NOKIA INTRODUCTION

Nokia Corporation referred to as Nokia; Finnish: is a Finnish multinational telecommunications,

information technology, and consumer electronics company, founded in 1865.

Nokia's headquarters are in Espoo, in the greater Helsinki metropolitan area. In 2018, Nokia

employed approximately 103,000 people across over 100 countries, did business in more than
130 countries, and reported annual revenues of around €23 billion. Nokia is a public limited
company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world's
415th-largest company measured by 2016 revenues according to the Fortune Global 500, having
peaked at 85th place in 2009. It is a component of the Euro Stoxx 50 stock market index.
The company has operated in various industries over the past 150 years. It was founded as
a pulp mill and had long been associated with rubber and cables, but since the 1990s has
focused on large-scale telecommunications infrastructures, technology development, and
licensing. Nokia is a major contributor to the mobile telephony industry, having assisted in the
development of the GSM, 3G and LTE standards (and currently in 5G), and was once the largest
worldwide vendor of mobile phones and smartphones. After a partnership with Microsoft and
subsequent market struggles, its mobile phone business was bought by
Microsoft, creating Microsoft Mobile as its successor in 2014. After the sale, Nokia began to
focus more extensively on its telecommunications infrastructure business and on Internet of
things technologies, marked by the divestiture of its Here mapping division and the acquisition
of Alcatel-Lucent, including its Bell Labs research organization. The company then also
experimented with virtual reality and digital health, the latter through the purchase
of Withings. The Nokia brand has since returned to the mobile and smartphone market through
a licensing arrangement with HMD Global. Nokia continues to be a major patent licensor for
most large mobile phone vendors. As of 2018, Nokia is the world's third-largest network
equipment manufacturer.

The company was viewed with national pride by Finns, as its mobile phone business made it by
far the largest worldwide company and brand from Finland. At its peak in 2000, during
the telecoms bubble, Nokia alone accounted for 4% of the country's GDP, 21% of total exports,
and 70% of the Helsinki Stock Exchange market capital.

NOKIA VISION STATEMENT

Nokia wants to create a new world; to transform a big planet to a small village. Their vision is to
create, build, and encourage people from all countries to communicate with each other in
order to create a world where everybody is connected.

NOKIA'S MISSION STATEMENT

Nokia's mission statement, "Connecting People," has guided the company for more than two
decades. The company focuses on trying to connect people through phones and the Internet.

Nokia tries to connect people in ways that work for them, designing experiences to meet the
needs of its consumers. Some of the ways that it is trying to do this are by keeping data costs
low and allowing people to connect through social media in a variety of ways.

To Nokia, connecting people also means keeping its customers' information private. The
company is committed to privacy as well as preserving data integrity.

NOKIA'S HISTORY
Nokia's history dates to 1865, when Finnish-Swede mining engineer Fredrik Idestam established
a pulp mill near the town of Tampere, Finland (then in the Russian Empire). A second pulp mill
was opened in 1868 near the neighboring town of Nokia, offering better hydropower resources.
In 1871, Idestam, together with friend Leo Mechelin, formed a shared company from it and
called it Nokia Ab (in Swedish, Nokia Company being the English equivalent), after the site of
the second pulp mill

In 1922, Nokia Ab entered into a partnership with Finnish Rubber Works and Kaapelitehdas (the
Cable Factory), all now jointly under the leadership of Polón. Finnish Rubber Works Company
grew rapidly when it moved to the Nokia region in the 1930s to take advantage of the electrical
power supply, and the cable company soon did to Nokia at the time also made respirators for
both civilian and military use, from the 1930s well into the early 1990s.

In 1977, Kari Kairamo became CEO and he transformed the company's businesses. By this time,
Finland was becoming what has been called "Nordic Japan". Under his leadership Nokia
acquired many companies including television maker Salora in 1984, followed by Swedish
electronics and computer maker Luxor AB in 1985, and French television maker Oceanic in
1987. This made Nokia the third-largest television manufacturer of Europe
(behind Philips and Thomson). The existing brands continued to be used until the end of the
television business in 1996. On 12 June 1996, Nokia announced the sale of
its television business to Canada/Hong Kong-based Semi-Tech Corporation. The television
manufacturing plant in Germany closed down in September 1996. The sale included a factory
in Turku, and the rights to use the Nokia, Finlux, Luxor, Salora, Schaub-Lorenz and Oceanic
brands until the end of 1999. Some of these brands were later sold to other companies.

In 2005 Nokia developed a Linux-based operating system called Maemo, which shipped that
year on the Nokia 770 Internet Tablet. In August 2007, Nokia introduced Ovi, an umbrella name
for the company's new Internet services which included the N-Gage platform and the Nokia
Music Store. The Ovi Store faced stiff competition against Apple's App Store when it was
introduced in 2008.

In July 2013, Nokia bought Siemens' stake in the Nokia Siemens Networks joint venture for $2.2
billion, turning it into a wholly owned subsidiary called Nokia Solutions and Networks, until
being rebranded as Nokia Networks soon after. During Nokia's financial struggles, its profitable
networking division with Siemens provided much of its income; thus, the purchase proved to be
positive, particularly after the sale of its mobile devices unit.

On 17 November 2014, Nokia Technologies head Ramzi Haidamus disclosed that the company
planned to re-enter the consumer electronics business as an original design manufacturer,
licensing in-house hardware designs and technologies to third-party manufacturers. Haidamus
stated that the Nokia brand was "valuable" but "is diminishing in value, and that's why it is
important that we reverse that trend very quickly, imminently.
On 5 July 2017, Nokia and Xiaomi announced that they have signed a business collaboration
agreement and a multi-year patent agreement, including a cross license to each company's
cellular standard essential patents.

On 19 January 2018, Nokia signed a deal with NTT Docomo, Japan's largest mobile operator, to
provide 5G wireless radio base stations in the country by 2020.

On 29 January 2018, Nokia introduced the reefshark line of 5G chipsets, claiming that it triples
bandwidth to 84 Gbit/s. It will be released by Q3 2018. It also incorporates artificial
intelligence technologies from Bell Labs

In January 2019, the Canadian government announced that it will provide C$40 million to
support Nokia's research on 5G technology.

A 2019 study revealed that Nokia phones performed far better than rivals Samsung, LG, Xiaomi,
and Huawei in updating to the latest version of Android. The study, made by Counterpoint
Research, found that 96 percent of Nokia phones were either sent with or updated to the latest
Android version since Pie was released in 2018. Nokia's competitors were found to be all
around roughly the 80 percent range.
 NOKIA OBJECTIVES & GOALS

To help people feel near to what matters to them. To enable billions of people to get more of
lifes opportunities through mobiles. To capture volume and value growth to connect the next
billion people to the Internet in developing growth markets.

SEGMENTATION TARGETING POSITIONING

 Segment Marketing

Nokia offers designs, features and functionality that cater to the demands of the market
segment. E.g. Nokia Ngage (gamers)

 Niche Marketing

Nokia also has products for customer groups seeking a distinctive mix of benefits andare ready
to pay a premium price for it. E.g. Nokia Lumia 925, Lumia 920

DEMOGRAPHIC SEGMENTATION

 High Income Group

Caters to the upper segment of the society with high purchasing power .e.g. Nokia Asha501,
Lumia925, Lumia920, Lumia625, Lumia720, etc.

 Medium Income Group

Caters to the segments which give more importance to the value for money. Example of phone
for this segment are Nokia Asha 206, Asha 205, etc.

 Low Income Group

Caters to this segment which have very low income and use mobile phones only for calling
purpose. Example of offering for this segment are Nokia 106, Nokia 111, Nokia 112, Nokia 103,
Nokia 113, Nokia 100, Nokia 101 etc.
 PSYCHOGRAPHIC SEGMENTATION

LIFESTYLE

 Achievers

Looking for design and style, followers of trends and fashion and have active lifestyle– Nokia
Lumia1020.

 Strivers

Combination of ease of use and elegant looks. Want seamlessly connected and in best possible
way Nokia 6110 Navigator.

 Survivors

Smart business people wanting smartest tools for balancing work and Life.Nokia Nokia 111,
Nokia 112, Nokia 103, Nokia 113, Nokia 100, Nokia 101 etc.

MARKET TARGETING

After segmentation the firm evaluates various segments and decide how many And which
segment to serve. The target market of Nokia is the college students who are mainly aged from
18 to 25 years old. They are selected as the target customers because they have great potentials
for the mobile phone category.

POSITIONING

A statement that summarizes company or brand positioning – it takes this form: To (Target
segment and need) our (brand) is (concept) that (point-of-difference). Nokia‘s Positioning
statement is ―CONNECTING PEOPLE
 MARKETING MIX

 Product

Nokia‘s products vary a lot because the company has a number of series of Smartphone such as
Nokia Lumia, Nokia Asha, as well as feature phone series. Product design also varies, the
company has touch screen products, classic button phones, as well as slide sets

 Price

The prices of the smartphone series vary between Rs 5000 and Rs39000. There is high price
variability of the products, so that the prices meet every social class needs.

 Promotion

Nokia makes use of advertising on television, newspapers, radio and billboards. There is no
information on any current or near past promotional campaigns.

 Place

Nokia is getting its products to the market through distributors. It mainly sells its smartphones
and feature phones trough Mobile operators and retailers, which is common for the industry. The
company does not own shops in most of the part of country.

BCG MATRIX OF NOKIA

 Stars

High Market Growth and high market share Nokia N-series.

 Question Mark

High Market Growth and Low Market Share Nokia Premium Series, E-series
 Cash Cow

Low Market Growth and High Market Share Nokia Entry level classic series

 Dog

Low Market Growth and Low Market Share Nokia N-Gage

EXPENSION GRID OF NOKIA

 Market Penetration

The aim of the company is to increase the sales volume in the existing market. So to implement
this, Nokia must follow few things such as providing discounts or loyalty schemes to existing
customers, changes in existing products etc.

 Market Development

The aim of the product is to sell their existing products into new market to increase the growth.
So to complete market expansion successfully, Nokia must follow few steps such as reducing
the current prices of the current products to attract the consumers, changing the television
adverts timing which helps the product to demand to a new segmentation of market.

 Product Development

The aim of the company is to introduce new products into existing market. So Nokia should
establish the new technologies to attract the new customers. For e.g. Mobile phone with GPS
system activated in it.
 Diversification

To increase the sales volume and profit margin, company should offer innovative products or
something different to the customers. So Nokia should establish something new technology to
satisfy the customers.

NOKIA SWOT ANALYSIS

 Strength of Nokia

1. Experience Base
2. Expertise
 3. Knowledge Of Customers
4. Distribution Network
5. High Resale Value
 Opportunities of Nokia

1. Ever growing market

2. Growing demand for smartphones
3. Development of underdevelopment countries
4. Adaptation of android

 Weakness of Nokia

1. Slow reaction to the competition

2. Poorly designed smartphones

3. Low performance of smartphones

4. Poor after sale service

5. Low sensitivity to industrial changes

 Threats of Nokia

1. Stronger competitors

2. Iphone’s popularity

3. New entrants

4. Samsung and other competitors

MICRO ENVIRONMENT-NOKIA

This is related to the Micro Environment for the NOKIA Company.

 Employees

Nokia Company need to find the good suitable perfect staff and should motivate those
employees into their business. Nokia Company has main competitor like Samsung, Sony
Ericson, and Apple Handset and due to the best employee support the Nokia business get more
increase in the international business.

 Customers

Nokia Company to give the benefits to the customer to demands the needs of the market
essential, and the expectable product. He Famous Nokia Company providing the best varieties
to the market to consider the business in long time.

 Suppliers

The supplier regular raw material providers the business and should find the reasonable
suppliers in to the Nokia market.

Nokia Company has good supplier to get the raw material on time to maintain their availability
and increasing and their creditability.

 Raw Materials

The Nokia raw material available easily then production and supply of the product will be
increase. So the raw material essential for the production and they Need to maintain the raw
material in the Nokia Store Room. The Nokia is getting the raw material from their own place
and their own product place.

 Shareholder

The Nokia greater business organizations required good stakeholder to increase their growth
of the business economy, the customer satisfaction also important factor for the Nokia, The
Nokia Company giving good share to their own employees and the consumer.

 Media
Media are the important for Nokia in their organization its product the best support of the
Nokia media advertisement into the business.

 Distribution Channels

The Nokia distribution network strategy always affect the other competitor to communication
media to the software.

 Competitors

“Cell phone competitors of the businessmen in the same area activity of the business.” The
Nokia change business have competitor to provide quality product. Nokia has the many
competitor to control the brand to achieve in the Mobile market.

MACRO ENVIRONMENT-NOKIA

The main macro environmental tool affect the decisions of the managers of any organization.
The political, economic, social, technical, environmental, legal factor affecting the business.

 Political

The political environment are related to the Mobile business is very high due to the security
and privacy. The political influence impact the new technologies. The social and cultural
environmental information varies from country to country. This option to support to the
country product

 Economic

The Nokia organization the economic factor is very important and this impact the business
performance, this condition affect the tax rate, interest rate, and the other ratio. If the inflation
happen then the employees can’t manage the living cost its affect the buyer power for the
Nokia.

 Social
The social trends have close impact with the business, the mobile phone using lifestyles of the
UK differ from the India, its affect the business. The population of the family, culture of the
family also affect the business. The social cultural affect the values. If the nokia culture change
then the social factor also modify.

 Technological

In everyday life mobile technology is very important factor. The internet online transaction is
making the good business for nokia market. Using internet we can buy sell and view the nokia
product quickly and safely.