Nokia Management Tehnology

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Table of Contents
S.No. Topic Page No.
1. Executive Summary 2
About Us 3
Mission Statement 6
2. Plan Purpose 7
Products 8
How will be developed and market? 8
How much will it cost to be successful? 8
What are the risks? 8
How much money? 9
3. Business Strategy 11
Strategies 12
4. Marketing Plan 13
Target Market 14
SWOT Analysis 15
Competitive Environment 16
Marketing Mix 17
5. Financial Projections 18
6. Operations 22
7. Business Factors & Challenges 24
Success Factors 25
Challenges Of The Business 25
8. Summary 26

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EXECUTIVE SUMMARY

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About Us:-
Nokia Oyj is a Finnish communications and information technology multinational
corporation that is headquartered in Espoo, Finland. Its Nokia Solutions and Networks
company provides telecommunications network equipment and services, while Internet
services, including applications, games, music, media and messaging, and free-of-charge
digital map information and navigation services, are delivered through its wholly owned
subsidiary.
In the 1970s, Nokia became more involved in the telecommunications industry by developing
the Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became the
workhorse of the network equipment division. Its architecture enabled it to be developed into
various switching products. In 1984, development of a version of the exchange for the Nordic
Mobile Telephony network was started.
For a while in the 1970s, Nokia's network equipment production was separated into
Telefenno, a company jointly owned by the parent corporation and by a company owned by
the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was
changed to Nokia Telecommunications.
In the 1970s and 1980s, Nokia developed the Sanomalaitejärjestelmä ("Message device
system"), a digital, portable and encrypted text-based communications device for the Finnish
Defence Forces. The current main unit used by the Defence Forces is the Sanomalaite M/90
(SANLA M/90).
In 1998, Check Point established a partnership with Nokia, bundling Check Point's Software
with Nokia's computer Network Security Appliances.
The technologies that preceded modern cellular mobile telephony systems were the various
"0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial
and some military mobile radio communications technology since the 1960s, although this
part of the company was sold some time before the later company rationalization. Since 1964,
Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora
started developing the ARP standard (which stands for autoradiopuhelin, or car radio phone
in English), a car-based mobile radio telephony system and the first commercially operated
public mobile phone network in Finland. It went online in 1971 and offered 100% coverage
in 1978.
In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira
began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard,
the first-generation, Finaland's first fully automatic cellular phone system that went online in
1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450
networks.
Nokia bought Salora Oy in 1984 and changed the company's telecommunications branch
name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's
first transportable phones. In 1987, Nokia introduced one of the world's first handheld
phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450,

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offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed
9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only
800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately
€4,560). Despite the high price, the first phones were almost snatched from the sales
assistants' hands. Initially, the mobile phone was a "yuppie" product and a status symbol.
Nokia's mobile phones got a publicity boost in 1987, when Soviet leader Mikhail Gorbachev
was pictured using a Mobira Cityman to call from Helsinki to his communications minister in
Moscow. This led to the phone's nickname of the "Gorba".
In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along
with two other employees from the unit, started a notable mobile phone company of their
own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became
Nokia Mobile Phones.
Nokia was a key developer of GSM (Global System for Mobile Communications), the
second-generation mobile technology that could carry data as well as voice traffic. NMT
(Nordic Mobile Telephony), the world's first mobile telephony standard to allow international
roaming, provided expertise for Nokia in developing GSM, which was adopted in 1987 as the
new European standard for digital mobile technology.
Nokia delivered its first GSM network to Finnish operator Radiolinja in 1989. The world's
first commercial GSM call was made on 1 July 1991 in Helsinki, over a Nokia-supplied
network, by then-Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM
phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The model number
refers to its launch date, 10 November. The Nokia 1011 did not yet employ Nokia's
characteristic ringtone, the Nokia tune, which was introduced as a ringtone in 1994 with the
Nokia 2100 series.
GSM's high-quality voice calls, easy international roaming and support for new services like
text messaging (Short Message Service) laid the foundations for a worldwide boom in mobile
phone use. GSM came to dominate mobile telephony in the 1990s, by mid-2008 accounting
for about three billion subscribers, with more than 700 mobile operators across 218 countries
and territories. Connections were growing at the rate of 15 per second, or 1.3 million per day.
As of 2013, Nokia employed 87,771 people across 120 countries, conducts sales in more than
150 countries and reported annual revenues of around €30 billion. Nokia is a public limited-
liability company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is
the world's 274th-largest company measured by 2013 revenues according to the Fortune
Global 500.
In 2013, Nokia sold what was once was the world's largest vendor of mobile phones to
Microsoft as part of an overall deal totalling €5.44 billion (US$7.17 billion). Stephen Elop,
Nokia's former CEO, and several other executives will join Microsoft as part of the deal. In
March 2014, the deal is yet to be closed due to regulatory issues in Asia.

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Nokia unveiled its third range on 24 February 2014, the Nokia X family, which run a
modified version of the Android operating system. The range includes three mid-tier devices;
Nokia X, Nokia X+ and Nokia XL.

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Mission Statement:-
Many organizations develop formal mission statements that answer these questions. A
mission statement is a statement of the organization’s purposes—what it wants to accomplish
in the larger environment. A clear mission statement acts as an invisible hand that guides
people in the organization. The mission statement of NOKIA is “CONNECTING PEOPLE”

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PLAN PURPOSE

8. 8
Products:-
Nokia use to offer wide range of mobile phone to its customers and each product can
differentiate easily. Nokia offers cell phones with various concepts are as follows:-
 Basic Phone
 Java Enabled Phone
 Symbian OS Phone
 Asha OS Phone
 Windows Phone
 Fastlane Phone
How will be developed and marketed?
The offered by Nokia is to target the each and every customer and it will depend upon
customer need and demand. Nokia have tie up with many hardware and software companies
i.e. content provider to provide wide range of customers.
How much will it cost to be successful?
The cost for making Nokia successful is depend upon the market situation i.e. whether there
is recession or boom period in the economy.
We can also make Nokia successful by providing more offers to customer and reducing the
profit margin.
The success of Nokia depends upon the various offers given by various retailers.
Nokia also need to adopt latest technology and trends i.e. android operating system which is
offered by its competitor i.e. Samsung, Micromax & Karbonn.
What are the risks?
Nokia is a mobile handset manufacturer which offers various wide range of cellular devices
and mobile handset. The risk that bear by Nokia are as follows:-
 Frequent change in technology.
 Change in taste and preference.
 Indian companies providing best handset at lower price.

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How much money the owner will make?
Nokia make huge amount of money and become key player in the mobile handset industry
but Nokia not adopted latest technology i.e. android operating system.
Nokia, EURm 2012 2011 Change
Net Sales 30176 38659 -22
Operating Loss -2303 -1073
Loss Before Tax -2644 -1198
Loss Attributable To Equity Holders Of The Parent -3106 -1164
Research and Development Expenses 4782 8884 -14
%
Return On Capital Employed
Net Debt To Equity -46 -40
EUR
Earnings Per Share -0.84 -0.31
Dividend Per Share 0.00 0.20 -100
Average Number Of Shares (1000 Shares) 3710845 3709947
Nokia Business, EURm
Devices & Services
Net Sales 15686 23943 -34
Operating Loss/Profit -1100 884
Location & Commerce
Net Sales 1103 1091 1
Operating Loss/Profit -301 -1526 -80
Nokia Siemens Networks
Net Sales 13779 14041 -2
Operating Loss/Profit -799 -300 166
Personnel, December 31
Devices & Services 32986 49406 -33
Local & Commerce 6186 6659 -7
Nokia Siemens Networks 58411 73686 -21
Corporate Common Functions 215 299 -28
Nokia Group 97798 130050 -25
10 Major Markets, Net Sales; EURm
China 2509 6130
India 2227 2923
Japan 2185 1539
USA 1880 1405
Brazil 1753 1901
German 1299 1606
Russia 1287 1843
UK 900 996
Indonesia 799 904

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Italy 783 982
10 Major Countries, Personnel, December 21
India 20027 22279
China 18684 22165
Finland 11767 16970
Brazil 7344 11887
Germany 7026 10992
USA 6692 7980
Hungary 2772 5198
Poland 2491 2541
UK 1740 3237
Russia 1573 1256

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BUSINESS STRATEGIES

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Strategies
Nokia use to make various strategies to target the customer and generate revenue. Strategies
of Nokia are as follows:-
 Focused on Handset Manufacture only
 Increase Distribution Channels
 Adjust Preferences for specific markets
 Customer Satisfaction
 Focused on Replacement
 Increase Commitment to Emerging Market
 Improve Collaboration on Designs
 Ensure Accountability and Quality
 Aggressive Pricing

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MARKETING PLAN

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Target Market
Nokia use to target the customer by following ways:-
 Males living in Metros
 Age group 18-44 years
 With a monthly household income of over Rs 30000.
 From families which were internet savvy.
 With usage beyond email.
 Transacted on the internet before.
 Deal Hunters
 Early Adopters.

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SWOT Analysis
 Strength
Global marketing (product)
High product quality
Fashionable product (serve new trend)
Wide range of product
 Weakness
High price
Outdated Symbian operation system
 Opportunities
Product launch continuously
User’s availability
Necessary product for people now
New software market
Joint Venture in technology
 Threats
Obsolete about PC tools if compare with new comers who have more specialize on
PC tools
Cheaper midrange models from Motorola and others
China mobile made copy of Nokia sets.
Higher import charges.

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Competitive Environment
• Micromax and Samsung are playing most important role in cellular market.
• Technologies changes frequently.
• This inflow of FDI provided in roads for many companies which started their
production in India.
• Only 5 local manufacturers in 2008 and the number stands at 28 now.
• Fall in the market share of Nokia, L.G., and Motorola.
• Samsung Electronics Co. Ltd‘s share rose marginally to 9.7% from 9.5%.
• LG‘s share dropped from 7.2% to 6.4%,
• Of the local manufacturers, Micromax leads the race.
• There are many mobile players like Nokia, Motorola, Samsung, Sony Erission, L.G.,
HTC, Apple, Blackberry, Alcatel and many more.
• Top 5 local manufactures are Micromax, Karbonn Mobiles, Spice Mobiles Ltd,
Videocon Industries Ltd and Lava International Ltd.

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Marketing Mix
Marketing mix of Nokia is as follows:-
 Product
Mobile handset
Mobile accessories
 Price
Best Price offers
Affordable to all class of customers
 Place
Internet marketing
Online e-portal / e-business
Franchise across various location
 Promotion
Promotion through social sites like Facebook, Twitter, You Tube & Magazine
Sales promotions

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FINANCIAL PROJECTIONS

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Nokia, EURm 2012 2011 Change
Net Sales 30176 38659 -22
Operating Loss -2303 -1073
Loss Before Tax -2644 -1198
Loss Attributable To Equity Holders Of The Parent -3106 -1164
Research and Development Expenses 4782 8884 -14
%
Return On Capital Employed
Net Debt To Equity -46 -40
EUR
Earnings Per Share -0.84 -0.31
Dividend Per Share 0.00 0.20 -100
Average Number Of Shares (1000 Shares) 3710845 3709947
Nokia Business, EURm
Devices & Services
Net Sales 15686 23943 -34
Operating Loss/Profit -1100 884
Location & Commerce
Net Sales 1103 1091 1
Operating Loss/Profit -301 -1526 -80
Nokia Siemens Networks
Net Sales 13779 14041 -2
Operating Loss/Profit -799 -300 166
Personnel, December 31
Devices & Services 32986 49406 -33
Local & Commerce 6186 6659 -7
Nokia Siemens Networks 58411 73686 -21
Corporate Common Functions 215 299 -28
Nokia Group 97798 130050 -25
10 Major Markets, Net Sales; EURm
China 2509 6130
India 2227 2923
Japan 2185 1539
USA 1880 1405
Brazil 1753 1901
German 1299 1606
Russia 1287 1843
UK 900 996
Indonesia 799 904
Italy 783 982
10 Major Countries, Personnel, December 21
India 20027 22279

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China 18684 22165
Finland 11767 16970
Brazil 7344 11887
Germany 7026 10992
USA 6692 7980
Hungary 2772 5198
Poland 2491 2541
UK 1740 3237
Russia 1573 1256

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Net Sales
EURm 2012 2013 Change
Europe 4643 7064 -34%
Middle East & Africa 2827 4098 -31%
Great China 1610 5063 -68%
Asia-Pacific 3811 4896 -22%
North America 453 354 28%
Latin America 2342 2468 -5%
Total 15686 23943 -34%

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OPERATIONS

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Nokia uses zero level distribution channels and one level distribution channels because they
have their own retail store and contract with other retailers.
ZERO LEVEL CHANNELS
ONE LECEL CHANNEL
Nokia
Manufacutrer
Other Retail Store Customer
s
Nokia
Manufacutrer
Nokia Retail Store Customer
s

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SUCCESS FACTORS & CHANLLENGES

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Success Factors
The success of Nokia depends upon various factors are as follows:
 Proper service given to customer
 Better offers and discount given to loyal or regular customer
 Proper guidance given to each and every customer
 Best product offered at reasonable price.
Challenges Of The Business
Nokia is a company which come under Hospitality Industry. There are various challenges
faced by Nokia are as follows:-
 Frequent changes in technology
 There are too many competitors.
 Customer care executive not working properly..
 Technology must be update.

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SUMMARY

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According to my study Nokia is one of the best Mobile Handset Manufacturer holding 10%
market share in India. They use to provide better products to their customer with the help of
various content provider i.e. hardware and software provider. Nokia is also tried to update
their technology to provide better effective and efficient services to their customers.