IIPM Strategic Management & Business Policy

STRATEGIES OF COMPANY GOING GLOBAL

Presented ByAnkita Tiwari

Narayanan V Ravindra.V

r Roshan M R

Batch - (FW 09/11)

HISTORY Of NOKIA

Nokia First Century : 1865- 1967 : The first Nokia century began with Fredrik Idestam's paper mill on the

banks of the Nokianvirta river.

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story begins.

1960: First electronics departmentCable Works establishes its first electronics department. selling and operating computers.

Conti...

The Move To Mobile :1968-1991

As European telecommunications markets were deregulated Mobile networks became global Nokia led the way with some iconic products...

1981: The mobile era beginsNordic Mobile Telephone (NMT), the first international mobile phone network is built.

Conti...

• 1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the world’s first GSM call.

Revolution of mobile starts……….

VISION

As our lives become increasingly digital, and information about our environment becomes both more contextual and readily available, we will soon want to interact with the ever-growing amounts of information and expect capabilities provided by mobile technology to be delivered in more intuitive and conve nient ways. Rather than having to actively initiate a request for information or a service, we will want it to seamlessly blend into our daily routine, providing immediate feedback to us, as we need it, without disrupting our current activity

Code of Conduct :Our aspiration to be the world’s most loved and admired brand can only be achieved what we do but how we do it - strictly adhere to laws and regulations The Nokia Code of Conduct sets our approach to ethical and sustainable business

practice

 SWOT ANALYSIS FOR NOKIA COMPANY

STRENGTHS Brand awareness Technology leader in manufacturing mobiles Market leader Presence across 150 countries

WEAKNESSES Not good at software Performance of symbian OS is poor Increasing dissatisfaction level with its higher end sets.

Conti...

OPPORTUNITIES Huge loyal customer base Huge presence in developing countries Can use its infrastructure business(Nokia Siemens network) to

reduce bargaining power of mobile operators

THREAT Rapidly changing industry Threat of entry from new players

PORTER’S FIVE FORCES ANALYSIS

Threat of entry• Huge capital requirements: manufacturing costs, R&D costs,

constant push to innovate and launch new products.

• Product differentiation(low): will become successful unless they are differentiated from its competitors.

• Economies of scale: fixed cost is high, so economies of scale have to be achieved to increase profit margin.

• Government and legal barriers: mobile industry is heavily regulated.

Conti....

Supplier power:

Software provider: There are so many open mobile operating system provider, options are plenty and hence the bargaining power of the software provider is low.

Hardware provider: there are so many suppliers for hardware component too and hence the bargaining power of hardware providers is also low.

Rivalry:

Rivalry is intense among existing players.

The differentiation in terms of product features is getting diminished; however players are continuing to differentiate their products in terms of application and service offered.

Conti....

Substitutes: The power of substitutes is moderate and it actually depends on the impact

of substitute products.

Buyer power: Buyers bargaining power is high because of the following reasons: More choice of products and very limited differentiation of those products Elastic demand- demand is highly sensitive to economy buyers can delay

buying new models Less asymmetric information- buyers have all the required information Less switching costs

Segment Analysis

Segmentation analysis

For Indian market the nokia has segmented in to 3 kinds of users Core users Communication users Information users.

Basic models for core users which is basically used for only to make or receive calls.

‘N’ series is targeted for entertainment users and ‘E’ series is targeted for communication users.

Conti...

• Basic User

• Entertainment User:

Nokia In India In April 2005, Nokia India, announced that it was setting up a

manufacturing facility for mobile devices in Chennai. Nokia invested US$ 100-150 million in the facility. Nokia considers India as one of the most important markets for its future

growth. Stiff competition in the recent years from Korean players like Samsung

and LG. average production capacity of manufacturing unit of Nokia is around 20

million units.

Nokia - 2005

One, that its strategies - including ones like developing a phone specifically for India - are respected.

In 2005, Nokia was recognized as the 'Brand of the Year’ (Confederation of Indian Industry, India's apex industry association)

The Indian Mobile Phones Industry

Slow start in India in 1995 Several private players exited in the next few years due to the

Unfriendly telecom policies

High licensing fees

Absence of a proper telecom regulatory body.

In 1999-New telecom policy. This policy planned to provide telephones on demand by 2002.

Conti...

Among other things, the policy allowed unrestricted private entry into almost all mobile service sectors.

The government allowed cellular mobile service providers to share infrastructure with other operators.

Helped many private operators to break even faster The first ever GSM call in India was made on a Nokia 2110

mobile phone on its own network in 1995

Reframing Of Strategies

Nokia was quick to learn from its mistakes and adopted strategies to regain its lost market share.

The company's sales reached 7.4 billion Euros, with the company selling 54 million phones during the period.

Nokia continued its leadership in GSM with a market share of 74% in March 2005.

Nokia also surpassed Samsung in color mobiles in the GSM segment, recording a share of 55% in the same month.

Multi Media Division

Nokia reorganized itself at the global level in 2004. At this point, a multimedia division was formed.

The division's Indian operations

-promoting the concept of high-end phones in smaller towns while going in for higher volumes in larger cities.

The marketing division of the company concentrated on making distributors in small towns sell high-end products.

The Future Prospects

According to industry analysts, by 2010, the mobile phones industry in India will be driven by

voice, multimedia mobile services for organizations.

The teledensity to18.2% by 2010. with mobile subscription rising to 148.77 million by that

time.

Conti...

Cell phone has become the only basic telephone link of a household/enterprise in India, rather than a landline phone.

It was turning out to be more economical and efficient than fixed line telephones.

Great scope for further expansion with reduction in the cost of ownership...

THANKYOU