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Since the 1980s, Nokia became the main strategy of rapid expansion in all
directions, opened prospects have pushed Nokia to take decisive action. And the
result was not long in coming: in 1981 created a cellular network that covered
Sweden and Finland and dubbed Nordic Mobile Telephony (NMT). Later, it included
other countries in Europe and beyond. The system was based on Nokia
technologies. It started the rapid development of mobile phone industry. Appearing
in 1981, NMT was the first mobile communication standard commonly occurring
In 1987, when all produced mobile phones were quite heavy and have a large size,
the Nokia launched one of the lightest and most transportable mobile phones. This
has allowed to win significant market share.
In connection with the gradual unification of the European markets at the end of the
80s, there is a need to develop a single digital mobile standard, later received the
name of the GSM (Global System for Mobile Communications).
In 1989, Nokia and Finnish telecom operator two formed an alliance in order to
organize the work of the first GSM network. In order not to lose the position in
competition with Telecom Finland, who controlled the long-term, state-backed
monopoly on long-distance telephone service providers analog mobile services
Helsinki Telephone Corporation and Tampere Telephone Company created a
company Radiolinja. This company bought Nokia's infrastructure in the amount of
50 mln. USD, despite the absence of a license to a new network.
Jorma Ollila, Nokia invited to Kari Kairamo, in 1990 led the Department of mobile
phone companies. Regarding the new project has been a lot of talk, doubt it
caused everything from the fundamental need for the existence of the network to
technological issues. Still, Nokia team believed in digital communications and
continue its work.
July 1, 1991 is the first call through a commercial GSM network was made by the
Prime Minister of Finland - for your Nokia phone. The project's success has made
an impression on the company's board of directors, and a year later Ollila was
appointed CEO of Nokia. This post and the post of chairman Jorma Ollila takes
today.
I must say that this time Finland covers the deepest decline in production. And
despite the fact that in the 80 Nokia becomes the third European TV manufacturer,
as well as the increasing popularity receive satellite receivers of the company and
the department dealing with the production of tires, especially when you consider
the consistently high quality of the entire range of products offered, Nokia had to
make the risky choice. In May 1992, the company headed by Jorma Ollila takes a
decision on the reduction of all other departments and focusing research and
production facilities in telecommunications. Today, Nokia is the world leader in
mobile communications and telecommunications, we can appreciate the
correctness of this decision.
success Secrets
That's when the company took seriously the issue of mobile phones and other
telecommunication products, she went to the international markets. As a result, in
the late '90s Nokia was the market leader in digital communication technologies.
Jorma Ollila, Nokia led just at the moment when she needed a breath of fresh air.
And the company soon began to build momentum rapidly. By 1997, Nokia was the
manufacturer of mobile phones almost all the major digital standards: GSM 900,
GSM 1800, GSM 1900, TDMA, CDMA, and Japan Digital. Due to such extensive
capabilities of the company was able to quickly strengthen its position in Europe
and Asia.
Already in 1998 it announced a 70 percent rise in profits (210 billion. Euros), while
its main competitors Ericsson and Motorola are limited only by reports of slowing
production. The demand for mobile phones continued to grow along with it grew
and the market share of Nokia. In 1999, the company has won over 27% of the
market of mobile phones, the Motorola and, marching the second, lagging behind
it by as much as 10%. Today, Nokia is still the leader in the mobile phone market.
What explains this rise? Let us try to understand the reasons for this success.
History. From the rank and file Finnish companies it differs not only in the pursuit of
growth and innovation, but also effectively expand the scope of activities. In
addition, Nokia is remarkable for the fact that only one in the country has become
a consistent policy of creating a complete chain of self-sufficiency: the production
and new product development to marketing, brand promotion, sales and provision
of related services.
Name. First of all, Nokia management decided that for the successful promotion of
the market requires its own brand - the company failed to foresee that in the near
future cell phones will be transferred to the category of consumer goods (previously
Nokia products sold under the brands of mobile operators). Solve the task she was
able to fully - Today the list of the most popular brands of Nokia brand ranks
eleventh among Marlboro (10th) and Mercedes (12th).
Innovation. One of the strategic goals of the company has always been the
continuous updating that is manifested in the skillful and constant segmentation,
branding and design. As Procter & Gamble, Nokia periodically releases new
items in various categories that consistently dominate the market. Like Coca-
Cola, Nokia has gradually become a widely known brand, but made it much faster.