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 1980’s 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 1990’s and early 2000’s 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%.
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.
A world where everyone can be connected.
In 2015, 5 billion people always connected, and 100 fold more network traffic.
NOKIA’S FOUR BUSINESSES Accelerate Adoption of business solutions Lead and win the devices Grow consumer internet service Leverage scale and transform to Solutions in infrastructure
Nokia’s Share by year(2007-2008)
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
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.
NOKIA’S MARKET SHARE
-High Quality Phones
Industry Leader in Innovation
Cheap for consumers to buy
Lagging Behind in R & D
Some Short-term borrowings
Smaller Sales than other phone carriers
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.
Other phone manufacturers
Samsung, LG, Sony Ericsson, Motorola, Etc.
NOKIA’S COMPARITIVE ADVANTAGE
Anyone who has a vested interest in the company is a Nokia shareholder.
Needs of stakeholders include:
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 Nokia’s 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 Operational unit specific issues Business environment Investigation focus Implication at Business unit Operational unit Business unit Specific issues Broad defined industry Business unit Implication at Operational level Strategic focus
VALUE CHAIN & COMPONENTS Suppliers Customer groups and needs Complimentary products Industry regulation And technology Competitors
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
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!
Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.
NOKIA’S 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 Nokia’s new strategy
New nokia culture And ways of working Engagement & leadership and New values Nokia’s 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.
Nokia’s challenge for the future is to identify new avenues of growth in an industry that is becoming saturated.