...Finland Finland and Nokia: Creating the world’s most competitive economy MAN 865 SA BUSINESS AND GLOBALISATION Question 1 What were the primary sources of locational competitive advantage of Finland that enabled Nokia to build a global leadership position in mobile phones? Which of these characteristics resulted from explicit policy choices? According to porter, “The wealth of a nation is not inherited, it is created.” Finland’s geographic location and its demographic makeup are largely responsible as a determinant in the model of Michael Porter’s Diamond of National Advantage. Finland is situated on the western side of Russia (a long time trade partner up until the collapse of the Soviet Union in 1989). The country is sparsely populated and has a population of approximately 5.9 million. For pragmatic reasons the Fins supports the adoption of wireless devices as the country has a first world economy and the resources to afford it and the climatic conditions supports phone- over face-to-face conversations. Approximately 92% of the population is able to speak Finnish and 6% speaks Swedish whilst approximately 2% are foreign citizens. 61% of the population resides in metros in the south and the rest are in rural areas. (background – can be deleted if number of words are exceded) If Porters Diamond is analyzed the location of Finland becomes a driver for innovation for mobile telephony given the fact that that...
Words: 512 - Pages: 3
...------------------------------------------------- The Rise of Finland’s Nokia Case Study No. 4 By: Maria Cristina C. Caymo, PhD-M Student FACTS: The case deals with the rise of the Nokia Corporation, from the relatively small country Finland, to global leader in the mobile phone market. The original Nokia Company was founded in 1865 to produce paper from wood pulp. In 1967, three companies, Nokia, Finnish Rubber Works and Finnish Cable Works in Finland merged to form the Nokia Corporation. The new company operated in many sectors and produced a wide range of products including paper, tyres, Wellington boots, cables, televisions, computers, electrical generators, and chemicals. The case study focuses on how did this company became the world’s largest manufacturer of mobile phones with nearly 40% of global market share. The case study also attributes this achievement on how trade and investment patterns and Finnish and global policies promoting market openness and free trade have affected the innovation process in Finland’s (mobile) telecom equipment industry. The study illustrates how regulatory, trade and investment policy choices have helped – alongside other key policies – provide the right framework conditions for innovation in this country of 5.2 million people. In addition, it examines how the private sector, and more particularly Nokia, has taken advantage of those conditions to enhance its innovation capacity. ISSUE: In the 1980s, Nordic nations...
Words: 2665 - Pages: 11
...H A R V A R D B U S IN E S S S C H O O L 9 - 7 0 2 -4 2 7 REV: O CTO BER 2 6 , 2004 O R JA N S O L V B L L •M ICHAEL E . P O R T E R Finland and Nokia When an inventor in Silicon Valley opens his garage door to show o ff his latest idea, he has 50% o f the world market in front o f him. When an inventor in Finland opens his garage door, he faces three feet o f snow. — J.O. Nieminen, CEO of Nokia Mobira, 1984 Until the 1990s, Finland was considered a remote and sleepy country in the northeastern corner of Europe, lying in the shadow of its large neighbor Russia. Finland had been part of Sweden for six centuries until 1809, when it was ceded to Russia. The Bolshevik revolution in 1917 and the collapse of the Romanov dynasty led Finland to unilaterally declare independence on December 6,1917 (still the national day). After difficult years during World War П, Finland remained somewhat isolated, and its economy remained highly dependent on the Soviet Union. Following the model of its Nordic neighbors in the post-war years, Finland was characterized by heavy investments in social welfare and public infrastructure. There was a history of reliance on government leadership in many"private sector companies. The government had large holdings in many top Finnish companies (see Exhibit 1), and through its active involvement in major mergers and acquisitions transactions, influenced the ownership structures of key industries./ Finland's prosperity level caught up to the...
Words: 10638 - Pages: 43
...1.1 Background of Nokia Our group has chosen mobile phone as the product of our group. We choose the brand ‘Nokia’ as it is the most popular and successful product in the market. The reason we choose mobile phone as our product because it a need and not a luxury anymore to all people in the world regardless of age, sex, race and location. Nokia is born in Finland by Fredrik Idestam. A leading player in mobile communications in the world, Nokia first started operations in the early 1980s. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and wants for the growth of the telecommunications industry in the region .Nokia's regional corporate headquarters is located at Alexandra Techno Park in Singapore. It is a base from which over 700 staff provide hi-tech technology, product and solutions support. “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 Nokia. Its rapidly growth in the 1990s coincided with a 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. Besides that, Nokia is significant in the economic growth of Finland, which has been one of the fastest in whole Europe. However...
Words: 381 - Pages: 2
...southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company’s sales achieved its high-stakes and nokia grew faster. 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 world’s 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. A lot of brands selling and manufacturing cell phones and mobiles are in the market but Nokia cell phones are the leaders in the race. With over a dozen varieties and models lining up every day the customer is left in confusion as to what to buy. With the market gearing up with new companies in the foray Nokia manufactures have accepted the challenge. They are coming up with latest technologies being put to test. The company believes in customer satisfaction and that is the success of their being the leaders in cell phones. Nokia has a number of models to offer like the Nokia 1000series, Nokia 2000series, Nokia 3000series, Nokia 5000series...
Words: 481 - Pages: 2
...down she wanted to see the board of directors, chain of governance, csr - Nokia have self-enlightenment for their work in emerging countries... and then any legal requirements that we think will be relevent to stakeholders. BRIEF HISTORY OF NOKIA Nokia is one of the world's biggest manufacturers of mobile phones. In the 2nd quarter of 2008, it was able to grab 80% share from the global market. It elevated Finland to being an even wealthier country accounting for 30% of it's GDP. Nevertheless, the success of Nokia started from its modest launching. Nokia was born in 1895 when Frederick Idestam built a pulp mill. Originally located in Tampere, a southwestern city in Finland, the company transferred to the town of Nokia so it could utilize the river of Nokianvirta. The company took its name from this river, which was used for the production of hydroelectric power. Nokia as we know it today begins in 1967 with the aquisition of the Finish Cable Works, a telegraph and telephone cables company. Nokia started producing lots of products ranging from newspapers, footwear, bicycles, car tires, televisions and communication cables t personal computers, aluminum capacitors and electricity generation equipment, etc. The decision to alter its operations to mobile communication gadgets started in the 60s. The 1960s saw Nokia creating military and marketable mobile radio communications. Together with Salora Oy, Nokia created the first VHF radio in 1964. From then on, these two companies...
Words: 3132 - Pages: 13
...HISTORY A legend of technology, the king of producing mobile phone…Those are beautiful words when talk about the legend named Nokia some years ago. All of the time from 1990 to 2000, Nokia became a star in the global technology: biggest mobile phone producer in the world, many biggest thing in world when talk about Nokia. At that time, the word “Nokia” can become the synonym of mobile phone. Nokia is a multinational company which has a headquater in Espoo, a city near the capital of Finland, Helsinki. Almost people think that Nokia is a mobile company but just a few people know that Nokia was a paper pulp company. In 1865, an Finnish engineer, Fredrik Idestam founded paper pulp company in Tammerkoski Rapids of South West Finland area. 6 years later, he opened a second company beside the Nokianvirta river. The name Nokia was inspired by this river name. Early time after founding, Nokia is just a multicompany. In 1898, Eduard Polón founded Finnish Rubber Works Ltd in Helsinki, which produce rubber shoes, rubber tyre. Up to now, many rubber shoes under Nokia brand still exist. Until 1912, Arvid Wickström founded Finnish Cable Works, which lay the foundation for cable business and electronic facilities of Nokia later. In 1967, three companies include Nokia Ab, Finnish Cable Works, Finnish Rubber Works Ltd were official merged. Twelve years later, 1979, Nokia founed the wireless telephone company, Mobira Oy under a joint-venture company with a top Finnish TV producer at that time...
Words: 1102 - Pages: 5
...statistics, facts, figures) 3. Propose a new company strategy to attack this deficient area 4. Grade Statistics and facts about Nokia Previously a clear market leader, Finnish communications company Nokia has more recently been experiencing sliding profits and a declining share of the global mobile phone market. While the company has still been achieving strong sales figures in Europe, the Asia-Pacific region, the Middle-east and Africa, the company has been struggling to compete against industry giants Samsung and Apple in the U.S. smartphone market. In addition to selling mobile phones, Nokia also offers a range of internet services under the brand name Ovi. One of these services was the Ovi App store, launched in 2009. Unfortunately, the Ovi store failed to make a strong impression in the market and while the store is maintained for those customers still using a Symbian operating system, the company more recently announced that they would be transitioning to the use of Windows Phone 7 and the respective App store. While some Ovi services do still exist and others have been merged with different providers, in 2011 Nokia announced that they would ultimately be discontinuing use of the Ovi brand. In 2007, a joint venture was formed between the Finnish company Nokia and German company Siemens. The multinational company Nokia Siemens Networks offers data networking services and telecommunications equipment, and as of 2011 was the fourth largest company in the industry...
Words: 1981 - Pages: 8
...In our coursework, we choose Nokia phone as our topic. We use Nokia phone to apply into our analysis. Nokia Corporation is a type of Public company and the industry is specific in their market which is telecommunication, internet and computer software. In year 1865, Nokia is founded in Finland and incorporated the company in Nokia in year 1871. The founders of Nokia included two persons who are Fredrik Idestam and Leo Mechelin. The first headquarters is located in Espoo, Finland. Nokia is provided their services to Worldwide. Nokia is introduced so many types of products, such as: Mobile phones, Smartphones, Mobile computers and Networking. On the other hands, Nokia also provided some services. For examples, maps and navigation, music, messaging and media software solutions are the specific services which provided by Nokia. Nokia was plays a large character in the economy of Finland. For increase their market, Nokia has a sites for research and development, manufacture and sales in several countries. First, we use graph to analysis the price of Nokia phone affects to the demand of consumers. Second, the analysis which we do is the resource price and taxes & subsidies affects to the supply of suppliers. After that, the future price of Nokia phone affects to the demand and supply is the last analysis in our coursework. For done the analysis, we plot the graph to show the movement by the effects. For example, the graph which include price of Nokia phone related with the quantity...
Words: 255 - Pages: 2
...article is about the telecommunications corporation. For other uses, see Nokia (disambiguation). Nokia | | Type | Julkinen osakeyhtiö (Public) | Traded as | * OMX: NOK1V * NYSE: NOK | Industry | * Telecommunications equipment * Internet * Computer software | Founded | Tampere, Grand Duchy of Finland (1865) incorporated in Nokia (1871) | Founder(s) | * Fredrik Idestam * Leo Mechelin | Headquarters | Espoo, Finland | Area served | Worldwide | Key people | Risto Siilasmaa (Chairman) Stephen Elop (President & CEO) | Products | * Mobile phones * Smartphones * Mobile computers * Networks * (See products listing) | Services | Maps and navigation, music,messaging and media Software solutions (See services listing) | Revenue | €38.659 billion (2011)[1] | Operating income | €−1.073 billion (2011)[1] | Net income | €−1.164 billion (2011)[1] | Total assets | €36.21 billion (2011)[1] | Total equity | €11.87 billion (2011)[1] | Employees | 105,265 (2012)[2] | Divisions | Mobile Solutions Mobile Phones Markets | Subsidiaries | Nokia Siemens Networks(50.1%) Navteq | Website | Nokia.com | Nokia Corporation[3] (Finnish: Nokia Oyj, Swedish: Nokia Abp; Finnish pronunciation: [ˈnokiɑ], English /ˈnɒkiə/) (OMX: NOK1V, NYSE: NOK) is aFinnish multinational communications and information technology corporation headquartered in Keilaniemi, Espoo, Finland.[4] Its principal products aremobile telephones and portable IT devices...
Words: 438 - Pages: 2
...Microeconomics of Competitiveness: Firms, Clusters, and Economic Development Submission of Assignment Student : Mas Wigrantoro Roes Setiyadi NPM : 8605210299 Program : S3 – Ilmu Manajemen – Pasca FEUI Date of Submission : September 13, 2005 Case: Finland and Nokia Assignment: 1. How was Finland able to move from a sleepy economy to one of the most competitive nations in the world by the end of the 1990s? 2. How was Finland able to become a world-leading nation in mobile communications? Why did this cluster emerge rather than others? 3. Why did Nokia become the world leader in mobile handsets? 4. What are the critical challenges for the Finnish government in 2001? For participants in the Finnish mobile communications cluster? For Nokia? 5. Given telecom downturn, what should the government do next? What should the private sector do? Answers: 1. Competitiveness of the nation does not lie on the government but rather depends on the capacity of its industry to innovate and upgrade (Porter, 1998). It is believed with innovation and upgrade industry as aggregate of companies would lead to increasing level of productivity. Porter emphasizes the importance of productivity as the prime determinant of a nation’s long-term standard of living. In most situations, industry will need government involvement to play its roles as facilitator (Musgrave, 1989) or through making public policy (Grindle & Thomas, 1991). However, the less the government gets involved in...
Words: 1436 - Pages: 6
...Grow the number of people using nokia devices.•Transform the devices people use.• Build new businesses• Our business and people’s expectations for mobile devices and services arechanging. Nokia’s promise is to help people feel close to what matters tothem. About the Company Nokia- Connecting People ! Nokia Corporation (NYSE: NOK) is one of the world's largesttelecommunications equipment manufacturers. With headquarters inKeilaniemi of Espoo, Finland, this Finnish telecommunications company is best known today for its leading range of mobile phones. Nokia also produces mobile phone infrastructure and other telecommunicationsequipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LANand a line of satellite receivers. Nokia provides mobile communication equipment for every major marketand protocol, including GSM, CDMA, and WCDMA. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam onthe banks of Nokia rapids. Finnish Rubber Works established its factories inthe beginning of 20th century nearby and began using Nokia as its brand.Shortly after World War I Finnish Rubber Works acquired Nokia wood millsas well as Finnish Cable Works, a producer of telephone and telegraphcables. All three companies were merged as Nokia Corporation in 1967. Thename Nokia originated from the river which flowed through the town of thesame name (Nokia).In the 1970s Nokia became more involved in the telecommunicationsindustry...
Words: 946 - Pages: 4
...forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of Nokia. These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth. Political The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot Economical Nokia are vital to the...
Words: 1028 - Pages: 5
...Finland: Middle Term Exam Introduction This paper talks about Finland and describes its economy over time, let's see what kind of products imports and its economic growth and as created new technologies to improve its GDP, as finland utilized their natural resources in a successful manner and apart hence I think one of the most prodigious world economies. 1.- Diversification and Ubiquity Finland is a country with many natural resources and much of its economy depends on it such as logging, paper companies, the working of metals, but has also evolved and has been the emergence of companies with a large technology as nokia, Finland is a country that relies on new technologies and continues to improve its companies logging, mineral exploitation, so you can not qualify to Finland as a country with one type of technology, Finland uses the environment for profit and improve their business more technology to continue to export to almost everyone, the most dynamic Economic Sector of Finland are the industry of wood, metals, engineering, telecommunications and electronics industries, together with the design. Except for timber and some minerals, Finland depends on imports for supplies of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to self-sufficiency in basic products. Forestry, is important for export and provides a secondary occupation...
Words: 1689 - Pages: 7
...Since the last 150 years, Nokia has developed gradually from a riverside mill in south-western Finland to a global telecommunications leader connecting over 1.3 billion people. Meanwhile they made rubber boots and car tires. They generated electricity, manufactured TVs and as time passed the existing condition of affairs is what they had always done and intend to do it in future. http://www.nokia.com/global/about-nokia/about-us/story/the-nokia-story/ In 1865, Nokia was established of a forest industry activity in South-Western Finland by mining engineer Fredrik Idestam. In year 18998, the foundation of Finnish Rubber Works Ltd and in 1912 Finnish Cable Works began operations. Eventually the ownership of these two companies and Nokia started to shift into hands of just a few owners and finally in 1067 the three companies were combined together to form Nokia Corporation. In 1980, Nokia strengthened its position in the telecommunications and consumer electronics markets by gaining Mobira, Salora, Televaa and Luxor of Sweden. In 1987, Nokia gained the consumer electronics operations and section of business of the German Standard Elektrik Lorenz and the French consumer electronics company Oceanic. In 1987, Nokia also got the Swiss cable machinery company Maillefer. In 1980, Nokia became the largest Scandinavian information technology company through the achievement of Ericsson’s data systems division. In 1989, Nokia lead an important expansion of its cable industry into Continental...
Words: 267 - Pages: 2
