THAO NGUYEN (阮氏慶慈) M987z237
MARTIN KOKOR (柯偉立) M987z253
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Industry: Telecommunications, Internet, Computer
software
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Founded: Tampere, Finland (1865)
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Products: Mobile phones, Smartphones, Mobile
Computers, Networks,
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Services: Software, Online services
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Revenue: ▼ €40.99 billion (2009)
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Operating income: ▼ €1.197 billion (2009)
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Net income: ▼ €891 million (2009)
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Total assets: ▼ €35.74 billion (2009)
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Employees: 125,859 (March 31, 2010)
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Nokia connects people to each other
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Nokia is a world leader in mobile communications and manufacturer
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The information easy-to-use and innovative products like mobile
phones, devices and solutions for imaging, games, media and
businesses.
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Nokia provides equipment, solutions and services to network operators
and corporations.
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It has held the most market share since 1998.
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In 2009, Nokia global annual revenue of €41 billion and operating profit
of €1.2 billion.
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Nokia's strategy has always been
built on looking forward and trying
to predict the future.
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The main strategy of the Nokia
Corporation is based on
growth, efficiency and profitability
and focuses on several things.
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It also emphasizes on sustainable
environmental development that
can be used to offer the best
products to the final consumer.
Personality counts
Brand name/ Brand development
Research & development
Mass production
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The ability to find the "right" person to fit
into the Nokia team is one of the
company's core competencies.
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Search for the talented software engineer
or researcher requires the company to pay
great attention to personality and
behavior.
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Nokia believes that technical skills are
easier to assess and to learn than personal
skills, which play a critical role in the
company's team-driven culture.
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In 2009, Nokia has more than 123,000
employees in over sales in more than 150
countries.
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When hiring researchers and engineers, Nokia is almost as interested in
temperament as it is technical credentials.
Nokia motto: You can teach technology in the company much easier than you can
teach interpersonal skills, if at all.
Director of global strategic resourcing at Nokia's headquarters in Espoo, Veli-Pekka
Niitamo said. "We want people who can work in a team, who can communicate and
defend their ideas and, equally important, who can accept different opinions."
Nokia focus is not only on technical skills but also on attitudes and behaviors critical
to the creative spirit of the company.
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Nokia's core competencies consist of their
brand name - brand development.
Nokia's brand is associated with welldesigned high quality and technologically
advanced products and a user-friendly
customer service.
The downturn in telecommunications industry
in 2001 did not have much impact on Nokia,
with increasing operating profits that grew up
to $4.8 billion and holding 37% of the
global cell phone market (in 2001).
The strength of its brand can be considered
attributable to its solid performance despite
difficult market conditions.
Nokia has been experiencing sales slump that
has seen its market share fall from 40% to
30% for the first time.
Nokia is developing a brand strategy for the
creation of regional umbrella advertising to
run alongside specific initiative in individual
countries.
Sony Ericsson,
Others, 17.7
8.3
Nokia, 40.3
LG, 9.2
Samsung, 15.2
Motorola, 9.3
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Nokia is the largest phone manufacturer in the World.
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The Nokia brand gradually strengthened in all areas while the
attractiveness of Motorola, the biggest rival, declined.
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Nokia has huge customer recognition that other companies
might not have. Their market power also gives us hints to many
of their capabilities that will delve into in the capabilities section.
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Three Nokia’s main market areas
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Europe
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Asia Pacific
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America
Sales in Europe amounted to
roughly half the total
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While Asia and the United States
for about a quarter each.
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The euro zone developed pretty
much as expected.
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Nokia was among the first
companies to adopt the common
currency in its accounting.
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One of the most important success factors that
has made Nokia the company it is today is their
heavy investment in research in development
They spend about 9,5% of revenues on R&D
(2007)
Nokia maintains global contacts to universities,
research institutes and other companies to
monitor and influence developments in
technology
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14.500 employees (32% of their workforce)
work in 10 R&D centers all over the world
Each of these research facilities has focus on
a specific subject and technology
The diversity of these locations allows Nokia
to better prepare the company to compete
well in the future
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China, Beijing – They are working to take
advantage of the largest mobile market and
the fastest growing economy in the world –
China
India, Bangalore – This team focuses on
market services for both urban and rural India
Kenya, Nairobi – Understanding the unique
needs of the African mobile phone users and
creating concepts and visions to fulfill these
needs
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Finland, Helsinki – They study the fields of user
experience, mobile security, power management,
computing architectures and intelligent contextaware radio
Finland, Tampere – Their research focus is on
rich context modeling, new user interface and
high performance mobile platform
Switzerland, Lausanne –They are researching the
field of pervasive sensing and computing
United Kingdom, Cambridge – Here they develop
nanotechnologies for wireless communication
and ambient intelligence
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USA, Cambridge – Here they’re developing new
technologies for rich context modeling and new
user interfaces
USA, Hollywood – The center is focusing its
research on activities in context aware social
media, user interaction models, mixed reality
experiences and the convergence of the internet
and mobility
USA, Palo Alto – Researching mobile internet
services systems, mobile business solutions,
context-specific content and visual computing
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One more Nokia’s core competency is its ability
to mass produce products quickly and cheaply to
meet demands in the whole world
They have captured almost half of the total
market share for mobile phones which makes it
difficult for new companies to penetrate the
market
The big number of factories around the world
puts Nokia in a great position to meet world
demand
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In the past years, they have also been focusing
on increasing capacity of some of their factories
in countries such as China and India to meet the
growing demand there
Nokia’s production facilities that focus on mobile
devices are located in Brazil, China, Finland,
Hungary, India, Mexico, Romania, South Korea
and United Kingdom
In addition to these production facilities they also
have factories producing network technologies in
China, Finland, Germany and India.
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Too often, companies mistake their values,
assets or internal processes for a core
competence
A core competence is a bundle of skills,
technologies and/or strategic assets that is
integral to success
Nokia focused on identifying its core
competencies, looking for opportunities
beyond the boundaries of its current
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Nokia’s core competencies of finding the
right person, brand development, R&D and
mass production have played a vital role in
their success
Its leadership position
is a result of paying
close attention to
market needs and
taking chances at the
right time