VALUE CHAIN OF NOKIA

PRESENTED BY
PRESENTED TO
Azimur Rehman(BM-09262)
Dr. Sanjay Jain.
Jishan Sami(BM-09266)
Nitin Agarwal(BM-09274)
Sahar Alam(BM-09281)
Management Structure - Nokia Channel Distribution
What is a Value Chain?

A company’s value chain consists of a linked set of value-

creating activities performed internally. It includes basic
raw material coming from suppliers, moving on to a series of
value-added activities involved in producing and marketing a
product or service, and ending with distributors getting the
final goods into the hands of the ultimate consumer.
 VALUE CHAIN

Supply chain management

Operation

Distribution
Supporting
activities
and
costs Sales and Marketing

Service

Profit margin
 Mining and Extraction

Traders and distributors Vendors

Refiners and processors

Inbound logistics
nokia
Operation

Distributer

Outbound
logistics
Retailer

Customer
 Suppliers
• Wintek provide components to our phones.
• Hongkong HD Industrial & Trading Limited
(HK) is a supplier and world wide exporter of
mobile phone accessories Products.
• Shenzhen SHX Electronics Co., Ltd is supplier
of Cell Phone Battery for Nokia BL-5C, Cell-
Phone-Battery for Nokia, Cell Phone Battery For
Nokia BL-6C.
• Enciae Electronics Technology Development
Co., Ltd. Supplier of Nokia N97 Windows
Mobile, n97 mobile phone, nokia mobile phone,
Nokia Mini N97 Slider.
 DISTRIBUTION CHANNEL
STRUCTURE
• Nokia manufactures its mobile in Chennai manufacturing plant and then it transfers to Nokia’s
mother depot which is located in Gurgaon.

• HCL Infinet Ltd. tied up with NOKIA in the mobile phone industry in the year 1995 for sale and
service of Nokia Mobile Phones in India

• HCL will start distributing Nokia’s product from here on. It takes order from all the distributors in
the region and then it supply the product to the retailers with the help of RDSS (Re-Distribution
stockiest supplier)

• RDSS are further divided in to two types based on quantity distributed and geographic nature

• RDSS City & RDSS MD (Micro Distribution)

 Rural market distribution
• Nokia did not concentrate more on rural market as the products are
widely used in urban cities but due to competition in the market Nokia
planning to venture in rural marketing along with the concept of micro
financing for its product which would help in covering high market
share.

• Nokia planning to leverage the distribution network in order to

expand to rural sectors and to serve untapped market. The company
planned to educate the benefits of its mobile towards the villagers.
Channel distribution for CDMA
handsets
 FRANCHISEES

• Nokia franchised its brand exclusivity in the name of

Nokia Priority Dealers. All the outlets which are under
the franchiser should follow certain footfalls of the
franchiser’s company. This would include converting a
normal outlet into Nokia Priority Dealer outlet.
Channel distribution for GSM
handsets
 Activities of channel member
• Nokia owns the distribution centers in west and south of India but, in
northern and eastern part of the country Nokia distributes its products
through HCL

• HCL consist a large part of Nokia services, it has its centers in more
than 180 cities, and these care centers are owned and are operated
efficiently by HCL, the operations of HCL is limited only to north and
east India

• Firstly the products will be distributed to the micro distributer and then
the micro distributer will distribute to the retailers in small towns and
places outside the city, by this way they are trying to supply the
demanded quantity to smaller towns and remote location.
• Nokia outsources some other regional
distribution company and this company holds
all the responsibilities to appoint a sales force
and take care of other requirements of the
distribution channel