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ALKESH DINESH MODY

INSTITUTE FOR FINANCIAL&

MANAGEMENT STUDIES

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ACKNOWLEDGEMENT

We would like to express our gratitude toProf. ANITA BOBDE who gave us this golden

opportunity to do this interesting project on

the topic :

SWOT ANALYSIS OF NOKIA vs.

SAMSUNG

This also meant that we got an opportunity

to enhance our knowledge in the subject

matter through a lot of Search & Research

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PRESENTED BY:

Sneha Ramesh (103)

Sumit Mehta (62)

Chinmay Save (84)

Siddharth Burman (113)

Manthan Sheth (97)

Khan Mohammed Imtiyaz (116)

Rachit Tiwari (109)

Guidance:

 PROF. Anita Bobde

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HISTORY OF NOKIA

•  Nokia's history starts in 1865, when it was established by

an engineer Fredrik Idestam.

• It first started as a paper manufacturing company

• Expanding into Electronics

After World War II the Finnish Rubber Works and the Finnish

Cable Works companies consolidated. In 1967 -the companies

were merged to form the NOKIA Group

 Nokia is known today as the largest manufacturer of mobile

 phones, having about 40 percent of the world market share inthe second quarter of 2008. This company is even the reason

why Finland is a prosperous country in which it is accounted for 

about 30 percent of the nation's market capitalization. But

 Nokia had a really humble beginning-it all started in 1865. In

1865, an engineer named Fredrik Idestam started a wood-pulp

mill and started manufacturing paper in southern Finland near 

the banks of a river. Those were the days when there was a

strong demand for paper in the industry, the company's sales

achieved its high-stakes and Nokia grew faster and faster.

 Nokia exported paper to Russia first and then to the United

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Kingdom and France. The Nokia factory employed a fairly large

workforce and a small community grew around it. In southern

Finland a community called Nokia still exists on the riverbank 

of Emkoski.

Finnish Rubber Works, a manufacturer a Rubber goods,

impressed with the hydro-electricity produced by the Nokia

wood-pulp (from river Emkoski), merged up and started selling

goods under the brand name on Nokia. After World War II, it

acquired a major part of the Finnish Cable Works shares. The

Finnish Cable Works had grown quickly due to the increasingneed for power transmission and telegraph and telephone

networks in the World War II. Gradually the ownership of the

Rubber Works and the Cable Works companies consolidated. In

1967, all the 3 companies merged-up to form the Nokia Group.

The Electronics Department generated 3 % of the Group's net

sales and provided work for 460 people in 1967, when the Nokia Group was formed.

At the same time, new legislation allowed the Finnish

telecommunications authorities to set up a mobile network for 

car phones that was connected to the public network. The

result was Nordic Mobile Telephony (NMT). Opening in 1981,

 NMT was the world's first multinational cellular network.During the following decade, NMT was introduced in many

other countries and launched the rapid expansion of the mobile

 phone industry. At the end of the 1980s a common standard for 

digital mobile telephony was developed. This standard is

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known as GSM (Global System for Mobile Communications).

In

1991 Nokia made agreements to supply GSM networks to nine

European countries and by August 1997 Nokia had suppliedGSM systems to 59 operators in 31 countries.

In1988, in Nordic countries Nokia was a large television

manufacturer and the largest information technology company.

In 1980s nokia expanded their business sectors and products.

The strategy was to expand rapidly on all fronts. Nokia came to

its feet quickly as the company started streamlining its businesses. In May 1992 Nokia made the strategic decision to

divest its non-core operations and focus on

telecommunications. The company's 2100 series phone was an

incredible success. In 1994, Nokia sold 20 million handsets the

goal was to sell 500,000 units. It has been rumored that a

group of businessmen tried to offer Nokia to the Swedishtelecom company Ericsson during the recession (1990s).

In 1992, the company decided to focus more on the

telecommunications business. In the same year, Nokia launched

its first GSM handset, which is the Nokia 1011.

It was in 1994 that the Nokia tune was launched. It was the

 Nokia 2100 that featured this famous classic phone tune. Thesuccess of Nokia continued until the world's first satellite call

was made in 1994 using a Nokia mobile phone. And in 1997,

 Nokia introduced a classic game highly associated with the

company-Snake

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The middle Ages (NOKIA)

1960’s: Beginning of Nokia’s journey into telecommunications

as an extension into its research activity in semiconductors1970’s: Majority of telephone exchanges were electro-

mechanical analog switches. Nokia began developing the digital

switch (Nokia DX 200) equipped with high level computer 

language and Intel microprocessors gradually evolved into the

multifaceted platform.

It is still the basis for Nokia's network infrastructure today.

Till now… (NOKIA)

• 1980’s: Nokia's operations rapidly expanded to new

 business sectors and products. The strategy was to expand

rapidly on all fronts. A common standard for digital mobiletelephony was developed. This standard is known as GSM

(Global System for Mobile Communications).

1990’s: The telecommunications and mobile phones

divisions were the supporting pillars of the Nokia.

1992: Nokia made the strategic decision to divest its non-

core operations and focus on telecommunications.

1994: the goal was to sell 500,000 units. Nokia sold 20

million.

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• 2000’s -

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide rangeof Nokia phone

2004 - First Wi-Fi Phone- Nokia Communicator (N9500)

2005 – Local UI in additional local language

2006 – Nokia manufacturing plant in Chennai-----the story

 begins

HISTORY OF SAMSUNG

• SAMSUNG first started as a small export business in

TAEGU, KOREA.

• It has grown to become one of the world’s leading

electronics companies specializing in digital appliances andmedia, semiconductors, memory and system integration.

• 2000s:TV Phone and Watch Phone Make Guinness Book 

of World Records

• Unveils the World’s Fastest Graphics Memory Chip

•Samsung Electronics and Yahoo! Form Strategic Alliance

• Develops Unique All-in-one DVD Player 

• Developed world's first 512Mb DRAM

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The middle Ages (SAMSUNG)

• 2005:Released the world's first 7 mega pixel camera phone

-Developed the world's first OLED for 40" TV

-Became the official sponsor of Chelsea, the renowned

English soccer club

-Developed the first-ever speech recognition phone

-Produced the first wrinkle-free steam washer 

-Sold more than 20 million cellular phones in the U.S

-Developed the world's first 60-nano 8GB NAND Flash

memory chip

-Ranked top in mobile phone sales in Russia

Latest Milestone (SAMSUNG)

• 2009:Launched major restructuring of its businesses

-Cooperates in creating a foundry with Xilinx of the US

-Developed the world’s first 40 nanometer DRAM

-Announced its “Blue Earth” solar-powered phone

-Released its V-line Crystal Rose LCD TV

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-Samsung is found No. 1 in customer loyalty for 8 years

consecutively by Brand Keys of the USA

-Samsung Digital Imaging developed an innovative hybrid

digital camera

-Built the world’s largest mobile phone as recorded in the

Guinness Book of World Records

Nokia’s Strategy in India

Expand mobile voice

Drive consumer multimedia

Bring extended mobility to enterprises

Clearly defined objectives and goals

Right timing of decisions

Determination and risk taking

Foreseeing and using rising market opportunities

Creating the future 

Product Innovations

• Nokia :

1) Nokia announced in August 2009 that they will be

selling a high-end Windows-based mini laptop called

the Nokia Booklet 3G.[

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2) On September 10, 2009, Nokia unveiled a new handset

7705 Twist, a phone with a sports square shape that

swivels open to reveal a full QWERTY keypad

Samsung’s Strategy in India

Aggressively hawking flip-tops and clamshells with

 polyphonic ring tones and colour screens.

 Nationwide distributor and retail presence in the

domestic consumer durables market.

Samsung has been associated with the Lakme India

Fashion Week (LIFW) for its Mobile Phones. TheCompany used the LIFW-2005 as a platform to launch

its D-500, World’s Best Mobile Phone in the Indian

market.

Set up a handset manufacturing facility in India

Product Innovations

Samsung:

1)Samsung Blue Earth Phone

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2)Samsung Navibot

Nokia vs Samsung

Nokia Samsung

Revenue 40.99 Bn

Euros

21 bn USD

NET

INCOME

891

million

Euros

2.3 Bn USD

FIRST

MOBILEPHONE

MOBIRA

CITYMAN

SC-100

Headquarters Espoo,

Finland

Suwon, South

Korea

Market

Share(India)

54.1% 9.7%

Employees 129746 276000(Samsung

Group)

Market Share 36.6% 21.9%

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(World)

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Market Shares In the World

Market Share

0.00% 10.00% 20.00% 30.00% 40.00%

Nokia

Samsung

LGMotorola

Others

Market Sha

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Market Share

Nokia

Samsung

Sony

Others

Market Share In India

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What is SWOT Analysis

It is a non-financial planning tool.

It links the analysis in terms of advantages anddisadvantages; and the internal and external business

environment (in a matrix format).

The Strengths and Weaknesses are defined by measures

such as market share, loyal customers, level of customer 

satisfaction and product quality.

Opportunities are new potential areas for business in the

future, such as new markets, or new conditions in existing

markets.

Threats describe how the competition, new technology, or 

other factors in the business environment may affect the

 business's development.

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SWOT ANALYSIS

Advantages of SWOT Analysis

Consolidate strengths

Minimises Weaknesses

Helps to Grab Opportunities

Minimises Threats

Facilitates Planning

Facilitates Alternative Choices

Helps to Innovate

Ensure Survival & Success

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SWOT Analysis On Samsung and Nokia

Strengths of Samsung

 New product concept to rollout in five months

Catching the pulse of the consumer, offering good designs

& understanding Emotions

Heavy investment in technology, product design, and

human resources

Focus on innovative products for the high-end market

Strengths of Nokia

 Nokia has largest network of distribution and selling as

compared to other mobile phone company in the world. It is

 backed with the high quality and professional team in the HRD

Dept. The financial aspect is very strong in case of Nokia as ithas many more profitable business.

The product being user friendly and have all the accessories one

want that is why is in great demand making it No-1 selling

mobile phones in the world. Wide range of products for all class.

The re-sell value of Nokia phones are high compared to other 

company’s product

Strength of the corporate brand.

Complexity improves its Competitive position 

Design, the branding and the technology

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Backwards compatibility - protection from a Japanese

onslaught

Lending personality to its products (fashion statement)

Effective advertisement and market communication

 Not only a tool for business but being an item of everyday

convenience

Weaknesses of Samsung Not pro-actively coming out with newer models

Lack in product differentiation.

Different models at different price points

Focus on mass market instead of niche markets

 Not very user friendly designs.

Weakness of Nokia

 Nokia has many strengths and some weakness. Some of theweakness includes the price of the product offered by the

company. Some of the products are not user friendly. Not

concern about the lower class f the society people. Not targeting

 promotion toward them. The price of the product is the main

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issue. The service centers in India are very few and scare. So

after sales service is not good

Lapse has opened up space for smaller competitors

Potential threat from Microsoft’s entry into mobile

telephony

Ericsson- king of wireless infrastructure

Design to market takes more time

Opportunities of Samsung

Distinguish its service from competitors.

Offer product variations

Demand for cell phones driven by the service providers or 

carriers

Tie up with service providers

Lowering the price of a phone by just $20 in many

countries could increase its affordability by 43 %.( As per

a study report)

Opportunities of Nokia

 Nokia has ample of opportunity to expand its business. With the

wide range in products, features and different price range for 

different people, it has an advantage over the competitors

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around. With the opportunity like ‘Telecom penetration in India’

 being at the peak time, Nokia has an opportunity to increase its

sales as well as the market share. As the standard of living in

India has increased the purchasing  power of the people asincreased as well, so Nokia has to target right customer at right

time to gain the most out of the situation

Highest growth in markets such as China and Latin

America

Feature-loaded phones to act as an offset

Providing value at a reasonable lifetime cost

Life style marketing and segmentation

Building a worldwide supplier network 

Preempting competitors in critical markets

Managing competitive interaction

Threats of Samsung

Motorola’s dominance in the U.S, Nokia’s popularity in the

European market competitors, including Sony, Ericsson,

and Siemens eating into its share, controlling more than

half of the world market

Aggressive.

 Not keeping track of the new trends in the market

 Not an accessory and fashion statement

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Threats of Nokia

 Nokia has many threats to tackle to maintain its position asmarket leader. The threats like emerging of other mobile

companies in the market. The companies like Motorola,

Sony Eriksson, Cingular (U.S) etc. these companies have

come to the stand of tough competition with Nokia in the

field of Mobile Phones. Threats can be like providing cheap

 phones, new features, new style and type, good after salesservice etc. So, Nokia has to keep in mind the growing

competition around. Nokia has to make strategies to tackle

 problems in the present and the

near future. The growing demand of WLL network can

cause drop in sales for Nokia, as Nokia provides many less

CDMA phones to the

Biggest threat - “complacency”

“Inflection point” - a disruptive technological change

 New competitors with different skills and potent brands

challenge

3G will increasing competition between suppliers

Cheaper midrange models from Motorola and other 

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General : 2G network GSM 900/1800Size : Dimensions-106x46x15mm

Weight-73.7gDisplay : Type-TFT colour Size-120x180 pixelsSound : Vibration,Polyphonic,MP3 RingtonesMemory: Phonebook-upto 1000 entries,11mb user pace

Camera: 640x840pixels,video recordingFeatures: Messaging-Sms,Mms,EmailBrowser-WAP 2.0/HTMLAVA-MIDP 2.1

Voice memo

NOKIA 1680 CLASSIC

Product Features

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General: 3G network UTMS 850/2100Size : Dimensions -111x 45x13 mm

Weight-80 gDisplay:TFT colours-16m

Size – 240x320 pixels,2.0 inchesSound : Alert types-vibration, downloadable polyphonic,MP3 Ringtones

Speakerphone-YESMemory: Phonebook-Upto 2000 entries,internal-upto24mb

external- expandable upto 8gbGPRS-Class 32EDGE-Class 323G-yes

Features: Messaging – SMS, MMS, Push email

Browser:WAP 2.0 ,JAVA 2.0, MP3 ,MP4,eAAC+,Organiser, T9

Nokia 3120 Classic

General: 2G Network GSM 850 / 900 / 1800 /

19003G Network HSDPA 900 / 2100

Size: 103x55x18 mmWeight[ 112 g

Display: Type TFT, 16M colorsSize 240 x 320 pixels, 2.8 inches

Memory : Call records Detailed, max 30 daysInternal 16 GB storage, 128 MB

RAMC ard  slot microSD, up to 32GB

Camera: Primary 5 MP, 2592x1944 pixels, Carl

Zeiss optics,autofocus, LED flash

Features : DVB-H TV broadcast receiver,Dual slide design,WMV/RV/MP4/3GP

video player - Kickstand

NOKIA N96

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Nokia 5800 navigation

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eneral:2G network GSM network 850/1100ize: 104x49x13 mm,68cc

Weight- 107gsplay: Type- TFT touchscreen, - Proximity sensor r auto turn-off 

Accelerometer sensor for auto-rotateHandwriting recognitionATA : WLAN-Wi-fi802.11

Bluetooth-YESamera : Primary- 3.15 mp, 2048x1148 pixels pixels,

utofocus, LED flashVideo- Yes, VGA@30fps

eatures : OS- Symbian OS v 9.4 series 60lCPU -ARM 11 434 MHz processor WMV/RV/MP4/3GP video player MP3/WMA/WAV/RA/AAC/M4A music player Flash Lite 3.0

Nokia 5530

eneral : 2G GSM 800/15003G HSDPA 900/2100

emory Phonebook : Practically unlimited

Call records Detailed, max 30 daysInternal 81 MB storage, 128 MB RAMCard slot micros', up to 16GB, 8GB

ata: GPRS Class 32EDGE Class 323G HSDPA, 3.6 MbpsWLAN Wi-Fi 802.11 b/g, UPnP technology

eatures : Regional maps , Lifetime pedestrian and vehicleoice-guided navigation licenses

Car mount and car charger in retail package,MV/RV/MP4/3GP video player 

attery Standard battery, Li-Ion 1320 mAh(BL-5J)Stand-by Up to 408 h (2G) / Up to 408 h (3G)Talk timeUp to 9 h (2G) / Up to 5 h (3G)Music play Up to 35 h

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eneral : 2G Network GSM 900 / 1800ze : Dimensions 57.5 x 41.1 x 12 mm

Weight 91.0 g

splay : Dimensions 57.5 x 41.1 x 12 mmWeight 91.0 g

eatures: MP3 player DictaphoneCurrency Converter Voice recognitionVoice memoT9

Samsung s9110

neral : 2G Network GSM 850 / 900 / 1800 / 1900

3G Network HSDPA 900 / 1900 / 2100ze : Dimensions 122.4 x 64.2 x 9.9 mm

Weight 119 gsplay : Type Super AMOLED capacitive touchscreen,M color - TouchWiz 3.0 UI

- Multi-touch input method- Accelerometer sensor for UI auto-rotate- Touch-sensitive controls- Proximity sensor for auto turn-off - Swype text input

mory : Phonebook Practically unlimited entries andds, Photocallernal 8 GB/16GB storage, 512 MB RAM, 2GB ROMrd slot micros', up to 32GB

Samsung I9000

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General : 2G Network GSM 850 / 900 / 1800 / 1900Size: Dimensions 104 x 53 x 11.9 mm

Weight 92 gDisplay: Type TFT resistive touchscreen, 256K

colors - Accelerometer sensor - Handwriting recognition- Smart unlock

Memory Internal 50 MBCard slot microSD, up to 16GB (verified),

buy memoryData: GPRS Class 12 (4+1/3+2/2+3/1+4 slots), 32 - 48kbpsEDGE Class 12WLAN Wi-Fi 802.11 b/g

Samsung s5230

eral: 2G Network GSM 850 / 900 / 1800 / 1900Network HSDPA 900 / 1900 / 2100e : Dimensions 118.5 x 58.3 x 16.4 mm

Weight 164 gplay : Type AMOLED resistive touchscreen, 16M colors (65Kctive)vanced R tilting touchscreen displayll QWERTY keyboardcelerometer sensor for auto-rotate

mory : Internal 8 GB storage, 256 MB RAM, 512MB ROMCard slot microSD, up to 32GB

a: GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbpsGEClass 10, 236.8 kbpsHSDPA 7.2 Mbps, HSUPA 5.76 Mbps

AN Wi-Fi 802.11 b/g, DLNAtures : Giorgio Armani fashion applications, Work & LifedeP3/WAV/e-AAC+/WMA/AMR player vX/XviD/MP4/3gp/H.263/H.264 player oto/video editor 

Samsung B7620 GiorgioArmani

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Samsung S3650 Genio Touch

Conclusion

  Although Nokia has an edge over

Samsung in terms of Market Share and

Revenue and is also the Market leader in

the mobile production and

communication business yet Samsung

over the past years has emerged as the

biggest competitor and its share andprofit is also rising . Hence Nokia should

be vary of Samsung and other

competitors .

General : 2G Network GSM 850 / 900 / 1800 / 19003G Network HSDPA 900 / 2100

Size : Dimensions 105 x 56.8 x 15.7 mmWeight 135 g

Display : Type TFT resistive touchscreen, 16M colorsSize :240 x 320 pixels, 2.8 inches, Full QWERTYkeyboard

Accelerometer sensor for auto-rotateMemory : GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps

EDGE Class 10, 236.8 kbps3GHSDPA 7.2 MbpsWLANWi-Fi 802.11 b/g

Camera : Primary 3.15 MP, 2048x1536 pixels, videoFeatures Geo-tagging, smile detection