INTRODUCTIO N

Nokia-Connecting People: this slogan is known all over the world. Nokia employs 50, 000 people in 120 countries. Currently every third mobile phone sold in the world is a Nokia. The Nokia Company is today one of the worlds leading high tech companies. Its rapidly growth in the 1990s coincided with a basal structural change of the Finnish economy and industry. In this restructuring process Nokia played an important role. Despite the fact that Nokia is a leading multinational company, a major part of its business is located in Finland. Nokia plays a significantly role in the economic growth of Finland, which has been one of the fastest in whole Europe. But the roots of the Nokia Company go back to the 19th century when in 1865 a forest industry enterprise in the small town Nokia in South Western Finland was established by mining engineer Fredrik Idestam. At the turn of the 20th century technology came with the founding of the Finnish Rubber Works in 1898 and the expansion of electricity into the homes and factories which led to the establishment of the Finnish Cable Works in 1912. With this development the manufacture of cables for the telegraph industry followed and supported so the new-fangled device, the telephone. The three companies (Paper, Rubber and Cables) were merged to the Nokia Corporation in 1967. Since the 1990s the Nokia Company focuses especially the telecommunication industry. The following essay deals with a detailed overview of the history of the Finnish Nokia company. But besides this, it is also mentioned the importance of this company for the Finnish economy. At the end of the essay I will give an overview of the future challenges for the Nokia Company and its surroundings. At first I start with the development of the Nokia Company; from its roots as a forest industry to a worlds leading telecommunication enterprise.

History Pre-telecommunications era

Fredrik Idestam, Statesman Leo founder of Nokia. Mechelin, cofounder of Nokia. The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland in Russian Empire and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in 1896 allowed Mechelin to become the company's chairman (from 1898 until 1914) and sell most shareholders on his plans, thus realizing his vision. In 1902, Nokia added electricity generation to its business activities.[ Industrial conglomerate In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and they began using Nokia as its product brand. In 1912, Arvid Wickstrm founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses.At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy.To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company.In 1922, Finnish Rubber Works acquired Finnish Cable Works. In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical 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.

Telecommunications era
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. A key CEO and subsequent Chairman of the Board was vuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronics department and let it run a loss for 15 years.

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987. The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company

rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks. Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately 4,560). Despite the high price, the first phones were almost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba". In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones. Personal computers and IT equipment

The Nokia Booklet 3G mini laptop. In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko. MikroMikko was Nokia Data's attempt to enter the

business computer market. The first model in the line, MikroMikko 1, was released on September 29, 1981, around the same time as the first IBM PC. However, the personal computer division was sold to the British ICL (International Computers Limited) in 1991, which later became part of Fujitsu. MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro. Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Espoo, Finland (in the Kilo district, where computers had been produced since the 1960s) at the end of March 20 thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia Display Products' branded business was sold to ViewSonic in 2000. In addition to personal computers and displays, Nokia used to manufacture DSL modems and digital set-top boxes. Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet 3G mini laptop.

Recent history
Product releases

Reduction in size of Nokia mobile phones

Evolution of the Nokia Communicator. Models 9000, 9110, 9210, 9300 and 9500 shown.

Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product. In November 2007, Nokia announced and released the Nokia N82, its first Nseries phone with Xenon flash. At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads. The service became commercially available in the second half of 2008. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Work began in April 2008, and the film premiered in October 2008.

In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry-type devices offering a full "qwerty" keyboard and cheaper prices. Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G. On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera. On September 10, 2009, Nokia unveiled a new handset, the 7705 Twist, a phone with a sports square shape that swivels open Logos A REVEAL OF FULL QWERTY KEYPAD.

Past

Nokia Company logo. Founded in Tampere in 1865, incorporated in Nokia in 1871.[29]

The brand logo of Finnish Rubber Works, founded in Helsinki in 1898.[31] Logo from 1965 to 1966.

The Nokia Corporation "arrows" logo, used before the "Connecting People" logo.

Nokia introduced its "Connecting People" advertising slogan, coined by Ove Strandberg[141] and used since 1992.[142]
This earlier version of the slogan used Times Roman SC (Small Caps) font.[143]

Present

Nokia's current logo used since 2006,[144] with the redesigned "Connecting People" slogan.
This slogan uses Nokia's proprietary 'Nokia Sans' font, designed by Erik Spiekermann.[145]

Nokia Siemens Networks logo. Founded in 2007.

COMPANY PROFILE

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges. Nokia comprises four business groups and two horizontal groups.

Nokia is a Finland-based company, established in 1865. The company is a leader in mobile communications. It has an employee base of around 58,874. It has 14 manufacturing facilities located in China, UK, Finland, Hungary, Germany, Mexico, Brazil, and the Republic of Korea. Its Research & Development centers are located in Japan and China.

Financial Performance

2006 EUR m Net sales Operating profit Profit before taxes Net profit Research and development 41 121 5 488 5 723 4 306 3 897

2005 EUR m 34 191 4 639 4 971 3 616 3 825

Change %

Revised* 2004 EUR m 29 371 4 326 4 705 3 192 3 776

20 18 15 19 2

Management Team President and CEO of Nokia Corporation: Olli-Pekka Kallasvuo Executive Vice President, Customer and Market Operations: Robert Anderson Executive Vice President and General Manager of Networks: Simon Beresford-Wylie Executive Vice President and General Manager of Enterprise Solutions: Mary T. McDowell Executive Vice President, Human Resources: Hallstein Moerk Head of Sales and Portfolio Management for Nokia Mobile Phones: Timo Ihamuotila Careers with Nokia India In a survey conducted by Business World in 2006, Nokia Industries was ranked as No. 1 in the consumer durable sector and was given the following scores based on different parameters:

Nokia Industries

Innovativeness Quality & Depth of Management Financial Performance Ethics & Transparency Quality of Products & Services Talent Management/People Practices Global Competitiveness Total Score

253.1 212.0 209.1 209.1 244.0 228.9

269.9 1626.0

ORGANISATION CHART

Organizational Structure Nokia comprises four business groups: Mobile Phones; Multimedia; Enterprise Solutions and Networks. The company also includes two horizontal groups: Customer and Market Operations and Technology Platforms. The following chart shows Nokia's organizational structure:

Nokia India Private Limited first started operations in India in 1995, and presently operates out of offices in Gurgaon, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad, covering the whole of India for the companys different businesses. We wrote telecom history in India together with our customers, when the first GSM call in India was made on a Nokia 2110 mobile phone on a Nokia-supplied network in 1995. Today, our operations include both the handsets and infrastructure businesses, supported by about 1200 personnel covering Mobile Phones, Multimedia, Enterprise solutions, and Network infrastructure. India is among the top 10 markets for Nokia worldwide today. In new growth markets such as India, with mobile phone penetration being less than five per cent of its over one billion population, Nokia is focused on working closely with operators to lower the total cost of ownership and usage for consumers, by offering the right mix of affordable and attractive handsets with relevant feature sets and essential mobile voice and messaging

services, to bring the benefits of mobile communication to end-users. Over the years, Nokia has established itself as the market and brand leader in the mobile device market. Nokia has a diverse product portfolio in India to meet the needs of different consumer segments, ranging from advanced multimedia devices, to an affordable range of entry level phones for first time subscribers. Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges. Nokia comprises four business groups and two horizontal groups. Organization Organizational Structure Nokia comprises four business groups: Mobile Phones; Multimedia; Enterprise Solutions and Networks. The company also includes two horizontal groups: Customer and Market Operations and Technology Platforms. The following chart shows Nokia's organizational structure: Nokia India Private Limited first started operations in India in 1995, and presently operates out of offices in Gurgaon, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad, covering the whole of India for the companys different businesses. We wrote telecom history in India together with our customers, when the first GSM call in India was made on a Nokia 2110 mobile phone on a Nokia-supplied network in 1995. Today, our operations include both the handsets and infrastructure businesses, supported by about 1200 personnel covering Mobile Phones, Multimedia, Enterprise solutions, and Network infrastructure. India is among the top 10 markets for Nokia worldwide today. In new growth markets such as India, with mobile phone penetration being less than five per cent of its over one billion population, Nokia is focused on working closely with operators to lower the total cost of ownership and usage for consumers, by offering the right mix of affordable and attractive handsets with relevant feature sets and essential mobile voice and messaging services, to bring the benefits of mobile communication to... .

AIMS AND OBJECTIVES

Image: Nokia has emerged from humble beginnings into a major business dealing in hitech equipment. How has it been able to stay ahead of the game and survive for so long? Copyright: Truth Noize Nokia is a well-known firm in the mobile phone industry. It is one of a small number of manufacturers in the industry with a market share of around 30%. In recent years there have been major changes in the mobile phone market with both external factors and internal factors driving that change. One of the leading mobile phone manufacturers, Nokia used its Annual Capital Market Event to unravel its objectives and aspirations for the year 2010. In their announcement, Nokia expressed the resolve to improve on their execution and take more advantage of the competitive edge they already have. Nokia also exhibited the newly added advancements to the Symbian user interface. Nokias Chief Operating Officer, Olli-Pekka Kalasvuo said, In 2010, we will drive user experience improvements, and the progress we make will take the Symbian user interface to a new level. Considering the greater level of adaptability shown by Symbian operating system in comparison to other platforms, Nokia is considering placing new prices for smartphones all around the world, in the midst of ever growing profit margins. I see great opportunity for Nokia to capture new growth in our industry, by creating what we expect to be the worlds biggest platform for services on the mobile, the CEO had to say. Nokias estimates show that market for mobiles will be experiencing a great 10% growth level in comparison to 2009. While the company expects no change in the volume of

shipments, there is much anticipation that Nokias mobile device value market share will see a slight growth. And in the middle of all these forecasts, a lower average selling price (ASP) erosion of its mobile devices in 2010 is also waiting in the wings.

Nokia announced the following targets to be achieved in the coming years:

Nokia expects to incur EUR 5.7 billion in 2010 on non-IFRS operating expenses in the Devices and Services division. Nokia also aims to bring non-IFRS R & D expenses in Devices and Services in 2010 below the range of 10% of the net sales, while the margin in the same division is expected to fall in-between 12 percent to 14 percent. Nokia is continuing to target minimum Services net sales of EUR 2 billion in 2010, while it aspires to bring in 300 million users worldwide under its umbrella by the same year.

As for Nokia-Siemens Network the following forecasts were announced by Nokia:

Nokia Siemens Network is expected to grow at a faster rate in 2010 As compared to 2009, both Nokia and the Nokia Siemens Network will experience an unchanged market with respect to Euro in infrastructure building and associated services. Non-IFRS operating margin will be at a 2% of the breakeven in 2010 for Nokia and Nokia Siemens Network, while the Network also targets at reducing its nonIFRS operating and production expenses to EUR 5 million till the end of 2011.

Nokia has plans to provide users with a better experience, a rejuvenated user interface with Symbian and at releasing a device powered by Maemo 6 OS for the very first time. Nokia aims at expanding the Services business and at offering increased number of QWERTY and touch devices. By reaching the potentially rising market and aiming to optimize the industrys lowest cost end-to-end business model in Mobile Phones Nokia is showing the intent that is required to become the leader in this industry.

MARKETING STRATEGY

When Mobile phones were first introduced they were not such a popular item and there weren't as many competing companies in the market. So Nokia and a few other companies (Sony and Panasonic) could charge higher prices then they would in the highly competitive market that they are in today, as there aren't so many companies competing for market share. Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders Competition in the market ------------------------With all this technology available in the communications market it is

obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales occurred. 1. Nokia 37.2% (34.7% 1Q02) 2. Motorola 17.3% (15.5%) 3. Samsung 9.8% (9.6%) 4. Siemens 8.5% (8.8%) 5. Sony-Ericsson 5.2% (6.4%)

OBJECTIVE OF THE STUDY

TO STUDY COMPARATIVE ANALYSIS OF NOKIA MOBILE PHONES WITH OTHERS

RESEARCH METHODOLOGY