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Research repor tfinal

  1. 1. The first ever mobile phone in the world made its appearance more than a decade ago, andit has never been the same thing for everyone from that day on to the present moment. Therehas never been a moment of respite for the mobile phone industry with a constantly evolvingtechnology nudging manufacturers ahead with a vast array of possibilities. Moreover, thenumber of manufacturers have also increased during all these years as the pioneeringmembers have given more than enough reasons for newer players to be inspired and join therat race. Out of all these players, a few have managed to immortalise themselves through astring of successful products, which have created a legion of loyalists for them. Nokia andSamsung are two of such successful manufacturers who enjoy immensepopularity in themarket today.Finnish mobile phone manufacturer Nokia has existed in this field for a long time now, andhas combined its intelligence and the emerging technology from time to time to flaunt thereputation of the leading contender that it enjoys today. The manufacturer is widelyacclaimed for creating mobile phones with arguably the best technologically reflectivefeatures. With a primordial affinity towards the process of gradual up-gradation of aparticular model through newer and better features, Nokia has inspired several others tofollow suit. Predominantly starting out with bar shaped phones, it later took a versatile role,and created slider and clamshell phones too. Some of the most successful phones by Nokiaare Nokia 5300, Nokia N73, Nokia N91, and Nokia N93.South Korean electronics leader Samsung rushed into the mobile phone industry like a gushof strong wind, and made quite an impact amongst the phone connoisseurs. Displaying amuch acclaimed expertise in making slider phones, the manufacturer has given some of themost attractive and sophisticated phones to the world. Some of the most popular phones bythis manufacturer are Samsung D900, Samsung E250, Samsung U700, and Samsung X830.The manufacturer showcases some of the slimmest phones coupled with revolutionarytechnologies that define its infinite prowess.It had been quite a long time that Nokia was being the favourite handset of Indians wheremuch competition didnt affect the annual revenue of the company from India. But the latest [1]
  2. 2. study made by Voice and data, it states that things are not going on the right way for theFinnish Company. Korean leading mobilehandset maker Samsungs entry into the Indianmarket shows a tough competition to Nokia in the coming days. Within a year Samsung madea grand increase (21.7) in their revenue from India which makes around 5,720 crore in thefiscal year 2010-2011. Even Nokia could earn revenue around 12,929 crore in 2010-11, itdoes not show any progress in the growth comparing with the past. Samsung Mobiles havealways kept customers in the centre and therefore, they are able to design futuristic mobilephones for their customers. Moreover, they have made their presence felt across the nook andcorner of India with its extensive network. Moreover, Samsung Mobiles have alwaysemphasized the need of its large customer base and therefore, it has regularly introduceddifferent models of mobile phones: Tablet Smartphone, Smartphone, Dual SIM Phone, TouchPhone, QWERTY Messaging Phone, Multimedia Phone, CDMA Phone, Essential Phone etc.For its colossal success, Samsung India gives full credit to its talented work force. SamsungIndia has roped in the best minds in India to achieve excellence in mobile technology and itsuse across the country. From executive to CEO, every single person of Samsung India reportsto its customers, and this iComparison Of Nokia Cell With Samsung Mobile PhoneSamsung and Nokia together are huge competitors within the Indian mobile market. Samsungis renowned for its smart looks with advanced options where as Nokia is recognizing by itssuperb look and excellent battery backup. Both are charitable their greatest to delight their themakings regulars. Nokia mobile phone and Samsung are two of such flourishingmanufacturers who take pleasure in immense popularity available in the market nowadays.They always maintain their clients bring up to date in sophisticated technology. There arenumerous gorgeous collections of Samsung cell phones and Nokia in Indian marketplace withthe Samsung mobile price list and Nokia price list. [2]
  3. 3. First mobile phones New Mobiles PhoneA fleeting time ago Samsung launched its new mobile, Samsung Wave in India, ThisSamsung cell worth is Rs.19, 000 on the other hand now we be inflicted with a Nokia X 616GB This Nokia mobile phone value is Rs16, 000 which is near the be fond of peas in a podworth range. Let’s evaluate these two phones and publish. So here I go Comparison ofSamsung Wave vs Nokia X 616 GB. There is not much difference in Samsung Wave andNokia mobile phone X 616. All handsets be inflicted with GSM Quad-band phone able toworld roaming (850/900/1800/1900 MHz). Samsung Wave has sixteen 777 216 colors, 480 x800 pixels on the other hand Nokia mobile phone X6 16GB has sixteen 777 216 colors, 360 x640 pixels. In functionality of digicam both are charitable the splendid clarity andintelligibility with 5 Mega Pixel. All support Bluetooth, WI-FI, 3G and lots more.If we discuss its storage capability than Samsung wave be inflicted with 32 GB double-jointed reminiscence where as Nokia mobile phone X6 16GB be inflicted with alreadyintegral Reminiscence of 16GB with no double-jointed reminiscence slot. When we’re vacantto buy a mobile phone, with all color of the mobile concerns a lot. Samsung wave is solelyavailable in black color but Nokia mobile phone X 616 be inflicted with attractive of range ofcolours with mixture of White/Yellow, Black/Black, White/Pink. Hence all mobiles be [3]
  4. 4. inflicted with pleasing specification with excellent looks. Which is the best one? It’s tough tosay.To be familiar with more about the Samsung cell price list and Nokia mobile phone price listvisit innumerable websites who guide you and take you on a proper path and there you maysearch more uncommon cellular handsets of Samsung and Nokia mobile phone.Fetch practical information about miracle cancer cure – delight study the webpage. The timesbe inflicted with come when concise info is really at your fingertips, use this chance.The Mobira Cityman 150, Nokias NMT-900 mobile phone from 1989 (left), compared totheNokia 1100 from 2003. The Mobira Cityman line was launched in 1987.The technologies that preceded modern cellular mobile telephony systems were the various"0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercialand some military mobile radio communications technology since the 1960s, although thispart of the company was sold some time before the later company rationalization. Since 1964,Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salorastarted developing the ARPstandard (which stands for Autoradiopuhelin, or car radiophone in English), a car-based mobile radio telephony system and the first commerciallyoperated public mobile phone network in Finland. It went online in 1971 and offered 100%coverage in 1978.In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobirabegan developing mobile phones for the NMT (Nordic Mobile Telephony) network standard,the first-generation, first fully automatic cellular phone system that went online in 1981. In1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.[46]Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed thecompanys telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman,launched in 1984, was one of the worlds first transportable phones. In 1987, Nokiaintroduced one of the worlds first handheld phones, the Mobira Cityman 900 for NMT-900networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). Whilethe Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg(11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag [4]
  5. 5. of 24,000 Finnish marks (approximately €4,560). Despite the high price, the first phoneswere almost snatched from the sales assistants hands. Initially, the mobile phone was a"yuppie" product and astatus symbol.Nokias mobile phones got a big publicity boost in 1987, when Soviet leader MikhailGorbachev was pictured using a Mobira Cityman to make a call from Helsinki to hiscommunications minister in Moscow. This led to the phones nickname of the "Gorba".In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, alongwith two other employees from the unit, started a notable mobile phone company of their sthe secret of its success in India and across the globe. [5]
  6. 6. The primary objective of the study is to understand the growth pattern of mobile segment,giving main consideration to mobile segment of both companies and analyzing the franchiseon the give parameter. Some other objectives of the study are as follows:-  To know the test and preferences of consumer about services.  To measure the customer satisfaction regarding services.  To understand the reaction of consumers by listening to the Brand  Analyzing the competition in the market comparative analysis of different plans of companies.  Research and analysis of the current customer base.  To know the market share of companies in the mobile market.  To study the viewpoints of the customers regarding the services provided by the companies.  To know how much customers are attaching to company  To attract the customers towards the product of the organization using various promotional tools. [6]
  7. 7. No project is without limitations and it becomes essential to figure out the various constraintsthat we underwent during the study.  The following point in this direction would add to our total deliberations.  During the study on many occasions the respondent groups gave us a cold shoulder.  The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied.  Lack of time is the basic limitation in the project.  Some respondent refuse to cooperate with the queries.  Some consumer gave a biased or incomplete information regarding the study.  At times customers are not ready to listen to the information given to them because they are too angry with the whole processing system. So didnt respond.  Some respondent did not answer all the questions or did not have time to answer.  Money played a vital factor in the whole project duration.. Lack of proper information and experience due to short period of time. [7]
  8. 8. Research in common parlance refers to a search for knowledge. One can also define researchas a scientific and systematic search for pertinent information on a specific topic. In fact,research is an art of scientific investigationThe research methodology, not only the research methods are but also consider the logicbehind the methods. They are in the contest of our research studied. And explain why we areusing a particular method or techniques and we are not using others.RESEARCH DESIGN-Descriptive research design:In includes surveys, and facts finding enquires of different kinds. The major purpose ofdescriptive research is description of state of affairs as it exists at present. The main characterof this method is that the researcher has no control over the variables. He can report what hashappened? Or what is happening?Nature of data:In this study primary data was used.Collection of data:The data was collected from the respondents through the distribution ofquestionnaire.Method of data collection:- QuestionnaireArea of the study- This study was covers Lucknow city only.Sample size - The sample size covered for the purpose of this study was 100.Sampling method- Convenience sampling. [8]
  9. 9. Achieving accuracy in any research requires in depth study regarding the subject. As theprimary object is to study the market segmentation and strategies secondary objective of theproject is to compare NOKIA AND SAMSUNG in the market and impact of competitionon both the company the research methodology adopted is basically based on primary datavia which the most recent and accurate piece of first hand information could be collected.Primary Data.Questionnaire Method, Direct Interview Method and Observation Method.The main tool used was, the questionnaire method. Further direct interview method, shall bea face to face formal interview was taken. Lastly observation method had been continuouslyobserves the surrounding environment he works in.Procedure:  Target geographic area was only Lucknow  To these geographical area questionnaire was fill by 100 people. The questionnaire was a combination of both open ended and closed ended questions.  The date during which questionnaire fil was between four week.  Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.Secondary dataSecondary data has been used to support primary data wherever needed. It is used to obtaininformation about companies and its competitor history, current issues, policies, proceduresetc, wherever required.Sources of Secondary Data  Internet  Magazines  Newspapers, etc.Sampling size was 100. [9]
  10. 10. NOKIAIn 1865, an engineer named Fredrik Idestam established a wood-pulp mill and startedmanufacturing paper in southern Finland near the banks of a river. Those were the days whenthere was a strong demand for paper in the industry, the companys sales acheived its high-stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then tothe United Kingdom and France. The Nokia factory employed a fairly large workforce and asmall community grew around it. In southern Finland a community called Nokia still existson the riverbank of Emäkoski. Fredrik Statesman Leo Idestam, Mechelin, co-founder founder of of Nokia. Nokia.Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-electrcity produced by the Nokia wood-pulp (from river Emäkoski), merged up and startedselling goods under the brand name on Nokia. After World War II, it acquired a major part ofthe Finnish Cable Works shares. The Finnish Cable Works had grown quickly due to theincreasing need for power transmission and telegraph and telephone networks in the WorldWar II. Gradually the ownership of the Rubber Works and the Cable Works companiesconsolidated. In 1967, all the 3 companies merged-up to form the Nokia Group. The [10]
  11. 11. Electronics Department generated 3 % of the Groups net sales and provided work for 460people in 1967, when the Nokia Group was formed.In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analogswitches. Soon Nokia successfully developed the digital switch (Nokia DX 200) therebyreplacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded withhigh-level computer language as well as Intel microprocessors which in turn allowedcomputer-controlled telephone exchanges to be on the top and which is till date the basis forNokias network infrastructure. Introduction of mobile network began enabling the Nokiaproduction to invent the Nordic Mobile Telephony(NMT), the worlds very firstmultinational cellular network in 1981. The NMT was later on introduced in other countries.Very soon Global System for Mobile Communication (GSM), a digital mobile telephony,was launched and Nokia started the development of GSM phones. Beginning of the 1990brought about an economic recession in Finland. (Rumour has it that Nokia was offered to theSwedish telecom company Ericsson during this time which was refused) Due to this Nokiaincreased its sale of GSM phones that was enormous. This was the main reason for Nokia tonot only be one of the largest but also the most important companies in Finland. As per thesources, in August 1997, Nokia supplied GSM systems to 59 operators in 31 countries.Slowly and steadily, Nokia became a large television manufacturer and also the largestinformation technology company in the Nordic countries. During the economic recession theNokia was committed to telecommunications. The 2100 series of the production was sosuccessful that inspite of its goal to sell 500,000 units, it marvellously sold 20 million.Presently, Nokia is the number 1 production in digital technologies, it invests 8.5% of netsales in research and development. Also has its annual Nokia Game. Nokias historyFor a tech company, Nokia has a longer history than most. The company started life as apaper mill at the Tammerkoski Rapids in south-western Finland in 1865. Over the years, itadded business lines including rubber boot manufacture - the wellies are still sold at NokiasFinnish HQ in a nod to the companys past - and cable-making before it ended up as anelectronics company in the 1960s.Despite first making computers, Nokia really made its name as a manufacturer of portablephones.Its first mobile - in the way its understood today - was a GSM phone launched in [11]
  12. 12. 1992, the same year that Jorma Ollila became Nokias president and CEO. Ollila steered thecompany though the mobile boom of the 1990s and early 2000s and remains the companyschairman to this day.Today, the company has expanded beyond simply selling mobile devices and now has fourmain business strands: devices - its handset business; services - apps and software; Navteq,which covers mapping and location services; and its networking joint venture, Nokia SiemensNetworks. DevicesApart from a tentative return to its computing roots with a netbook launch last year, Nokiashardware business is focused on mobile handsets.Nokia breaks its handsets down into two categories: common-or-garden mobiles and"converged internet devices".The pure-play mobiles often bear a model name made up of numbers and are voice- and text-centric. The converged internet devices, which sport model names often consisting of a letterand a number, are more expensive and come with the usual array of features expected fromhigh-end handsets, including apps, GPS, a multi-megapixel camera and perhaps anaccelerometer.The best-known product lines in the converged internet devices section are the Nseries - high-end entertainment handsets such as the N97 - and the Eseries of business-focused mobiles.ServicesNokias Services unit looks after its software and, as the name suggests, internet serviceswhich are brought together under the Ovi brand - Ovi is the Finnish word for door.The usual suspects are available through Ovi both via the desktop and Nokia mobiles - onlinestorage and back-up for photos, videos, calendar and contacts; mobile email; music; gaming;maps and Files, an application that allows users to download and view files held on your PCvia your mobile. [12]
  13. 13. Nokia also runs the Ovi Store, the Nokia equivalent of Apples all-conquering App Store,where users can download extra apps for their devices from Nokia as well as third-partydevelopers.With Nokia also aiming to increase...FEATURESales in emerging markets, its Services business has created a range of products under theLife Tools brand, which provides agricultural and education information as well asentertainment software, including horoscopes or ringtones.Life Tools is aimed at users in markets such as China, Indonesia and India and designed towork on Nokias lower-end handsets. According to Nokia, Life Tools has some 6.3 millionusers in India, Indonesia and China.Another venture for developing markets by Nokias Services business comes in the form ofNokia Money. Launched last year, Nokia Money gives users access to basic financialservices, such as person-to-person payments, and is aimed at the billions of people around theworld with no bank account.NavteqNokia acquired Navteq for $8.1bn in 2007, in one of its largest takeovers. Nokia retained theNavteq brand and still operates the company as an independent subsidiary.At the time of the acquisition, mapping must have seemed an attractive market. Sat-navmaker TomTom bought Navteq rival TeleAtlas earlier that year and the market for portablenavigation devices was booming, while GPS - and thus navigation - was making its way ontomore and more mobile handsets.As well as providing the maps for Ovi Maps, Navteq now sells its wares to sat-navmanufacturers, car makers for in-vehicle navigation systems and internet firms such asMicrosoft for its Bing search engine.Nokia Siemens NetworksThe Nokia Siemens Networks joint venture was first announced in 2006 and beganoperations a year later. [13]
  14. 14. The eponymous JV installs and maintains infrastructure for both fixed and mobile networksaround the world.Its had a difficult few years since its inception. The companys original CEO, SimonBeresford-Wylie, left last year and it has yet to break even, racking up a €1.6bn loss in its lastset of annual results Accordingly, its instituting a cost-cutting programme aimed at shaving€500m from annual costs by 2011. Its a move that will hit the workforce, with between sevenand nine per cent expected to be cut from staff numbers. The battle of the operating systemOf all Nokias businesses, its still the traditional handsets and accompanying services that aremaking the money. According to NokiasIndustrial conglomerateIn 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and otherrubber products, which later became Nokias rubber business. At the beginning of the 20thcentury, Finnish Rubber Works established its factories near the town of Nokia and theybegan using Nokia as its product brand. In 1912, Arvid Wickström founded Finnish CableWorks, producer oftelephone, telegraph and electrical cables and the foundation of Nokiascable and electronics businessesAt the end of the 1910s, shortly after World War I, the Nokia Company was nearingbankruptcy.To ensure the continuation of electricity supply from Nokias generators, FinnishRubber Works acquired the business of the insolvent company.In 1922, Finnish RubberWorks acquired Finnish Cable Works.In 1937, Verner Weckman, a sport wrestler andFinlands first Olympic Gold medalist, became President of Finnish Cable Works, after 16years as its Technical Director.] After World War II, Finnish Cable Works supplied cables tothe Soviet Union as part of Finlands war reparations. This gave the company a good footholdfor later trade.The three companies, which had been jointly owned since 1922, were merged to form a newindustrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokias future as aglobal corporation. The new company was involved in many industries, producing at onetime or another paper products, car and bicycle tires, footwear (including rubber boots), [14]
  15. 15. communications cables, televisions and other consumer electronics, personal computers,electricity generation machinery, robotics, capacitors, military communications andequipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army),plastics, aluminium and chemicals.[Each business unit had its own director who reported tothe first Nokia Corporation President, Björn Westerlund. As the president of the FinnishCable Works, he had been responsible for setting up the companys first electronicsdepartment in 1960, sowing the seeds of Nokias future in telecommunications.Eventually, the company decided to leave consumer electronics behind in the 1990s andfocused solely on the fastest growing segments in telecommunications.[Nokian Tyres,manufacturer of tires, split from Nokia Corporation to form its own company in 1988[and twoyears later Nokian Footwear, manufacturer of rubber boots, was founded. During the rest ofthe 1990s, Nokia divested itself of all of its non-telecommunications businesses.[Telecommunications eraThe seeds of the current incarnation of Nokia were planted with the founding of theelectronics section of the cable division in 1960 and the production of its first electronicdevice in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967 fusion,that section was separated into its own division, and began manufacturingtelecommunications equipment. A key CEO and subsequent Chairman of the Boardwas vuorineuvos Björn "Nalle" Westerlund (1912–2009), who founded the electronicsdepartment and let it run at a loss for 15 years.]Networking equipmentIn the 1970s, Nokia became more involved in the telecommunications industry by developingthe Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became theworkhorse of the network equipment division. Its modular and flexible architecture enabled itto be developed into various switching products.In 1984, development of a version of theexchange for the Nordic Mobile Telephony network was started.For a while in the 1970s, Nokias network equipment production was separatedinto Telefenno, a company jointly owned by the parent corporation and by a company ownedby the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name waschanged to Nokia Telecommunications. [15]
  16. 16. In the 1970s and 1980s, Nokia developed the Sanomalaitejärjestelmä ("Message devicesystem"), a digital, portable and encrypted text-based communications device for the FinnishDefence Forces The current main unit used by the Defence Forces is the SanomalaiteM/90 (SANLA M/90).First mobile phonesThe Mobira Cityman 150, Nokias NMT-900 mobile phone from 1989 (left), compared totheNokia 1100 from 2003. The Mobira Cityman line was launched in 1987.The technologies that preceded modern cellular mobile telephony systems were the various"0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercialand some military mobile radio communications technology since the 1960s, although thispart of the company was sold some time before the later company rationalization. Since 1964,Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salorastarted developing the ARPstandard (which stands for Autoradiopuhelin, or car radiophone in English), a car-based mobile radio telephony system and the first commerciallyoperated public mobile phone network in Finland. It went online in 1971 and offered 100%coverage in 1978. [16]
  17. 17. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobirabegan developing mobile phones for the NMT (Nordic Mobile Telephony) network standard,the first-generation, first fully automatic cellular phone system that went online in 1981. In1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed thecompanys telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman,launched in 1984, was one of the worlds first transportable phones. In 1987, Nokiaintroduced one of the worlds first handheld phones, the Mobira Cityman 900 for NMT-900networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). Whilethe Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg(11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tagof 24,000 Finnish marks (approximately €4,560).Despite the high price, the first phones werealmost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie"product and astatus symbol.Nokias mobile phones got a big publicity boost in 1987, when Soviet leader MikhailGorbachev was pictured using a Mobira Cityman to make a call from Helsinki to hiscommunications minister in Moscow. This led to the phones nickname of the "Gorba".In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, alongwith two other employees from the unit, started a notable mobile phone company of theirown, Benefon Oy (since renamed to GeoSentric) One year later, Nokia-Mobira Oy becameNokia Mobile Phones. Involvement in GSMNokia was one of the key developers of GSM (Global System for MobileCommunications), the second-generation mobile technology which could carry data as wellas voice traffic. NMT (Nordic Mobile Telephony), the worlds first mobile telephonystandard that enabled international roaming, provided valuable experience for Nokia for itsclose participation in developing GSM, which was adopted in 1987 as the new Europeanstandard for digital mobile technology.Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.The worldsfirst commercial GSM call was made on 1 July 1991 in Helsinki, Finland over a Nokia- [17]
  18. 18. supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype NokiaGSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The modelnumber refers to its launch date, 10 November.[The Nokia 1011 did not yet employ Nokiascharacteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia2100 series.GSMs high-quality voice calls, easy international roaming and support for new services liketext messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. GSMcame to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting forabout three billion mobile telephone subscribers in the world, with more than 700mobile operators across 218 countries and territories. New connections are added at the rateof 15 per second, or 1.3 million per day.Personal computers and IT equipment The Nokia Booklet 3G mini laptop.In the 1980s, Nokias computer division Nokia Data produced a series of personal computerscalled MikroMikko. MikroMikko was Nokia Datas attempt to enter the business computermarket. The first model in the line, MikroMikko 1, was released on 29 September 1981,roundthe same time as the firstIBM PC. However, the personal computer division was sold to theBritish ICL (International Computers Limited) in 1991, which later became partof Fujitsu.MikroMikko remained a trademark of ICL and later Fujitsu. Internationally theMikroMikko line was marketed by Fujitsu as the ErgoPro.Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers,which shut down its only factory in Espoo, Finland (in the Kilodistrict, where computers hadbeen produced since the 1960s) at the end of March 2000,thus ending large-scale PC [18]
  19. 19. manufacturing in the country. Nokia was also known for producing very highquality CRT and early TFT LCD displays for PC and larger systems application. The NokiaDisplay Products branded business was sold to ViewSonic in 2000. In addition to personalcomputers and displays, Nokia used to manufacture DSL modems and digitalset-top boxes.Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet3G mini laptop.Challenges of growthIn the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields,mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into seriousfinancial problems, a major reason being its heavy losses by the television manufacturingdivision and businesses that were just too diverse.These problems, and a suspectedtotal burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamosdeath, Simo Vuorilehto became Nokias Chairman and CEO. In 1990–1993, Finlandunderwent severe economic depression,[54] which also struck Nokia. Under Vuorilehtosmanagement, Nokia was severely overhauled. The company responded by streamlining itstelecommunications divisions, and by divesting itself of the television and PC divisions.Probably the most important strategic change in Nokias history was made in 1992, however,when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely ontelecommunications.Thus, during the rest of the 1990s, the rubber, cable and consumerelectronics divisions were gradually sold as Nokia continued to divest itself of all of its non-telecommunications businessesAs late as 1991, more than a quarter of Nokias turnover still came from sales in Finland.However, after the strategic change of 1992, Nokia saw a huge increase in sales to NorthAmerica, South America and Asia. The exploding worldwide popularity of mobiletelephones, beyond even Nokias most optimistic predictions, caused a logistics crisis in themid-1990sThis prompted Nokia to overhaul its entire logistics operation.By 1998, Nokias focus ontelecommunications and its early investment in GSM technologies had made the company theworlds largest mobile phone manufacturer.[ Between 1996 and 2001, Nokias turnover [19]
  20. 20. increased almost fivefold from 6.5 billion euros to 31 billion euros. Logistics continues to beone of Nokias major advantages over its rivals, along with greater economies of scaleRecent history]Product releasesReduction in size of Nokia mobile phonesEvolution of the Nokia Communicator. Models 9000, 9110, 9210, 9300 and 9500 shown.Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. InMay 2007, Nokia announced that its Nokia 1100 handset, launched in 2003,with over 200million units shipped, was the best-selling mobile phone of all time and the worlds top-selling consumer electronicsproduct. In November 2007, Nokia announced and releasedthe Nokia N82, its first Nseries phone with Xenon flash. At the Nokia World conference inDecember 2007, Nokia announced their "Comes With Music" program: Nokia device buyersare to receive a year of complimentary access to music downloads The service becamecommercially available in the second half of 2008. [20]
  21. 21. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Workbegan in April 2008, and the film premiered in October 2008.In 2008, Nokia released the Nokia E71 which was marketed to directly compete with theother BlackBerry-type devices offering a full "qwerty" keyboard and cheaper prices. Nokiaannounced in August 2009 that they will be selling a high-end Windows-based minilaptop called the Nokia Booklet 3G. On 2 September 2009, Nokia launched two new musicand social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-boardmemory with a 3.2" finger touch interface and comes with a music playback time of 35hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music devicethat comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera. On 10September 2009, Nokia unveiled a new handset, the 7705 Twist, a phone with a sports squareshape that swivels open to reveal a full QWERTY keypad. The new mobile, which will beavailable exclusively through Verizon Wireless, features a 3 megapixel camera, webbrowsing, voice commands and weighs around 3.44 ounces (98 g).Plant movementsNokia opened its Komárom, Hungary mobile phone factory on 5 May 2000.In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open anew plant near the city in Jucu commune.Moving the production from the Bochum, Germanyfactory to a low wage country created an uproar in Germany.Nokia recently moved its NorthAmerican Headquarters to Sunnyvale.ReorganizationsIn April 2003, the troubles of the networks equipment division caused the corporation toresort to similar streamlining practices on that side, including layoffsand organizationalrestructuring. This diminished Nokias public image in Finland and produced a numberof court cases and an episode of a documentary television show critical of Nokia.On February 2006, Nokia and Sanyo announced a memorandum of understanding to create ajoint venture addressing the CDMA handset business. But in June, they announced endingnegotiations without agreement. Nokia also stated its decision to pull out of CDMA researchand development, to continue CDMA business in selected markets. [21]
  22. 22. In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal DutchShelland to give way for Olli-Pekka Kallasvuo.In May 2008, Nokia announced on their annual stockholder meeting that they want to shift tothe Internet business as a whole. Nokia no longer wants to be seen as the telephonecompany. Google,Apple and Microsoft are not seen as natural competition for their newimage but they are considered as major important players to deal with.In November 2008, Nokia announced it was ceasing mobile phone distribution inJapan Following early December, distribution of Nokia E71 is cancelled, both from NTTdocomo and SoftBank Mobile. Nokia Japan retains global research & development programs,sourcing business, and an MVNO venture of Vertu luxury phones, using docomostelecommunications network.In March 2012, Nokia anonunced it was laying off 1000 employess from its Salo,Finland factory to focus on software.AcquisitionsThe Nokia E55 from the business segment of the Eseries rangeOn 22 September 2003, Nokia acquired, a branch of Sega which became the majorbasis to develop the Nokia N-Gage device. [22]
  23. 23. On 16 November 2005, Nokia and Intellisync Corporation, a provider of data and PIMsynchronization software, signed a definitive agreement for Nokia to acquireIntellisync. Nokia completed the acquisition on 10 February 2006.On 19 June 2006, Nokia and Siemens AG announced the companies would merge theirmobile and fixed-line phone network equipment businesses to create one of the worldslargest network firms, Nokia Siemens Networks. Each company has a 50% stake in theinfrastructure company, and it is headquartered in Espoo, Finland. The companies predictedannual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokiaemployees were transferred to this new company.On 8 August 2006, Nokia and Loudeye Corp. announced that they had signed an agreementfor Nokia to acquire online music distributor Loudeye Corporation for approximately US $60million.The company has been developing this into an online music service in the hope ofusing it to generate handset sales. The service, launched on 29 August 2007, is aimed torival iTunes. Nokia completed the acquisition on 16 October 2006In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solutionfor organizing and sharing photos, videos and other personal media.In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobileadvertising technology and services.In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1billion. Nokia finalized the acquisition on 10 July 2008.[In September, 2008, Nokia acquired OZ Communications, a privately held company withapproximately 220 employees headquartered in Montreal, CanadaOn 24 July 2009, Nokia announced that it will acquire certain assets of cellity, a privatelyowned mobile software company which employs 14 people in Hamburg, Germany.Theacquisition of cellity was completed on 5 August 2009.On 11 September 2009, Nokia announced the acquisition of "certain assets of Plum Ventures,Inc, a privately held company which employed approximately 10 people with main offices inBoston, Massachusetts. Plum will complement Nokias Social Location services" [23]
  24. 24. On 28 March 2010, Nokia announced the acquisition of Novarra, the mobile web browserfirm from Chicago. Terms of the deal were not disclosed.Novarra is a privately held companybased in Chicago, IL and provider of a mobile browser and service platform and has morethan 100 employees.On 10 April 2010, Nokia announced its acquisition of MetaCarta, whose technology wasplanned to be used in the area of local search, particularly involving location and otherservices. Financial details of acquisition were not disclosed.CurtailmentsAmid falling sales, Nokia posted a loss of 368 million euros for Q2 2011, while in Q2 2010had still a profit of 227 million euros. On September 2011, Nokia has announced it will loseanother 3,500 jobs worldwide, including the closure of its Cluj factory in RomaniaOn 8 February 2012 Nokia Corp. said to cut around 4,000 jobs at smartphone manufacturingplants in Europe by the end of 2012 to move assembly closer to component supplier in Asia.It plans to cut 2,300 of the 4,400 jobs in Hungary, 700 out of 1,000 jobs in Mexico, and 1,000out of 1,700 factory jobs in Finland.[103] [24]
  25. 25. Operating systemsOriginally Nokia phones had a custom Nokia OS operating system developed specifically forNokia mobile phones.The first Nseries device, the N90, utilised the older Symbian OS 8.1 mobile operating system,as did the N70. Subsequently Nokia switched to using SymbianOS 9 for all later Nseriesdevices (except the N72, which was based on the N70). Newer Nseries devices incorporatenewer revisions of SymbianOS 9 that include Feature Packs. The N800, N810 and N900 areas of July 2010 the only Nseries devices to not use Symbian OS. They use the Linux-basedMaemo.Nokia stated that Maemo would be developed alongside Symbian.Maemo has since (Maemo "6" and beyond) merged with Intels Moblin, and become MeeGo,which will continue to be developed for mobile devices.The Nokia N8 is the first device to function on the Symbian^3 mobile operating system. [25]
  26. 26. Nokia revealed that the N8 will be the last device in its flagship N-series devices to shipwith Symbian OS.Instead, Nokia will use Microsoft Windows Phone for its high-end flagship devices, andrevealed the Nokia N9 will function on the MeeGo mobile operating system.Alliance with MicrosoftOn 11 February 2011, Nokias CEO Stephen Elop, a former Microsoft employee, unveiled anew strategic alliance with Microsoft, and announced it wouldreplace Symbian and MeeGo with Microsofts Windows Phone operating systemexcept formid-to-low-end devices, which would continue to run under Symbian. Nokia was also toinvest into the Series 40 platform and release a single MeeGo product in 2011.These news was not well received by consumers, and has contributed to the decline in thestock price by 11%.As part of the restructuring plan, Nokia planned to reduce spending on research anddevelopment, instead customising and enhancing the software line for Windows Phone7.Nokias "applications and content store" (Ovi) becomes integrated into the Windows PhoneMarketplace, and Nokia Maps is at the heart of Microsofts Bing and AdCenter. Microsoftprovides developer tools to Nokia to replace the Qt framework, which is not supported byWindows Phone 7 devices.Symbian becomes described as a "franchise platform" with Nokia planning to sell 150million Symbian devices after the alliance was set up. MeeGo emphasis is on longer-termexploration, with plans to ship "a MeeGo-related product" later in 2012. Microsofts searchengine, Bing becomes the search engine for all Nokia phones. Nokia also gets some level ofcustomisation on WP7.After this announcement, Nokias share price fell about 14%, its biggest drop since July 2009.As Nokia was the largest mobile phone manufacturer worldwide at the time,it is suggestedthe alliance would make Microsofts Windows Phone 7 a stronger contender against Android and iOS.n June 2011 Nokia was overtaken by Apple as the worlds biggestsmartphone maker by volume.In August 2011 Chris Weber, head of Nokias subsidiary in theU.S., stated "The reality is if we are not successful with Windows Phone, it doesnt matter [26]
  27. 27. what we do (elsewhere)." He further added "North America is a priority for Nokia (...)because it is a key market for Microsoft.Corporate structureDivisionsSince 1 July 2010, Nokia comprises three business groups: Mobile Solutions, MobilePhones and Markets. The three units receive operational support from the CorporateDevelopment Office, led by Kai Öistämö, which is also responsible for exploring corporatestrategic and future growth opportunities.On 1 April 2007, Nokias Networks business group was combined with Siemenss carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointlyowned by Nokia and Siemens and consolidated by Nokia.Mobile SolutionsThe Nokia N900, a Maemo 5 Linux based mobile Internet deviceand touchscreensmartphone from Nokias Nseries portfolio.Mobile Solutions is responsible for Nokias portfolio of smartphones and mobile computers,including the more expensive multimedia and enterprise-class devices. The team is also [27]
  28. 28. responsible for a suite of internet services under the Ovi brand, with a strong focuson maps and navigation, music, messaging andmedia.This unit is led by Anssi Vanjoki, alongwith Tero Ojanperä (for Services) and Alberto Torres (for MeeGo Computers)The Nokia E90, a Symbian smartphonefrom Nokias Eseries portfolio.Alberto Torres has stepped down.Mobile PhonesMobile Phones is responsible for Nokias portfolio of affordable mobile phones, as well as arange of services that people can access with them, headed byMary T. McDowell.This unitprovides the general public with mobile voice and data products across a range of devices,including high-volume, consumer oriented mobile phones. The devices are basedon GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies.In the first quarter of 2006Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not onlythe worlds leading supplier of mobile phones and digital cameras (as most of Nokias mobiletelephones feature digital cameras, it is also believed that Nokia has recentlyovertaken Kodak in camera production making it the largest in the world) Nokia is now alsothe leading supplier of digital audio players (MP3 players), outpacing sales of devices such asthe iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 millionmobile phones which accounted for 40% of all global mobile phones sales.By 2010, Nokiasmarket share in the mobile phone market had dropped to 32.6% (453 million phones).Vanjoki [28]
  29. 29. resigned a few days before Nokia World 2010 and under new leadership team Jo Harlow willlook into the affairs of Smartphones portfolio.On 27 April 2011, The Register reported that Nokia is secretly developing a new operatingsystem called Meltemi aiming at the low-end market. It is believed it will be replacing theS30 and S40 operating systems. Due to low-end market customers demand of havingsmartphone features in their feature phone, the OS will include some features exclusive tohigh-end smartphones.Samsung India is the hub for Samsungs South West Asia Regional operations. TheSouth West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO,looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives andBhutan besides India. Samsung India which commenced its operations in India inDecember 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations inthe country.Headquartered in New Delhi, Samsung India has widespread network of sales offices all overthe country . The Samsung manufacturing complex housing manufacturing facilities forColour Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida,near Delhi. Samsung Made in India products like Colour Televisions, Mobile phones andRefrigerators are being exported to Middle East, CIS and SAARC countries from its Noidamanufacturing complex. In November 2007, Samsung commenced the manufacture ofColour televisions and LCD televisions at its state–of-the-art manufacturing facility atSriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic frontloading washing machines at its Sriperumbudur facility.Unlike other electronic companies Samsung origins were not involving electronics butother products. [29]
  30. 30. In 1938 the Samsungs founder Byung-Chull Lee set up a trade export company in Korea,selling fish, vegetables, and fruit to China. Within a decade Samusng had flour mills andconfectionary machines and became a co-operation in 1951. Humble beginnings.From 1958 onwards Samsung began to expand into other industries such as financial, media,chemicals and ship building throughout the 1970s. In 1969, Samsung Electronics wasestablished producing what Samsung is most famous for, Televisions, Mobile Phones(throughout 90s), Radios, Computer components and other electronics devices.1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over aschairman. In the 1990s Samsung began to expand globally building factories in the US,Britain, Germany, Thailand, Mexico, Spain and China until 1997.In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. Theysold businesses to relieve debt and cut employees down lowering personnel by 50,000. Butthanks to the electronic industry they managed to curb this and continue to grow.The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsungdeveloped the lightest mobile phone of its era. The SCH-800 and it was available on CDMAnetworks.Then they developed smart phones and a phone combined mp3 player towards the end of the20th century. To this date Samsung are dedicated to the 3G industry. Making video,cameraphones at a speed to keep up with consumer demand. Samsung has made steady growth in themobile industry and are currently second but competitor Nokia is ahead with more than 100%increase in shares. Samsung is a technology driven mobile makers that is committed to createa better world, where mobile technology takes leadership position. Samsung Mobile in Indiais standing on this philosophy and it creates high-tech mobile instruments that easily fulfillthe need of the hour and beat the competition in mobile market in India. SamsungMobile has revolutionized the life of people in India with its state-of-the-art technology,innovative designs and effective marketing strategies.own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy becameNokia Mobile Phones. [30]
  31. 31. Samsung is a technology driven mobile makers that is committed to create a better world,where mobile technology takes leadership position. Samsung Mobile in India is standing onthis philosophy and it creates high-tech mobile instruments that easily fulfill the need of thehour and beat the competition in mobile market in India. Samsung Mobile has revolutionizedthe life of people in India with its state-of-the-art technology, innovative designs andeffective marketing strategies.Samsung Mobiles have always kept customers in the centre and therefore, they are able todesign futuristic mobile phones for their customers. Moreover, they have made their presencefelt across the nook and corner of India with its extensive network. Moreover, SamsungMobiles have always emphasized the need of its large customer base and therefore, it hasregularly introduced different models of mobile phones: Tablet Smartphone, Smartphone,Dual SIM Phone, Touch Phone, QWERTY Messaging Phone, Multimedia Phone, CDMAPhone, Essential Phone etc.For its colossal success, Samsung India gives full credit to its talented work force. SamsungIndia has roped in the best minds in India to achieve excellence in mobile technology and itsuse across the country. From executive to CEO, every single person of Samsung India reportsto its customers, and this is the secret of its success in India and across the globe.Below is a list of popular Samsung mobiles in IndiaSamsung Group (Korean: / Samseong Geurup / [samsʌ ŋ gɯ ɾ up], informally Samsung) isa South Korean multinational conglomerate corporation headquartered in SamsungTown, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of themunited under the Samsung brand, and is the largest South Korean chaebol.Notable Samsung industrial subsidiaries include Samsung Electronics (the worlds largestinformation technology company measured by 2010 revenues),Samsung HeavyIndustries (the worlds second-largest shipbuilder measured by 2010 revenues), and SamsungEngineering and Samsung C&T (respectively the worlds 35th- and 72nd-largest constructioncompanies).Other notable subsidiaries include Samsung Life Insurance (the worlds 14th-largest insurance company), Samsung Everland (the oldest theme park in SouthKorea) and Cheil Worldwide (the worlds 19th-largest advertising agency measured by 2010revenues). [31]
  32. 32. Samsung produces around a fifth of South Koreas total exports[and its revenues are largerthan many countries GDP; in 2006, it would have been the worlds 35th-largesteconomy. The company has a powerful influence on South Koreas economic development,politics, media and culture, and has been a major driving force behind the "Miracle on theHan River".NameAccording to the founder of Samsung Group, the meaning ofthe Korean hanja word Samsung ( 三 星 ) is "tristar" or "three stars". The word "three"represents something "big, numerous and powerful"; the "stars" mean eternity.History1938 to 1970 The headquarters of Samsung Sanghoein Daegu in the late-1930sIn 1938,Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong countycame to the nearby Daegu city and founded Samsung Sanghoe (삼성상회), a small tradingcompany with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceriesproduced in and around the city and produced its own noodles. The company prospered andLee moved its head office to Seoul in 1947. When the Korean War broke out, however, he [32]
  33. 33. was forced to leave Seoul and started a sugar refinery in Busan as a name of Cheil Jedang.After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu.It was the largest woolen mill ever in the country and the company took on an aspect of amajor company.Samsung diversified into many areas and Lee sought to establish Samsung as an industryleader in a wide range of enterprises, moving into businesses such as insurance, securities,and retail. Lee placed great importance on industrialization, and focused his economicdevelopment strategy on a handful of large domestic conglomerates, protecting them fromcompetition and assisting them financially. He later banned several foreign companies fromselling consumer electronics in South Korea in order to protect Samsung from foreigncompetition.In 1948, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new companycalled Samsung Mulsan Gongsa (삼성물산공사), or the Samsung Trading Corporation, withthe Samsung Group founder Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation. But after some years Cho and Lee parted ways due to somedifferences in management between the two men. He wanted to get up to a 30% group share.After settlement, Samsung Group was separated into Samsung Groupand Hyosung Group, Hankook Tire ...etc.In the late 1960s, Samsung Group entered into the electronics industry. It formed severalelectronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & TelecommunicationsCo., and made the facility in Suwon. Its first product was a black-and-white television set. [33]
  34. 34. 1970 to 1990In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered thetelecommunications hardware industry. Its early products were switchboards. The facilitywere developed into the telephone and fax manufacturing systems and became the centre ofSamsungs mobile phone manufacturing. They have produced over 800 million mobilephones to date.[The company grouped them together under Samsung Electronics Co., Ltd. inthe 1980s.After the founders death in 1987, Samsung Group was separated into four business groups -Samsung Group, Shinsegae Group, CJ Group and Hansol Group.Shinsegae (discount store,department store) was originally part of Samsung Group, separated in the 1990s from theSamsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and theHansol Group (Paper/Telecom). Today these separated groups are independent and they arenot part of or connected to the Samsung Group. One Hansol Group representative said, "Onlypeople ignorant of the laws governing the business world could believe something soabsurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed allpayment guarantees and share-holding ties with Samsung affiliates." One Hansol Groupsource asserted, "Hansol, Shinsegae, and CJ have been under independent management sincetheir respective separations from the Samsung Group." One Shinsegae Department Storeexecutive director said, "Shinsegae has no payment guarantees associated with the SamsungGroup." [34]
  35. 35. In the 1980s, Samsung Electronics began to invest heavily in research and development,investments that were pivotal in pushing the company to the forefront of the globalelectronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plantin New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facilityin Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austin location –by foreign investment in Texas and one of the largest single foreign investments in the UnitedStates. The new investment far the largest will bring the total Samsung investment in Austinto more than $9 billion.[22]1990 to 2000Samsung started to rise as an international corporation in the 1990s. Samsungs constructionbranch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei101 in Taiwanand the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold offten of Samsung Groups subsidiaries, downsized the company, and merged other operationsto concentrate on three industries: electronics, engineering, and chemicals. In 1996, theSamsung Group reacquired the Sungkyunkwan University foundation.Samsung became the largest producer of memory chips in the world in 1992, and is theworlds second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor MarketShare Ranking Year by Year). In 1995, it built its first liquid-crystal display screen. Ten yearslater, Samsung grew to be the worlds largest manufacturer of liquid-crystal displaypanels. Sony, which had not invested in large-size TFT-LCDs, contacted Samsung tocooperate, and, in 2006, S-LCD was established as a joint venture between Samsung andSony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD wasowned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates itsfactories and facilities in Tangjung, South Korea. As on 26 December 2011 it was announcedthat Samsung had acquired the stake of Sony in this joint venture.Compared to other major Korean companies, Samsung survived the 1997 Asian financialcrisis relatively unharmed. However, Samsung Motor was sold to Renault at a significantloss. As of 2010,Renault Samsung is 80.1 percent owned by Renault and 19.9 percent ownedby Samsung. Additionally, Samsung manufactured a range of aircraft from the 1980s to1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result ofmerger between then three domestic major aerospace divisions of Samsung Aerospace, [35]
  36. 36. Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsungstill manufactures aircraft engines and gas turbines.2000 to presentSamsung Techwin has been the sole supplier of a combustor module of the Trent 900 engineof the Rolls-Royce Airbus A380-The largest passenger airliner in the world- since2001.[Samsung Techwin of Korea is a revenue-sharing participant in the Boeings 787Dreamliner GEnx engine program.Samsung Electronics overtook Sony as one of the worlds most popular consumer electronicsbrands in 2004 and 2005, and is now ranked #19 in the world overall.[ In Q3 of 2011,Samsung has overtaken Apple to become the Worlds Largest Smartphonemaker.and Indosiar are subsidiary of Surya Citra Media that owned by Samsung. In 2011,SCTV and Indosiar will merger and given stake by Samsung.In 2010, Samsung announced a 10-year growth strategy centered around five businesses. Oneof these businesses was to be focused onbiopharmaceuticals, to which the Company hascommitted ₩2.1 trillionAcquisitions and attempted acquisitionsFor a company of its size Samsung has made relatively few acquisitions. [36]
  37. 37. Rollei – Swiss watch battleSamsung Techwin acquired a German camera-maker Rollei on 1995. Samsung (Rollei) usedits optic expertise on the crystals of a new line of 100% Swiss-made watches, designed by ateam of watchmakers at Nouvelle Piquerez S.A. in Bassequort, Switzerland. Rolexs decisionto fight Rollei on every front stemmed from the close resemblance between the two namesand fears that its sales would suffer as a consequence. In the face of such a threat, the Genevafirm decided to confront. Rolex, this was also a demonstration of the Swiss watch industrysdetermination to defend itself when an established brand is threatened. Rolex sees this front-line battle as vital for the entire Swiss watch industry. Rolex has succeeded in keeping Rolleiout of the German market. On 11 March 1995 the Cologne District court prohibited theadvertising and sale of Rollei watches on German territory.Fokker, a Dutch aircraft makerSamsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker whenother airplane makers rejected its offer to form a consortium. The three proposed partners –Hyundai, Hanjin and Daewoo – have notified the South Korean government that they will notjoin Samsung Aerospace Industries Ltd.AST ResearchSamsung bought AST (1994) and tried to break into North America , but the effortfoundered.Samsung was forced to close the California-based computer maker after a mass defection ofresearch talent and a string of losses.FUBU clothing and apparelIn 1992, Daymond John had started the company with a hat collection that was made in hishouse in the Queens area of New York City. To fund the company, John had to mortgage hishouse for $100,000. With his friends, namely J. Alexander Martin, Carl Brown, and KeithPerrin, half of his house was turned into the first factory of FUBU, while the other halfremained as the living quarters. Along with the expansion of FUBU, Samsung, a Koreancompany, invested in FUBU in 1995.[37]Lehman Brothers Holdings’ Asian operations [37]
  38. 38. Samsung Securities was one of a handful of brokerages looking into Lehman BrothersHoldings. But Nomura Holdings has reportedly waved the biggest check to win its bid forLehman Brothers Holdings’ Asian operations, beating out Samsung Securities, StandardChartered, and Barclays.Ironically, after few months Samsung Securities Co., Ltd. and Cityof London-based N M Rothschild & Sons (more commonly known simply as Rothschild)have agreed to form a strategic alliance in investment banking business. Two parties willjointly work on cross border mergers and acquisition deals.Grandis Inc. - memory developerIn July 2011, Samsung announced that it had acquired spin-transfer torque random accessmemory (MRAM) vendor Grandis Inc.Grandis will become a part of Samsungs R&Doperations and will focus on development of next generation random-access memory.Samsung and Sony joint venture - LCD displayOn December 26, 2011 the board of Samsung Electronics approved a plan to buy Sonysentire stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won($938.97 million)Operations SAMSUNG HEADQUARTER [38]
  39. 39. The Phones of Nokia Company History Nokia C3-00 Unlocked Cell Phone with QWERTY, Dedicated E-mail Key, 2 MP Camera, Media Player, WLAN, and MicroSD Slot--U.S. Version with Warranty (Slate) Nokia N8 Unlocked GSM Touchscreen Phone Featuring GPS with Voice Navigation and 12 MP Camera--U.S. Version with Warranty (Gray) Nokia C5-03 Unlocked GSM Phone with 5 MP Camera and Ovi Maps Navigation Optimized for AT&T--U.S. Version with Warranty (Graphite Black) Nokia X2 Prepaid Phone (T-Mobile) Nokia N8 Unlocked GSM Touchscreen Phone Featuring GPS with Voice Navigation and 12 MP Camera--U.S. Version with Warranty (Silver/White) Nokia C2-01.5 Unlocked GSM Phone with 3.2 MP Camera and Music and Video Player--U.S. Version with Warranty (Black) [39]
  40. 40. Nokia X2-01 Unlocked GSM Phone-U.S. Version with Warranty (Red)Hasnt the mobile phone come a long way, the capability of a phone these days is greater thana personal computer of not so long ago. Nokia is at the front when it comes to the majorplayers in the history of mobile phones. They have an interesting story and even moreinteresting origin...Beginnings of the Nokia Company History were in 1865 when a wood-pulp mill was set up inSouthern Finland. It sold products with the brand name Nokia.A community called Nokia was started and still exists on the riverbank of Emäkoski insouthern Finland.The Finnish Rubber Works started manufacturing in Nokia in the 1920s and branded itsproducts, including gumboots, as Nokia.The Finnish Cable Works also setup in Nokia, it produced cables for phone networks. By1967 all three companies had merged to form the Nokia Group.Nokia developed a digital switcher for telephone exchanges and also helped develop theworlds first mobile phone network.By the late 1980s Nokia had helped develop the GSM (Global Standard for Mobilecommunications) and had built more than 60 GSM networks in 31 countries around theworld.The company developed high quality, user friendly mobile phones that have made it theworld market leader. I have used a Nokia since my first ‘mobile phone’ was one of thoseMotorola bricks with the huge battery pack – haven’t we come a long way.My name is Robee Kann, for four years I was a tour guide throughout Europe. I loved my joband I would love to hear from you. You are most welcome to message me to say hello orrequest a hub about a European subject. Please look at my other hubs and leave a commentfor me. [40]
  41. 41. Top Selling Samsung Mobiles Samsung Star Duos Samsung S5620 Monte Samsung Wave II Samsung Galaxy Fit [41]
  42. 42. Samsung Star-II-Duos-C6712Mobiles from Samsung :  Samsung Galaxy Y S5360  Samsung Galaxy Note  Samsung Galaxy S Plus GT-I9001  Samsung Galaxy R I9103  Samsung Galaxy Ace S5830  Samsung Galaxy S2 I9100  Samsung Chat 222Samsung Candy Bar PhonesSamsung Galaxy Y S5360 Galaxy Y S5360 [42]
  43. 43. Samsung Galaxy Y S5360 is ideal for the dynamic user who is constantly on the move. Withdimensions of 104x58x11.5mm, the Galaxy is built on the Android 2.3 OS. The 7.62 cmdisplay offers enhanced user experience. Samsung Galaxy Y S5360 is powered by a 1200mAh battery which offers a talk time of 360min and standby time of 120h. The inherentmemory of 160MB may be expanded to 32GB. The 2MP camera in the Samsung Galaxy YS5360 offers great picture capturing option. Whats more, stay connected with the GPRS,EDGE, Email, IM, Bluetooth and WAP.Samsung Galaxy NoteGalaxy NoteThe Samsung Galaxy Note is a stylishly designed portable smartphone that reflects insightand innovation. The Galaxy Note is the perfect on the go device. Measuring 146.85 x 82.95 x9.65 mm, the phone weighs 178g. The 5.3 wide HD Super AMOLED display and theQWERTY keyboard are the important features. The Samsung Galaxy Note has a 1.4GHzDual Core Processor. Capture life`s special moments with the 8MP camera with LED flash.The 16GB inherent memory may be enhanced to 32 GB using the micro SD card.Samsung Galaxy S Plus GT-I9001 Galaxy S Plus GT-I9001 [43]
  44. 44. Samsung Galaxy S Plus GT-I9001 is an innovatively designed handset with features that willentice you. With dimensions of 122.4x64.2x9.9mm, the Samsung Galaxy S Plus GT-I9001 is quite compact and is embellished with stylish exteriors. The inherent memory of 16GB may be enhanced to 32 GB using the Micro SDHC type memory card. The inbuilt camerawith a 5 MP sensor allows user to capture good quality pictures. The inbuilt FM radio is idealfor entertainment on the go. Email is one of the high end messaging features that allows theuser to stay connected from anywhere..Samsung Galaxy R I9103 Galaxy R I9103Samsung Galaxy R I9103 is an innovatively designed smart phone with a list of enticingfeatures.Samsung Galaxy R I9103 has dimensions of 125x66x9.5mm and it weighs 135g.The inherent memory of 8GB may be expandable to 32 GB with the micro SD type memorycard. The 1650 mAh Li-Ion battery offers commendable talk time. There are a host ofconnectivity features like Bluetooth, Wi-Fi, 3G, GPRS and USB connector. The inbuiltcamera with a 5MP sensor is ideal for good quality pictures. FM radio, Music player andVideo player make it the perfect phone for young professionals on the move. [44]
  45. 45. Samsung Galaxy Ace S5830 Galaxy Ace S5830Smart living is the need of the hour and your first step towards a smarter world is yourSamsung Galaxy Ace S5830. It gives a pleasure of holding one of the most sophisticateddesigns of this era. Get updated with the latest news, health and finance through applicationsgalore on the Android Market. WithSamsung Galaxy Ace, you can organize your phonebook, IM, email and SNS on a single page and this phone allows you to customize yourcontacts in four separate formats-Info, History, Activity and Media.Samsung Galaxy S2 I9100 Galaxy S2 I9100 [45]
  46. 46. Samsung Galaxy S2-I9100 helps you express your persona. This smartphone is packed withsome wonderful features. Samsung Galaxy S2 I9100 is the descendant of the enormouslyunbeaten S I9000. This phone is backed by Android 2.3 Gingerbread OS, which hasintroduced a few upgrades over the Froyo including the copy/paste function and a morespaced-out keyboard. The Samsung Galaxy S2- I9100 is enhanced by the faster core speedsand its 1.2 GHz Dual core processor adds more enticing feature to the phone.Samsung Chat 222 Chat 222Samsung Chat 222 is youngsters delight as it is loaded with all features that any young lad orlass loves to have. Young generation never gets enough of one - whether its girl friend or amobile SIM, and therefore Samsung Chat 222 has dual SIM facility that allows you to dodouble i.e. more. And while you are hooked up with your dear one, its better networkcoverage does not give you any interruption. Keep chatting for hours together with SamsungChat 222 with your friends & colleagues - the popular social networking methods, instantmessaging programs and email - everything accessible through your Samsung Chat 222. Thisphone entertains you like a real entertainer; whether you are in office, on the go, on weekendsor any other time - its fun options keep you amused. [46]
  47. 47. Latest Mobiles Nokia X1-01 HTC Wildfire S LG Optimus 2X P990 LG Optimus Black P970 [47]
  48. 48. Nokia is a communications based company, which focuses on mobile telephone technology.When mobile phones first became available on the market the models were very basic withthe best technology being SMS messaging (sending written "text messages" from one phoneto another).Then the next advance in technology was being able to put different faces on your phone(different style covers for the front and back of your mobile device) and after that thetechnological advances have come thick and fast, with advances such as: With all of thesecompetitors in the market Nokia must keep ahead of the game by running successfulmarketing strategies, to do this Nokia must focus on the principles of marketing. At themoment Nokia are theworlds best selling phone company (see table below which showsmarket share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 withshipments growing 66 percent over 1999. Some of the companys success was attributed to astrong second half in 2000 when59 percent of sales occurred. here are many priorities within a business, but in a marketingorientated company like Nokia, many of the following principles will be high on the agenda:  Customer satisfaction: Market research must be used to find out whether customers expectations are being met by current products or services.  Customer perception: this is based on the images consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability.  Customer needs and expectations: This is anticipating future trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more.  Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth and to satisfy stakeholders in the business. Although satisfying the customer is a big part of a companies plans they also need to take into account their own needs, such as: [48]
  49. 49.  Making satisfactory progress: Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase, if not then the marketing strategy should be revised. Be aware of the environment: An organization should always know what is happening within their designated market, if it is hanging, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive. There are also certain external factors that a company should be very aware of, such as P.E.S.T factors (political, environmental, social and technological) and also S.W.O.T (strength, weakness, opportunity and threat). A business must take into account all these constraints when designing and introducing a marketing strategy. P.E.S.T: Political factors- Legal constraints (such as the G3 technology constraints that Nokia have to take into consideration) must be taken into account because many businesses aim to make a profit so they ma be tempted to mislead their customers about prices, quality of products and the availability of their products. They may also try to cut expenditure by using lesser quality materials in their products (such as weaker materials for Nokia cases and batteries), also some companies may also dispose their waste in ways that damage the environment (pollution) and not ensuring high standards of hygiene and safety in the workplace and outlet stores, all of these are illegal and can leave companies in big legal trouble. The governmental bodies in the U.K have introduced new laws into the business environment, which ensure that none of these procedures take place; if a company is to be successful they must follow all of these laws. Environmental social and ethical factors- some businesses view profits are more valuable then a strong ethical code and this can govern behaviour and business conduct. Some un-ethical practices are against the law and companies can not become involved in them (I have mentioned these above) but there are also some practices that arent illegal by law but are considered highly un-ethical by the consuming public, companies who engage in these practices can lose a lot of market share if they are found out. [49]
  50. 50.  An example of this is cosmetic testing on animals, it is legal but some of the consuming public are not happy about it and boycott Certain products because of it, companies must be very careful about how they conduct themselves.  Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones.Technological- In the communications market technologyis perhaps the most important factor that companies like Nokia have to take intoconsideration. They have to keep up to date with all the newest technological advances (likecamera and motion capture phones) if they are going to capture the biggest market share andstay ahead of their competitors (Sony and Seimens). When mobile phones where firstintroduced they were low quality technology (bad reception, poor reliability and had a shortbattery life), high priced (around £100 for a basic model) and consumers had to be persuadedto buy mobile telephones, as they were not yet established as a necessity. When products arefirst released, companies can expect high promotion fees as the public are probably not yetfamiliar with the product. Also when mobile phones were first released they were bulky andhard to use, as product design and development are a key figure in success, Nokia had todesign phones that were smaller and simpler for consumers to use. As people had paid a lotfor earlier, more primitive products they were obviously not going to pay the same highprices for later products so Nokia had to develop phones that could be sold for less and wouldlast longer, this is where companies can expect to pay high production costs.When Mobile phones were first introduced they were not such a popular item and therewerent as many competing companies in the market. So Nokia and a few other companies(Sony and Panasonic) could charge higher prices then they would in the highly competitivemarket that they are in today, as there arent so many companies competing for market share.Most forms of promotion are based around the idea of having an image to go with theproduct. Brand imaging plays a dominant part in an organizations marketing strategy. This isbecause people make a purchase they arent just buying a product, they are buying a lifestyleor an image. If branding can make people believe that the branded product is better then an [50]
  51. 51. un-branded product, more people will buy it and they will also be willing to pay higher pricesfor the "extra quality" and lifestyle they are receiving with the product. Because a lot of rivalproducts are more or less the same (Pepsi and Coke) the main way of making your productstand out is through aggressive branding, This is usually achieved by companies usingslogans, logos and distinctive packaging. Types of pricing strategiesCost based pricingThis involves calculating the cost of production for the product and then adding a mark-upfor profit, usually 10% so a company can make enough profit to re-invest into the business sothey can grow.Marginal cost pricingThis is the addition to total cost resulting from the production of an additional unit of output.If a decision is made to expand by one or more units it will be based on an assumption thatthe price of each unit will be least sufficient to cover marginal costs, so that the profit earnedon all previous units is not lower then it previously was.Demand based pricingThis is usually pricing products based around the customer demand for a product, if thedemand is high, the prices will rise. This is usually used when the product is unique, forexample, a football match or concert. To use this strategy companies must carry out detailedmarket research to find out what prices the consumers are willing topay so they dont overprice their product.Market skimmingThis pricing strategy is also known as price creaming and is usually put into place in marketswhere the competition is limited. Market skimming pricing involves charging a high price fornew products because the customer is new and unique so (hopefully) the consumers will bewilling to pay higher prices for them. This is the most common strategy in the mobile phonemarket, as consumers will pay the higher prices for phones that have the newest technology.Penetration pricing [51]
  52. 52. Firms who are trying to establish themselves in a new market and gain instant market shareusually use this strategy. It is a high-risk, high cost strategy that is only an available option tothe bigger companies (like Nokia) who supply to mass markets. Penetration pricing is basedaround the idea that a company will set their prices low to encourage customers to buy theirproducts instead of higher priced, more established brands.The organization may also boostsales by lowering prices if demand is price elastic. One problem with this strategy in themobile communications market (or any other highly competitive markets) is that price warswill often develop with rival companies and this can limit to the amount of profit that can bemade, and also generate losses due to under-pricing in an attempt to hold onto market share.Price discriminationThis is where companies can charge different prices in different markets, because of theconsumers they are aiming at, for example, rail companies charge different prices for peakand off-peak travel cards and fares. This strategy is only available for use when theconsumers are unable to undercut higher prices by reselling their roducts from low pricedmarkets to high priced markets.Destroyer pricingThis is a more drastic and aggressive form of penetration pricing, used when a companysobjective is to get rid of competition completely by lowering their prices to levels that othercompanies cannot afford to drop to. The down side to this strategy is that consumers may seethe low price as a reflection of the quality of the product and stick to the higher pricedproducts because they offer a product of higher quality.External factors affecting pricing decisionsSetting a price with regards to only production costs ignores the influence of external factors,such as:  Market conditions- how much are the customers willing to pay? Can advertising increase product image and price? Is the product aimed at a mass market or a niche market? (a niche market refers to when a company aims a product at a very small, select segment of the market) [52]
  53. 53.  Production costs- Prices must cover the costs spent in production if a profit is to be made. The price must cover variable costs (for the short term) and fixed costs (for the long term) otherwise a company will face closing.  Taxes and subsidies- VAT and customs duties will raise the price of a product. Government subsidies will allow businesses to charge lower prices.  Business objectives- Is the business looking to maximise profits? Or is the company looking to increase its market share?  Marketing mix- What stage is the product at in the life cycle? What forms of promotion are being used? Where is the product being sold?  Marketing structure- How much competition is there in the market? What prices is the competition charging?Nokias current marketing strategyThe marketing mixPrice- The phones that Nokia produce are usually sold at high prices (new phones can beexpected to enter the market at around £200+, if they carry the latest technology). The priceof the new phones usually decreases after an introductory period, which is usually around 2months long. Nokias prices are usually competitor based, in such a way as, they try to keeptheir prices a bit lower then those of the closest competitors, but not as low as the "smallest"competition as consumers do not mind paying the extra money for the "extra quality" theywill receive with a well known brand, such as Nokia.Place- Nokia phones are generally sold at all established mobile phone dealerships such asCarphone Warehouse and The Link, although they are also sold at other retailers such asDixons and other electrical suppliers. The products are only sold in the electrical suppliersand stores other then dedicated phone dealerships after the introductoryperiod so the phonescan remain limited edition, as this will encourage younger consumers to buy them.Promotions- Nokia tend to promote the new technologies and mobile devices they createusing one big advertising campaign that focuses on a singular technology instead of eachindividual handset so they can appeal to a lot of different markets with one campaign. [53]
  54. 54. Product- Nokia phones tend to include all the latest technology and a lot of the consumersfavourite aspects such as text messaging and games like Snake and Memory. When thephones came out they were big and bulky and quite unattractive but now they are all quitesleek and stylish with phones now getting small enough to fit in the palm of your hand asstandard. Most of the phones produced nowadays have accessories that consumers must buywith them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot ofprofit, as they are very high priced. Nokias marketing mix has worked very well untilrecently as the market they are aiming at has become more and more saturated and afterlooking at all the mobile phone sales figures, it looks as if the phone companies can aim atthis same youth market for about another 2 years until they need to change, but they shouldchange sooner so they can start making a bigger profit and get a head start on the competitionwho will also have to change the market they are aiming at. Nokias current promotionalstrategy is working very well as they are able to "talk to" a large number of consumers indifferent markets rather then the niche markets the old promotional strategies where restrictedto.Market segmentationMarket segmentation refers to the different areas of the population that companies can aimtheir products towards. The market segment that Nokia has chosen to aim is the youth marketfocusing on students aimed 13-19 as market research has shown that some of the youthmarket are receiving large amounts of pocket money and most have no real commitments tospend it on and that means they have lots of disposable income and will be able to spend a lotmoney on new mobile phones.As a big company Nokia are able to do a lot of promoting and advertising that smaller, lesssuccessful companies, may not be able to afford, such as television advertising andsponsoring lots of events that will be viewed or heard by large amounts of people in theirchosen market segment (events such as music festivals and music awards are a goldmine forcompanies as they are viewed by millions of people worldwide). Adverts such as televisionand print adverts will be put into certain areas so that they can attract their chosen marketsegment, Nokia tend to put a lot of their print adverts in mens magazines such as FHM andLoaded so they can appeal to all of their readers instead of a smaller percentage of the readers [54]
  55. 55. they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokiasway of promoting is very good as they can appeal to mass markets and large amounts ofpeople in their chosen market segmentation with certain advertisements and with sponsoringlarge events like the ones I have previously mentioned.Pricing strategyNokias current pricing strategy is based on 2 main theories:  . Penetration pricing- although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors.  Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business.  Nokias pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales.  The other reason that they are so successful is that they offer high quality products and they sell them for the same price and sometimes even lower prices then the competition and have now built up the highest market share, they currently have 37.2% of the mobile phone market share and are the biggest selling mobile phone company in the world.BrandingNokia phones are seen as being of the highest quality and this is reflected in their massivesales figures. The fact that they are seen to be such high quality products is partly down tosuccessful branding, they have a highly recognisable packaging style and the style of theirhandsets is similar in every line of production with the company name printed just above the [55]
  56. 56. screen and just below the earpiece. The fact that Nokia operate such an aggressive marketingstrategy has elevated them above the competition as consumers are fooled into believing thatbranded products are "better" then un-branded products or products produced by lesser-known brands such as One Tel and other lesser-known phone producers in the market.Product life cycle-NokiaIntroductionWhen Nokia phones were first introduced they required a lot of promoting and advertising asthey werent established enough to sell based on their quality and what they offer to theconsumer, so this is where Nokia spent the largest amount of money promoting their productsand establishing their brand as a leader in the communications market.Also when mobilephones were first available there were only a few companies as well as Nokia in the market(Sony e.t.c) so they could charge higher prices then they can at the present time in the productlife cycle because no companies would dare to enter a price war with such a new product.GrowthThis stage of the life cycle also has high promotion costs involved in it, this is due to the factthat mobile phones are becoming established as a consumer necessity and lots of othercompanies decide to enter the growing market, although companies do not need to assurecustomers that they need a mobile phone, Nokia have to assure the customers that they want aNokia phone and this is where the high promotional costs come from.MaturityIn this stage the promotional costs do decrease as the more popular brands, such as Nokia andSamsung, have gathered the majority of the market share and only have to show customersthat they have a new model out and it will sell well, as they have been established as a qualitybrand and customers no-longer need to be persuaded to buy Nokia brand technology.DeclineThis is the stage that the mobile communications market, including Nokia, have recentlyentered (Nokia had reported the first drop in sales in the first quarter of 2002), and companies [56]