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Page | 1 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:[email protected], Website: www.tecniaindia.org

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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- 110085E-Mail:[email protected], 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 beginsNordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman – birth of a classicNokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM – a new mobile standard opens upNokia 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 handsetNokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launchedNokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite callThe world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile gameThe Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the worldNokia becomes the world leader in mobile phones.

1999: The Internet goes mobileNokia 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 phoneNokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-GageMobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is bornNokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is soldNokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion.

2006: A new President and CEO – Nokia todayOlli-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 ChinaFinlandGermanyIndia

Mobile devices and technology Brazil ChinaFinland Great BritainHungary IndiaMexico RomaniaSouth 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 voiceDrive consumer multimediaBring 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

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65,536 color, 96 x 68 pixels display

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

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

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

Nokia 2626

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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

Preloaded polyphonic MP3 and MIDI ring tones

Memory functions 2 MB Gallery to store downloaded files

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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

Nokia 2600Classic

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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

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Messaging 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

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BL-4C 300h 860mAh

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

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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

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

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Active display area 33.5 x 44.7 mm

Ambient light sensor

Memory functions 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 CapacityBattery 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

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Thickness (max): 21.8 mm

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

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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 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

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Power Management

Battery Talk time Standby timeBL-5C GSM: Up to 3.5 hrs GSM: Up to 240 hrs

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

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WCDMA 2100 MHz

Dimensions Weight: 116 g Length: 110 mm

Width: 49 mm

Thickness (max): 19 mm

Display 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

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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 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.

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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 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

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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:- Nokia logo:

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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

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Ranked world’s 4th Most Valuable Brand by Interbrand, 2007

Ranked Asia’s Most Trusted Brand by the Media-Synovate, 2006

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

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production would actually be compromised for months, Ericsson was faced with a serious shortage.

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

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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.

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

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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.

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

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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 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.

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LOOPHOLES

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.

 

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RECOMMENDATIONS

Naming of Phones

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

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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.

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.

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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

“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