1865 Finland – Paper Manufacturing 1967 Three companies merge Today Telecommunications Significant Challenges.

1865 Finland

– Paper Manufacturing

1967 Three companies merge

Today Telecommunications

Significant Challenges

• Latest Technology

• “Life Goes Mobile”

• 40 New Phones in 2005

• Sales booming

Mobile Phones

Multimedia

Networks

Enterprise Solutions

In 1997 – 20 Million Units

In 2001 – 140 Million Units

#1 Producer of Cell Phones in Sales and in Market Share

Ahead of Motorola, Siemans and Samsung

Financial Status

•Company Locations

•Employees

•Customers

•Competitors

•Information Technology*Venturing * Website* E-learning

Introduction

Nokia

Largest mobile phone manufacturer & the top suppliers

Has mobile telephones to T.V. set top boxes and internet software and services

Involved in home networking and mobile displays

SWOT

• STRENGTH– Product development– Market leadership– Strong brand– Lost cost production

SWOT

• WEAKNESS– Lost market share– Nokia networks– Enterprise sector and Nokia ventures– Wireless handset performance

SWOT

• OPPORTUNITIES– China and the Asia-Pacific region– Market growth– New technologies– Enterprise market

SWOT

• THREAT– Strong competition– Market saturation in Europe– Microsoft– Virus

Porter’s 5 Forces Analysis

Threat of New Entrants

– Nokia has many rivals who wants to:• Steal customers & market share

– If Nokia doesn’t develop new innovation• Rivals will steal customer & market share

Cont’d

• A few factors that can limit the threat of new entrants in the industry includes:– Existing loyalty to major brands

– Incentives for using a particular buyer• E.g. frequent shopper programs

– High fixed costs

– Scarcity of resources

– High costs of switching companies

– Government restrictions or legislation

Power of Suppliers

• Nokia’s suppliers located everywhere– Europe– Latin America– Asia

• Vital to stay ahead of competitors and to take control of suppliers ahead of time

Cont’d

• Suppliers have more power if:– There are very few suppliers of a particular

product– There are no substitutes– Switching to another product is very costly– The product is extremely vital to the buyer,

they can do without it– The supplying industry has a higher

profitability than the buying industry

Cont’d

• Fortunately, Nokia has suppliers worldwide.

• If one suppliers cannot perform or if the price is high, they have a backup plan

Power of Buyers

• Nokia’s consumer are loyal customer who support and buy their product

• Company has established international presence with brand awareness

• The company brand helps the company to increase sales by allowing customers the freedom to purchase products from manufacturers

Cont’d

• Nokia’s consumer could place much pressure on the company if one customer has a large enough impact to affect a company’s margins and volumes, then they hold substantial power

Cont’d

• . A few of these key points that customers might have power are: – Small number of buyers– Purchases of large volumes– Switching to another product is simple– The product is not extremely vital to the buyer,

they can do without it for a period of time– Customers are price sensitive

Cont’d

• it is vital for Nokia to keep the consumers satisfied by providing new innovation with low-cost pricing

• This is important for the company because customers are the key reason to generate profit.

Availability of substitutes

• Nokia is creating new mobile telecommunications and network infrastructure

• company is always developing new mobile phone, network, and venture to help them stay ahead of their rivals

Cont’d

• The products and services provided by Nokia include: – mobile phone handsets – network infrastructure products – broadband access – multimedia devices – enterprise solutions – venture services

Cont’d

• According to Porter’s competitive forces, availability of substitutes, he stated that someone will switch if:– If the cost of switching is low

Cont’d

• 2 Factors that can affect the threat of substitute include:– the main issue is the similarity of substitutes – if substitutes are similar, then it can be viewed

in the same light as new entrant

• it is extremely vital for Nokia to make their product differentiate from their competitors

Competitive rivalry

• Nokia does not have anything to distinguish them from their rivals; the company is in huge trouble

• Porter’s competitive forces, competitive rivalry, he describes competitive rivalry as the intensity of competition between existing firms in an industry

Cont’d

• Three of the reasons why a highly competitive market might arise are: – many players of about the same size, no

dominant firm – little differentiation between competitors

products and services – a mature industry with very little growth

Cont’d

• Fortunately, Nokia are always coming up with new ideas and new innovations to differentiate themselves

• On top of that, the company is enforcing low-cost pricing with high quality mobile telecommunications

Nokia Corporation

Company’s Challenge and Opportunity

Corporate Cultural

• Corporate Cultural:Nokia’s one of the most important business strategies and competitive advantage.

• Nokia’s Motto:- Interpersonal skills:

Important and are use as a hiring guide line for the corporate.

- Cultural & Values:Unique corporate culture emphasizes and values product innovation, customer satisfaction and employees motivated by high levels of trust independence and opportunities for personal and professional enrichment.

- Cultural:** Promotes intervention

** Expected people to come up with their own views and fight for their views.

** Show high respect for individuals who take risks and are not afraid to admit mistakes.

** Admire for people for being humble, regardless of how great their accomplishments are.

Nokia Core Value• Customer Orientation:Seeing customer as the basis of all Nokia

activities

• Respect for the individual:Treating employees, business partners and

customers with respect.

• Achievement:Working toward and well-defined common

goal and strategy.

• Continuous Learning:Constantly looking for ways to improve

performance and having the courage to pursue new ideas.

Strengths

• Brand as a asset:Brand is associated with well-designed,

high quality and technologically advance products and customer-services and user-friendly.

• Strong Product offering:** Goes beyond voice-centric mobile

phones** Include entirely new functional

categories of mobile devices, such as enhanced communicators, entertainment and gaming devices and media and imaging phones.

• Advanced Technology:** Nokia is a frontrunner in developing

leading technologies with approximate 39% workforce employed in the area of research and development.

** Nearly 80% research and development achievements are reflected in the strength of registered and filed patent portfolio.

• Excellent in execution:Experience, efficiency and skill in execution

and in managing demand-supply chain to deliver new ideas and technologies in product form at the right time, and in sufficient volumes.

Happy holiday to you all