1. Nokia Mobile Telecommunications ΑΔΑΜ ΚΟΣΜΑΣ ΜΑΙΟΣ 2002

2. STRATEGY DESIGN VISION/STRATEGIC INTENT INTERNAL ANALYSIS EXTERNAL ANALYSIS IMPLEMENTATION

3. RELATED DIVERSIFICATION(1) OLD CORPORATE STRATEGY –GRADUAL CHANGE OF PRODUCTION LINE TO RELATIVE BRANCHES OLD PRODUCTION LINE –CABLES PAPER WOOD –CABLE FACTORY DIVERSIFICATION TO ELECTRONICS –‘90s FOCUS IN TELECOM

4. RELATED DIVERSIFICATION(2) Old branch were profitable Diversification relied on old branches profits Trial and error procedure –Electronic branch became profitable in ‘80s –Focus on telecom due to low profits of electronic branch.

5. RELATED DIVERSIFICATION(3) In 90s Nokia withdraws from paper and cable production Inter-organisational co-operations Acquisitions(domestic market firstly)

6. RELATED DIVERSIFICATION(4) Two strange key factors of success –public telecom operator –NMT Big and advanced market Offered business opportunities Head start for competitors

7. Nokia A leading end-to-end infrastructure supplier World's largest manufacturer of mobile phones More than 55 000 employees Netsales USD 20 billion 1999 Market capitalization value over USD 200 billion 7 © NOKIA TABD.PPT /15.9.1999/VS

8. Sales offices R&D Production, incl. joint ventures Nokia Worldwide

9. NOKIA GROUP BRANCHES NOKIA MOBILE PHONES NOKIA TELECOMMUNICATIONS NOKIA VENTURE

11. STRATEGIC VISION VISION’S DESCRIPTION IS SORT –“CONNECTING PEOPLE”

12. Customer Analysis 18-29 years of age Mainstream product 2 segments; Consumer/Business

13. Consumer Segment Light Users Medium Users Heavy Users

14. Buying Behavior Light/Medium users –Price –Low information search –Package deals Heavy users –Functional & Psychological reasons –High information search

15. Business Segment Functional motive –Battery life, capabilities, etc. Buyers; Company or individual employees –Criteria Employees; capabilities, brand Company; price, capabilities, provider deals

16. Competitors Analysis Asian Region European Region American Region

17. Market Analysis 275 millions of phones sold in 1999 Nokia’s share - 79 million units 93% increase from 1998 50% more than in 1998

18. The Market is Changing Sources : Nokia, ITU, Dataquest, EMC, Global Mobile 2500 2000 1500 1000 500 0 1985 1988 1991 1994 1997 2000 2003 2006 Mobile vs. Fixed Subscribers (worldwide Mobile vs. Fixed Subscribers (worldwide) Fixed Mobile Data vs. Voice Traffic Data vs. Voice Traffic (worldwide) Bits in the operator networks 1985 1988 1991 1994 1997 2000 2003 2006 Voice Data

19. Millions 1996199719981999200020012002200320042005 1,400 1,200 1,000 800 600 400 200 0 Internet Connectivity Outlook More handsets connected to the Internet than PC's by end of 2003 ! Projected PC's Connected to the internet Projected WAP Handsets Projected 1 billion Mobile Subscribers

20. From NMT to 3G

22. Socio - Cultural Unspoken Code of Conduct - Using phones in public venues. Fashion Statement - Phones have become an accessory

23. Political - Legal Medical device interference. Health problems - memory loss, brain cancer. Dangerous while operating a vehicle

25. SWOT Analysis Strengths –Strong Organization –Great brand name recognition –One of best innovators in the Industry –Sets tone for the entire market technologically Weaknesses –Large Organization –Different market operations Control Currency risks

26. SWOT Analysis Opportunities –New Markets –Internet Threats –Risk –Changing Technology –Increased competition Asia Europe USA

27. 60% - 50% - 45% - 40% - 35% - 30% - 25% - 20% - 15% - 10% - 5 % - 0 BCG Matrix 10X 5X 1X 0.5X 0.1X Stars Question Marks Cash Cows Dogs

28. Pricing 2 segments and systems Cellular network providers –Selling high quantities in bulk –To price sensitive market Individuals needing top line products –Not price sensitive –Newest technology –Newest design

29. Product New demand driven applications services devices and design 18 new models in 1999

31. Promotion Consumer segment –Mass media; TV/papers/magazines –Co-op advertising –Internet –Sports events Snowboarding World Cup Adventure Sports –Boat/balloons

32. Promotion Business Segment –Sales agents –Promotion targeted towards consumers

33. Product-Market Expansion Strategy Currently in 130 different markets Joint ventures/distributor agreements Continue to expand as long as need and buying power exists. Expansion of GSM and 3G network. –China, UK, Philippines, Norway, Turkey

34. Europe is still leading the way…. Forrester Predicts That One in Three Europeans Will Access the Net Via Mobile Phone by 2004 AMSTERDAM, Netherlands--(BUSINESS WIRE) via NewsEdge Corporation --Europe stands on the brink of a revolution in Internet access. By 2004, one-third of all Europeans -- more than 219 million consumers -- will regularly use their mobile phones to access Internet services according to a new Report from Forrester Research B.V. (Nasdaq:FORR). Although the sites that will host these services are already being built, it remains unclear whether mobile operators will provide free and open access to these sites. Europeans lead the world in mobile phone use, with more than 117 million people in the EU carrying mobile phones. Many of these phones are already being used for data -- Europeans pass more than 2 billion short message service (SMS) messages a month to chat and read sports scores. These two factors, plus the introduction of wireless application protocol (WAP) phones, will vault Europe into the lead for mobile Internet access. (continues….) dated: 1999-12-16

35. Differentiation

36. Diversification Information Entertainment e-shopping and banking Voice WAP Development e-mail Video

37. Concentrate on youth Finnish teenagers send on average 100 messages per month Up to 90%, on average 50% of the bill is SMS Teenager bill '97 was $20 Teenager bill '98 was $40-$50

39. WE HAVE ONLY SEEN THE BEGINNING Thank you