Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2009-11
Global Institute of Technology
RIICO Industrial Area, Sitapura, Jaipur
1
PREFACE
This project report is a concrete form of the knowledge that was acquired
during the Project Study. During this Study, which is a part of full time two year
Management course, a student gets the opportunity to apply his theoretical
knowledge in the corporate world, in short it emphasizes on ‘Learning By
Doing”. The training paves the way for the student for his successful entrance
in The Mobile Phone Industry.
With the data that was collected from the sample and also the company, I
have tried my best to provide some fruitful suggestions that would be of great
help for the organizations.
2
ACKNOWLEDGEMENT
I express my sincere thanks to my project guides, Mrs. Mamta Soni, for guiding
me right from the inception till the successful completion of the project.
I sincerely acknowledge her for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the moral
support he had provided to me with all stages of this project.
Seema Saran
MBA 4th Sem.
3
EXECUTIVE SUMMARY
The report recommends suggestion to compete in Global era with other brands
and hold a competitive position in the existing market scenario.
4
DECLARATION
Seema Saran
` MBA- 4th Sem.
5
TABLE OF CONTENTS
Chapter
No. Chapter Name
DECLARATION
CERTIFICATE
PREFACE
ACKNOWLEDGEMNT
EXECUTIVE SUMMERY
7. CONCLUSION 122
9. APPENDIX 124-125
India added 113.26 million new customers in 2008, the largest globally. In fact,
in April 2008, India had already overtaken the US as the second largest
wireless market. To put this growth into perspective, the country’s cellular base
witnessed close to 50 per cent growth in 2008, with an average 9.5 million
customers added every month. According to the Telecom Regulatory Authority
of India (TRAI), the total number of telephone connections (mobile as well as
fixed) had touched 385 million as of December 2008, taking the telecom
penetration to over 33 per cent. This means that one out of every three Indians
has a telephone connection, and telecom companies expect this pace of
growth to continue in 2009 as well. "We are extremely bullish that the growth
will continue in 2009. This year, the number of additions will be in excess of
130 million," according to T.V. Ramachandran , Director General, Cellular
Operators Association of India (COAI), an industry body that represents all
Global System for Mobile communications (GSM) players in India.
With the rural India growth story unfolding, the telecom sector is likely to see
tremendous growth in India's rural and semi-urban areas in the years to come.
By 2012, India is likely to have 200 million rural telecom connections at a
penetration rate of 25 per cent. And according to a report jointly released by
Confederation of Indian Industry (CII) and Ernst & Young, by 2012, rural users
will account for over 60 per cent of the total telecom subscriber base.
7
translate into 612 million mobile subscribers, accounting for a tele-density of
around 51 per cent by 2012.
It is projected that the industry will generate revenues worth US$ 43 billion in
2009-10.
8
Indian Telecom Statistics (April 2010)
Total telephone subscriber
413.47
base
Over all Tele-density 35.62
Service Provider
Subscriber (Mn) Market Share (%)
Name
Bharti Airtel 91.11 32.88%
Vodafone Essar 65.92 23.79%
BSNL 44.18 15.94%
IDEA 41.52 14.98%
Aircel 17.48 6.31%
Reliance Telecom 10.74 3.88%
MTNL 4.08 1.47%
BPL 2.07 0.75%
All India 277.12 100.00%
Service Provider
Subscriber (Mn) Market Share (%)
Name
Reliance Com 58.50 59.32
Tata Teleservices 33.87 34.34
BSNL 5.06 5.13
9
Sistema Shyam 0.50 0.51
HFCL Infotel 0.39 0.40
MTNL 0.29 0.29
All India 98.62 100.00%
Subscribers
Rank Operator Technology Ownership
(in millions)
10
2009)
0.38 [72]
11 ping mobile GSM HFCL Infotel
(December 2008)
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues
are expected to touch US$ 12.2 billion while mobile revenues will reach US$
39.8 billion in India. Fixed line capex is projected to be US$ 3.2 billion, and
mobile capex is likely to touch US$ 9.4 billion.
11
2008. Further, the total wireless subscriber base stood at 346.89 million at the
end of December 2008.
In WiMax, India is slated to become the largest WiMAX market in the Asia-
Pacific by 2013. A recent study sees India's WiMAX subscriber base hitting 14
million by 2013 and growing annually at nearly 130 per cent. And investments
in WiMAX ventures are slated to top US$ 500 million in India, according to a
report by US-based research and consulting firm, Strategy Analytics.
A report by market research firm IMRB stated that the mobile value-added
services (MVAS) industry was valued at US$ 1.15 billion in June 2008, and is
expected to grow rapidly at 70 per cent to touch US$ 1.96 billion by June 2009.
Currently, MVAS in India accounts for 10 per cent of the operator's revenue,
which is expected to reach 18 per cent by 2010. According to a study by
Stanford University and consulting firm BDA, the Indian MVAS is poised to
touch US$ 2.74 billion by 2010.
12
Mobile advertising, which is an important VAS segment, offers great potential to
become an important revenue source. Marketers are increasingly using MVAS
as a step ahead of SMS-based marketing to sell soaps and shampoos,
banking, insurance products and also entertainment services, and rural
markets are proving to be very receptive for such marketing.
According to Venture Intelligence, there were nine deals worth US$ 41 million
in 2007 in the mobile VAS space, and till August 2008, seven deals worth US$
91 million had already been finalized. Presently, mobile VAS has a US$ 700
million market with a 20 per cent y-o-y growth, which is likely to touch US$ 3
billion by 2012.
The booming domestic telecom market has been attracting huge amounts of
investment which is likely to accelerate with the entry of new players and
launch of new services.
Buoyed by the rapid surge in the subscriber base, huge investments are being
made into this industry.
13
• Mauritius-based P5 Asia Holding Investments (Mauritius) Ltd will be
investing around US$ 545.13 million to hold a 20 per cent stake in Aditya
Birla Telecom Ltd (ABTL). The funds will be utilized for network rollout
and operations of ABTL in the Bihar circle.
• Bharat Sanchar Nigam Ltd (BSNL) is planning an investment of around
US$ 201.5 million in the Tamil Nadu Circle for an additional 23 lakh
mobile connections under both 2G and 3G technologies by 2009.
• The latest to join the world's second largest telecom market is Bahrain's
Batelco which has signed a deal to buy 49 per cent in Chennai-based S-
Tel, a GSM service provider, for $225 million.
• Etisalat, a Gulf-based telecommunications company has picked up a 45
per cent stake in Swan Telecom.
• Kavveri Telecom Products Limited is planning to set up a new subsidiary
- Kavveri Telecom Infrastructure Limited (KTIL) - with an investment of
US$ 20.11 million over the next two years, to offer in-building telecom
infrastructure to telecom service providers.
• Juniper Networks, which is the second-largest maker of networking
equipment, plans to invest US$ 400 million in India, over the next five
years, with a focus on its research and development (R&D) activity.
• BSNL, India's leading telecom company in revenue terms, will put in
about US$ 1.16 billion in its WiMax project.
• Bharti Airtel will be spending US$ 2.5 billion in a major expansion bid.
• Reliance Communication has committed US$ 5.69 billion as capital
investment for the fiscal year ending March 2009.
• Idea Cellular will spend about US$ 2.36 billion in the fiscal ending March
2009.
• Srei Group's Quippo Telecom Infrastructure Ltd (QTIL) plans to invest
US$ 3 billion in 2008-09 to ramp up its telecom infrastructure business to
grow both organically and inorganically.
• Vodafone Essar will invest US$ 6 billion over the next three years in a
bid to increase its mobile subscriber base from 40 million at present to
over 100 million.
• Telecom service provider, Tata Teleservices Limited, has announced
that the company will be investing additional US$ 6.74 million in Gujarat
14
to set up 100 cell sites by August 2009. The company had earlier made
an announcement of investing US$ 24.1 million in the state till March
2009.
• Telecom operator Aircel, which launched GSM mobile services in
Bangalore on February 23, 2009, plans to invest US$ 220.58 million
over the next year to set up base stations across the state.
1.6 Liberalization
The process of liberalization in the country began in the right earnest with the
announcement of the New Economic Policy in July 1991. Telecom equipment
manufacturing was delicensed in 1991 and value added services were declared
open to the private sector in 1992, following which radio paging, cellular mobile
and other value added services were opened gradually to the private sector.
This has resulted in large number of manufacturing units been set up in the
country. As a result most of the equipment used in telecom area is being
manufactured within the country. A major breakthrough was the clear
enunciation of the government’s intention of liberalizing the telecom sector in
the National Telecom Policy resolution of 13th May 1994.
15
The entry of private service providers brought with it the inevitable need for
independent regulation. The Telecom Regulatory Authority of India (TRAI) was,
thus, established with effect from 20th February 1997 by an Act of Parliament,
called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom
services, including fixation/revision of tariffs for telecom services which were
earlier vested in the Central Government.
The TRAI Act was amended by an ordinance, effective from 24 January 2000,
establishing a Telecommunications Dispute Settlement and Appellate Tribunal
(TDSAT) to take over the adjudicatory and disputes functions from TRAI.
TDSAT was set up to adjudicate any dispute between a licensor and a
licensee, between two or more service providers, between a service provider
and a group of consumers, and to hear and dispose of appeals against any
direction, decision or order of TRAI.
The most important milestone and instrument of telecom reforms in India is the
New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99)
was approved on 26th March 1999, to become effective from 1st April 1999.
16
NTP-99 laid down a clear roadmap for future reforms, contemplating the
opening up of all the segments of the telecom sector for private sector
participation. It clearly recognized the need for strengthening the regulatory
regime as well as restructuring the departmental telecom services to that of a
public sector corporation so as to separate the licensing and policy functions of
the Government from that of being an operator. It also recognized the need for
resolving the prevailing problems faced by the operators so as to restore their
confidence and improve the investment climate.
Strengthening of Regulator.
All the commitments made under NTP 99 have been fulfilled, each one of them,
in letter and spirit, some even ahead of schedule, and the reform process is
now complete with all the sectors in telecommunications opened for private
competition.
17
Recognizing the potential of ubiquitous Broadband service in growth of GDP
and enhancement in quality of life through societal applications including tele-
education, tele-medicine, e-governance, entertainment as well as employment
generation by way of high-speed access to information and web based
communication; Government has announced Broadband Policy in October
2004. The main emphasis is on the creation of infrastructure through various
technologies that can contribute to the growth of broadband services. These
technologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSL),
cable TV network; DTH etc. Broadband connectivity has been defined as
“Always On” with the minimum speed of 256 kbps. It is estimated that the
number of broadband subscribers would be 9 million by 2007 and 20 million by
2010. With a view to encourage Broadband Connectivity, both outdoor and
indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz
band has been delicensed. The use of low power indoor systems in 5.15-5.35
GHz and 5.725-5.875 GHz bands has also been delicensed in January 05.
The SACFA/WPC clearance has been simplified. The setting up of National
Internet Exchange of India (NIXI) would enable bringing down the international
bandwidth cost substantially, thus making the broadband connectivity more
affordable.
The Year 2007 was declared the year of broadband. Target has been set for
20 million broadband connections by 2010 and providing Broadband
connectivity to all secondary and higher secondary schools, public health
institutions and panchayats by 2008.
In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on
wire) will be provided from about 20,000 existing exchanges in rural areas
having optical fibre connectivity. Community Service Centres, secondary
schools, banks, health centres, Panchayats, police stations etc. can be
provided with this connectivity in the vicinity of above-mentioned 20,000
exchanges in rural areas. DOT will be subsidizing the infrastructure cost of
Broadband network through support from USO Fund to ensure that Broadband
services are available to users at affordable tariffs.
Policy Initiatives
The government has taken many proactive initiatives to facilitate the rapid
growth of the Indian telecom industry.
20
1.11.1 GSM Technology
GSM is a technology which is the leading cell phone standard all over the
world. In 1982 it was recognized as a standard for digital wireless
communications and was first adopted in Europe and then by Asia, Africa etc.
The first system was online in 1991 and GSM was formerly known as Group
Special Mobile but now stands for Global System for Mobile communications.
USA, however has not adopted GSM as a standard and so different carriers
now use different technologies as opposed to only GSM.
GSM uses digital technology and the methods of time division multiple access
transmission. In GSM, sound is digitally prearranged through a special
encoder, which imitates the distinctiveness of human speech. This method of
transmission allows a very competent statistics speed/information content ratio.
GSM is an open system and is a non propriety technology. One of the great
benefits of GSM is that it facilitates international roaming. As it is adopted by
more than 170 countries, you have the facility of using your GSM cell phone in
all these places without having to change your number. GSM satellite roaming
has broadened the scope of cellular services even to areas where standard
terrestrial services are not possible.
GSM works on different frequency bands across the world. In North America it
uses a 1900 MHz frequency whereas in other parts of the world it uses either
900MHz or 1800 MHz. As different frequencies are used in different places,
21
your GSM handset should support various bands so that it can be used
globally.
From the beginning, GSM has been developed with the need to give its
customers utmost security in terms of secure communications, fraud
prevention, and call privacy. Today it is the worlds most secure public wireless
standard for cellular phones.
One of the basic concepts in data communication is the idea of allowing several
transmitters to send information simultaneously over a single communication
channel. This allows several users to share a bandwidth of frequencies. This
concept is called multiplexing. CDMA employs spread-spectrum technology
and a special coding scheme (where each transmitter is assigned a code) to
allow multiple users to be multiplexed over the same physical channel. By
contrast, time division multiple access (TDMA) divides access by time, while
frequency-division multiple access (FDMA) divides it by frequency. CDMA is a
form of "spread-spectrum" signaling, since the modulated coded signal has a
much higher data bandwidth than the data being communicated.
22
each other, but not other people. Similarly, in radio CDMA, each group of users
is given a shared code. Many codes occupy the same channel, but only users
associated with a particular code can understand each other.
Uses
In cellular service there are two main competing network technologies: Global
System for Mobile Communications (GSM) and Code Division Multiple Access
(CDMA). Cellular carriers including Sprint PCS, Cingular Wireless, Verizon and
23
T-Mobile use one or the other. Understanding the difference between GSM and
CDMA will allow you to choose a carrier that uses the preferable network
technology for your needs.
Coverage: The most important factor is getting service in the areas you will be
using your phone. Upon viewing competitors' coverage maps you may discover
that only GSM or CDMA carriers offer cellular service in your area. If so, there
is no decision to be made, but most people will find that they do have a choice.
Data Transfer Speed: With the advent of cellular phones doing double and
triple duty as streaming video devices, podcast receivers and email devices,
speed is important to those who use the phone for more than making calls.
CDMA has been traditionally faster than GSM, though both technologies
continue to rapidly leapfrog along this path. Both boast "3G" standards, or 3rd
generation technologies.
EVDO, also known as CDMA2000, is CDMA's answer to the need for speed
with a downstream rate of about 2 megabits per second, though some reports
suggest real world speeds are closer to 300-700 kilobits per second (kbps).
This is comparable to basic DSL. As of fall 2005, EVDO is in the process of
being deployed. It is not available everywhere and requires a phone that is
CDMA2000 ready.
GSM's answer is EDGE (Enhanced Data Rates for GSM Evolution), which
boasts data rates of up to 384 kbps with real world speeds reported closer to
24
70-140 kbps. With added technologies still in the works that include UMTS
(Universal Mobile Telephone Standard) and HSDPA (High Speed Downlink
Packet Access), speeds reportedly increase to about 275—380 kbps. This
technology is also known as W-CDMA, but is incompatible with CDMA
networks. An EDGE-ready phone is required.
In the case of EVDO, theoretical high traffic can degrade speed and
performance, while the EDGE network is more susceptible to interference. Both
require being within close range of a cell to get the best speeds, while
performance decreases with distance.
Subscriber Identity Module (SIM) cards: In the United States only GSM phones
use SIM cards. The removable SIM card allows phones to be instantly
activated, interchanged, swapped out and upgraded, all without carrier
intervention. The SIM itself is tied to the network, rather than the actual phone.
Phones that are card-enabled can be used with any GSM carrier.
The CDMA equivalent, a R-UIM card, is only available in parts of Asia but
remains on the horizon for the U.S. market. CDMA carriers in the U.S. require
proprietary handsets that are linked to one carrier only and are not card-
enabled. To upgrade a CDMA phone, the carrier must deactivate the old phone
then activate the new one. The old phone becomes useless.
Roaming: For the most part, both networks have fairly concentrated coverage
in major cities and along major highways. GSM carriers, however, have
roaming contracts with other GSM carriers, allowing wider coverage of more
rural areas, generally speaking, often without roaming charges to the customer.
CDMA networks may not cover rural areas as well as GSM carriers, and though
they may contract with GSM cells for roaming in more rural areas, the charge to
the customer will generally be significantly higher.
25
market. If you travel to other countries you can even use your GSM cell phone
abroad, providing it is a quad-band phone (850/900/1800/1900 MHz).
By purchasing a SIM card with minutes and a local number in the country you
are visiting, you can make calls against the card to save yourself international
roaming charges from your carrier back home. CDMA phones that are not card-
enabled do not have this capability, however there are several countries that
use CDMA networks. Check with your CDMA provider for your specific
requirements.
The chief GSM carriers in the United States are Cingular Wireless, recently
merged with AT&T Wireless, and T-Mobile USA. Major CDMA carriers are
Sprint PCS, Verizon and Virgin Mobile. There are also several smaller cellular
companies on both networks.
1.11.3. 3G Technology
26
Unlike IEEE 802.11 networks, which are commonly called Wi-Fi or WLAN
networks, 3G networks are wide-area cellular telephone networks that evolved
to incorporate high-speed Internet access and video telephony. IEEE 802.11
networks are short range, high-bandwidth networks primarily developed for
data.
The first European pre-commercial network was at the Isle of Man by Manx
Telecom, the operator then owned by British Telecom, and the first commercial
network in Europe was opened for business by Telenor in December 2001 with
no commercial handsets and thus no paying customers. These were both on
the W-CDMA technology.
The first commercial United States 3G network was by Monet Mobile Networks,
on CDMA2000 1x EV-DO technology, but this network provider later shut down
operations. The second 3G network operator in the USA was Verizon Wireless
in October 2003 also on CDMA2000 1x EV-DO, and this network has grown
strongly since then.
27
In December 2007, 190 3G networks were operating in 40 countries and 154
HSDPA networks were operating in 71 countries, according to the Global
Mobile Suppliers Association (GSA). In Asia, Europe, Canada and the USA,
telecommunication companies use W-CDMA technology with the support of
around 100 terminal designs to operate 3G mobile networks.
By June 2007 the 200 millionth 3G subscriber had been connected. Out of 3
billion mobile phone subscriptions worldwide this is only 6.7%. In the countries
where 3G was launched first - Japan and South Korea - 3G penetration is over
70%. In Europe the leading country is Italy with a third of its subscribers
migrated to 3G. Other leading countries by 3G migration include UK, Austria,
Australia and Singapore at the 20% migration level. A confusing statistic is
counting CDMA 2000 1x RTT customers as if they were 3G customers. If using
this definition, then the total 3G subscriber base would be 475 million at June
2007 and 15.8% of all subscribers worldwide.
Still several major countries such as Indonesia have not awarded 3G licenses
and customers await 3G services. China delayed its decisions on 3G for many
years. China announced in May 2008, that the telecoms sector was re-
organized and three 3G networks would be allocated so that the largest mobile
28
operator, China Mobile, would retain its GSM customer base. China Unicom
would retain its GSM customer base but relinquish its CDMA2000 customer
base, and launch 3G on the globally leading WCDMA (UMTS) standard. The
CDMA2000 customers of China Unicom would go to China Telecom, which
would then launch 3G on the CDMA 1x EV-DO standard. This meant that
China would have all three main cellular technology 3G standards in
commercial use. Finally in January 2009, Ministry of industry and Information
Technology of China have awarded licenses of all three standards,TD-
SCDMA to China Mobile, WCDMA to China Unicom and CDMA2000 to China
Telecom.
2.1 Nokia
29
Nokia Corporation
Public – Oyj
Type (OMX: NOK1V, NYSE: NOK,
FWB: NOA3)
Tampere, Finland (1865)
Founded
incorporated in Nokia (1871)
Founder(s) Fredrik Idestam
Headquarters Espoo, Finland
Area served Worldwide
Kari Kairamo, CEO in the 1980s
Olli-Pekka Kallasvuo, President &
Key people
CEO
Jorma Ollila, Chairman
Telecommunications
Industry Internet
Computer software
Mobile phones
Smartphones
Products Multimedia computers
Networks
(See products listing)
Services and Software
Services
Online services
Revenue ▼ €50.722 bn (2008)[1][2]
Operating
▼ €4.966 bn (2008)
income
Net income ▼ €3.988 bn (2008)
Total assets ▲ €39.582 bn (2008)
Total equity ▼ €16.510 bn (2008)
128,445 as of December 31,
Employees
2008[3]
30
Devices
Divisions Services
Markets
Nokia Siemens Networks
Navteq
Subsidiaries Symbian
Vertu
Qt Software
Website Nokia.com
Nokia has sites for research and development, manufacture and sales in many
continents throughout the world. As of December 2008, Nokia had R&D
presence in 16 countries and employed 39,350 people in research and
development, representing approximately 31% of the group's total workforce.
The Nokia Research Center, founded in 1986, is Nokia's industrial research
unit of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, United Kingdom and
United States. Besides its NRCs, in 2001 Nokia founded (and owns) INdT –
Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's
production facilities are located at Espoo, Oulu and Salo, Finland; Manaus,
31
Brazil; Beijing, Dongguan and Suzhou, China; Fleet, England; Komárom,
Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South
Korea. Nokia's Design Department remains in Salo, Finland.
Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and
New York stock exchanges. Nokia plays a very large role in the economy of
Finland: it is by far the largest Finnish company, accounting for about a third of
the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of
2007; a unique situation for an industrialized country. It is an important
employer in Finland and several small companies have grown into large ones
as its partners and subcontractors. Nokia increased Finland's GDP by more
than 1.5% in 1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5%
and accounted for almost a quarter of Finland's exports in 2003.
Finns have ranked Nokia many times as the best Finnish brand and employer.
The Nokia brand, valued at $35.9 billion, is listed as the fifth most valuable
global brand in Interbrand/BusinessWeek's Best Global Brands list of 2008 (first
non-US company). It is the number one brand in Asia (as of 2007) and Europe
(as of 2008), the 42nd most admirable company worldwide in Fortune's World's
Most Admired Companies list of 2009 (third in Network Communications,
seventh non-US company), and is the world's 88th largest company in Fortune
Global 500 list of 2008, up from 119 of the previous year. As of 2008, AMR
Research ranks Nokia's global supply chain number two in the word.
32
west of Tampere by the Nokianvirta river, which had better resources for
hydropower production.[26] That is where the company got the name that it still
uses today. In 1871, Idestam transformed his firm into a share company and
founded Nokia Company with his close friend, statesman Leo Mechelin.
The name of the town, Nokia, originated from the river which flowed through
the town. The river itself, Nokianvirta, was named after the archaic Finnish
word originally meaning a small, dark-furred animal that lived on the banks of
the Nokianvirta river. In modern Finnish, noki means soot and nokia is its
inflected plural, although this form of the word is rarely if ever used. The old
word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable. After sable
was hunted to extinction in Finland, the word was applied to any dark-furred
animal of the genus Martes, such as the pine marten, which are found in the
area to this day.
At the end of the 19th century, Mechelin's wish to expand into the electricity
business were at first thwarted by Idestam's opposition. Idestam retired from
the management of the company in 1896. Later, Mechelin managed to
convince most shareholders of his plans and became the company chairman
(1898–1914), thus being able to realize his visions. In 1902, Nokia added
electricity generation to its business activities.
33
Director. After World War II, Finnish Cable Works supplied cables to the Soviet
Union as part of Finland's war reparations. This gave the company a good
foothold for later trade.
The three companies, which had been jointly owned since 1922, were merged
to form a new industrial conglomerate, Nokia Corporation in 1967 and paved
the way for Nokia's future as a global corporation. 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 and aluminium. Each business unit had its own director
who reported to the first Nokia Corporation President, Björn Westerlund. As the
president of Finnish Cable Works, he had been responsible for setting up the
company’s first electronics department in 1960, sowing the seeds of Nokia’s
future in telecommunications.
The seeds of the current incarnation of Nokia were planted with the founding of
the electronics section of the cable division in 1960 and the production of its
first electronic device in 1962: a pulse analyzer designed for use in nuclear
power plants. In the 1967 fusion, that section was separated into its own
division, and began manufacturing telecommunications equipment.
34
In the 1970s, Nokia became more involved in the telecommunications industry
by developing the Nokia DX200, a digital switch for telephone exchanges. In
1982, a DX200 switch became the world's first digital telephone switch to be
put into operational use. The DX200 became the workhorse of the network
equipment division. Its modular and flexible architecture enabled it to be
developed into various switching products.
For a while in the 1970s, Nokia's network equipment production was separated
into Telefenno, a company jointly owned by the parent corporation and by a
company owned by the Finnish state. In 1987, the state sold its shares to Nokia
and in 1992 the name was changed to Nokia Telecommunications.
Nokia was one of the key developers of GSM (Global System for Mobile
Communications), the second-generation mobile technology which could carry
data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first
mobile telephony standard that enabled international roaming, provided
valuable experience for Nokia for its close participation in developing GSM,
which was adopted in 1987 as the new European standard for digital mobile
technology.
Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.
The world's first commercial GSM call was made on July 1, 1991 in Helsinki,
Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri
Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the
Nokia 1011, was launched. The model number refers to its launch date, 10
November. The Nokia 1011 did not yet employ Nokia's characteristic ring tone,
the Nokia tune. It was introduced as a ring tone in 1994 with the Nokia 2100
series.
GSM's high-quality voice calls, easy international roaming and support for new
services like text messaging (SMS) laid the foundations for a worldwide boom
in mobile phone use. GSM came to dominate the world of mobile telephony in
35
the 1990s, in mid-2008 accounting for about three billion mobile telephone
subscribers in the world, with more than 700 mobile operators across 218
countries and territories. New connections are added at the rate of 15 per
second, or 1.3 million per day.
This section has multiple issues. Please help improve the article or discuss
these issues on the talk page.
It may be slanted towards recent events. Please edit this page to keep recent
events in historical perspective. Tagged since May 2008.
It may contain an inappropriate mixture of prose and timeline. Tagged since
March 2008.
36
Regression of size in Nokia mobile phones.
Nokia opened its Komárom, Hungary mobile phone factory on May 5, 2000.
In April 2003, the troubles of the networks equipment division caused the
corporation to resort to similar streamlining practices on that side, including
layoffs and organizational restructuring. This diminished Nokia's public image in
Finland, and produced a number of court cases and an episode of a
documentary television show critical of Nokia.
37
Nokia also stated its decision to pull out of CDMA research and development,
to continue CDMA business in selected markets.
On June 19, 2006, Nokia and Siemens AG announced the companies are to
merge their mobile and fixed-line phone network equipment businesses to
create one of the world's largest network firms, Nokia Siemens Networks. Each
company has a 50% stake in the infrastructure company and it is
headquartered in Espoo, Finland. The companies predict annual sales of €16
bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokia employees
were transferred to this new company.
The Nokia 6300, a member of the Nokia 6000 series, Nokia's largest family of
phones.
On August 8, 2006, Nokia and Loudeye Corp. announced that they have
signed an agreement for Nokia to acquire online music distributor Loudeye
Corporation for approximately US $60 million. The company has been
developing this into an online music service in the hope of using it to generate
handset sales. The service is expected to launch in late 2007 and would rival
iTunes. Nokia completed the acquisition on October 16, 2006.
In March 2007, Nokia signed a memorandum with Cluj County Council,
Romania to open a new plant near the city in Jucu commune. Moving the
production from the Bochum, Germany factory to a low wage country created
an uproar in Germany.
38
In May 2007, Nokia announced that its Nokia 1100 handset, with over 200
million units shipped, is the best-selling mobile phone of all time and the world's
top-selling consumer electronics product.
In July 2007, Nokia acquired all assets of Twango, the comprehensive media
sharing solution for organizing and sharing photos, videos and other personal
media.
In November 2007, Nokia announces and releases the Nokia N82, its first (and
currently, only) Nseries phone with Xenon flash.
In April 2008, Nokia began finding new ways to connect people, asking the
"audience" to use their creativity and their mobile devices to become Nokia’s
production company – to take part in filming, acting, editing and producing a
collaborative film. Nokia Productions will be the first ever mobile filmmaking
project directed by Spike Lee. This will be a collaborative experience that exists
across borders and perspectives—working off a common script.
In May 2008, Nokia announced on their annual stockholder meeting that they
want to shift to the internet business as a whole. Nokia no longer wants to be
39
seen as the telephone company. Google, Apple and Microsoft are not seen as
natural competition for their new image but they are considered as major
important players to deal with.
In 2008, Nokia released the Nokia E71 in the United Kingdom which was
marketed to directly compete with the other Blackberry devices offering a full
keyboard and cheaper prices.
2.1.8 Devices
40
Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500
shown.
The Devices division combines its existing mainline mobile phones division with
the separate subdivisions manufacturing Multimedia (Nseries) and Enterprise
(Eseries) class devices as well as formerly centralized core devices R&D –
called Technology Platforms, headed by Kai Öistämö.
This division provides the general public with mobile voice and data products
across a wide range of mobile devices, including high-volume, consumer
oriented mobile phones and devices, and more expensive multimedia and
enterprise-class devices. The devices are based on GSM/EDGE, 3G/W-CDMA
and CDMA cellular technologies. Nokia's Nseries Multimedia Computers
extensively uses Symbian OS.
In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile
phones, which means that Nokia is not only the world's leading supplier of
mobile phones and digital cameras (as most of Nokia's mobile telephones
feature digital cameras, it is also believed that Nokia has recently overtaken
Kodak in camera production making it the largest in the world), Nokia is now
also the leading supplier of digital audio players (MP3 players), outpacing sales
of devices such as the iPod from Apple. At the end of the year 2007, Nokia
managed to sell almost 440 million mobile phones which accounted for 40% of
all global mobile phones sales.
2.1.9 Services
41
The group works with companies outside the telecommunications industry to
make advances in the technology and bring new applications and possibilities
in areas such as online services, optics, music synchronization and streaming
media.
2.1.10 Subsidiaries
Nokia has several subsidiaries, of which the two most important as of 2009 are
Nokia Siemens Networks and Navteq. Other notable subsidiaries include, but
are not limited to Symbian Limited, a software development and licensing
company that produces Symbian OS, a smart phone operating system used by
Nokia and other manufacturers; Vertu, a British-based manufacturer and
retailer of luxury mobile phones; Qt Software, a Norwegian-based software
42
company, and OZ Communications, a consumer e-mail and instant messaging
provider.
On June 19, 2006 Nokia and Siemens AG announced the companies are to
merge their mobile and fixed-line phone network equipment businesses to
create one of the world’s largest network firms, called Nokia Siemens
Networks. The Nokia Siemens Networks brand identity was subsequently
launched at the 3GSM World Congress in Barcelona in February 2007.
2.1.10.2. Navteq
43
Executive Board members are appointed by the Board of Directors. Only the
Chairman of the Group Executive Board can belong to both, the Board of
Directors and the Group Executive Board. The Board of Directors' committees
consist of the Audit Committee, the Personnel Committee and the Corporate
Governance and Nomination Committee.
The operations of the company are managed within the framework set by the
Finnish Companies Act, Nokia's Articles of Association and Corporate
Governance Guidelines, and related Board of Directors adopted charters.
44
The Nokia House, Nokia's head office in Keilaniemi, Espoo, Finland.
Nokia's official corporate culture manifesto, The Nokia Way, emphasises the
speed and flexibility of decision-making in a flat, networked organization,
although the corporation's size necessarily imposes a certain amount of
bureaucracy.
Until May 2007, the Nokia Values were Customer Satisfaction, Respect,
Achievement, and Renewal. In May 2007, Nokia redefined its values after
initiating a series of discussions worldwide as to what the new values of the
company should be. Based on the employee suggestions, the new values were
defined as: Engaging You, Achieving Together, Passion for Innovation and
Very Human.
Nokia was the first proponent of a Top Level Domain (TLD) specifically for the
Mobile Web and, as a result, was instrumental in the launch of the .mobi
domain name extension in September 2006 as an official backer. Since then,
Nokia has launched the largest mobile portal, Nokia.mobi, which receives over
45
100 million visits a month. It followed that with the launch of a mobile Ad
Service to cater to the growing demand for mobile advertisement.
2.1.13.2 Ovi
Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella
concept" Internet services. Centered on Ovi.com, it will market as "personal
dashboard" where users can share photos with friends, download music, maps
and games directly to their phones and access third-party services like Yahoo's
Flickr photo site. It has some significance in that Nokia is moving deeper into
the world of Internet services, where head-on competition with Microsoft,
Google and Apple is inevitable.
The services so far announced to be offered through Ovi include the Nokia
Music Store, Nokia Maps and the N-Gage mobile gaming platform available for
several S60 smartphones.
2.1.13.3 MOSH
In August 2007, Nokia launched their new social network, dubbed MOSH.
MOSH by Nokia is the first-ever social network built by a handset manufacturer.
MOSH aims to bring social, media-based networks to the mobile environment.
Users can upload, download, share, and bookmark a variety of media – audio
files, video files, documents, applications, games, images.
46
2.1.13.4 Comes With Music
On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With
Music" initiative, a program that would partner with Universal Music Group
International and Sony BMG to bundle a year's worth of unlimited, DRM-
encumbered downloads with the purchase of a Nokia phone. Following the
termination of the year of free downloads, tracks can be kept without having to
renew the subscription. Downloads will be both PC and mobile-based.
On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a
new push e-mail service, since graduated as part of Nokia Messaging. Nokia
Messaging can sync personal e-mail accounts offered by a variety of ISPs
(Internet Service Providers). Nokia Messaging is available at email.nokia.com.
Electronic products such as cell phones impact the environment both during
production and after their useful life when they are discarded and turned into
electronic waste. According to environmental organization Greenpeace, Nokia
has a good track record in limiting the amount of toxic chemicals in its products,
supporting recycling, and reducing impact on climate change, compared to
other large electronics brands.
47
rubber tires. The interior of the phone is entirely constructed with refurbished
phone parts, and there is a feature that encourages energy saving habits by
reducing the backlight to the ideal level, which then allows the battery to last
longer without frequent charges.
48
Type Joint venture
Founded 3 October 2001
Head Office:
London, United Kingdom
Headquarters
Incorporated:
Sweden
Industry Telecommunications
Mobile phones
Mobile music devices
Wireless systems
Products
Wireless voice devices
Hi-Tech accessories
Wireless data devices
Revenue ▼ €11,244 million (2008)[1]
Net income ▼ -€73 million (2008)
Employees 9,400 (as of July 2008)
Sony Corporation (50%)
Parent
Ericsson AB (50%)
Website http://www.sonyericsson.com/
49
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. By 2008, it
was the fifth-largest mobile phone manufacturer in the world after Nokia,
Samsung, LG and Motorola. The sales of products largely increased due
to the launch of the Walkman and Cyber-shot series.
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
falling significantly by 43% to €133 million (approx. US$ 179.6697 million [2]),
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. Sony Ericsson announced another profit warning in June 2008[3] and saw
net profit crash by 97% in Q2 2008, announcing that it would cut 2,000 jobs,
leading to wide fear that Sony Ericsson is on the verge of decline along with its
struggling rival, Motorola.[4] In Q3 the profits were much on the same level,
however November and December saw increased profits along with new
models being released such as the C905 being one of the top sellers across
the United Kingdom.
Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and
2,500 contractors worldwide. Hideki Komiyama is the president of the company
and has been since November 1, 2007 when he replaced Miles Flint. The
Corporate Executive Vice President is Anders Runevad.
2.2.2 History
In the United States, Ericsson partnered with General Electric in the early
nineties, primarily to establish a US presence and brand recognition.
50
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 production would actually be compromised for
months, Ericsson was faced with a serious shortage. Nokia had already begun
to obtain parts from alternative sources, but Ericsson's position was much
worse as both production of current models and the launch of new ones was
held up.
Ericsson, which had been in the cellular phone market for decades and was the
world no. 3 cellular telephone handset maker was struggling with huge losses
in spite of booming sales since 2000 due to this fire and its inability to produce
cheaper phones like its competitor Nokia. To curtail the losses, it was thinking
of outsourcing production to Asian companies that can produce the handset for
lower costs.
Speculation had begun about a possible sale by Ericsson of its mobile phone
division but the company's president said that it had no plans to do that. "Mobile
phones are really a core business for Ericsson. We wouldn't be as successful
(in networks) if we didn't have phones", he said.
Sony was a marginal player in the worldwide cell phone market with a share of
less than 1 percent in 2000. It was also struggling in this area with losses but
wanted to focus more in this area. In April 2001, Sony confirmed that it was in
talks with Ericsson for a possible collaboration in the handset business. This
51
was soon after Toshiba and Siemens had announced plans in November 2000
to work together on handsets for 3G mobile networks, which was cancelled in
2001.
By August 2001, the two companies had finalized the terms of the merger
announced in April. The company was to have an initial workforce of 3,500
employees.
In spite of having aimed to be profitable in its very first year, Ericsson's market
share actually fell and in August 2002, Ericsson said it would stop making
mobile phones and end its partnership with Sony if the business continues to
disappoint even as Sony said it was fully committed to the joint venture and
wanted to make it a success. However, in January 2003, both companies said
they would inject more money into the joint venture in a bid to stem the losses.
It even failed in its mission of becoming the top seller of multimedia handsets
and was in fifth-place and struggling in 2003.
2.2.2.4 Turnaround
In June 2003, Sony Ericsson said it will stop making CDMA cellphones for the
US market and will focus on GSM which was and remains the dominant
52
technology. It also slashed jobs in research and development in USA and
Germany. In October 2003, it posted its first quarterly profit but warned that
falling prices on phones and competition would make it difficult to stay in black.
Sony Ericsson's recovery is credited to the success of the T610 model.
Following the success of its P800 phone, Sony Ericsson introduced the P900 at
simultaneous events in Las Vegas and Beijing in October 2003. It was pegged
as smaller, faster, simpler and more flexible than its predecessor.
In March 2004, Ericsson said it would try to block its rival Nokia from gaining
control of Symbian, an industry consortium that makes operating software for
smart phones.
In 2004, Sony Ericsson's market share increased from 5.6 percent in the first
quarter to 7 percent in the second quarter. In July 2004, Sony Ericsson
unveiled the P910 communicator with its integrated thumbboard, broad e-mail
support, quadruple memory and improved screen.
In February 2005, Sony Ericsson president Miles Flint announced at the 3GSM
World Congress that Sony Ericsson will unveil a mobile phone-come-digital
music player in the next month. It would be called the Walkman phone and
would play music file formats such as MP3 and AAC.
On May 1, 2005, Sony Ericsson agreed to become the global title sponsor for
the WTA Tour in a deal worth 88 million US dollars over 6 years. The women's
pro tennis circuit was renamed the Sony Ericsson WTA Tour. Just over a month
later on June 7, it announced sponsorship of West Indian batsmen Chris Gayle
and Ramnaresh Sarwan.
53
In October 2005, Sony Ericsson presented the first mobile phone based on UIQ
3, the P990.
54
Sony Ericsson currently concentrates on the categories of: music, camera,
business (web and email), design, all-rounder, and budget focused phones. Its
five largest categories are:
55
models), and use of the UIQ interface Platform from Symbian OS. This
has since expanded into the M series and G series phones.
Older Ericsson
A
style phones.
56
C Cyber-shot Camera-focused phones. Cyber-shot
Web browsing-oriented
G - Generation Web
phones.
Business-focused
M - Messaging
smartphones.
57
exclusive phones
Design-oriented
Z -
phones/clamshells
Sony Ericsson posted its first profit in the second half of 2003. Since then, the
sales figures from phones have been:
Also, Sony Ericsson sold 60 million music enabled phones in 2006, including
17 million Walkman devices, underlining how its products are more popular
than Apple's iPod. Apple sold 46 million iPods in 2006. According to the
Swedish Magazine M3s issue 7/2006 Sony Ericsson is the best-selling phone
brand in the Nordic countries, followed by Nokia.
According to the IT research firm Gartner, in the third quarter of 2008, Sony
Ericsson became for the first time the third largest mobile phone manufacturer
58
in the world after Nokia and Samsung, despite failing to improve significantly its
market share (8.05% globally), and it is followed very closely by Motorola
(7.98%) and LG (7.80%).
59
Samsung Telecommunications is one of five business units within Samsung
Electronics, belonging to the Samsung Group, and consists of the Mobile
Communications Division, Telecommunication Systems Division, Computer
Division, MP3 Business Team, Mobile Solution Centre and Telecommunication
R&D Centre. Telecommunication Business produces a full spectrum of
products from mobiles and other mobile devices such as MP3 players and
laptop computers to telecommunication network infrastructure. Headquarters is
located in Suwon, South Korea. In 2007 Samsung Telecommunication
Business reported over 40% growth and became the second largest mobile
device manufacturer in the world. Its market share was 14% in Q4 2007,
growing up form 11.3% in Q4 2006. In Q1 2008 Samsung strengthened its
second position on the market and achieved 15.6% world handset market
share. History of Telecommunication Business
2.3.1 HISTORY
60
2.3.1.2 Time of changes (1993-1996)
In 1993 it was decided that the development team should focus on improving
connectivity due to specific mountain topography of Korea. They found the
optimal length of a mobile phone antenna and developed a method of using
gold to connect the point between the antenna and the communication circuits,
thus significantly reducing resistance and enabling steadier wave conductivity.
They also developed the wave-searching software that was specially designed
for Korea's topography.
In November 1993, the development team finally unveiled a new model, the
SH-700. This model was quite remarkable. It weighed less than any other
company's models, the design was compact, and its quality was substantially
improved over previous models. Each product manufactured was tested piece-
by-piece to assure perfect quality. Phones with any kind of defect were burned
openly for all employees to see. (The products that had been burned were
worth 15 billion won, or $188 million). The burning ceremony ingrained the
61
motto 'Quality is Pride,' the essence of New Management, in every employee's
mind.In October 1994, the SH-770 was introduced under the brand name
"Anycall". It was a result of the marketing team's effort at brand-building. The
model was an upgraded version of the SH-700, with a few changes in design
and improvements in product quality. Samsung expected that branding would
change customers' perception of Samsung's mobile phone and build up their
trust. Aggressive marketing campaigns started as well. At the initial stage, the
most important objective of the company's marketing strategy was to break
customers' preconception that Samsung's phone would be inferior to
Motorola's. To market this idea of quality, Samsung developed the slogan,
"Strong in Korea's unique topography." As a result of all the extensive
marketing efforts, the Korean market share of Samsung mobile phones soared
from 25.8 percent in October 1994, to 51.5 percent in August 1995. In the same
period, Motorola's market share dropped from 52.5 percent to 42.1 percent.
Samsung developed its first CDMA mobile phone in March 1996, to coincide
with the launch of CDMA service. The first digital handset, the SCH-100, was
extra light and slim, and enabled clear voice communication. Before long,
Samsung became the leader in the PCS market. It partnered with KTFreetel
and Hansol PCS to provide PCS phones. Its first PCS phone, the SCH-1100,
entered the market with innovative features, including a lightweight body,
enhanced battery life, and the ability to capture delicate sounds. The design
was targeted at the young generation because the young generation had
emerged as a large and growing customer base. It also shifted its marketing
communications strategy. For the CDMA cellular market, it emphasized the
phone's new functions, for example, its voice recognition feature. For the PCS
market, the company coined a new slogan, "Strong in small sounds," to
emphasize the mobile phone's capability to capture delicate sounds.
By the end of 1997, one year after the CDMA service was first launched;
Samsung had achieved a 57% market share in the CDMA cellular market and
62
58% in the PCS market. Also, in April 1997, it achieved sales of one million
CDMA phone units.
Samsung made its first foray into the global market in 1996, when it exported
its PCS phones to Sprint, an American CDMA carrier. Sprint signed $600
million contract with Samsung, under which Samsung would provide its PCS
phones to Sprint for three years under the co-branded name "Sprint-Samsung."
After this Samsung expanded into Hong Kong (Huchinson, CDMA) in 1997,
and Brazil (TELESP and TELERJ, CDMA) in 1998. After successfully exporting
to Brazil, Samsung built a mobile phone production facility in Brazil in 1998, in
the hopes of expanding into Latin America.In 1999, Samsung secured the
number one position in the worldwide CDMA market where it accounted for
more than 50% of market share. However, the worldwide CDMA market was far
smaller than the GSM market, which accounted for 70% of the total worldwide
mobile communications market. Moreover, the domestic market was
approaching saturation, and competition was becoming more intense.
The first GSM model was the SGH-200, which was made for European
customers. But it was not as good as the company's CDMA phone. It was
difficult to hurdle the high entry barrier, which the then "Big 3" Nokia, Motorola,
and Ericsson had built for years. The company's next few models didn't attract
Europeans, either. The development team realized that a simple change in the
circuit system wouldn't work in the European market. Thus, it decided to look
more closely at the customer's point of view. They found that Europeans
preferred geometric, balanced, and simple designs. Using this information,
Samsung adopted 'simple' as the design concept, then developed a new
design to suit the tastes of Europeans.
The SGH-600 was born in September 1998. To market this model, Samsung
changed its market entry strategy by adopting a high-end strategy. Samsung
needed to escape from its low-end image. It figured that its new mobile phone,
63
with its sophisticated design and distinguished functionality, would help it do
just that. Samsung was granted the "Best Manufacturer" award twice by the
Mobile News Award, an award that was previously given to Nokia and
Ericsson.In 2008, Samsung Electronics’ Telecommunication Business declared
its new business strategy focusing on consumer and marketing. Samsung
mobile phones are divided into 6 major categories – Style, Infotainment,
Multimedia, Connected, Essential and Business.
• Samsung Electronics
• Samsung Techwin
• Samsung Engineering
• Samsung Life
• Samsung Fire
64
• Samsung Card
• Samsung Plaza
• Everland
• Samsung Lions
• Samsung Telecommunications
65
2.4. Motorola Mobile
Motorola, Inc.
Type Public (NYSE: MOT)
Founded 1928
Headquarters Schaumburg, Illinois, United States
Industry Telecommunications
Embedded systems
Microprocessors
Mobile phones
Products
Two-Way radios
Networking Systems
Satellite phones
Revenue ▲$36.622 billion USD (2007)
66
manufacturer of wireless telephone handsets, also designing and selling
wireless network infrastructure equipment such as cellular transmission base
stations and signal amplifiers. Motorola's home and broadcast network
products include set-top boxes, digital video recorders, and network equipment
used to enable video broadcasting, computer telephony, and high-definition
television. Its business and government customers consist mainly of wireless
voice and broadband systems used to build private networks and public safety
communications systems.
2.4.1 History
In 1943, Motorola went public and in 1947, the name changed to its present
name. The present logo was introduced in 1955. At this time, Motorola's main
business was producing and selling television and radios.
67
In 1955, years after Motorola started its research and development laboratory
in Phoenix, Arizona to research new solid-state technology, Motorola
introduced the world's first commercial high-power germanium-based transistor.
Beginning in 1958 with Explorer 1, Motorola provided radio equipment for most
NASA space-flights for decades including during the 1969 moon landing. A
year later, it established a subsidiary to conduct licensing and manufacturing
for international markets.
In September 1983, the firm made history when the FCC approved the
DynaTAC 8000X telephone, the world's first-only commercial cellular device.
The company was also strong in semiconductor technology, including
integrated circuits used in computers. Motorola has been the main supplier for
the microprocessors used in Atari ST, Commodore Amiga, Color Computer,
and Apple Macintosh personal computers. The PowerPC family was developed
with IBM and in a partnership with Apple (known as the AIM alliance). Motorola
also has a diverse line of communication products, including satellite systems,
digital cable boxes and modems.
In 1986, Motorola invented the Six Sigma quality improvement process. This
became a global standard. In 1990, General Instrument Corporation, which was
later acquired by Motorola, proposed the first all-digital HDTV standard. In the
68
same year, the company introduced the Bravo numeric pager which became
the world's best-selling pager.
In June 2000, Motorola and Cisco supplied the world's first commercial GPRS
cellular network to BT Cellnet in the United Kingdom. The world's first GPRS
cell phone was also developed by Motorola.
In 2002, Motorola introduced the world's first wireless cable modem gateway
which combined a high-speed cable modem router with an Ethernet switch and
wireless home gateway.
69
· World's Most Admired Companies, Fortune Magazine, 2008
· Yitzhak Rabin Israeli National Quality Award, Israel Society for Quality, Israel,
2007
· Winner: WiMAX Flexible Point Access System, Best of WiMAX World Europe
Awards,2007
70
exchange Magazine, Best of WiMAX World Awards, USA, 2006
· Winner: Best Home Wireless Product, CES Mark of Excellence Awards, 2006
71
Corporate responsibility means harnessing the power of our global business to
benefit people. It also means doing the right thing in all aspects of our
business, including how we treat the environment, our employees, our
customers, our partners and our communities.
· Winner: CNET People’s Voice Award, ROKR E8, Consumer Electronics Show
(CES), 2008
· Winner: CNET Best of CES, Cell phones and Smartphones category, ROKR
E8, Consumer Electronics Show, 2008
· Winner: Best of CES 2008: Best Cell Phone, ROKR E8, LAPTOP magazine,
2008
72
headphones category, MOTOROKR S9, Consumer Electronics Show, 2008
· Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006
· Unique Product Winner: Motorola Audex Protective Gear, Bluetooth SIG Best
of CES Awards, 2006
· First Place Hardware/Mobile Phone: SLVR L7, CTIA Wireless E-tech Awards,
2006
73
2.4.3 Divisional Products
74
2.4.4 Finances
Motorola's handset division recorded a loss of $1.2 billion in the fourth quarter
of 2007, while the company as a whole earned $100 million during that quarter.
It lost several key executives to rivals and the web site Trusted Reviews has
called the company's products repetitive and uninnovative. Motorola laid off
3,500 workers in January 2008, followed by a further 4,000 job cuts in June and
another 20% cut of its research division a few days later.
In July 2008, a large number of executives left Motorola to work on Apple Inc.'s
iPhone. The company's handset division was also put on offer for sale. In July
2008, analyst Mark McKechnie from American Technology Research said that
Motorola "would be lucky to fetch $500 million" for selling its handset business
and analyst Richard Windsor said that Motorola might have to pay someone to
take the division off the company and that the company may even exit the
handset market altogether. Its global market share has been on the decline;
from 18.4% of the market in 2007, it had a share of just 9.7% by 2008.
2.4.5 Spin-offs
2.4.5.2 Iridium
Motorola developed the first truly global communication network using a set of
66 satellites. The business ambitions behind this project and the need for
raising venture capital to fund the project led to the creation of the Iridium
company in the late 1990s. While the technology was proven to work, Iridium
75
failed to attract sufficient customers and it filed for bankruptcy in 1999.
Obligations to Motorola and loss of expected revenue caused Motorola to spin
off the ON Semiconductor (ONNN) business August 4, 1999, raising for
Motorola about $1.1 Billion.
Motorola manufactured two satellite phone handsets for this network - the 9500
and 9505 as well as transceiver units. Some of these are still in production by
an OEM but sold under the Iridium brand.
2.4.5.4 Semiconductor
On October 16, 2003, Motorola announced that it would spin off its
Semiconductor Products Sector into a separate company called Freescale
Semiconductor, Inc.. The new company began trading on the New York Stock
Exchange on July 16th of the following year.
2.4.5.5 Automotive
In July, 2006 Motorola completed the sale of its automotive business to
Continental AG. Motorola’s automotive unit had annual sales of $1.6 billion
(€1.33 billion) and employed 4,500. The divisions products included telematics
systems used for vehicle navigation and safety services, engine and
transmission control electronics, vehicle control, electronics and sensors used
in steering, braking, and power doors and power windows.
2.4.5.6 Split
On March 26, 2008, Motorola's board of directors approved a split into two
different publicly traded companies. This came after talk of selling the handset
division to another corporation. These new companies are Motorola Mobile
76
Devices and Motorola Broadband & Mobility Solutions. It is expected that this
action will be approved by regulatory bodies and will be complete by mid-2009.
77
2.4.7 Sponsorships
Motorola sponsored Scottish Premier League club Motherwell F.C. for 11 years. This
long term deal ended after the company started to reduce its manufacturing operations
in Scotland.
78
2.5 LG Mobile
Type Public
Founded 1958
Parent LG Group
79
LG Electronics (KRX: 066570, LSE: LGLD), is the world's second-biggest
maker of televisions and third-biggest maker of mobile phones.With its
headquarters in the LG Twin Towers in Yeouido, Seoul, South Korea, LG
Electronics is the flagship company of LG Group, one of the world's largest
conglomerates.
By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand
growth of 14%. Now the world's largest plasma panel manufacturer, its affiliate,
LG Display, is one of the largest manufacturers of liquid crystal displays. Also in
2006, the company's mobile phone division, LG Mobile, marketed the LG
Chocolate phone, changing the company's image of the maker of thick 3G
phones. It now focuses on the design and marketing of phones such as the LG
Shine, the LG Glimmer and LG Prada (KE850). As a result, the company was
picked as "The Design Team of the Year" by the Red Dot Design Award in
2006~2007 and is often called the "New Apple" in the industry and online
communities.
80
LG's 3G touch watch mobile phone
In 1994 GoldStar gained sponsorship from The 3DO Company to make the first
3DO Interactive multiplayer. In 1995, GoldStar was renamed LG Electronics,
and acquired Zenith Electronics of the United States. LG Solar Energy is a
subsidiary formed in 2007 to allow LG Chem to supply polysilicon to LG
Electronics for production of solar cells. In 2008, LG took its first dive into the
solar-panel manufacturing pool, as it announced a preliminary deal to form a
joint venture with Conergy. Under the deal, set to be completed by year's end,
LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.
81
2.5.2 Sponsorship
LG Electronics sponsored the English football club Leicester City and Wayside
Rovers (Guildford) from 2000 until 2002. LG Electronics currently sponsors the
English football club Fulham F.C and Arsenal FC, deals pulled together at that
time by the ex-Marketing Director John Bernard, who now works for the
competition, Sony Ericsson. LG also sponsor the Fremantle Football Club (an
Australian Football League team) and the Australian National Rugby League
club Cronulla Sharks.
During the period 2001-2003 the company sponsored the snooker Grand Prix.
During these years the tournament was known as the LG Cup.
82
2.5.3 Business divisions
The home appliance division makes products like refrigerators, air conditioners
and washing machines. Its 2007 sales totaled KRW 11.8 trillion, accounting for
29% of the company's total revenue. The division's profit was KRW 717.1
billion. About 35% of the company's home appliance revenue comes from the
North American market.
83
2.5.3.3 Digital display
Plasma TVs, LCD TVs, Micro Display Panel TVs, Monitors, PDP Modules,
OLED Panels, USB Memory, Flat Panel Computer Monitors
Home Theater Systems, DVD Recorders, Super Multi DVD Rewriters, CD±RW,
Notebook PCs, Desktop PCs, PDAs, PDA Phones, MP3 Players, New Karaoke
Systems, Car Infotainment
84
2.5.4 Energy Star controversies
85
2.6 Spice Mobile
Debuting with handsets targeted at the entry-level segment, today, the brand is
growing rapidly and has a bouquet of offerings targeting entry, mid & premium
segments. Spice Mobiles Ltd has heralded a new chapter in the history of
Indian mobile telephony by launching the first ever DUAL MODE PHONES.
Continuing with the same trend of delivering breakthrough products, Spice
Mobiles launched the new Spice D-1100, India’s first Dual SIM PDA
(GSM/GSM).
Spice Mobiles is the proud winner of the Golden Peacock Award for
innovative product / service for the year 2007. Spice Mobiles added more firsts
to its credit by announcing the Global premier of the World’s First Movie Phone
and Peoples’ phone at the World Mobile Congress, Barcelona in February
2008.
Riding on the success of its venture, Spice Mobiles Ltd. has strengthened its
footprint, built a strong value proposition with the customers and established
itself as a competitive brand amongst the host of International players. Moving
forward, the company aims to achieve further brand acceptability among all
target segments through a broader offering of cutting-edge handsets that
combine mobile phone functionality with enriched content and smart device
capabilities for greater high-speed voice and data capacity.
86
With rapid consumerism sweeping the country, India has emerged as the
second largest mobile handset market, poised for explosive growth by 2007.
Industry observers were of the view that the market within the first quarter of
2006 could well become a global hub for mobile handset manufacturers and we
did witness a whole lot of activity in this area.
Today, Spice Mobile has built a reputation for itself and has established its
brand identity across the country. In tune with our communication theme “Style
International dil Phir Bhi Indian”, Spice is all set to introduce its high-end phone
range – Enhanced Bluetooth enabled phones, Smart Phones, and PDA. We
87
value our customers and channel partners who have helped establish Spice
Mobile Phones as a truly ‘Made by India’ mobile phone brand.
Our strong nation-wide sales & distribution network is the backbone on which
we are spreading our footprints across the country. The establishment of “after
spice”, an effective after sales service network ensuring world-class support to
the channel and the customer was key to building our brand and acceptance
among the consumers.
The future of India market shows lots of promise and we at Spice Mobile
Phones are confident of making considerable inroads in the mobile handset
pie. We shall be introducing many exciting products and look forward for
continued support from our customers and partners. We would value any
feedback and suggestions from your side.
88
2.6.1 SPICE GROUP
The Spice Group is led by Indian industry captain and global citizen Dr. BK
Modi (Dr. BKM as he is known). The group which has transitioned from being
known as MCorp Global and Modi Corp earlier, has a long and rich 30-year
history of leadership in Technology, Automation and Telecommunications.
The Group was established in the early 1980s, has been known for its
landmark JVs with global leaders in Technology & Automation, and several
pioneering business initiatives/products for the Indian market – from the first
computer, printer, photocopier, fax machine to the first Mobile GSM service call
(on the Modi Telstra Network in 1996)
The Group is currently valued at over U$1.5 bn; has more than 12,000
employees; and has a customer base in excess of 5 million across various
product/service segments.
89
The Group was restructured in July 2008, to be reorganized into 4 distinctive
sector based business verticals which are
Spice has set up its global headquarters in Singapore - Spice Global Pte Ltd.,
to pursue business growth opportunities in the world’s fastest growing markets
viz. Israel to Indonesia (I-to-I). This entity which will establish various business
footprints across Televenture and Enfotainment Verticals. Spice Global Pte Ltd
is headed by President – Global Strategy & Alliances Mr. Parikshit Bhasin (a
former Nokia Asia Pacific Regional Head)
90
2.6.2 Spice Televentures
Spice Televentures is the new holding company which manages the interests
of Group in the domain of Telecom products & Services – viz. Mobile devices,
Mobile Value Added Services, Application Development, Mobile & mobile
accessories Retail & BPO Services.
Mr. Dilip Modi, who is the Group President for Global Operations, heads Spice
Televentures as its CEO and has also been appointed as Chairman of the
individual boards of the subsidiary companies under the vertical.
The board of Spice Televentures is Chaired by Dr. BK Modi, with Dilip Modi,
Divya Modi as Directors. Mr. S. K. Jain is the Executive Directors.
Knowledge partners and consultants for the Spice Televentures vertical include
KPMG, Contract Advertising, JWT India, Lintas India, The Brand Union and
several other leading consultancies.
91
on Demand, Mobile Radio, Call Block, Select Caller List etc.
C EO – Mr. Saket Agarwal
92
2.6.3 Spice Enfotainment
The Spice Group has decided to move into the arena of Entertainment,
Media/New Media and Content & Knowledge based industries by setting up
SPICE ENFOTAINMENT.
The Group will also explore all growth opportunities including organic and
inorganic growth methods to grow and expand the business.
The Spice Enfotainment Board will be chaired by Dr. BK Modi and comprise of
directors Mr. Dilip Modi, Ms. Divya Modi and Mr. Mahesh Prasad.
94
Ms. Preeti Malhotra is the Executive Director of the company and former Modi
Xerox /Spice Telecom CEO, Mr. Prakash Nanani has been appointed as
President – Entertainment of the company.
95
3. RESEARCH METHODOLOGY
3.2 Duration of the project – The project was carried out through days.
The subject matter for this research Project is to study the Students preference
towards the various mobile phones in Jaipur. This project consists of different
objectives. They are as follows:
96
method of research utilized in descriptive research are survey methods of all
kinds including comparative and correlation method. In analytical research, the
researcher has to use facts or information already available, and analyze these
to make a critical evaluation of the material. Research is a systemic and critical
investigation into a phenomenon. It is objective and logical applying possible
test to validate the measuring tools and the conclusion reached. It is based
upon observable experience or empirical evidence. Research is directed
towards finding answers to pertinent
DATA COLLECTION:
Primary data has been used by me in the form of Questionnaire & Observation,
which are the two basic methods of collecting primary data, which suffices all
research objectives. Secondary data sources like catalogue of the company,
product range book of the company & various internet sites such as
motorola.com & google.com have been used.
97
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is bar graphs and pie charts.
Primary data
Primary data are those, which are collected for the first time , and they are
original in character. My self collected these from the consumers to study a
particular problem.
Interview was regarding the comparative analysis of the charges and services
of the company the questionnaire is attached at the end as Annexure.
The above questions were really helpful in the conclusion part of the study.
Some customers were very cooperative but some didn’t even care to listen.
Overall, the study was a success as far as primary source was concerned.
Secondary data
The secondary data are those , which are already collected by someone for
some purpose and are available for the present study. The secondary data was
collected with the help of various books, websites, bank journals, broachers
and employees of the companies. The data collected from the websites and
books was good enough to be included in the study analyzed and concluded
but the data got from the employees of the companies was most accurate and
reliable. Various newspapers, magazines, websites, etc were checked out for
information regarding the comparative analysis .
98
3.5 Sample size and method of selecting sample
The scope of the research is based on the telecom industry and it throws light
on the brand preference of mobile phones.
99
➢ Wide exposure to the telecom industry.
➢ Studying about the brand preference of mobile phones through the
respondents.
· A small sample size of 50 customers was considered due to lack of time &
resource constraints.
· The scope of the project is limited to the College Campus of Poornima Group
of Colleges so, we cannot say that the same response will exist throughout
India.
· With regard to uneducated customers it was difficult to get across to them all
the features of their respective mobile phones.
100
4. FACTS AND FINDINGS
• Few years back mobile phones were not common among the students.
But with the mobile revolution now we can find almost every student with
mobile phone.
• Most preferred Mobile company amongst the students is Nokia & Now a
days Samsung becoming popular and the least preferred company is
LG.
• Mostly the students are satisfied with the services and Features
provided by the different Mobile Phone companies.
• T.V. and Newspaper are the best media advertisements that put more
impact on the students buying decisions.
• Nokia mobile and Sony Ericsson have a great market potential among
students.
101
SOURCES FROM WHICH MATERIAL IS PURCHASED
Most of the Students who were surveyed said that they preferred to purchase
their material from a dealer. Distribution of products constitutes an important
element of marketing–mix of a firm. After development of a product, the
marketing manager has to decide channels or routes through which the product
will flow.
In my survey I found that almost 90% of the customers purchased their material
from local dealers and only 10% of them purchased from the sales
representative or grey market.
In the Telecom Industry there are usually National & City distributors. A three-
tier system is followed whereby:
Mobile Phone companies billing of goods are directly billed to the Local
Distributor which not only helps in better interaction with them but also gives
the company a more Microscopic focus of all the happenings along with the
Accountability of goods sold. The company through this practice of it’s not only
able to increase its revenue but is also able to increase its margins better.
102
MAJOR FEATURES THAT A CUSTOMER LOOKS FOR
IN A MOBILE
The Market is flooded with all sorts of mobile brands, each trying to showcase
and push forward its own particular brand with umpteen numbers of features.
The customer these days is quite educated and knows about the products quite
well and therefore likes to keep himself abreast with the latest technology
available in the market, suiting his pocket need and requirement.
Mobile these days are being added with new features every second day to lure
the customer, and it is due to these very features only that becomes the
purchasing factor for the customer. Some of the most common features that a
customer demands these days are:
1. Color Screen – Color Screen phones are the latest and the most wanted
trend in the market these days as these phones boast of a High Color
Resolution Display so that the customer can enjoy in his/her phone an
exhilarating melange of colors. Most of the color phones boast of
65000-color display, which makes not only the resolution but also the picture
quality treat to the eyes. Color screen phones are in major demand by the
public, which accounts for at least 50% in the survey conducted.
3. Integrated Camera – The latest in-thing, mobile phones with in-built camera.
These phones serve the twin service of mobile and a camera. One can not only
click but also store photos and even send it to their near and dear ones.
103
Camera phones accounted for at least 10% respondents in the survey
conducted.
4. Tri-Band – A tri-band facility is useful for people who are constantly going
abroad as a triband enabled handset let’s one access the network of another
country also and also keeps you connected with people back home.
7. WAP (Wireless Application Protocol) – WAP let’s one access the Internet-
based services supported by your network, such as news, weather reports and
flight timings etc, even when you are mobile.
8 . Battery – Every customer wants his/her battery to last the longest and all
mobile companies fight out promising that their battery backup is the best. A
mobile function on a battery and a cheap and sub-standard battery always
makes the customer vary of the companies’ products and services.
9. Mp3 Ring Tones – An mp3 ring tone is the next generation of ring tones that
has better sound quality than traditional monotone or a polyphonic ring tones.
Mp3 ring tones sound great and truly make your phone unique. Mp3 ring tones
phones are in major demand by the customers.
104
MAJOR BRANDS
Most of the Students who were surveyed had almost all the Brands of Mobile
Handsets with them and the final analysis upon which I arrived at was that
Nokia is the No.1 selling Handset in Jaipur followed by Sony Ericsson
Samsung, Motorola and.
Nokia no doubt has carved a niche for itself over the past 4-5 years with its
superior technology and its loyalty towards the Indian customer which certainly
makes it the most superior brand.
The biggest advantage that has worked in Nokia’s favour is its marketing
strategy, which focuses more on their state of the art Handsets. They were the
first company to come with a mobile with an in-built camera in it and they surely
knew how to sell their product. Today almost all mobile companies have
followed suit and come out with their own in-built camera mobiles.
Nokia is certainly a value for money mobile as more than 90% of the Students
interviewed agreed on this statement, not only is the after sale service excellent
but also the quality and pricing of products is excellent. In such a scenario not
only the existing companies but also the new entrants will have to justify their
launch in the long run.
105
5. DATA ANALYSIS AND INTERPRETATION
S e x r a tio o f th e r e s p o n d e n ts
FE M A LE
40%
M A LE
M A LE F E M A LE
60%
106
INTERPRETATION: The graphical representation of the table shows that out of
50 respondents 60% were male and 40% were female.
Figure 1
1 ) A r e y o u u s in g a m o b ile p h o n e ?
No
0%
Y es
No
Y es
100%
Interpretation: -
It was found out that all the 100% students are using mobile phones. This
shows that now mobile phone has become an integral part of student life.
107
Figure 2
6% 2%
4%
NOKIA
8% SAMSUMG
LG
8% OTHERS
52%
SPICE
SONY ERICSSON
20% MOTOROLA
Interpretation:-
The above chart (Figure2) shows the percentage of various handsets used by
the respondents. Nokia mobile is most popular brand and preferred by students
because of its durability and reliability. 52% market share is captured by Nokia
among students, respectively followed by Samsung 20% , LG 8% and Sony
6%. According to survey Sony Ericsson is popular among students just
because of its Sound Quality.
108
Figure 3
A r e y o u s a tis fie d ?
No
12%
Y es
No
Y es
88%
Interpretation: -
The chart (Figure3) shows maximum number of respondents who were
satisfied with their handsets. 88% students are satisfied with their present
mobile handset. According to responses of Nokia mobile users, 100% Nokia
mobile users are satisfied
with their mobile handset. LG mobile users are least satisfied.
109
Figure 4
1 W eek
6 Month
0%
13%
1 Month
0%
1 Year
1 Month
6 Month
1 W eek
1 Year
87%
Interpretation: -
The above chart (Figure 4) depicts the respondents buying behaviour with
reference to time. Only 13% students frequently change their mobile handset
within a time period of 6 months. 87% students change their mobile handset
not before 6 months.
110
Figure 5
4%
20% NOKIA
30%
SAMSUNG
LG
OTHERS
6%
SPICE
SONYERICSSON
14% MOTORALA
0% 26%
Interpretation: -
This chart (Figure 5) depicts the respondents’ next preference for mobile
phones. According to responses Nokia mobile have a great future, 30%
students says that they will move to Nokia mobile, and respectively Samsung
has great future, 26% students are willing to move for Samsung.
111
willing to switch over to Samsung, 2 are willing to switch over to Motorola, 3 are
willing to switch over to Spice and 7 are willing to switch over to others.
Figure 6
W h ic h a d v e r t is e m e n t m e d ia p u t s m o r e im p a c t o n
y o u r b u y in g d e c is io n ?
O th e rs
14%
In t e r n e t T.V .
8% Newspaper
T .V .
M a g a z in e s M a g a z in e s
52%
12% In t e r n e t
N ew spaper O th e rs
14%
Interpretation: -
The pie chart (Figure6) shows the percentage of media which puts more impact
on students buying decision. T.V. is the best advertisement media to influence
students buying decision.
112
Figure 7
W h e r e d o y o u g e n e r a lly p u r c h a s e y o u r h a n d s e t s
fro m ?
O t h e rs
6%
G re y M a rk e t
8%
D e a le rs
G re y M a rk e t
O t h e rs
D e a le rs
86%
Interpretation: -
This shows (Figure 7) the source of purchase of handset of the respondents.
86% students purchase their mobile handset from Dealers.
113
Figure 8
fa c ilitie s a n d fe a tu re s p ro v id e d in h a n d s e t a re
re a lly a v a lu e fo r m o n e y
No
24%
Y es
No
Y es
76%
Interpretation: -
This shows (Figure 8) that maximum respondents consider their present mobile
value for their money. According to responses 76% students consider the
features and facilities provided in their handsets Value for money.
Another reason to form this question was to know about satisfaction level of
respondents.
114
Figure 9
W h a t a c c o r d in g t o y o u is t h e m o s t im p o r t a n t
a d d it io n a l f e a t u r e t h a t s h o u ld b e p r e s e n t in a
m o b ile p h o n e ?
O th e rs
C a m e ra
14%
22% C a m e ra
B lu t o o t h
MP3
In t e r n e t
22% B lu t o o t h
16% MP3
O th e rs
In t e r n e t
26%
Interpretation: -
This shows (Figure 9) the various additional features which customer takes into
account while purchasing handset. Here calculation shows that Camera, MP3
and Internet Functions should be their in a mobile handset. Now internet
becomes an integral part of student’s life, and it’s easy to access internet
through mobile any time any where.
115
Internet (GPRS) while the rest 7 respondents prefer to have some other
additional features apart from these.
Figure 10
A verage
Im portant
6% 4%
V ery Im portant
Im portant
A verage
V ery Im portant
90%
Interpretation: -
This shows (Figure 10) that the after sales service is considered to be of prime
importance to the respondents. 90% students said that after sales services are
very important in Mobile industry. This question was formed to know that does
students really consider after sales services before purchase of handset.
116
Figure 11
W h ic h k i n d o f m o b il e a r e y o u u s in g ?
N o rm a l
40% M u lt im e d ia
M u lt im e d ia N o rm a l
60%
Interpretation: -
This shows (Figure 11) that how many students are using Normal and
Multimedia handsets. 60% students using Multimedia handset, so than can use
internet facilities and can enjoy their college life with camera and music.
STRENGTH: -
· The Mobile Phone companies have a huge advertisement budget which helps
in brand positioning & recall.
· They have a well established sales network of more than 4000 dealers &
branch offices around the globe & they can make such of its products available
as are in demand in each particular area.
WEAKNESS: -
· Lack of production canters in India makes the products costlier as most of the
parts have to be imported.
· Lack of R & D canters also makes it difficult to launch new products over here.
·OPPORTUNITIES: -
118
· With the fast growing economy the pricing strategy needs to be tackled with
care as it
can decide upon long term decisions of the companies.
Investors can look to capture the gains of the Indian telecom boom and
diversify their operations outside developed economies that are marked by
saturated telecom markets and lower GDP growth rates.
THREATS: -
It is natural that threats from the existing as well as new entrants will affect the
present turnover & Market share. The nearest competitors having the identical
product range are the greatest threat to the company.
119
7. CONCLUSION
Hereby I can conclude from this research that Nokia has the maximum brand
preference as compared to other brands.
According to the Survey advertising & promotional schemes along with other
schemes also affect the consumer’s willingness. Aggressive advertising put into
effect for a long time in the customers mind, which influence the people, are
T.V, Newspapers & magazines.
Students prefer a Brand due to the quality & technological superior features.
Consumers also judge the after sale service availability of the company before
purchasing a mobile.
120
8. RECOMMENDATIONS
· Mobile phone companies should focus on students need and try to make
mobile handsets accordingly.
121
9. APPENDIX
QUESTIONNAIRE
For
“STUDY OF STUDENTS PREFERENCE IN SELECTION OF MOBILE PHONE”
Name – College--
Contact no.-
Sex- male female
Q5. In what time you are thinking to change your handset or buying a new one?
With in a week With in a month
With in six months With in a year
122
Q7. Which advertisement media puts more impact on your buying decision?
T.V. Magazines
Newspapers Internet
Others Specify……………………………………………
Q9. What according to you is the most important additional feature that should
be present in a mobile phone?
Integrated camera Bluetooth
Mp3 Internet enable Others
123
10. BIBLIOGRAPHY
BOOKS:
• Marketing Research – G. C. Beri
• Research Methodology – C.R Kothari
• Principles of Marketing – Philip Kotler
Web Resources:
• www.trai.gov.in
• http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
• http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_
home.jsp
• http://www.ideacellular.com/IDEA.portal?
_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
• http://www.bsnl.co.in/about.htm
• www.wikipidia.com
• www.sonyericsson.com
• www.motorola.com
• www.nokia.co.in
• www.spicecorp.in
• www.spiceindia.com
• www.motorola.com
• www.phoneindia.com/motorola-phones.html23k
• www.phoneindia.com/samsung-phones.html21k
• www.phoneindia.com/LG-phones.html19k
• www.phoneindia.com/sonyericesson-phones.html23k
124