NOKIA CASE ANALYSIS
Team Name :Holy Cow
Name of Team Members : Siddharth Prakash
Kumar Anchit
Name of the B School: IMT Ghaziabad
Email Id(s) of members : sid1582@gmail.com
anchit08@gmail.com
Phone Numbers
: 9910303679
9910036855
Case Analysis Flow diagram
Instillation of Ecobehavior
Mobile
Environmental
Solutions as a way to
create overall effect
Study of approaches
and value creation
Eco System for
approaches to work
Value Web
Nokia’s strategy and
fit
Conclusions
Positive Attitude – But Eco behavior needs to be instilled
Consumer Attitude towards Environment
10-market
global study
by
international
communicati
on firm
Edelman
100
Consumer
Attitude towards
Environment
50
0
China
Group
Level
dynamics
Japan
India
Ecobehavior
changes
Media/Global
warming
/physiological
effects
Individual’s attitude towards
environment(high as the study suggests
88 percent Indians having positive
attitude towards Environment)
Change
Agent –
Mobile
Technologie
s (Nokia)
Eco – behavior gets instilled –
Mobile
technology(Innovators)
Consumer
•
•
+
Environment
•
Unbalanced associations
-
+
Mobile
technology(Innovators)
Consumer
+
+
Environment
Positive associations between Consumer and Mobile Technology (Innovators)(Already
existing)
Positive Associations needed between Mobile technologies(Innovators) and Environment
(Mobile Environmental Solutions)
Helps bring about a positive association between the Consumer and environment (Fritz
Heider – Balance Theory)
Positive Associations between Mobile technologies(Innovators)
and Environment (Mobile Environmental Solutions) –
• Green Phones – consume less energy and Biodegradable
• Mobiles as a tool for spreading environmental awareness
• Mobiles used for creating environmental value and conservation
Behavior
A function of
Attitude
Attitudinal Change
Motivational Change
• Knowledge Function
• Value Expressive Function
• Change in Evaluation of
attributes
Resolving Conflicting
attitudes
Using the functional approach (For bringing about motivational
change)• The value expressive function – A cool, stylish mobile with latest
features having associations with environment will help reinforce the
relation between stylish attitude and being environmentally aware. Eg
– Nokia 3110 associates cool and stylish features with green features
• The knowledge function – The mobiles can be used as knowledge
devices for providing effective tips and awareness – Eg- Nokia’s
MobileEdu helps consumers become cognizant of environment
around them.
• Resolving attitude conflicts –
• Problem - People might have positive attitude towards green
environment but they have negative attitude towards green products
as they link them with higher cost and lesser performance
• Solution - Emphasis should be given on cost saving through efficient
chargers and on personal benefits such as better health proposition
Mobile Solutions – Environmental Benefit Curve
Biodegradable
phones, Renewable
Energy Chargers ,
Carbon footprint
measures
Mobile Edu ,
Green Gaming ,
Educational
Manuals , Green
technologies
Initially awareness
levels are raised
by the education
and behavioral
changes induced
by using mobile
technology that is
found in daily life
Mobile Ecological
reporting, Energy
Conservation by mobile,
Environment conservation
policies communication
through mobiles
Mass changes in
product and
mobile
technology that
creates a green
technology
environment and
creates mass user
base
Social and
Environmental
benefits by
taking part in
green programs
of the future by
helping the
governments
and NGOs in
environment
conservation
Mobile Environmental Solutions
Value Creation
Brand Image
improvement
Environment
conservation
Consumer and
social value
creation
Mobile
Usage
Nokia
78.8 percent
of 415.25
million users
in India
Leader in the
mobile
technology
and new
innovations
Introduced
Nokia 3110 at
low price for
environmental
solutions
High mobile
usage by users
amounting to
nearly two
hours
A process based approach for Innovative Mobile Solutions for Nokia and India
in perspective
Ideas
Values
Feasibility
• Fundamental Ideation keeping a set objective in mind
• They incorporate the present usage of mobiles as it happens in
India and also the future technologies expected to come into
being
• Benefits to the customer
• Benefits – image based and monetary value benefit to Nokia
• Benefits to the environment
• Major problems in the implementation
• Factors needed to make the idea feasible
• Future concerns if any
Idea:
• The idea is to have e-manual in mobile phones rather than having a separate
physical manual.
• Moreover when exploring the features of Mobile phone, a user could
be guided to feature specific information page in e –manual
Value Proposition
Value
Creation
Process
Nokia -Cost saving by
smaller packs and
savings arising out of
lesser manufacturing
and transportation
costs
Customers will get
ease of use by
browsing feature
specific information in
e-manual just with a
click on key pad
For environment value
is created through
lesser paper and fuel
usage leading to 15%
reduction in CO2
emissions . Protection
from Environmental
degradation
Feasibility
•
Around 2 MB of memory would be needed for e-manual which could be easily
available at nominal cost of Rs. 2-3.
•
Idea – Interactive Mobile Gaming
– Interactive Mobile Gaming which helps spread the message of environment. Free Gaming software
could be obtained from NGO’s as they have tie up with Application providers
A Perspective on the Idea – The average length of a session is 28 minutes with India (39 minutes).India tops with over half (56%)
playing at least once a week and one in four playing everyday.(Nokia 2006 press release – Mobile
gaming Habits)
•
Value proposition –
Value
Creation
Process
Brand image
improvement due to
green marketing and
innovative green
games. Free gaming
software from NGOs
More free gaming software
from Nokia. Social value
creation by environmental
education
Environment benefits due to
behavioral changes and
awareness induced by eco
friendly games
• Feasibility
– Interfacing with Greenpeace/Other Green NGOs for making a Java Game with embedded information
specially designed for Indian users
– Gamers may lose interest in the game – continuous innovation for uninterrupted interest
– Gamers may not like the game at the outset. Need to emphasize on the wider social benefits for
increased usage
– Trade offs – Game play main lead to increased power usage in mobiles v/s Environmental benefits
• Idea - Mobile Ecological Reporting
– The idea is to use a mobile for reporting ecological damages. A central server
manages the reports and conveys it to Ministry of Environment.
– The damages are rated at five threat levels and action taken accordingly
– A level 5 ecological damage would be an industrial leak. A level 1 threat could
be improper disposal of waste
– The ideas serves to use mass reporting by individuals to keep in check the
ecological damage and help in conservation
– The idea also encompasses to warn offenders and give them information
about the violations
– Compensation/fine could be obtained from offenders under National
Environmental Tribunal Act – section 2
– Govt. could reward certain amount of money out of fine to the mobile
ecological reporter
• Value proposition –
Value
Creation
Process
Brand image
improvement due to
green and social
marketing. Nokia
becomes part of
govt. efforts and
earns leverage
Consumers can get
compensation and
rewards.
Consumers create
value by saving
environment and
being the
guardians of their
own environment
Government can
offset damage by
investing fine in
preserving
environment.
Environment
conservation and
Losses are prevented
by this methodology.
Environmental
efforts of
government are
complimented
• Feasibility
– A good IT infrastructure is needed for processing of data and information
– An interface to link the law making agency to the information for action
– Communication to the reporters as well as the violators for any action taken
• Futuristic Ideas –
– Independent light control ( Dial4Light) for lighting systems in villages and urban colonies
using mobile technology to save 20tonnes of carbon emissions for a small colony of 200
people and a reduction of annual electricity usage by 25%
– Automatic carbon footprint reader – Carbon Diem technology that measures carbon
footprint of a person using the GPS navigation systems and intelligent embedded systems.
Nokia can go into a partnership agreement for manufacturing phones with this technology
as in future carbon footprint measure may become a necessity for all human beings
• Value proposition –
Value
Creation
Process
Nokia earns green image and
creates monetary value by
helping at local level. Carbon
footprint technology
innovated for use in futuristic
world by every individual.
Gets first mover advantage
Consumers create
value by saving
environment and
being the guardians of
their own
environment
Environment
conservation and
Energy saving.
Environmental tracking
will help in better
control of environmental
changes
• Feasibility
– The projects mentioned will be of a high cost and adoption will be a problem as the ecoawareness is still to seep to the backward regions of India
– Lot of research and feasibility analysis needs to be done before widespread use of GPS
systems
– These projects seem a reality in the future to come and with a time lag of 20-25 years they
seems a certain addition to the growing list of mobile based environmental solutions for
saving the planet
– Carbon footprint measure is a catchy phenomenon and its measure may become an
important part of our lifestyle in the future – thus a different technology could emerge for
the same. Nokia needs to be alert to such changes and should try to take lead in
developing such technologies for the future
– Initial Investment cost huge in both the technologies for mass usage purposes
– Value creation is possible only if the approach is appreciated by early adopters
Nokia’s present efforts and Strategic fit
Vision – A world where everyone connected contributes to sustainable development
Objective – Leading Company in Environmental Performance
Strategy – Minimizing own footprint
Making an impact through large user base
Nokia’s Present Strategy
Our Solution fit
Nokia’s Present Strategy
Our Solution fit
Substance Management
– Withdrawing use of
harmful substances
E-manual will also
decrease use of paper
Raising Awareness e.g. eco
zone and mobiledu
Mobile Gaming based on
environmental issues
Walk with Nokia Maps
Energy Efficiency through
efficient chargers and
tapping non-renewable
energy
-
Carbon diem technology to
measure footprint during
travelling and offsetting it
Future technologies such as
Eco sensor
Recycling
-
Futuristic concept of
Dial4Light – Independent
Light control
Packaging
Smaller packaging
because of e-manual
Alerts on Unplugging
Chargers
Alerts through Mobile
Ecological Reporting
Work with WWF and WBCSD
Work with Greenpeace and
other NGOs, ministry of
Environment and Power
Making suppliers also
environment friendly
Suppliers contribute by
altering the OS, Chip Design,
providing content and
applications and technology
Focus is on making an impact through large user base
rather than minimizing Nokia’s carbon footprint.
Keeping in view the Nokia’s strategy of leveraging
technology, futuristic concepts of Dial4Light have been
introduced. In sync with present strategy, solutions for
increasing awareness and reducing co2 emissions
through mobile applications has been proposed
Sustained Development and Eco-System
Value chains create value
but Ecosystem generates
Sustainability
Media or other
reporting agencies
Ministry of
Environment or other
govt. regulatory
bodies
Cooperation in
making the market
IT Infrastructure
Provider
Investors and other
stake holders
E-manual or
content Providers
UI flow and design
Nokia
Players- Sony Ericsson,
Motorola W233,
Samsung W510
Mobile Games or
Application Providers
Green Peace and
other NGO’s
Operating System
and Chipset Design
Carbon Diem
Technology Provider
Competition in
dividing the market
GPS navigation System
integration
Society – Rural and
Urban lightning
Ministry of Power
Aspects of Ecosystem
Actors
• Customers
• Markets (Green Environment Friendly Segment)
• Govt. (Ministry of Environment, Ministry of Power and other regulatory bodies)
• Stakeholders ( Investors , Employees and Society)
• NGO
• Suppliers (Providers for Application, UI, Content, Operating system, IT infrastructure and
Carbon Diem along with GPS technology)
Dynamics : The ecosystem is just in pioneering stage. Focus will be on instilling
eco-behavior, understanding and leveraging government’s environment friendly
policies, tie up with NGO’s and strategic partnership with suppliers. Later on shift
to expansion and leadership stage
Keystone Strategy: Stress on improving the ecosystem by cooperating with various
entities along with competitors to develop green market, creating and sharing value
resulting in Value Web for society
Performance of Ecosystem
• Value Web for Society
Brand Image of Green Company
E-manual – Cost saving
Ecological Reporting – Increased Revenue
Rural Lightning – CSR Initiative
Nokia
Suppliers
E-manual – Ease of Use
Ecological Reporting – Clean Environment
Mobile games – Entertainment
Rural Lightning Control – Reduce Taxes
Customers
Increased value
for Nokia with
their help
increases value
for them also
Value
Creation
Government
NGO
Value Web
Creates Value
for NGO
Value for Nokia,
Govt., Customers,
Suppliers and
NGO creates a
Value Web for
ENVIRONMENT
Satisfied
customers in turn
creates value for
Nokia
Better
Corporate and
social world
creates value
for Govt.
Joint Learning or Co- Evolution : Joint
learning and Cooperation of
different Entities result in co-evolution of
green environment
Conclusions
• Mobile environmental solutions can be used to instill eco-behavior in the
consumer . Various behavior models (Fritz- Heider balance theory and
motivational functions) have been used to suggest ways to instill eco –
behavior among people
• Various Mobile Environmental solutions have been suggested each with a different
purpose in sync with Nokia’s current strategy by giving stress on making impact
through large user base
E-manual – Environmental Prevention Mobile Gaming – Environmental Awareness
Ecological Reporting – Environmental Conservation
Carbon Diem Technology - Environmental Offsetting Dial4Light – Futuristic Concepts
• Healthy eco-system generates sustainability by creating value web through
enhancing value in different value chains. Suppliers, Government, Customers and
NGOs through joint learning and cooperation aim toward green evolution of
Environment. They create value for each other and for environment as a whole