Strategic management

presentation

BY

KANNAN V R
MRIDUL MURALY

1 © NOKIA NET_general.ppt/January 2005/PTa

 In a nutshell
• Nokia Corporation Finnish multinational communications
corporation that is headquartered in Keilaniemi, Espoo, a city
neighboring Finland's capital Helsinki.
• It is the world's largest manufacturer of mobile telephones.
• Nokia has over 132,000 employees in 120 countries, sales in more
than 150 countries and global annual revenue of over €42 billion
and operating profit of €2 billion as of 2010.
• Nokia has sites for research and development, manufacture and
sales in many countries throughout the world.
• In 2001 Nokia founded (and owns) INdT – Nokia Institute of
Technology, a R&D institute located in Brazil.

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 Contin….
• Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and
New York stock exchanges.
• It is by far the largest Finnish company, accounting for about a third of the market
capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique
situation for an industrialized country.

• On 11 February 2011, Nokia announced a partnership with Microsoft which will

mean most future Nokia smart phones will be powered by the Windows Phone 7
operating system.

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 History
• Fredrik Idestam, founder of Nokia.

• Statesman Leo Mechelin, co-founder of Nokia.

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 Continu…
• The seeds of the current incarnation of Nokia were planted with the founding of the
electronics section of the cable division in 1960.

• Its first electronic device in 1962: a pulse analyzer designed for use in nuclear
power plants.

• In the 1970s, Nokia became more involved in the telecommunications industry by

developing the Nokia DX 200, a digital switch for telephone exchanges.

• In the 1970s and 1980s, Nokia developed the "Message device system" a digital,
portable and encrypted text-based communications device for the Finnish Defense
Forces.

• In 1984, development of a version of the exchange for the Nordic Mobile

Telephony network was started.

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 Continu..
• First mobile phones
• The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left),
compared to the Nokia 1100 from 2003.
• Nokia had been producing commercial and some military mobile radio
communications technology since the 1960s
• In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira
Oy. Mobira.
• They began developing mobile phones for the NMT (Nordic Mobile Telephony)
network standard, the first-generation, first fully-automatic cellular phone system
that went online in 1981.
• Nokia was one of the key developers of GSM (Global System for Mobile
Communications), the second-generation mobile technology which could carry
data as well as voice traffic.
• The world's first commercial GSM call was made on
July 1, 1991 in Helsinki

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 Mission
• Design and Manufacture.

• Industry--leading display product.

• Comitted to be the best in all respects to provide the best value to customers

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 Vision
• Increase personal communication
• Voice services driven by data and multimedia
• Constant innovation
• Customer services

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 Our customers

…. and many others

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 Mobile Data Services
Are Here

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 Potential of new mobile services

Over one billion paying mobile customers

form a tremendous potential
for new and innovative mobile services

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Service evolution opens large number of opportunities
Person-to-person
services
Real time
video sharing

Push-to-talk Content-to-person
services
video
messaging
photo and
audio
messaging Business
Full Internet services
browsing experience,
high-value videos
Enhanced
browsing,
versatile
Short applications
videos Improved
Basic performance
Basic browsing, applications and usability for
Messaging
rich terminal and mobile SMEs
personalization Secure e-mail
corporate
connectivity
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 Communications is becoming richer
Seamless voice
Push to talk Rich Call

Multimedia messaging
between mobile and Access Corporate
PC Systems & E-mail

Real Time Video Mobile meeting with PC

Sharing from mobile and mobile terminals
phone to PC

Browse
Internet
Interactive on line
gaming with PC and
Rich Media mobile
Delivery
Share Pictures, Music, Video

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Technology Stuff

Pairing Sharing
Connect easily with Share between two
other devices devices

Touch an NFC object Service discovery Payment & Your phone

and get information, Ticketing is your credit
start applications, card and or
register to services Transit/Travel
card

14 © 2009 Nokia
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 STRATEGIES OF NOKIA

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 • In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new
fields, mostly by acquisitions.

• The most important strategic change in Nokia's history was made in 1992, however,
when the new CEO Jorma Ollila made a crucial strategic decision to concentrate
solely on telecommunication.

• By 1998, Nokia’s focus on telecommunications and its early investment in GSM

technologies had made the company the world's largest mobile phone manufacturer.

• Between 1996 and 2001, Nokia’s turnover increased almost fivefold from 6.5
billion euros to 31 billion euros.

• Acquisitions was also one of the main strategy introduced by Nokia.

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 Major Acquisitions
• On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which
became the major basis to develop the Nokia N-Gage device.

• On November 16, 2005, Nokia and Intellisync Corporation, a provider of data

and PIM synchronization software, signed a definitive agreement for Nokia to
acquire Intellisync.Nokia completed the acquisition on February 10, 2006.

• On June 19, 2006, Nokia and Siemens AG announced the companies would merge
their mobile and fixed-line phone network equipment businesses to create one of
the world's largest network firms, Nokia Siemens Networks.

• On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an
agreement for Nokia to acquire online music distributor Loudeye Corporation.
Nokia completed the acquisition on October 16, 2006.

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 • In July 2007, Nokia acquired all assets of Twango, the comprehensive media
sharing solution for organizing and sharing photos, videos and other personal
media.

• In September 2007, Nokia announced its intention to acquire Enpocket, a supplier

of mobile advertising technology and services.

• In October 2007 Nokia bought Navteq, a U.S.-based supplier of digital mapping

data, for a price of $8.1 billion.Nokia finalized the acquisition on July 10, 2008.

• In September, 2008, Nokia acquired OZ Communications, a privately held

company with approximately 220 employees headquartered in Montreal, Canada

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 • On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile web
browser firm from Chicago.
• On April 10, 2010, Nokia announced its acquisition of MetaCarta, whose
technology was planned to be used in the area of local search, particularly
involving location and other services.
• One of the most important strategic decision was the alliance with Microsoft.
• On 11 February 2011, Nokia's CEO Stephen Elop, unveiled a new strategic
alliance with Microsoft, and announced it would replace Symbian and MeeGo with
Windows Phone 7.

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 Dedicated team serving customers globally
• About 132,000 employees in 2010 in 120 countries.
• Dedicated Customer Account Teams, supported by regional organisations for
technology and marketing competencies
• Global network of professionals for network deployment, planning, maintenance,
optimisation, integration and operations
• R&D in Finland, the US, Germany, Hungary, China, the UK
• Manufacturing in Finland and China, complemented
by global manufacturing partners
• A global network of partners in R&D, logistics and
services

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 Innovator in communication technology
• 2004 Industry first 3GPP Rel4 architecture for cost savings in circuit switched voice
• 2004 Industry first commercial end-to-end 3GPP IP Multimedia Subsystem
• 2003 First with Push to talk over Cellular network products
• 2002 J-Phone launched the world’s first 3GPP compliant commercial 3G network with Nokia
• 2001 World's first Multimedia Messaging Service Center
• 2001 World's first 3G WCDMA voice call on commercial 3GPP system
• 2000 World's first GPRS inter-operator roaming
• 1999 World's first triple-mode (GSM, EDGE, WCDMA) base station
• 1999 World's first WCDMA phone call through public switched telephone network
• 1998 World's first High Speed Circuit Switched Data Network (HSCSD)
• 1997 World's first four TETRA networks ordered from Nokia
• 1997 World's first GSM dual band base station
• 1993 World's first Short Message Service Center into commercial use in a Nokia Network
• 1991 World's first GSM call made in Radiolinja's network, supplied by Nokia
• 1982 Europe's first digital exchange, the DX 200
• 1981 Nokia's first delivery of NMT 450 base stations
• 1969 Nokia's first delivery of digital transmission system
• 1967 Nokia's first generation of manual radio telephone systems

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 Networks Strategic Intent

The world’s leading enabler of mobility

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 Our strategies drive for

Growth

Leadership

Profitability

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 Market Expansion
Low
Cost Remove or minimise
Nokia barriers to entry
•Cost
Windows •Device

Mobile E •Data Tariff

U M •Software Licensing
OL •Server infrastructure
V
Complex Simple •Administration
•Training/ Support
•Complexity
Blackberry •UI Familiarity
•Peripheral compatibility
•Ease of Use
•Ease of setup/ operation

High
Cost

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 Mobility is Driving Today’s Business Advantage

Latest
Information
to hand

Informed
& quicker
decisions

Competitive
Advantage

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 The new mobility is here
WCDMA: New 3G mobile multimedia service capabilities
• Multitasking – simultaneous voice and data
• Very high-speed corporate data access
• High-quality video
• Mobile video telephony
• Enhanced user experience through faster response time

EDGE: Seamless coverage extension for reduced set of 3G services

• High-speed corporate data access
• Basic video or high-quality audio streaming
• Video/audio clips
• Enhanced user experience through faster response times

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 SWOT ANALYSIS
• STRENGTH

Brand Recognition
Manufacturing
Design
Innovation
Market Share in GSM
Market
Management team

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 • WEAKNESS
• A majority of Profits depend on Mobile Phone Business
• Perceived as Mobile Phone Manufacturer.

• OPPERTUNITIES

• 3G Cellar Market in US & Asia

• Convergence of technologies
• Expand through partnerships
• Further reducing environmental impact

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 • THREATS

• Japanese 3G mobile phone manufactures

• Consumer electronics
• Microsoft’s Windows CE operating system
• Missing a cycle of new and innovative phones

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