1.

) Shift of Industry:
Nokia is the largest producer of cell phones. The company started with paper
industry, then shifted to the rubber industry producing tyres, then shifted to the
electric industry. As the company saw a huge shift in the telecom industry the
company shifted it focus and aimed to be the number one manufacturer of cell
phone.

2.) Connecting People:

Nokia just did not want to make cell phones and sell them. They were aware
of various mediums through which information could travel. Hence they came
up with a concept of connecting people. Mobile phones connect people by
providing voice and data capabilities across a wide range of mobile devices.
Building friendship and trust is the heart Nokia brand. Hence ‘Connecting
People’ is a very successful action as they could gain trust from the customers.

3.) Multimedia:
As a result of the shift to multimedia technology, Nokia took advantage of this
shift and ventured into multimedia technology. Multimedia gives people the
ability to create, access, experience and share multimedia in the form of
advanced mobile multimedia computers and applications with connectivity
over multiple technology standards.

4.) Enterprise Solutions:

Due to growing requirement of provision of complete solutions Nokia gave
the masses a new product of enterprise solutions. This offers businesses and
institutions a broad range of products and solutions, including enterprise grade
mobile devices, underlying security infrastructure, software and services.

5.) User Centered Designs:

Nokia takes into consideration the type of users which are going to use a
product. Hence design their product like mobile phone which is customized to
a particular area or country. This is an action taken as not bear looses by
targeting inappropriate products to incorrect places.

6.) Constant Innovation:

With constant innovation Nokia develops affordable mobile devices. With
proper segmentation of market it tries to target appropriate mobile devices
thus, contributing to the increased economic growth and quality of life.
7.) Targeting the product:
Nokia has a through study of the market in which they sell their mobile
devices. This is a very important factor for the success of any product. Nokia
phones are target for users between 20-40 yr. They provide different mobile
devices to different category of people like mobile devices for business
executives are different than devices for teenagers.

8.) Designs:
Nokia studies the change in trends in the market and introduces mobile device
according to the changing trend. Eg: flat sets, flip sets, touch sets, slide sets,
rotating camera.

9.) Financing Differentiation

 List of New York Stock in 1994
 Abolish the discrimination between common stocks and preferred stocks in
1997 • Market total price of 122 billion Euro in the end of 2000
 Extension R&D investment for global market and build up core business

10.)Nokia’s New Enterprise Model

 Importance of the product innovation as well as organization innovation and
process in this age
 Introduction of innovation system : make the feeling of solidarity between a
dealer and Network buyer

11.) Benchmarking:
 Nokia has indulged into mutual benchmarking with many companies. This
helps in making for the weak points and minimizes failure possibilities.

12.) Holistic Way of Thinking

 Active sales support system and exchange of information with co-partners •
eg. Nokia House is built of 26,000 units of clear glasses that means Openness
Strategic Marketing

13.)R&D
 One third of employees
 11~12% of annual sales R&D expenses fixing
 Make a close network with other companies and universities: The performance
of development and basic research
 Entrust the result of research to an expert

14.)Management
 With the structured 3 levels of decision-making in project, subgroup, or
corporation balanced structured is maintained
 Promote to share the knowledge by form Job rotating and defend
individualism and blocked culture of organization
 Meritocracy
 Annual finances should be minimized to 6months
 15.)Development of products
 Manufacturing system with flexibility and shareable knowledge
 Counter measure in changeable market by manufacturing system and network
 Not just out-sourcing, maintenance of partnership
 Develop together and share the information clearly
 Possibilities of a rational and fast decision

16.)Segmentation of product :
 Concentrating to supply mobile of a low price and extension of the markets
 Strategy of a high price and development of a high-class mobile,’Vertu’
Vertu The highest price: $ 88,300 The bottom price: $ 5,320
 Mobile of a low price for diffusion

17.)Bargaining Power of Customers (High)

 More choice of product and limited differentiation
 Elastic demand
 Less asymmetric information
 Less switching costs

Nokia is an experimental enterprise in the next generation. They always try a test and
revision and try to experiment again with the results. With the balanced organization
and the flexibility of organizational changes, it blocks the stiffness of the organization
and promotes revitalization.
i.e.Why Nokia is the worlds best cell phone manufacture.