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2007 Nokia Analysis
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2007 Nokia Analysis

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  • 1. Lee, Jin Hyun l Product Design 2 , IDAS
  • 2. INDEX About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 3. About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 4. Nokia Value About Nokia Customer Satisfaction Nokia는 헬싱키에서 북서쪽으로 200Km쯤 떨어진 인구 2만 8,000명이 사는 소 도시의 이름으로, 핀란드말로 ‘Soot Marten (검은 단비)’ 라는 뜻을 가지고 있다. Respect for the Individual Achievement Continuous Learning Strategic Marketing , International Design school for Advanced Studies
  • 5. About Nokia History of Nokia 1865 The small pulp factory called Nokia about 150km away from Helsinki is the main factory built by Fredrick Ideestam 1898 Rubber Corporation in Finland 1912 Electric Wire Corporation in Finland 1967 Integrated of Nokia Group 1960 Discover the possibilities of the communication industry and spend all energies on the industry’s aim 1964 Produce a radio phone [Concentrated on core competence on multi enterprise 1966 Produce a long distance and informational communications ] with car phone The beginning industries The present time Tires The others Shoes Supply of electric power Local area network Customer Transmission system Electric home appliances Wire network Material management Wireless network Electric Wire GSM network Machines Multimedia Robot Internet Construction Digital telephone Paper Making Cellular phone Chemistry Base station Telecommunications Reference : Toward Telecommunication, Nokia, 1999 Strategic Marketing , International Design school for Advanced Studies
  • 6. About Nokia 1967 Start on the development of digital technology 1969 Succeed in development of digital transmission system,’DX200’ (DX200 still use of network switch on wire and wireless) 1981 Start on the production of cellular phones 1994 Launch the world’s first GSM, TDMA services, etc. 9110 Sales Volume (ten thousand) 16.8% Operating profit (%) 4530 Reference : 3480 Josun Times - 4.8 26.05.2005 13.0 1580 6.6 Image by Company Brochure 2006 of Nokia Motorola Samsung LG Nokia [ Nokia of the World market share 36.2%] [The results of mobile industry (01-04.2007) ] Samsung(13.8%),LG(6.3%) Strategic Marketing , International Design school for Advanced Studies
  • 7. About Nokia Nokia Way Build up core business 01 • Abandon Tires, Cables, Electric Power and TV industries, etc. • Concentrate on the telecommunication industry (Cellular phone business) Connecting People 02 • Everybody can get information whatever they want and wherever they go • Recognize mobile devices for all , it is not only for business man early. User centered design and communication 03 • Emphasis on the life style and user centered design communication Strategic Marketing , International Design school for Advanced Studies
  • 8. About Nokia Nokia Way Financing Differentiation 04 • List of New York Stock in 1994 • Abolish the discrimination between common stocks and preferred stocks in 1997 • Market total price of 122 billion Euro in the end of 2000 • Extension R&D investment for global market and build up core business Nokia’s New Enterprise Model 05 • Importance of the product innovation as well as organization innovation and process in this age • Introduction of innovation system : make the feeling of solidarity between a dealer and Network buyer Holistic Way of Thinking 06 • Active sales support system and exchange of information with co-partners • eg. Nokia House is built of 26,000 units of clear glasses that means Openness Strategic Marketing , International Design school for Advanced Studies
  • 9. About Nokia “Being number 1 in the cell phone market is not about developing new brand first but the system of our innovational organization advances our competition.” - Jorma Ollilo , Pre president of Nokia Strategic Marketing , International Design school for Advanced Studies
  • 10. About Nokia The Innovation system of Nokia Development R&D Management of products • Manufacturing system with flexibility and • One third of employees • with the structured 3 levels of shareable knowledge decision-making in project, subgroup, • 11~12% of annual sales R&D expenses or corporation balanced structured is • countermeasure in changeable market fixing maintained by manufacturing system and network • Firm research center: general research • Meritocracy • Not just out-sourcing, maintenance of 45%, 65% of total research development • promote to share the knowledge by partnership progress, 25% of foreigners form Job rotating and defend individualism • Develop together and share the • make a close network with other and blocked culture of organization information clearly companies and universities : The • Annual finances should be performance of development and basic • Possibilities of a rational and fast research minimized to 6months decision • entrust the result of research to an expert • Nokia Value • Since there are no semiconductors and self affiliated factories, continuation of technological innovation and maintain intimate relationship with parts industry corporation Strategic Marketing , International Design school for Advanced Studies
  • 11. About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 12. Future Market of Mobile Devices The faster same quality of the product strategy by mutual benchmarking • Making up for the weak points and minimizing of failure possibilities by benchmarking to leading company • If it focus on the benchmarking, there will be growing concern about the homogeneity of the product strategy • The loss of the differentiation of the product strategy with competitive companies • It brings about the ephemeralization of the product which is a position of advantage Eg. Slim and conversance mobiles of similar types like a ‘Razr’ of Motorola Nokia Samsung Samsung LG Motorola • It is more important to design inside of device than outside because it is no longer differentiation in prices, qualities and general functions. • More important to design of the mobile platform ( eg. User Interface, UGC Tools, Full Browsing, etc.) Strategic Marketing , International Design school for Advanced Studies
  • 13. Future Market of Mobile Devices Getting more deeply competition with new media • Fierce competition to be acknowledged as a standard technology of the world by the advent of new media eg. T-DMB of KT, TV(DVB-H) of Nokia , Media flow of Qualcomm, etc. • Keen competition to be a standard of mobile communication technology of the next generation eg. ‘Wiremax Evolution‘ of Samsung and Intel, ‘3G LTE’ of 3GPPP and ‘MBWA’ of Qualcomm • It needs to adopt the standard technology and build skills of the total network Strategic Marketing , International Design school for Advanced Studies
  • 14. Future Market of Mobile Devices Web 2.0 & Mobile 2.0 • Mobile 2.0 means that Web2.0 is realized. • Five sixth of the world population who never use PC can use the internet with mobile device in the future • Google and Yahoo take part in the mobile search market positively • Prediction of the rapid growth on the mobile advertisement market [Cooperation between internet and mobile] [Expected Mobile AD Market in 2011 ] [relationship of Mobile and Web2.0 ] $4.5billion $ 1.5billion 2006Year 2011Year Reference : LG Reference : Economic Research Reference : Strategy Analyst Pyramid Research • It needs to overcome the limitation of the mobile for the realization of Web2.0 services • Design for Small screen, innovation of an input ways and enhance the usability Strategic Marketing , International Design school for Advanced Studies
  • 15. Future Market of Mobile Devices Destruction of industrial territory • Destruction of territory on the manufacturing, internet and mobile communications industry • keen competition for extension of the point of contact with a customer by conversance • Importance to the platform that can be a compatibility of service or a particular technology • Construction of the entry barrier in concert with other companies` eg. Symbian LG has a built in Symbian OS and Full Browsing • It needs to make an effort to ensure a position as a leading company with a platform strategy Strategic Marketing , International Design school for Advanced Studies
  • 16. Future Market of Mobile Devices Rapid increase in global media market and the keen competition of contents • Activation of the digital media generation who enjoys the contents as many as possible with only one device • combination of the media industry by spreading of digital media and a new technological development • Activity of the global cooperation and M&A by breaking languages and barriers of media The market of contents in the world The market of VOD in the world The market scale of major contents $ 12.5 billion Newspaper Internet $ 1.7billion movie Reference : 2006Year 2010Year Price Reference : Samsung economic research Video Waterhouse Reference : Josun Times Coopers and ,WPP • It needs to develop strategic products and total services with media contents Strategic Marketing , International Design school for Advanced Studies
  • 17. About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 18. 3 Values of Nokia Valued Value Value Proposition Network Customer • Strategy of ‘Connecting People’ : Concentrating to supply mobile of a low price and extension of the market s • Strategy of a high price and development of a high-class mobile,’Vertu’ High • Vertu Samsung • Vertu Motorola The highest price : $ 88,300 The bottom price : $ 5,320 Sony Erickson Price • Nokia Low • Mobile of a low price for diffusion High Low Function Strategic Marketing , International Design school for Advanced Studies
  • 19. 3 Values of Nokia Valued Valued Value Customer Network Proposition • Vertical bureaucratism and officialism Exclusion • Payment of a low loyalty : 7% by the sales in a year Decrease (Competitive company pays 11% by the sales in a year) • Improvement in development of products by the cost control • Thinking of user centered design and communication – Connecting People Improvement • We do not use the words “we are the best” even though we are best in this industry • Aim at the mobile as a media platform with media contents in the entertainment industry • Offer of the mobile platform for advertisements -Nokia Ad Service, Nokia Adverising Connetor New • Offer of the game platform for users of N-Gage •Understanding of the market by Nokia innovation system and application for development of products by the needs of customers Strategic Marketing , International Design school for Advanced Studies
  • 20. 3 Values of Nokia Valued Valued Value Customer Network Proposition Core Factors Priority Low Middle High Consistency of Communication 2 Stron Partnership 10 Investment of Gllobal R&D 6 Innovative Culture of Organization 7 Holistic Network 9 Bland Value 3 Convergence 8 Maintenance of the bottom ASP 4 Standard of Platform 12 Payment of Loyalty 11 Price Control 3 Variety of Choice 1 Web 2.0 Services 5 Strategic Marketing , International Design school for Advanced Studies
  • 21. 3 Values of Nokia Valued Valued Value Customer Network Proposition • Development of products by the powerful partnership and external projects • Intensification of countermeasure in a changeable market by the constant investment of R&D • Maintenance of the bottom price by the excellent cost control and proper functions • Design communication with a strong effect of the brand • Development of a mobile platform for user centered design Strategic Marketing , International Design school for Advanced Studies
  • 22. 3 Values of Nokia Value Valued Value Customer Proposition Network Purchase Marketing Product Manufacturing and Management • Maintenance • Standard of Platform • Consistency of Identity • Product of Connecting People of the bottom ASP (N,S Series) • Customer Centered and • Convergence and Devergence • Nokia ASP : $ 110 • Unique of Price control Design Communication • Strategic Product • Reasonable and various price • Payment of Low Royalty • Connecting People of Media contents • Premium product, • Negotiation skill of Price • Application of Web 2.0 • Role of a media platform the highest price • Financing Differentiation ( Eg. Sponsor by Nokia on • Focus on the Usability • Strong Partnership the YouTube) • Simple and Stylish Design • Global Manufacturing System • Focus on the Media • Development of S/W Contents • Development of Chip set Strategic Marketing , International Design school for Advanced Studies
  • 23. About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 24. New Mobile Concept Development Product Design Concept Do not expect anything The joy of not able to predict the design change of cell phones Unexpected with the saved data analysis only with the touch screen Save and express your memory The cell phone that is one of a kind of my own that records Two Layer and recalls the senses of the past memories Phone It’s just for you Memorable Unique it bestows the value of my own which is designed with unique concept according to the user Strategic Marketing , International Design school for Advanced Studies
  • 25. New Mobile Concept Development Core Benefit 01 It can set individually up the variety interface that is analyzed the SMS especially stylish typography Unexpected You can design a stylish typography by taken SMS on your mobile Strategic Marketing , International Design school for Advanced Studies
  • 26. New Mobile Concept Development Core Benefit 02 It shows individual images that user takes a picture by oneself and picks one on the AMOLED screen Unique Strategic Marketing , International Design school for Advanced Studies
  • 27. New Mobile Concept Development Core Benefit 03 It can enhance the user experience that the function of interface start touching point by finger on the mobile • Interface of Two Layer : The active and flexible menus show on the screen that you took a picture own yourself • It is changed the interface on the screen when you take a picture Strategic Marketing , International Design school for Advanced Studies
  • 28. New Mobile Concept Development Core Benefit 04 It can use to enjoy photos and videos that you are taken wherever by function of projector in a charger Memorable 270’ Rotation Camera Contact Sensor Charger Chip For a Desk For a Wall Strategic Marketing , International Design school for Advanced Studies
  • 29. New Mobile Concept Development Function & structure AMOLED Touch Pad Hold Multi Button Camera Controller Plastic Menu UV Coating Button Aluminum < Front View > < Side View > Charger Chip < Perspective View > < Bottom View > Strategic Marketing , International Design school for Advanced Studies
  • 30. New Mobile Concept Development Function & structure 270’ Rotation Projector Screw Hole Camera Lens On Lamp < Side View > < Front View > < Back View > •Multi button Sound Volume Controller •Play and pause Strategic Marketing , International Design school for Advanced Studies
  • 31. New Mobile Concept Development 3D Modeling Strategic Marketing , International Design school for Advanced Studies
  • 32. New Mobile Concept Development 3D Modeling Strategic Marketing , International Design school for Advanced Studies
  • 33. About Nokia Future Market of Mobile Devices 3 Values of Nokia New Mobile concept Development Future of Nokia
  • 34. Nokia is an experimental enterprise in the next generation. They always try a test and revision and try to experiment again with the results. It is repeated the same progress several times. There are surely energy and passion in managements and - Why Nokia is the world best - also employees. References • 노키아는 왜 세계 제일인가 / 다케스에 다카히로 지음,신원식 역/ 동방미디어 • CEO에서 사원까지 마케팅에 집중하라 / 니르말야 쿠마르 지음,김상욱,전광호 편역/김영사 • 핀란드 들여다보기 / 이병문 지음 / 매일경제신문사 • 북유럽 디자인 경영 / 이병문 지음 / 매일경제신문사 • 조선일보 경제면 Mind and culture of the passionate • LG경제연구소 • and 기업 브로셔 2006 노키아 challengeable enterprise Strategic Marketing , International Design school for Advanced Studies
  • 35. With the balanced organization and the flexibility of organizational changes, it blocks the stiffness of the organization and promotes revitalization “The reason for negative prospects of major corporation undertaking merger is major corporation undertaking is not ethical for Nokia for a cultural reason. Nokia does not want to merge with a larger corporation and have climate of the .” organization be broken. It is also like breaking the core of growth factor - Jorma Ollilo , Pre president of Nokia- Strategic Marketing , International Design school for Advanced Studies
  • 36. References and ike a Jazz B L “There is one music and we have to play the same music. However, An employee can play and compose extempore the music. How fun it is, isnt’ it?!” - Unia Hokanen, vice president of Nokia Strategic Marketing , International Design school for Advanced Studies
  • 37. Multinational corporation which has venture culture even though it is not a venture business General Corp. Cyber Corp. • Brand • Speed Nokia • Organization • Challenge • Management • Flexibility If the IT industry’s today’s idea is tomorrow, then the change with a fierce speed arises . It means a failure that is intoxicated with the joy of success. Maintain the speed of decision + Keep the individual passion Nokia Value is having clear value and vision of the corporation and continuing the firm traditional corporation’s organization. Also by absorbing the cyber venture business, it is revolutionizing itself faster. Strategic Marketing , International Design school for Advanced Studies
  • 38. Nokia story continues... Mobile devices for all - Nokia leads the global device market - Take back and recycling Becoming the world's most loved and admired brand - Ever closer to people ing okia’s ongo N Very human technology The foundation for innovation A world-class team - Going Green Enhancing our supply chain A catalyst for change - The list by Company Brochure 2006 of Nokia Strategic Marketing , International Design school for Advanced Studies
  • 39. References References • Why Nokia is the World Best / Dkeska Dakehiro • Focus on the Marketing / Nirmalya kuyar • About Finland / Lee, Byung Moon • Design Management of Nordic / Lee, Byung Moon • Economic of The Josun Times • LG Economic Research • Corporation Brochure of Nokia 2006 Strategic Marketing , International Design school for Advanced Studies
  • 40. Thank You !