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International Marketing

" NOKIA - THE FUTURE AHEAD" WILL NOKIA
REGAIN ITS KEEP AND HOLD ON TO ITS PREEMINENT POSITION IN THE GOBAL CELL PHONE MARKET , DISCUSS AND FORECAST"

Submitted to:
Prof Vishal Sharma

Submitted by:
Neha Sapra
PG20095337

1

Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. devices and solutions for imaging. Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. since its entry into India. the brand is synonymous with innovation-some of its innovative products include cellular phones. Nokia's history started in year 1865. Nokia has been the favorites brand amongdifferent categories of people in India. this Finnish telecommunications company is best known today for its leading range of mobile phones. the Brand of the Year at the Confederation of Indian Industry (CII) Brand Summit held in Chennai on 16th and 17th February. when engineer Fredrik Idestam establisheda wood-pulp mill in Southern Finland and started manufacturing paper. ranked the most respected company in the Indian consumer durables as of 2007 by business world. voice over IP. Nokia is one of the top cellular brands in India and its one of the most trusted brands in India according to ET Brand Equity Survey. one of the most leading telecommunications equip ment vendor in the country by Voice and Data. Nokia. games and media. Finnish Rubber Works established its factories in the beginning of 20th cent ury nearby and began using Nokia as its brand. CDMA. broadband access. 2005. solutions and services for network operators and corporations. n including GSM. professional mobile radio. In 1895 Fredrik Idestam handed over the reins of the company to hi son-in-law. Shortly after World War I Finnish Rubber Works 2 . ISDN. it is the 4th most trusted brand in 2007. and WCDMA. Nokia provides mobile communicatio equipment for every major market and protocol. Finland. driving the growth and sustainability of the broader mobility industry. s Nokia was actually founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing company. With headquarters in Keilaniemi of Espoo. wireless LAN and a line of satellite receivers. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony. Nokia also provides equipment. Nokia Corporation is one of the world's largest telecommunications equipment manufacturers.INTRODUCTION Nokia is the world leader in cellular phone communications.

acquired Nokia wood mills as well as Finnish Cable Works. Nokia signed a contract with BenQ. however. and other telecommunications areas. Nokia also began developing mobile phones for the NMT networ unfortunately. the k. Nokia joined other mobile phone manufacturers to embrace Taiwanese Original Device Manufacturers. In the 1980s. In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200. these operations were sold to International Computers. a producer of telephone and telegraph cables. one rt television show critical of Nokia. divesting itself of other items. and produced a number of cou cases along with. Ltd. although on a significantly smaller scale. In 2004. All three companies were merged as Nokia Corporation in 19 The name 67. to develop three high-end mobile phones. a digital switch for telephone exchanges. at least. company ran afoul of serious financial problems in the 1990s and streamlined its manufacturing of mobile phones. such as televisions and personal computers. diminished Nokia's public image in Finland. Nokia offered a series of personal computers called MikroMikko. 3 . Nokia originated from the river which flowed through the town of the same name (Nokia). mobile phone infrastructure. Nokia resorted to similar streamlining practices with layoffs and organizational restructuring. This. however. a Taiwanese Original Device Manufacturer. which are scheduled to retail by the end of 2005. which was later merged with Fujitsu -Siemens AG. (ICL).

to name a few.Nokia¶s position in mobile voice is strong thanks to our key assets and excellent logistics capabilities. 4 . and games. music. Nokia estimates the s total global mobile subscriber base to reach two billion by the end of 2005and hit three billion by 2010. Bring extended mobility to enterprises: Nokia will provide a range of competitive. platforms. specifically targeted handsets.NOKIA STRATEGY The Nokia Strategy continues to focus on three activities to expand mobile communications in terms of volume and value: y y y Expand mobile voice Drive consumer multimedia Bring extended mobility to enterprises Expand mobile voice: We can further the mobile voice market ± both in markets where mobile telephony is just taking off as well as in more mature market . and connectivity solutions so enterprises can boost productivity through the power of mobility. Drive consumer multimedia: Nokia is playing a key role in shaping this emerging complex market by focusing on the fastest growth areas: imaging.

Collective leadership ± Nokia relies on its executive board. Ericsson). Nokia extended the use of IT throughout the company. Like Sony. rewards and lifelong learning permeate the entire company. the arrogant of today are considered losers of tomorrow. Flat Organization ± Prior to its worldwide expansion. with each member bringing something unique 5 . The organization chart looks hierarchic but teams and networking reigns. innovation and segmentation. branding and design.from infrastructure to handsets and software applications. Nokia is accustomed to moving swiftly and decisively to claim its share of worldwide markets. Nokia makes innovation a top priority. Bold Strategic Intent ± While others debate and agonize over first ±mover strategies. Nokia¶s innovation extends from technology innovation to marketing activities. Nokia encourages entrepreneurialism throughout the ranks and views failure as a learning experience. Entrepreneurial Spirit ± Like the best Silicon startups.SECRETS TO NOKIA¶S STRATEGIC SUCCESS One can analyze the secrets behind how an enigmatic Finnish Company got an edge overthe Indian giants to triumph as the global leader in mobile communications. Nokia rushes for new opportunities and products. Humility is taken seriously at Nokia as in the technology sector. Unlike its direct rivals (Motorola. Like Proctor & Gamble. Even the senior executives have been rotated from one work task to another. Incentives. it has used its umbrella brand to sell new products and services and to create footholds in new markets. it has shrewdly filled the shelves with innovative new products to dominate categories. Innovation through Value Chain ± Through technology. it has shunned hierarchies and bureaucracy. As it became a process organization. Growing up as a small Finnish Company with few resources and no incumbent privileges.

The company invests less in technologydevelopment than its rivals. 6 . Customer Focus ± The most enduring factor is Nokia¶s ability and willingness to listen to the customer ±a fact apparent in its strategy. Due to its foresight. Instead of trying to buy or crush potential rivals. clients. Nokia can not only finger at the pulse of the market ± it often knows what the customer wants even if the customer is not yet aware of this. Nokia has been able to avoid high profile and costly anti-trust actions and competition policy struggles. even direct competitors. partners. Nokia works to cooperate with suppliers. but often exploits new knowledge more efficiently. structure and resource allocation and also in its products and services. Through technology coalitions it has managed to internalize new know-how while neutralizing competitive threats.Global R & D Networks ± Nokia¶s R&D efforts reflect extensive collaboration with vital research institutions worldwide. Competition and Co-operation ± By managing its corporate and government relations with diplomacy and consideration.

It even got itself into "The Dark Knight". a la iTunes. I have been with Nokia since its 5100 Phone. S40 Feature & Entry level phones. and lets not even talk about Maemo here. they wanted change. N97 was promised to be Nokia's true entry into iPhone's newly acquired market. will have a (major . and is supposedly been touted as the best VFM phone in the Mid High end market. they choose to go with incremental updates. The Mass market has shunned Maemo. N-Gage has been integrated into the Ovi store. no version of the S60 is clearly distinct from the previous version. they detailed S60's move to the touch arena. 6 months after the iPhone's announcement !! The Tube as it was notoriously codenamed.minor ?) structuring to even stand up to the App Store. My personal experience ( of a friend) has been nothing sort of a nightmare. and the initial models from N70 right until N73 were wildly popular (i. Comes with Music may strip its DRM.. as it faces serious competition from Google's Navigation ! Nokia's Ovi Store. 7 . Music Xpress. and some even opted for LG's KIRFy phones ( the horror !!) and after a while the real trou started -ble THE iPhone launched ! Nokia sought to reverse their market loss and decided to rejuvenate their product lines. Even it had failed. E Series. etc. What I used to love about them Nokia was the fact that they were rock solid. had 3 replacements. Even that couldn't save it from its eventual fate. But the last gems from Nokia were the early crop of S60 phones. upgraded to a 3310 -> 3315 -> 3650 -> 6600.e. the current one is what the first one should have been like ! N97 mini has supposedly fixed those issues. but is powered by a weak ancient ARM 11 based 4xx MHz processor !! ITS FUTURE PLAN: Services: Nokia's Ovi Maps implementation would improve for the better or worse. but by then Samsung & other players came in with all guns blazing ! And as every body was familiar with Nokia's UI. with some support coming from 1100 during the 6600 phase. and will do the same with Maemo 5 ! Nokia in the present has a strategy that is reflected in it product line -. high QC. I might suggest you to look into the past.FUTURE OF NOKIA To look into the future of Nokia. in India) . They have been stuck in that phase for a long time !! Instead of Innovating as a whole. high craftsmanship (build quality). EPIC-ly. Nokia launched N Series to great hype. they clearly represented a world of difference between half baked proprietary OSes used by other companies. 8 service ships.N Series phones.

design flaws. This means we¶re going to have to decide how we either build. at this rate. so it needs to get on with building.Nokia's QC is currently non-existent. This means we¶re going to have to decidehow we either build. the upcoming "Project Pink" from MS. Palm OS and notwithstanding that.´ ³We thought MeeGo would be a platform for winning high -end smartphones. It has proven to be non -competitive in leading markets like North America. and if the leaked memo published by Engadget is real. But Nokia¶s lost its way. ser ice v providers and hardware manufacturers. and this week they took our leadership position in smartphone volumes. All these kinks have to be straightened out ! N900 is a reference device on which Nokia may choose to build future mobiles. It shall do it by all means. Nokia has to look straight and focus on all these factors.´ ³At the midrange. we might have only one MeeGo product in the market. its is AFAIK the highest speed Nokia mobile.´ ³Our competitors aren¶t taking our market share with devices. newly appointed CEO Stephen Elop realizes just how bad a predicament the company is in.´ Nokia seems to have finally realized that Symbian and MeeGo just don¶t cut it. and we still don¶t have a product that is closeto their experience. They changed the game. they are takingour market share with an entire ecosystem. Nokia used to make some cracking handsets. Over the years I¶ve owned several. by the end of 2011.´ ³In about two years. Consumers have turned their backs on Nokia¶s current platform. catalyzing and joining ecosystems « 8 . Go back and reread that last quote: ³Our competitors aren¶t taking our market share with devices.´ ³The first iPhone shipped in 2007. Android came in at the high -end. Here are just a few choice quotes from the memo: ³Apple demonstrated that if designed well. that memo makes dismal reading. and reinforce its current strengths and if it decides to go all (drastically) innovative on us. Unbelievable. consumers would buy a high-priced phone with a great experience and developers would build applications. Is Nokia dead? Maybe not. they are now winning the mid-range. they are taking our market share with an entire ecosystem. Apple owns the high-end range.´ For fans of Nokia (not to mention shareholders. Symbian may be well heading for a total overhaul as its presently being threatened by the iPhone OS. However. catalyse or join an ecosystem. and up until the iPhone. Code irregularity and what not plague the N97. Android came on the scene just over 2 years ago. Android created a platform that attracts application developers. and today. and quickly they are going downstream to phones under ¼100. we have Symbian. catalyse or join an ecosystem.

Why? Because Europeans still like Symbian and dumping it would seem reactionary. To do that. Spreading itself between Android and Windows Phone 7 gives Nokia the chance not only to survive. But neither of these moves will revitalize Nokia.And that¶s what I think Nokia will do. so there¶s no reason to think that it wouldn¶t work for Nokia. Nokia needs a platform. Android would give Nokia access to an already well-established ecosystem. but expand and flourish in an increasingly competitive market. My prediction is that Nokia will do what HTC has done. Here¶s my prediction . and jump on the Android and Windows Phone 7.Nokia will bin MeeGo (or go down to just a single product as the memo suggests). while Windows Phone 7 would allow Nokia the opportunity to get in close to the start with a budding ecosystem. 9 . It a trick that worked for HTC. But why settle for one platform. It will also maintain Symbian but in a lesser capacity.