Nokia Names

NOKIA VIDEO

Background NOKIA Forest industry enterprise in southwestern Finland. Manufacture pulp and paper on the Nokia River Nokia merged with Finnish Rubber Works and Cable Works (Nokia Corporation). 1980s - Increased its position in the telecommunications and electronics markets. First mobile phones in the 1980s decided to focus on mobile phones and telecommunications as the core of the business and divested its non-core operations Nokia bought a number of small companies that develop e-commerce and telephony technologies to expand its drive into mobile Internet capability. According to sales figures of 2003, Mobile Phones generated 80% of Nokia’s net sales, networks 19%, and ventures 1%. It is obvious that Nokia’s primary business is mobile phones.

Competitors

Problem

Clam Shell Developed Market Manufacturing Cost Developing Market

What happened? Missed trends Owns factories Change of market (ext environment)

SWOT Strength Weakness - Build on current technology -Existing knowledge of target market (developing) - Wide Range of Products - User friendly products - Product warranty World-Wide -Higher prices compared to competitors - late in clam shell phones - Low rate of adaptation -Dependence on strength in low-end and mid-range phones OpportunityThreat -Expand their market -Innovation -Capitalize on different trends than only telecommunication -Other competitors growth -Lost market share -Market become more saturated -Developing Countries -Small local Companies -Cell phone brand piracy in the developing world

Key Success Factors Emerging markets Technology – R&D Investment Marketing Brand Image

Marketing MIX Price Developed Vs. Developing Promotion Innovative Technology Informative Product Customization Place Distribution

Options/ Alternatives Option 1: Continuing the way they are Option 2: Restructure and Innovation Option 3: Counting Nokia out (big mistake)

Recommendations for… …Problem 1 – Trends Open source policy R&D Internal communication Alliances (local-regional)

Recommendations for… …Problem 2 – owned factories Cutting cost: – Out-sourcing – Working locally Benchmark (Walmart?)

Recommendation for… …Problem 3 – Change of Markets Collaboration Differentiate between developed and developing market Investment in emerging markets Converging markets  Joint ventures

Nokia Today Structure Current market share/ Industry Latest phones Newest markets Profits

THANK YOU Questions ??