BACKGROUND

Company began in early 1800s. In 1865 Nokia was named, by Fredrick Idestam, after a river in Finland. 1967 Nokia Corporation begins as a merger between four existing businesses. (Forestry, rubber, cable, and electronics) History with mobile phones began in 1981. During the 1980s Nokia acquires many other companies in order to enter new markets. In 1990 Nokia entered the telecommunications market. 1994 - Nokia goes public.

THE RISE TO THE TOP

Over the late 1990s and early 2000s Nokia introduces several new and smaller phones in quick succession. In 1998 Nokia introduced the 8800 series, that model went on to reach a gross profit margin of 70 to 80%. Nokia broke new ground in 1999 when it launched its 8210 handset on the catwalk in Paris. By 2000-2001 Nokia was firmly established at the top of the mobile phone industry controlling 35% of the market. 2000-2002 Nokia hits its market share peak of 35%.

THE FALL

2003-2004 Nokia sales fell below expectations. Late 2004 attempted to increase market share by introducing several new phones. Nokia failed to keep up with competitors such as Microsoft, LG, and Samsung. Nokia was unsuccessful to capitalize on the growing popularity of color screens and camera phones. Late 2004 market share stabilizes at 32% after falling as low as 28% in early 2004.

VISION
A world where everyone can be connected. In 2015, 5 billion people always connected, and 100 fold more network traffic.

NOKIAS FOUR BUSINESSES

Accelerate Adoption of business solutions

Lead and win the devices

Grow consumer internet service

Leverage scale and transform to Solutions in infrastructure

Nokias Share by year(2007-2008)

APPROACH

Nokia observes first, then design. Nokia acts on consumer insights. Internet innovation, creativity, media , and service will be available anywhere, anytime. Take a human approach to technology Simple Intuitive Reliable Is this current strategy working? -During 2007, Nokia gained device market share in all regions except North America and Latin America, where market share declined. In Middle East & Africa, Nokia had excellent market share gains in 2007. Nokia continued to benefit in Middle East & Africa from its brand, broad product portfolio, and extensive distribution system. The current strategy appears to be effective in gaining market share.

NOKIAS MARKET SHARE

SWOT ANALYSIS

Strengths -High Quality Phones Industry Leader in Innovation Cheap for consumers to buy Good Equity Weaknesses Lagging Behind in R & D Some Short-term borrowings Smaller Sales than other phone carriers Opportunities Cut down on least profitable businesses & concentrate on profitable main business Increase R & D with extra operating profit Open up to other markets besides Europe. Threats Other phone manufacturers Microsoft Samsung, LG, Sony Ericsson, Motorola, Etc.

NOKIAS COMPARITIVE ADVANTAGE

NOKIAS STAKEHOLDERS

Anyone who has a vested interest in the company is a Nokia shareholder. Needs of stakeholders include: High ROE Dividends paid out Increase in stock price With an average ROC the last 5 years of 33.8%, and an ROC last year of 47.5%, it appears that Nokias strategy is working.

PROFIT TRENDS AND ROE

As of late 2004/early 2005, both EPS & gross profit had all increased from the previous 3 years. ROE decreased from 00 to 01, then rebounded slightly in 02. From 04 to the present, it has jumped!

Nokia strategic map

Business environment Investigation focus Operational unit specific issues Implication at Operational level

Broad defined industry

Operational unit Business unit Specific issues

Implication at Business unit

Business unit Strategic focus

VALUE CHAIN & COMPONENTS

Customer groups and needs

Suppliers

Competitors

Complimentary products

Industry regulation And technology

DRIVERS OF CHANGE

Foresight promotes a shared understanding of the basic drivers of change affecting the whole business Scenarios may be inappropriate when it is necessary and prior to be flexible and react quickly to weak market signals. The Nokia world map provides every business units within emerging trends for the business areas and investment projects can be assessed with more details.

WHERE DOES NOKIA GO FROM HERE?

Analysts wonder if Nokia can dominate the industry again as it did in the late 90s. In order to reestablish themselves as an industry leader, where does Nokia need to be? Reemerge as the industry leader in telecommunications What does Nokia need to do to get there? ID new avenues of growth Cut prices to increase market share Launches new cell phone models More aggressive marketing Launch into new markets

NEW NOKIA CULTURE AND WAYS OF WORKING & ENGAGEMENT & LEADERSHIP

Goal

The Nokia Culture and Ways of working engage us all workers in creating a world where everyone can be connected. Nokia has the best leaders in our industry. True Nokia leaders set the example throughout the company. The Development opportunities and the recognition provided in Nokia are highly appreciated by employees. New Nokia Values!

Goal

NOKIAS STRATEGY
Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.

NOKIAS ETHICAL VALUE

According to their 2007 annual report, Nokia is committed to the highest standards of ethical conduct, and fully compliant with all national & international laws. Ethical goals are: To be the best in corporate responsibility Practice good citizenship everywhere it does business

What does it take to impliment Nokias new strategy

New nokia culture And ways of working

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Engagement & leadership and New values

Nokias new Business strategy

A CHALLENGING FUTURE

Mobile phone industry is undergoing a vast change. Competition is becoming increasingly technologically advanced. Mobile phone industry is becoming more volatile. Nokias challenge for the future is to identify new avenues of growth in an industry that is becoming saturated.