data Transfer*

• EGPRS, Class B, multislot class 10 (UL/DL = 118.4/236.8 kbps)


• Speech codecs supported: FR, EFR, and AMR
• Data transfer application for moving data from compatible old Nokia S60 device over
Bluetooth connectivity

Voice Features

• Voice dialing
• Voice commands

Power Management

Battery Talk time Standby time


BL-5C GSM: Up to 3.5 hrs GSM: Up to 240 hrs
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Nokia N73

Key Features

• 3.2 megapixel camera with Carl Zeiss optics


• Large, bright 2.4-inch display
• Advanced auto-focus and mechanical shutter
• Stereo FM and support for Visual Radio
• Download and stream videos with built-in RealPlayer

Operating Frequency

• Quadband EGSM 850 / 900 / 1800 / 190 MHz


• Dual mode WCDMA / GSM
• WCDMA 2100 MHz

Dimensions

• Weight: 116 g
• Length: 110 mm
• Width: 49 mm
• Thickness (max): 19 mm

Display
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• Up to 262,144 colors, 2.4 inch QVGA 240 x 320 pixels display with automatic brightness
control

Imaging

• 3.2 megapixel camera (2048 x 1536 pixels) with up to 20x digital zoom
• Camera Specifications
o CMOS sensor, 3.2 megapixel (2048 x 1536 pixels) with autofocus and digital
zoom up to 20x
o Carl Zeiss Optics, Tessar™ lens
o Focal length 5.6 mm
• Video
o Video: play, record, stream
o Audio recording AAC stereo
o Video stabilization
o Video clip up to 1.5h (limited by available memory)
o File format .mp4 (high), .3gp (normal, MMS)

Multimedia

• Visual Radio
• RealPlayer Media Player
• Digital music player for MP3/AAC/eAAC/eAAC+/WMA formats with playlist and
equalizer
• Integrated stereo speakers with 3D sound effect

Memory Functions

• Up to 42 MB* internal dynamic memory for contacts, text messages, multimedia


messages, ringing tones, images, video clips, calendar notes, to-do list and applications
• Options to expand up to 2 GB with miniSD card

Messaging

• Multimedia messaging: MMS for creating, receiving, editing, and sending videos and
pictures with AMR voice clips
• Email: Supports SMTP, POP3, IMAP4, and APOP protocols. Support for attachments
(view jpeg, 3gp, MP3, .ppt, .doc, excel, and .pdf files)
• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution list

Java™ Applications

• Java™ MIDP 2.0, CLDC 1.1 (Connected Limited Device Configuration (J2ME))
• C++ and Java SDKs

Connectivity
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• Pop-Port™ interface to USB 2.0


• Infrared (IR)
• Bluetooth 2.0

Browsing

• WAP* 2.0 xHTML/HTML multimode browser

Data Transfer*

• EGPRS, Class B, multislot class 11 (UL/DL = 118.4/236.8 kbps)


• WCDMA 2100 with simultaneous voice and packet data (PS max speed UL/DL= 128/384
kbps, CS max speed 64 kpbs)
• Dual transfer mode (DTM) support for simultaneous voice and packet data connection in
GSM/EDGE networks
• WCDMA packet data rates: UL 384kbps, DL 384kbps
• Circuit data to 64kbits/s for video call
• Speech codecs supported: FR, EFR, WCDMA, and GSM AMR

Voice Features

• Voice dialing
• Voice commands

Power Management

Battery Talk time* Standby time*


BP-6M WCDMA: Up to 3.7 hrs WCDMA: Up to 15 days
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AREAS OF FOCUS

To achieve their business objective, their strategy focuses on: being the preferred provider of
solutions for mobile communications; creating personalized communication technology; driving
open mobile architecture enabling a non-fragmented global mobile services market; strengthening
and leveraging Nokia, the trusted brand; and expanding our business and market position on a
global basis.

Mobile Communications— The aim is to position Nokia as the preferred provider of


products and solutions for mobile communications by providing leading communications
networks that enable end-to-end service delivery for both cellular and broadband
networks. They develop leading high-capacity cellular networks, platforms and user
applications for the mobile Internet, end-to-end broadband access solutions and
Professional Mobile Radio systems.

Personalized Technology— They want to strengthen their leadership position in converging


personal digital terminal solutions. They build on their core competencies in various key
areas, including design and product innovations, brand development, and effective
demand/supply network management, to bring new product concepts and associated
services to market.

Driving Open Mobile Architecture— Nokia’s key commitment is to create a global and
open mobile software and services market. They aim to achieve this through strong
partnering with customers, suppliers and industry participants, and solid focus on end-to-
end solutions in all their development activities.

Strengthening the Brand-- According to a variety of consumer surveys, the Nokia brand is
associated with well-designed, high quality and technologically advanced products and
customer services that are also user-friendly. Having invested considerable resources in
establishing the Nokia name as the leading brand in mobile communications, they intend
to sustain and enhance the brand through aggressive advertising, sponsorship and other
marketing activities in all of their principal markets. It’s a belief that the leading market
position provides significant opportunities for Nokia to better understand and respond to
the usage patterns of end users, and thus enhance the Nokia brand.

Expanding The Business-- For more than a decade, they have actively expanded their
business globally. They, therefore benefit from strong economies of scale throughout the
organization. Nokia’s strategy is to continue focused pursuit of global business
opportunities by cultivating a strong local presence in all growing markets and pursuing
partnering and acquisition opportunities in order to obtain complementary technologies
and market positions.
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SWOT ANALYSIS OF NOKIA’S STRATEGY


There are various tools which can be employed to understand the effectiveness of a company’s
strategies. SWOT Analysis outlines the Strengths, Weaknesses, Opportunities and Threats facing
the operating strategy of a company.

Analyzing the effectiveness of strategies, strength and weaknesses can be defined as internal to an
organization. The businesses do not necessarily have to correct all its weaknesses however; it
should be able to retain its strengths. The key success factor for operating in the targeted market
depends on the external factor, i.e. Opportunity. Nokia has numerable opportunities to enlarge its
market share, however, they could be faced with a threat which could be challenge posed by an
unfavourable trend or development that may lead into absence of defensive marketing action and
thus diminish sales and profit.

SWOT ANALYSIS

STRENGTHS

Global Products and Image – Nokia is a global company. It not only sells its products to 130
countries but also sets up research and development departments in fifteen countries to
produce its products in different culture and language needs. For example- English, Dutch,
German and Chinese.

High Quality Products – Nokia concerns about product quality which is the most important
factor to satisfy customer’s needs. Nokia adds more values by superior quality or
differentiated features to the market. Meanwhile, it also continuously improves upon the
existent markets.

Serving new designs and trends – Nokia launched a wireless game which by use of sms, TV,
print media, radio and internet provides clues to help players to solve a mystery. This
helps Nokia to attract customers to use its products.

Wide range of products – Nokia has the highest number of product line (more than 10
models) compared to its competitors Samsung, Ericsson, Motorola etc.
Product Warrantee Worldwide – No matter where Nokia’s customers are, if they got a
problem with their mobile phones, they can approach any of the Nokia’s centres.Thus,
ensuring a good customer service.
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WEAKNESSES

• High Price – Nokia offers a good range of high quality products at high prices Though
the high prices may be justified in terms of the costs to the company but this can act as a
weakness in certain sections of the market e.g the middle-low income group people.
Demand is skyrocketing but the price pressure is high.

• New product developing problems – Although Nokia provided colour screen mobile
phones in September 2002, this was late as compared with its competitors such as Sony
Ericsson and Samsung. This acted as a weakness as the people had already accepted the
range introduced in the market and didn’t want to switch.

OPPORTUNITIES

• Joint venture in Technology – Nokia has joined with Hewlett Packard (HP) Company in
technology which has a very good reputation for many years. Nokia thus, has a
considerable opportunity to enlarge their market size into PC users who prefer mobile
phones compatible with PC device.

• Product launch continuously - Nokia uses Total Quality Management (TQM) which
mentions more about training worker program, and makes product of high quality. All
employees are well-trained and motivated and consecutively production processes are also
developed as well. Nokia has established Research and Development department (R&D)
which develops its product line into modern modification as well quality as the existing
products.

• New Software Market – As known, the amount of data traffic in mobile networks is
growing at a tremendous rate. People around the world are using new mobile services,
which are directly relevant to personal needs. Nokia has already added value through
MMS for Messaging and E-mail, Java for download any applications and HTML
especially for content search. So it may attract those businessmen and teenagers who are
interested in the new software market.

• Easy Availability - Many mobile phone retail stores, such as, the link, Phone4U and
Carphone warehouse, have spread across London in every street. And, of course, every
store has not missed the opportunity to choose Nokia as their product line. Consequently,
all the customers can be guaranteed that any damage or loss of Mobile phone will be
serviced through these retail shops.
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THREATS

• Threats in PC Markets - Due to fierce competition in mobile phone market it has caused
new technology compatible with PC computer. Sony Ericsson specializes on PC computer
now. Sony applied their computer system into mobile phone as well as PC computer on
hand at the same time. Furthermore, nowadays people are interested in advance of
computer as similar as mobile phone market. In this sharp competition, it is going to be
harder for Nokia to grasp customers’ attention and they will have to focus on outstanding
imagination and creativity in their marketing plans.

• Fluctuations in Euro exchange rates – Most of the European countries have joined the
European Union and thus because of the varied economic conditions, the currency will
fluctuate a lot finally effecting the profits of the company.

Blurring of product boundaries – This implies new entrants in the same industry like Sony,
Motorola etc. who are producing almost the same product range as Nokia and thus, there
is a need to change their models.

Keeping in mind the weaknesses and threats, Dan Steinbock in an article called the ‘Nokia
revolution’ outlines the secrets behind the success of Nokia.

Apart from the SWOT analysis, the effectiveness of Nokia’s strategies can also be
analysed looking at the environment in which it operates.
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PEST ANALYSIS

Nokia, is an international organization which requires to focus on macro environmental factors.


Macro Environmental factors comprise Political, Economical, Society and Technology, viz.,
PEST Analysis. In view of the different culture and different external factors between different
countries, Nokia has to adjust its strategic plan in order to develop international market.

Political Factors

It is important of a company to acquire certain kind of policies from its government, such as the
economic policy, and science and technology policy. Finnish policies assist Nokia to advance its
products.
The Finnish policies are the most important factors behind Nokia’s success. To operate
efficiently, a modern knowledge- and technology-based economy that is highly specialized,
internationalized and undergoing rapid structural change requires active support from the public
sector. In its widest sense industrial policy and science and technology (S&T) policy comprise all
those measures by which the public sector shapes the operating environment for business and thus
fosters public welfare. Both policies pursued by Finnish government and the Parliament are
crucial for the development of both, the Finnish Economy and of national information society.
General macroeconomic stability, low interest rates, stable currency conditions and the
international competitiveness of the tax system form the foundation for the growth of business
and improvement in employment. As the result of this, not only Finnish Government but also
international companies, such as Nokia, have to play very important roles to develop their
information society and national technology strength.

Economic Factors

According to the fact that Russian Federation was collapsed in early 1990s and it clashed with
Finnish economics. Nokia also faced problems, and changed its functions from single market and
overall products to global market and focusing mobile phone market.
During the first half of the year 2001, Nokia continued to perform strongly in the global mobile
communications market and was able to strengthen its leading market position. However, the
general economic slowdown in the US has recently shown signs of extending to other regions and
to the wireless telecommunications industry as a whole. The slowdown could be a result of
general market deterioration - driven by economic uncertainty, the ongoing technology transition
and less aggressive marketing by the operators.'
In a press release on June 12,2001 it was quoted that ‘Nokia saw slower market growth affecting
second quarter results and was to take up actions to expand leadership while maintaining
strong profitability’.
Nokia will continue to take determined actions in all areas of the business to align its operations
with the changing market conditions. Previously announced moves to increase the company’s
efficiency and competitiveness include operational changes to further enhance customer focus in
Nokia Networks.
While market deterioration has had an inevitable impact on Nokia's sales growth, their products
have remained strong, their market position has strengthened and they have been able to find
P a g e | 34

further efficiencies through tight control of their own performance.


Nokia has countered changing market conditions by accelerating ongoing programs and
generating efficiencies and cost savings. This, in combination with the current financial health
and proven performance, should enable them to exit the current slowdown in a stronger position
than before.

Social

At Nokia, their whole business is based around communication and connecting people. One of
Nokia's aims is to make it as easy as possible for their people to be satisfied working with them.
Thus, it keeps various stakeholders interests in mind.
Nokia develops products and services that encourage communication and learning among people
and societies. They are using their strengths - connecting and communicating - to help make a
difference. It complements the core business and their vision to be involved with the youth and
education issues around the world, preparing young people for their future.
The goal is to be a good corporate community member wherever they operate, as a responsible
and contributing member of society. Sharing in the belief that prevention is better than cure, they
take part in long-term projects aimed at helping young people to create a firm foundation for
themselves and to find their place in the world.

Technological Factors

In the 1980s, there was a trend towards microcomputers and Nokia tried to match this tendency
by producing its main products as computers, monitors and TV sets. Due to the changes in 1990s,
Nokia also changed its functions to mobile phone market. .
Sustainable development and environmental protection have various effects on the operation of
the innovation system. Innovation also creates new opportunities for promoting sustainable
development.
Nokia always improve their product line through Research and development process, beside this
Nokia also has multimedia compatible improvement with mobile at the same time, such as, GPRS
and WAP Service. Nokia has numerous technologies which can satisfy those end-users need, such
as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java. Nokia employed more than
17,000 people in R&D department over fourteen countries worldwide. They also provided
customers to choose the features and service that they personally want and need. It means Nokia
does not develop only their product line, but they also improve their service process to provide the
most appropriate service to those customers efficiently.
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THE 4P’S OF THE MARKETING MIX:


Product:-
The product is the centre of the marketing mix and the other three P's are based around it.
Consumers purchase goods and services for a variety of individual reasons and a company must
be aware of all of these when selling a product (that is why they conduct market research). Nokia
does exactly the same and comes up with innovative phones almost every six months. The new
phones that Nokia launches have some new feature or price difference, thus appealing to the
consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on
special occasions such as the Olympics. In short they offer phones of great variety with various
designs and high quality.

Price:-
Price is a key factor in the selling of a product, and is usually the one that is open to the
most change based on different pricing strategies, for example, competitor based, penetration or
skimming. The three main factors affecting the amount charged for a product or service, are; the
cost of production, customer demand and competition. Since its entry into Indian mobile market
in 1995, it focused on manufacturing of mobile handsets based on GSM technology. Nokia built a
strong brand image with focused marketing and distribution network. It started focusing on the
low-cost mobile phone segment for rural markets in India, but, faced stiff competition from Sony
Ericsson, Samsung, and Motorola who also started offering low-cost handsets. Nokia has come up
with the perfect prices for each and every consumer segment in the market. A lower middle-class
person can go for a Nokia 1200 costing around Rs. 1200 while an executive can opt for N-96
costing around Rs. 33,000.

Place:-
This refers to the chosen outlets for a product or service, for a product to be very
successful it must be easy to access, Nokia mobile phones are very easy to access nowadays, they
are sold in supermarkets, Nokia Priority, Nokia Care and specialized outlets (eg.: The Mobile
Store).

Promotion:-
This involves providing information to the customer over a variety of media platforms,
using radio, television and print advertising as well as using other promotional tools such as
"money off deals" and "free giveaways". The advertisements that Nokia comes up with are very
successful in targeting the customers in a consumer market. The advertisements are made in such
a way that it appeals to the psychology of the consumer. They also have various sale promotion
P a g e | 36

schemes like offering discounts on special occasions and giving free gifts along with a purchase
of a mobile phone.

STP ANALYSIS

SEGMENTATION AND TARGETING:-


 Entry level: (Rs 1,200-3,000):- Nokia targeted low income people and first time mobile
buyers in this series. Sets include are 1200, 1208, 1100, 1110, 1112 etc

 Classic Series: (Rs 7,000-17,000):- Nokia targeted decent people in this series. Sets
include in this series are 6300,6233,6120,3120 etc

 N gage Series: (Rs 8,000-16,000):- Nokia targeted game lovers in this series .These sets
include game like play station, PSP and Xbox.

 N- Series: (Rs 7000-35,000):- Nokia targeted the young generation who wanted to possess
mobiles with the latest technologies such as a 5 MP camera, a decent music player, GPRS,
etc. This series is also called multimedia computer. Named as one step ahead multimedia.
Sets include N72, N81, N95, N96, N97, etc

 E-Series: (Rs 10,000-60,000):- These mobiles were launched for people who needed
mobile computing on the go especially business people. These phones are enabled with
word, spreadsheet and presentation software. They also are equipped with GPRS/ EDGE
technologies thus functioning as a palmtop. Sets include E90, E75, E61, E62, etc

 Xpress music Series: (Rs 6,000-20,000):- Nokia launched this series basically for the
people who loved music. Good Dolby digital earphones and long battery life are the
features of these mobile phones. Sets include 5800, 5610, 5320, 5310, 5220, etc

 Premium Series:(Rs 80,000-1,500,000):-In this series Nokia targeted people who show
visual status. Sets include in this series are Sephiraarte, 8800Gold, 8800arts etc

POSITIONING:-
Positioning of a product refers to creating an image about a particular product. Nokia has
been very successful in this strategy.

Nokia has created a distinct position in customer mind by:-


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 Nokia logo:

 Slogan:


Standard Ringtone
 Standard message tone.
 Long battery backup.
 User friendly mobiles.
 The specific message that is conveyed to the customers in every advertisement is:
“Nokia enable you to get more out of life”.

These specific aspects have been embedded into the mindset of the consumer in such a way that
every time they saw the logo or heard the ringtone they associate it with a Nokia product. Hence
Nokia has been very successful in positioning it products in the market.

SOME ACHIEVEMENTS FOR NOKIA


• Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008
• Ranked as the Most Respected Company in Indian Consumer Durables Sector in 2007 as
per an annual survey conducted by BussinessWorld, India’s leading business weekly
• Ranked the No 1. MNC in India by BusinessWorld, India’s leading business weekly, 2006
• Ranked as the No. 1 telecommunications equipment vendor in the country by Voice &
Data for five consecutive years –2008, 2007, 2006,2005 and 2004
• Ranked as the 9th Most Powerful Brand by Millward Brown’s BrandZ 2008
• Ranked world’s 4th Most Valuable Brand by Interbrand, 2007
• Ranked Asia’s Most Trusted Brand by the Media-Synovate, 2006
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COMPETITORS PROFILING

Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics
company Sony Corporation and the Swedish telecommunications company Ericsson to make
mobile phones. The stated reason for this venture is to combine Sony's consumer electronics
expertise with Ericsson's technological leadership in the communications sector. Both companies
have stopped making their own mobile phones.
The company's global management is based in Hammersmith, London, and it has research &
development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and the
United Kingdom.
While Sony Ericsson has been enjoying strong growth recently, its South Korean rival LG
Electronics overtook it in Q1 2008 due to the company's profits crashing significantly by 43% to
€133 million, sales falling by 8% and market share dropping from 9.4% to 7.9%, despite
favourable conditions that the handset market is expected to grow by 10% in 2008. The situation
is getting worse as Sony Ericsson announced another profit warning in June 2008 [1], leading to
wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola.
Sony Ericsson has approximately 8,000 employees worldwide. The company's current President
is as of November 1 Hideki Komiyama who has replaced Miles Flint, and the Corporate
Executive Vice President is Anders Runevad.

HISTORICAL BACKGROUND
Ericsson, which had been in the cellular phone market for decades, decided to divest this business
in 2001 following huge losses. Ericsson had decided to source on chips for its phones from a
single source, a Philips facility in New Mexico. In March 2000 a fire at the Philips factory
contaminated the sterile facility. Philips assured Ericsson and Nokia (the other major customer of
the facility) that production would be delayed by less than a week. When it became clear that
production would actually be compromised for months, Ericsson was faced with a serious
shortage.
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Motorola is known around the world for innovation and leadership in wireless and broadband
communications. Inspired by their vision of Seamless Mobility, the people of Motorola are
committed to helping you get and stay connected simply and seamlessly to the people,
information, and entertainment that you want and need. They do this by designing and delivering
the "must have" products, "must do" experiences and powerful networks - along with a full
complement of support services. A Fortune 100 company with global presence and impact,
Motorola had sales of $47.8 billion in 2007.

Connected Home Solutions

Motorola provides integrated, end-to-end systems that reliably deliver digital entertainment,
information, and communications services over a variety of wired and wireless broadband
network architectures. The world's leading provider of digital video set-tops and cable
modems, Connected Home Solutions empowers consumers by connecting their homes, keeping
the people, content, and services important to them always within their reach.

Government and Enterprise Mobility Solutions

Motorola is a leading provider of integrated radio communications and information solutions,


with more than 65 years of experience in meeting the mission-critical requirements of public
safety, government and enterprise customers world-wide. It also designs, manufactures and sells
automotive and industrial electronics systems and telematics systems that enable automated
roadside assistance, navigation and advanced safety features for automobiles.

Mobile Devices

Offers market-changing icons of personal technology - transforming the device formerly known
as the cell phone into a universal remote control for life. A leader in multi-mode, multi-band
communications products and technologies, Mobile Devices designs, manufactures, sells and
services wireless subscriber and server equipment for cellular systems, portable energy storage
products and systems, servers and software solutions and related software and accessory products.

Networks
Delivers proven capabilities in cellular, wireless broadband and wireline access technologies, with
recognized leadership in integrating core networks through wireless IP, wireless softswitch and IP
multimedia subsystems. The Networks group is advancing seamless mobility with innovative
technology solutions, as well as a billion dollar services business with an expanded portfolio
delivering support, integration, applications and management.
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Reasons Why Nokia Rules the Mobile Phone Market

In spite of the presence of big names in consumer electronics like Samsung, LG, Sony-Ericsson
and Motorola, Nokia really rules the mobile phone market all over the world with nearly 40% of
the market share with no close competitors. Nokia is certainly the king when it comes to brand
value, service and experience. The Finnish mobile giant is clearly No. 1 choice in South East Asia
including India and China. How they could reach the top position?

1. Call Quality

Nokia is known for its circuitry to handle the RF Reception and providing the best call reception
quality. You won’t see users complaining much about the noise or the disturbances within Nokia
phones unless it’s a problem of the telecom service provider. So, the primary objective of a
mobile phone i.e. to serve us with better and clearer sound when we talk , is served by Nokia
perfectly. And if you are a person who is accustomed to other mobile phone manufacturers, then
you know that even Apple iPhone and Sony Ericsson are guilty of it.

2. Hardware

You can be assured of the quality that Nokia provides in your phone hardware. The circuits are
far more durable and reliable than any of the other mobile phone available in the market. I am
using a single Nokia phone for 6 years and I had to take it to the service centre only once during
this period for a trivial problem. That speaks for the truth I am talking about.

3. Battery

The Battery life of Nokia mobile phones is longer than many other cellphones available in the
market. People who talk a lot prefer Nokia than any other brands. They always know that the
battery will not run out in the middle of the call. iPhone has had this problem with battery life in
the past and that hasn’t been solved yet. Nokia leaves others miles behind when we consider the
longevity of the battery.

4. Robustness

Everyone knows that Nokia mobiles are truly rock solid. I want to share my experience with
respect to this. I dropped my Nokia the very next day I bought it. I dropped it on the staircase and
it bounced to nearly 12 steps down. My heart pumped out with the fear of losing the phone on the
second day. But what I found when I reached downstairs is that the phone is fully functional and
it only had a few scratch in its body. Since then, it slipped off my hand many a times but it did not
refuse to function. Thanks to Nokia for making such rugged phones. It would really be the worst
thing if I had to take my phone to service centre or had to buy a new one every time I dropped my
phone.
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5. Wide Product Range


Nokia has a vast and huge list of mobile phones. Nokia mobile phones are available for every
consumer groups, starting from simple and durable phones for the low income groups and
high-end phones for those who can afford to spend money. So regardless of you being a
corporate honcho or a fresher into the world of economy, Nokia has something for you. The
sheer ranges of products are enviable and at the same time the success mantra of Nokia’s
dominance.

6. Customer Service

The Customer Care of Nokia which they call the Nokia Care, handles the complaints very
efficiently satisfying their customers. I had a problem with the display of my Nokia Phone. I took
it to the Nokia Care and they very quickly fixed it and gave it back. Its just the trust they
implement on the customer’s mind, is really appreciable.

Hope you remember the battery bursting incidents of Nokia mobile phones in India. The BL-5C
battery, which was the culprit in this case, was promptly replaced with no questions asked. They
also helped people with a temporary site to go and put their unique manufacturing id and see if
they needed to change the battery or not. Believe me, the call wasn’t that easy keeping in mind
the number of battery parts they had to change.

7. Reliability

Nokia really has become a brand that people can trust upon. The error rates or crash rates of
Nokia phones are very low. It will not dump you when you need this phone. And petty may this
be but still; Nokia has this trust thing going in favour of it. People can blindly trust Nokia in
Asian Countries and not to mention, Nokia has deservingly earned this place.

8. Price

The price tag of every Nokia mobile phone is very reasonable. I mean, I can still get a GSM
mobile phone for as less as Rs. 1200 in India with all the basic features and that will last long
enough to pay me back with my dues.

9. Experience

Nokia is the largest cell phone manufacturer in the world with about 40% of market shares with
its competitors nowhere near its sales volume. They know the world of mobile phone more than
any other. They have ages of experience, hundreds of success stories and dozens of smart
handsets in current portfolio. That helps them to evolve and thereby nourish our needs.

10. Marketing Strategy

One of the main reasons behind the success of their mobile phones is their marketing strategy.
The main source of earning is the popularity of their phones in the Asian market. China is making
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phone designs/software specific for the region. For instance, since many rural Chinese aren’t
familiar with the Romanized transliteration system that most cell phones use to input Chinese for
text messages, Nokia developed two phones with software that lets them write characters with a
stylus. And for India, Nokia launched two India-specific models, which included a flashlight, dust
cover, and slip-free grip (handy during India’s scorching, sweaty summers). They also included
some software in several regional languages which made Nokia a success.

LOOPHOLES
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No doubt that the products from the Finnish company, Nokia, are some of the very best in
the world, but the company still hasn’t found a profitable way to market its goods. The very
reason that other mobile phone companies are fast eating up Nokia’s market share is their superior
(yet simple) marketing practices.

Motorola and Samsung must now be in the FUW (frequently used words) list in Nokia’s
board meetings. These companies have made Nokia pay dearly for its rudimentary approach in
marketing its phones. The aggressive marketing practices followed by Motorola have hit Nokia
very hard and it is losing very crucial global market share every month to its American
competitor.

Nokia, quite alarmed by the dropping sales of its phones, is now putting all its weight
behind the N-Series range. The N-Series is packed with multimedia features and Nokia believes
that these phones might woo the costumers back to the big daddy of the mobile phone world. But
Espoo, we have a problem!! (Nokia is headquartered at Espoo, Finland).

While Motorola (quite intelligently) gives a dashy-flashy name to every phone it brings
into the market, Nokia tends to do the exact opposite. Nokia from the very start has relied on
numbers rather than names. This strategy worked very well in the past, but only because there
wasn’t much competition back then. But times have changed. Every month the market sees at
least a dozen new handsets from an equal number of manufacturers. Consumers now have more
than they can choose.

Consumers are more attracted by names because they can thus easily relate to the features
of the phone. This is evident from the success of the MotoRazr, MotoSlvr, MotoRizr and
MotoKrzr. These phones are not packed with heavy multimedia features like the N-Series; still
they are selling like hot cakes. Just by reading the name of the handset, one gets a broad idea what
the phone looks like or what its features are.

Nokia advertises more than Motorola. Still its market share is dropping. Motorola does not
need to spend much money for the promotion of its products and it doesn’t have to worry about
the marketing of these phones; it just simplifies its job by naming its products right. Take the
example of Apple. It did not have to do much to promote its iPhone.

RECOMMENDATIONS

Naming of Phones
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It is high time that Nokia starts applying some sense to its marketing strategies. It doesn’t have to
do anything great, other than just naming its phones. A few months ago, a highly placed Nokia
official told Reuters that his company would soon go the Motorola way and start using names for
its new phones. It is in Nokia’s best interest that it takes to this path as early as possible, otherwise
the once market leader might see its market share plummeting to even lower depths

Focus on Replacement Market

With mobile handset penetrating through the mass market, it is becoming increasingly difficult
for handset makers to sell additional mobile phones and sustain growth. This is especially true for
a market leader like Nokia. With the market approaching saturation, the only viable source of
growth for the mobile handset industry is the replacement market. The replacement market
customers will be pickier about their next handset and will demand data services (MP3 player,
GPS, Mobile Vending Machine, just to name a few) in addition to voice communications from
their mobile handset. Therefore, Nokia must concentrate its efforts on convincing existing users
of the need to purchase the next generation of handsets. One way to effectively achieve this goal
is to segment the existing customers into different groups based on their collective characteristics
and employ different marketing strategies to the different target groups. Two groups of customers
naturally come to mind for the replacement market, youth and professional users. For the youth
market, the handset should add services with an emphasis on entertainment. For instance, MP3
players, short message services, chatting, and mobile gaming are some promising examples. Also
for the youth market, careful attention should be paid to the design of the handset. Teenagers and
young adults simply won’t buy if the new handset does not look “cool” or “hip.” For professional
users, Nokia should provide the ability to remotely access their data and files through the handset.
Calendars, conference schedules, e-mails, PowerPoint presentations, spreadsheet, and word
processing documents should be obtained with the touch of a button, at least in the corporate site,
if not nationally. Due to the limited memory capacity available to handsets, Nokia should also
provide the means to transfer information from the handset to a computer or PDA. Professional
users are known to pay premium prices for convenience; Nokia will see huge margins for its new
handsets if they can provide seamless data access services.
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Enable Data-Driven Services


One way Nokia may capture the replacement market is by working with content providers and
enabling the delivery of compelling data content. With the emergence of 3G, data
communications are finally ready to be deployed for the mobile handset. As a handset
manufacturer, Nokia does not have core competence in the data content area, so key alliances
with data content providers will be beneficial in terms of delivering innovative services to
customers through Nokia’s handset. Nokia also needs to establish strategic partnerships with
mobile software developers so that new data services can be launched without glitches.

Focus on the CDMA market


Over the last twelve years, Nokia has done many things right to establish market leadership. It
was one of the first companies to develop a GSM phone in 1992, and since then it has been
leading the market in GSM technology. It should also focus on CDMA market as it is mainly
focusing on the GSM mobile phone market.

BIBLIOGRAPHY

 Kotler Philip, Keller K.L., Koshy A., Jha M. (13th Edition, 2009), Marketing Management-
A South Asian Perspective, Prentice Hall of India.

 http://www.nokia.com/about-nokia/company/vision-and-strategy
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 “Nokia says 40%-plus handset market share possible”, Paul de Bendern, infoworld.com,
May 4, 2001.

 http://www.nokia.co.in/about-nokia

 “Nokia expects to meet estimates” CNET Tech Sites: By Reuters, September 12, 2001.

 Merriden Trevor, (2005),’Business: The Nokia Way’.

 Johnson Gerry and Scholes Kevan, Exploring Corporate Strategy, 6th edition, Prentice
Hall London, New York.

 Porter Michael E, Competitive Strategy –Techniques for analyzing industries and


competitors (1980), MacMillan publishing Co. New York.

 http://www.news.bbc.co.uk/1/hi/sci/tech/1723738.stm

 http://www.amanet.org/books/catalog/081440636x_history.htm

 http://reinholm.com/strategic%20management.htm