2. What is Nokia?
Nokia is About Connecting People
It is the world's largest manufacturer of mobile
phones.
Offers much more: mobile devices and solutions
for imaging, games, multimedia, mobile network
operators and business.
Headquarter : Espoo, Finland
3. What is Nokia?
• Market share as 23% in the second quarter
2011
• Over 132,000 employees in 120 countries,
sales in more than 150 countries
• Around 220 different phones (till 2011)
5. List of Nokia Product Family
Nokia 1000 series – Ultrabasic series
Nokia 2000 series – Basic series
Nokia 3000 series – Expression series
Nokia 5000 series – Active series
Nokia 6000 series – Classic Business series
Nokia 7000 series – Fashion and Experimental series
Nokia 8000 series – Premium series
Nokia 9000 series – Communicator series (discontinued)
6. List of Nokia Product Family
Nokia C series - affordable series (optimized for social
networking and sharing)
Nokia Eseries - enterprise-class series (business-
optimized smartphones)
Nokia Nseries - advanced smartphone series (with
advanced multimedia and connectivity features)
Nokia Xseries – for young audience (focused on music
and entertainment)
7. Product Line Strategy
Starting since 1994, Nokia :
• created global platform, GSM 900 platforms
(2110, 8110 and 6110)
– GSM 900 and 1800, primarily in Europe and Asia
– 1900 MHz and TDMA 800, primarily in US and
South America
– PDC (Personal Digital Cellular), primarily in Japan
8. Product Line Strategy
• Introduces lots of product in a short time
• Emphasizes aesthetic design, user interface
and software features
• Use common designs across standards
• Concise Architecture-documents
9. Product Line Strategy
Source : J. Funk. Global Competition Between and Within Standards: The Case of Mobile Phones.
10. Advantages
• Effectively covers various price segments while
maintaining lower development cost
• Improves efficiency to further development and
manufacturing of products within each series
• Changes the competition from a single market to
global level
• Creates a strong brand image, enables it to set prices
that are based more on customer value than on cost
12. Problems
• Nokia products are not reaching intended
customers, a clear mismatch between the
product and its customer
• Variability needs in software are constantly
increasing because
– variability moves from mechanics and hardware to
software
– design decisions are delayed as long as economically
feasible
• ‘Here is a phone. Do you want it?’
13. Problems
• Victims of success: broadening scope of product
families
– Convergence leads to broader set of products
– Success leads to unrelated products to be included in the
family
• Too many products
– The wide product portfolio results in customers being
thinly scattered across each product line
• Buyers bargaining power is high
– More choice of products with very limited differentiation
– Elastic demand, buyers can delay buying new models
14. Solutions
• Focus on increasing the user satisfaction index
• Release less products but hit bulls eye
• Learn to know better about customer’s
evolving tastes, needs and requirements
• Hierarchical Software Product Family
• Composition-Oriented Approach
18. References
• Bosch, Jan. Software Product Families at Nokia. Nokia
Research Center, 2005.
• Funk, Jeffrey. Global Competition Between and Within
Standards: The Case of Mobile Phones. London, Palgrave,
U.K., 2001.
• Funk, Jeffrey. The Product Life Cycle Theory and Product
Line Management: The Case of Mobile Phones. 2004.
• http://www.janbosch.com/QoSA-Keynote0606.pdf
• http://en.wikipedia.org/
• http://www.slideshare.net/merragun/nokia-strategy-
3763661
• http://www.nytimes.com/2009/10/19/technology/compani
es/19nokia.html
1) The use of a product line gave Nokia the opportunity to increase their production of new mobile phone models from 5-10 to around 30 4) Effective communication of architectural properties can be achieved only with concise documentation. It is very hard to find inconsistencies in a document of more than 500 pages. Nokia strives to describe Architecture in a way that provides concise document that directly address the wanted characteristics.
Ex # 1: - Nokia fails to offer design that fits the tastes of American consumers, like flip phones and touch screens Ex # 2: - Nokia fails to provide solutions to the problems of consumers regarding the use of their Internet connection features.
Too many products: Problems • Decreasing complete commonality • Increasing partial commonality • Over-engineered architecture
