Nokia - connecting people. Introduction
In 1963 Nokia starts its journey in the field of telecommunications with developing radio telephones for the army and emergency services. Since then, Nokia came a long way with launching the world’s first international cellular network and the first to allow international roaming in 1981. Nokia introducing the first car phone in 1982 and in 1991, Harri Holkeri- the Finish prime minister by then, makes the world’s first GSM phone call with Nokia handset. The strategic decision to invest in telecommunication has paid off and by 1998 Nokia is the world’s number one in mobile phones. Between 1996 and 2001, Nokia’s turnover increases almost fivefold from 6.5 billion Euro to 31 billion Euro.
In 2005, Nokia sells its One billionth phone. In 2007 the company has 35% of the mobile network share market.
”As the new millennium dawns, everything changes. New technology enables the internet to go mobile, opening up a world of possibilities for mobile users. No longer are phones just for phone calls.” (Nokia, 2013a) Corporate planning & Vision
Nokia’s mission is simple: Connecting People. Except the well-known mobile technology production, Nokia has more production lines like audiovisual signal/data processing and communications, multimedia equipment, satellite and cable receivers. In the early 1990s, Nokia makes a major shift in its activities and becoming a telecommunications focused company. Nokia had effectively decided that the future lies in telecommunications products, and strikes the global rather than simply the national market. Nokia starts expanding its manufacturing in 7 countries and its products sells in 130 countries. Lately Nokia concentrates its energy mostly in navigation, third generation mobile phones, and smartphones.
Company’s main goal is to keep its customer satisfaction with quality products. According to Michael’s Porter generic strategies, I can define Nokia’s game plan as differentiation - “the business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market.” (Keller and Kotler, 2012, p.27) Their phones were built to last, although they seem to be a little pricier than some of their competitor’s handsets. Nokia’s competitive strategy was oriented toward the quality of the products. To reach its target market, the company followed the Product concept – “the consumers favor products offering the most quality, performance, or innovative features.” (Keller and Kotler, 2012, p.9). Nokia’s products were one of the best in their categories, and their prices were higher than competitor’s. In order to maintain its market share and keeps its customers in 1991 Nokia decides to expand its Research and Development programs, and global marketing. That move prepared the company for the cellular boom that hit the world market. The development of global strategies offered Nokia the ability to respond and meet customer’s needs quickly as they developed, with the added benefits of cost reduction, improved quality and competitive leverage. In 1995 the company started to open new manufactories in China, following by others in Mexico – 1996, Brazil-1998, Hungary- 1999 and India in 2006. The company is trying to keep each of these facilities as sustainable as possible. “This means minimizing any negative environmental and social impact the facility may have - for example, by reducing its energy consumption or ensuring materials are ethically sourced. But it also means maximizing the positive impact our presence can have on the local community - from providing rewarding employment opportunities to supporting worthy causes, such as schools or hospitals.”(Nokia, 2013b)
In 2008, Nokia acquired NAVTEQ , a Chicago based provider of digital map data and location-based content and services for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and
