...Batch 2 Term 6th Management Control System Activity – Project Report On Nokia Strategies Adopted By Nokia In Order To Achieve Its Goals Submitted to: Submitted by: Prof. Aniruddha Durafe Rajkamal Paroha Anshuman Singh Parihar INDEX * Introduction to Nokia * History of Nokia * Mission & Vision * Goals & Objective * Organizational Culture * Management Control System in Nokia * Nokia Product Mix * Strategy Formulation * Strategy Adopted by Nokia to achieve its goals * Strategy Goal Introduction to Nokia Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the World’s largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of € 42 billion and operating profit of € 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones. Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta...
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...of Competitive Advantage 9 Porter’s Value Chain 12 Porter’s Generic Strategies 15 IV. CORPORATE STRATEGY 16 o o o The scope of the firm 16 Vertical and Horizontal Diversification 20 Managing the corporate portfolio 23 V. GLOBAL STRATEGY AND THE MULTINATIONAL CORPORATIONS 25 o o o o o Patterns of internationalization 25 Analyzing competitive advantage in an international context 25 International Location of Production 27 Global integration vs. National differentiation 27 Strategy and organization within the multinational corporation 28 VI. VII. VIII. CONCLUSION 28 APPENDIX 29 BIBLIOGRAPHY 30 I. Introduction COMPANY PROFILE Nokia is a Multinational communications and information technology Corporation, with headquarters in Finland. Even though, their product portfolio is quite diverse, their main products are mobile phones and IT devices. Nokia occupied the leadership position in the mobile phones’ industry for more than a decade; however in 2011 this position was lost. The introduction of the smartphones in the market, the scandal related with Stephen Elop’s memo, ex-CEO (Ratner Effect), and the loss of trust in the brand related with the too-early announcement of changing in the operating system (Osborne Effect); resulted in a boycott both from carriers and retailers against Nokia that had a strong negative impact in its performance and overall results. As a consequence, Nokia...
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...project more full proof. We are thankful to her for her encouraging and valuable support. Working under her was an extremely knowledgeable and enriching experience for us. We are very thankful to her for all the value addition and enhancement done to us. No words can adequately express our overriding debt of gratitude to our parents whose support helps us in all the way. Above all we shall thank our friends who constantly encouraged and blessed us so as to enable us to do this work successfully. Paritosh Kumar Singh Arindam Banerjee Rajneesh Kumar Sharma Krishnendu Karmakar PGDM (FS) 2013-2015 Section- D Contents Introduction to NOKIA 4 History of NOKIA 5...
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...products. One of the famous and successful mobile phone manufacturers in the world is Nokia. Like any other companies, Nokia has been able to use strategies and approaches to meet the needs and demands of their target market. It keeps being the leader in the mobile telecommunications relies on its plentiful experience, technology innovation, and scientific marketing strategy. However, it can be said that the company still needs to consider other strategies to remain competitive in the market because of the cut-throat competition in mobile communication. This can be evidenced by their shares to dramatically down by 20% due to the penetration of their competitor. Nokia must be able to have an intensive marketing plan to ensure success and apparently, their experience to eat the humble pie won’t happen again. With the emergence of Apple Iphones today, the strategy of Nokia relies on growing, transforming, and building the Nokia business to ensure its future success. Although Nokia is an established multinational company, the management must still be able to use different strategy that would sustain Nokia’s competitive advantage and ensure market success. The marketing plan must include the business strategy that Nokia must use which includes the strategic intent, competitive strategy and marketing mix. The strategic concept of Nokia is to take the demand-side strategy. In doing so, Nokia subdivides the whole market into several objective markets according to the researches about...
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...Nokia Introduction Nokia is the world leader in mobility. They make a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more. Nokia is not only the world leader in mobile phones. They are also the world’s largest camera manufacturer and a leader in digital music. Mobility has the power to help economies grow and societies develop. It is changing the world, in developed and developing countries alike. Their vision is to release this potential by extending mobile access and allowing people to do more on their mobile devices. Nokia is a truly global company, headquartered in Finland. They have sales in more than 150 countries. Nokia has worked in partnership with WWF since 2003 to raise environmental awareness among our employees and on other environmental activities. Nokia joined several other major mobile manufacturers in 2007 to sign a voluntary agreement based on the results of the European Commission’s Integrated Product Policy pilot project on mobile phones. The project focused on finding how the mobile phone industry can reduce the environmental impact of its products throughout their lifecycle. The agreement includes three key commitments: • Produce an index of environmental facts for each mobile product to enable consumers to compare products easily. • Increase consumer communications about unplugging the chargers and safe disposal of phones. • Include a default on-screen message...
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...TABLE OF CONTENTS INTRODUCTION ………………………………………………………………………3 TOYOTA……………………………………………………………………………......4 TOYOTA BRANDING STRATEGY………………………………………………… 5 NOKIA…………………………………………………………………………………. 6 NOKIA BRANDING STRATEGY…………………………………………………….7 REFERENCES INTRODUCTION Observing the 2013 and 2014 world global branding ranking, I noticed that the top ten brands are mostly brands that the 21st century would consider as essentials. Brands like Coca-Cola and Mac Donald’s (Food) apple (communication), Toyota (Transportation) etc. Innovative and technological product are the brands that are mostly at the top, highly innovative products who are also committed to a sustainable drive are seen growing from the bottom spot also. The top five spot remained unchanged from 2013 to 2014. With the top spot remaining unchanged so many changes were made at bottom spot and Nokia was a big fall out declining tremendously from 57 position all the way to the bottom three, Apple maintained the first position with a value of 118,863$m and a +21% while google and Toyota still maintained their spot, bottom slackers like Gap moved a spot up from 100 to 99th position. My research will be focused on Nokia and Toyota, talking about the the brands, their marketing strategies, how they have been able to increase their sales globally and their ranking performance among the global brands. TOYOTA MOTOR MANUFACTURING COMPANY Toyota is one of the worlds, popular...
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...Growth Strategy of Nokia Established in the earlier claims, Nokia is a well-known brand, possibly one of the most recognisable names in the mobile phone industry. However, the presence of competitors tends to pose a consistent threat to their overall market share. Thus, Nokia is not exempt in finding a way to leverage their assets and existing people to sustain a consistent trend of growth and development. The following highlights the proposed growth strategy of Nokia in China. Integration of Human, Technology and Process Nokia realises that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that Nokia is involved in an industry where companies have to deal with rapid growth rates. This means that they have to develop a means to promote business development by maximising the assets which they possess. In addition, the end-users of Nokia products are not the sole consumers of the company. Distributors, direct sellers and sales managers are also considered as a major contributor to the overall sales of Nokia. Thus, they should also be treated as customers. Development and growth is ensured provided that Nokia applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006) Placing Value in Sales The modern consumer is wise; at least that’s what Nokia have to presuppose in order to make the most of the market. Nowadays, manipulative...
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...SURVEY: NEW MEDIA Among the audience The era of mass media is giving way to one of personal and participatory media, says Andreas Kluth. That will profoundly change both the media industry and society as a whole [pic] Apr 20th 2006 | From The Economist print edition THE next big thing in 1448 was a technology called “movable type”, invented for commercial use by Johannes Gutenberg, a goldsmith from Mainz (although the Chinese had thought of it first). The clever idea was to cast individual letters (type) and then compose (move) these to make up printable pages. This promised to disrupt the mainstream media of the day—the work of monks who were manually transcribing texts or carving entire pages into wood blocks for printing. By 1455 Mr Gutenberg, having lined up venture capital from a rich compatriot, Johannes Fust, was churning out bibles and soon also papal indulgences (slips of paper that rich people bought to reduce their time in purgatory). The start-up had momentum, but its costs ran out of control and Mr Gutenberg defaulted. Mr Fust foreclosed, and a little bubble popped. Even so, within decades movable type spread across Europe, turbo-charging an information age called the Renaissance. Martin Luther, irked by those indulgences, used printing presses to produce bibles and other texts in German. Others followed suit, and vernaculars rose as Latin declined, preparing Europe for nation-states. Religious and aristocratic elites first tried to stop, then control...
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...THE MARKETING STRATEGY OF NOKIA Contents EXECUTIVE SUMMARY 3 INTRODUCTION 3 CURRENT SITUATIONAL ANALYSIS 4 PESTEL analysis: 4 SWOT analysis: 7 DIFFERENTIAL ADVANTAGES 8 RECOMMENDATION 11 MARKETING STRATEGIES AND PROGRAMMES 11 Segmentation: 11 Targeting: 12 Positioning: 12 Marketing strategy: 12 OBJECTIVES 14 RECOMMENDED MARKETING MIX 14 Product: 14 Price: 14 Place: 15 Promotion: 15 BENEFITS OF THE RECOMMENDED OBJECTIVE TO THE STAKEHOLDERS 15 CONCLUSION 16 REFERENCES 17 BIBLIOGRAPHY 19 EXECUTIVE SUMMARY Nokia is a multinational organization that involves in the production of mobile telephones. Nokia's mission is simple: connecting people. Their goal is to build great mobile phones that enable billions of people worldwide to enjoy more of what life has to offer. Nokia has approximately 98,000 employees around the world. Nokia has aligned with a lot of firms to help improve the society, which are UNESCO, OXFAM, British council, UNICEF; Siemens. Nokia has 1.3 billion customers all over the world using Nokia devices. Their production facilities are established in Brazil, China, Hungary, India, Mexico, South Korea, and Vietnam. (Web 1) Nokia was the market leader in Nigeria when mobile telephones manufacturers exploited the opportunity provided by the then President Olusegun Obasanjo in bringing GSM network providers into the country in the 2001 (web 2), but Nokia has dropped drastically in terms of market share due to the saturation...
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...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through following...
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...the largest company in mobile phone market, Nokia was once on the top in its category. From operating paper mill in Finland, Nokia transformed itself into a multinational telecommunication giant. By 1998, Nokia is the world leader in mobile phone.1 Sadly, what once a giant has now become an underdog fighting for survival due to the strategy erosion. The global market share held by Nokia smartphones was continuously declining from the 48.7 percent in the third quarter of 2007 to only 3.5 percent in the third quarter of 2012.2 Despite Nokia holds a solid value of its brand in terms of awareness through years of effort, Nokia is still struggling to revitalize its brand equity. The followings will focus specifically on understanding the rationales and outcomes of brand development decisions in order to justify those using marketing theories, and evaluating the importance of the role of marketing mix in Nokia. BRAND DEVELOPMENT DECISION Brand Strategy In latest primary brand strategy, Nokia takes on revitalizing strategy (Riezebos, 2003) by cooperating with Microsoft. Windows phone operating system is built into Nokia smart phone as an ingredient branding to generate a competitive advantage. This action intends to encourage customers’ awareness and replaces MEEGO, a former self-developed smart phone operating system, also to differentiate from others major OS in the market. Customer-Based Brand Equity Model - Salience Although Nokia mobile phone business has been acquired by...
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...I. EXTENDING THE NOKIA BRAND AND THE PRODUCT LINE i. NOKIA CURRENT BRAND Nokia is one of the leading brands in the industry of manufacturing mobile devices and in converging Internet and communications industries. The company is engaged in developing a range of devices for all the consumer segments and offering Internet services, Ovi, that enable people to experience music, maps, media, messaging and games. The giant mobile phone manufacturer also provides services for communications networks through Nokia Siemens Networks. The Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is currently one of the most well-known and admirable brand in Finland in particular as well as around the world in general. The Nokia brand image is even solid in fast developing markets, where Nokia leads in market share and continues its strategy of targeting younger audiences. However, given the economic downturn and competition for high-end phones from the niche rivals like Apple’s iPhone and RIM’s BlackBerry, Nokia reported a worse-than-expected 90 per cent slump in first quarter profits of 2009. As a result, the Nokia brand image has been affected and became less dominant as it used to be in the world market. While Nokia brand image is favorable and potent in the Smartphone category, where the company still leads in terms of...
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...NOKIA MARKETING PLAN PROJECT INTRODUCTION Nokia was founded in 1865 as a paper mill in Finland. It went on to establish it’s self as a renowned mobile phone manufacturer and one of the most powerful brands in the world. In 1992 Nokia shifted its focus to primarily telecommunications and appointed Jorma Ollila as its CEO. Six years later in 1998 Nokia had established it’s self as the world’s largest mobile phone manufacturer with a turnover of 31 billion. In 2006, Olli-Pekka Kallasvuo replaced Jorma Ollila as the CEO, but was not able to reverse the decline of Nokia’s market share especially in the high end segment. Competitors like Apple, Blackberry, HTC, Samsung, and phones using Google’s Android operating system captured market share from Nokia at an alarmingly increasing rate. By the end of 2010 Android was already the most widespread smart phone operating system in the world and Nokia’s market share in the smart phone segment had declined from 38 to 31 percent in one year (Sokala). In September 2010, the appointment of the Canadian Stephen Elop as the new CEO of Nokia aroused adversarial feelings among people since Elop became Nokia’s first CEO not to originate from Finland. Elop was hired to change the course of Nokia and to stop the declining trend in Nokia’s global market share especially in the smart phone segment. The first major decision was to start extensive cooperation with Microsoft in February 2011. VISION AND STRATEGY Nokia’s mission is simple: Connecting...
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...NOKIA’S MARKETING STRATEGIES IN INDIA by Nikunj Daga 2006-2007 A dissertation presented in part consideration for the degree of MA in Marketing No portion of the work referred to in the dissertation has been submitted in support of an application of another degree or qualification of this or any other university or other institution of learning. 2 ACKNOWLEDGEMENT _________________________________________________________________________________________________ Writing a dissertation is always the most challenging part of a student’s life. It was definitely the most important academic contribution by me. This however would not have been possible without the encouragement and of a few people. Here I take this opportunity to display my gratitude towards them, First and foremost, I would like to thank my professor, Dr Heidi Winklhofer for being a source of support and encouragement, guidance and persistent help. Thank you ma’am for your time, support and patience. My Sincere thanks to both academic and non-academic staff of the Nottingham University Business School, for all their assistance. I would like to thank my parents for love and support bestowed on me. Thank you for your blessings. Also I would like to thank my friends for staying by me during the difficult parts of life. Thanks for help and love irrespective of the situations. I would also like to thank all my respondents for taking out time from their busy lives to help me with my research. Last...
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... 40 SBS JABR - Vol 3 Abstract Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people all around the world. After over a decade of leading the mobile industry, Nokia, between 2007 and 2012, has fallen behind its competitors who have more recently entered the market. The gap between Nokia, and the competition has increased significantly and Nokia is now struggling in an effort to try to regain its role as a global competitor. In this article, we are trying to understand what has happened, what the current situation is, and what Nokia could do to return to full profitability and leadership in the current, global marketplace. In order to do that, we have attempted to analyze Nokia’s business-level positioning strategy, including market positioning of its strategic business units, as well as how the positioning strategy influences the competitive and/or cooperative dynamics of the industry. Additionally, we will analyze Nokia’s corporate-level strategy, identifying the businesses the company is in and is considering entering, how they are related or unrelated, and whether and how they create additional value. Keywords: Nokia, Business, Communications technologies, Disruptive technologies, Telecommunication Industry, Introduction Within its nearly 150-year history, Nokia has evolved from its origins in the paper industry to become a world leader in mobile communications. Today, Nokia brings mobile products and services...
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