Sanjay Retail Mgt Assignmnt on Nokia and samsung

8/12/2019 Sanjay Retail Mgt Assignmnt on Nokia and samsung

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NOKIA CONNECTING PEOPLE

ASSIGNMENT OF RETAIL MANAGEMENT

TOPIC-NOKIA

Submitted to Submitted by

Rohit vij Sanjay giri goswami

Regd no-10908015

Roll no-B48


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NOKIA CONNECTING PEOPLE

Nokia is a multinational corporation engaged in the

manufacturing of mobile phones devices, in

converging internet and communication industries, having about 132,000

employees working worldwide. The organization is the Worlds largest mobile

manufacturing company and is operational is 150 different countries having an

approximate global annual sales revenue of 42 billion and operating profit of 2

billion in the preceding year 2010. The organization has a market share of about

28.9% as of the preceding year 2010 and is still the market leader in the world of

mobile phones.

Nokia Corporation has a history of 146 years and it wasn't the way it is today, ittook Nokia decades to reach at this point. The first Nokia century began with

Fredrik Idestam's paper mill on the banks of the Nokianvirta River. Between 1865

and 1967, the company would become a major industrial force, but it took a

merger with a cable company and a rubber firm to set the new Nokia Corporation

on the path to electronics.

From 1968-91, the newly formed Nokia Corporation was ideally positioned for a

pioneering role in the early evolution of mobile communications. As European

telecommunications markets were deregulated and mobile networks becameglobal, Nokia led the way with some iconic products. In 1992, Nokia decided to

focus on its telecommunications business. This was probably the most important

strategic decision in its history. As adoption of the GSM standard grew, the CEO

put Nokia at the head of the mobile telephone industrys global boom and made it

the world leader before the end of the decade. And in the current century Nokias

story continues with 3G, mobile multiplayer gaming, multimedia devices and a

look to the future.

VisionNokias vision is simply

Connecting People


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Mission statementNokia Corporation defines its mission to connect people through mobile phone

technology and quotes its mission statement as follows

Our strategic intent is to buil d great mobile products our job is to enablebi l l ions of people everywhere to get connected

Goals and ObjectivesNokias Goals and objectives in the market are as follows

To build great mobile products.

To help people feel near to what matters to them.

To enable billions of people to get more of lifes opportunities throughmobiles.

To capture volume and value growth to connect the next billion people to

the Internet in developing growth markets.

Merchandise mix of Nokia

1-Touch and Typethe benefits of each


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TouchMillions ofpeople world-wide have now fallen in love with the touch screen.They enjoy having one touch access to the things they use most on theirphoneincluding their apps, notifications and web browser. Navigation iseasier and faster on your touch screen, apps are simpler to manage andthe text is easy to access and interact with.

TypeMany millions of people are very attached to their phone keypad.That's because the buttons are familiar and easy to use day to day -especially for messaging services like texting, emailing and chatting. And ofcourse the trusty old keypad is a very simple and convenient way of makingyour phone calls.

2-Dual sim phone

Dual SIM cards give you all the convenience of having two mobile phonesin one.It's a great way of saving money by combining two different plans orservice providers, so you can have a work and home account on the samedevice or share the phone with someone else.


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How it works is simple. You keep one SIM inside the phone, then swapbetween multiple SIMs using the slot on the side of the handset. Yourphone remembers messaging and other settings for up to five SIMs,depending on your handset. You can switch easily between two SIMsinside your phone with one touch of a button.3-Easy to use, and easy on the pocket

A phone that gives you so much extra value doesn't have to be expensive.But actually our Nokia dual SIM phones are available at very affordableprices. These phones are also packed with many other great features. Youcan take all your music wherever you go with a built-in MP3 player, listen toFM radio on speakers or headphones, and improve the quality of youreveryday life with useful information on agriculture, health and educationusing Nokia Life Tools.

4-Smartphones

Smarter Smartphone experience with Symbian Belle


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Nokia Smartphone just got more responsive, fast, fun and easy to usewith Symbian Belle.

Share photos and contacts faster. Play multi-player games. Just Tap withNFC.

Multi-task with ease; thanks to the increased processing power in the NewNokia Smart phones with Belle.

Get all the updates from your social world in one screen. Customize your six home screens with what's most important to you. Keep your favourites within easy reach through live widgets. Access all your notifications by simply sliding down a simple tab with the

new pull-down taskbar.

Assortment of Smartphones

Smarter Smartphone experience with Symbian Belle


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Nokia Smartphonesjust got more responsive, fast, fun and easy to usewith Symbian Belle.

Share photos and contacts faster. Play multi-player games. Just Tap withNFC.

Multi-task with ease; thanks to the increased processing power in the NewNokia Smartphoneswith Belle.

Get all the updates from your social world in one screen. Customize your six home screens with what's most important to you. Keep your favourites within easy reach through live widgets. Access all your notifications by simply sliding down a simple tab with the

new pull-down taskbar.

Smartphonesmakes browsing, sharing, and connecting faster and easier.With Live Tiles, People Hub, and Internet Explorer 9, you'll never miss an

update or an opportunity to post what's going on in your world. With anengaging interface and intuitive design, you'll be just a few taps away fromenjoying the people and things that matter most.

People HubIn Smartphones You'll find everyone in one place with the People Hub - allyour Facebook, LinkedIn, Twitter, and email contacts are there and easy toreach.

Balance sheet of Nokia

12/31/11

Assets


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Cash & Equivalents 15,184.29

Receivables 10,001.69

Notes Receivable 0

Inventories 3,245.22

Other Current Assets 7,022.49

Total Current Assets 35,453.72

Net Property & Equipment 2,565.53

Investments & Advances 986.10

Other Non-Current Assets 137.88

Deferred Charges 2,582.25

Intangibles 8,696.64

Deposits & Other Assets 4.10

Total Assets 50,426.32

Liabilities & Shareholder's Equity

Notes Payable 1,385.83

Accounts Payable 7,704.96

Current Portion Long-Term Debt 497.22

Current Portion Capital Leases 0

Accrued Expenses 10,349.89

Income Taxes Payable 0

Other Current Liabilities 4,358.07

Total Current Liabilities 24,296

Mortgages 0

Deferred Taxes/Income 1,114.24

Convertible Debt 0

Long-Term Debt 5,528.02

Non-Current Capital Leases 0

Other Non-Current Liabilities 105.85

Minority Interest (Liabilities) 0

Total Liabilities 31,044.11

Shareholder's Equity


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Preferred Stock 0

Common Stock (Par) 342.62

Capital Surplus 504.19

Retained Earnings 10,913.98

Other Equity 8,518.30

Treasury Stock 896.96

Total Shareholder's Equity 19,382.20

Total Liabilities & Shareholder's Equity 50,426.32

Total Common Equity 19,382.20

Shares Outstanding 3,744.90

Book Value Per Share 5.18

Financial audit

The finance Department provides the basic

financial resources to other departments and is

responsible for allocating budgets to the

company so it is really very important to analyze

an organizations financial strengths and

weaknesses because all the operations of thebusiness are dependent on them. Nokia

Corporation in this case has the following

strengths and weaknesses.

Nokia Corporation has a Net Working capital of $3.18 billion which is

above of what any organization in the industry maintains so it gives Nokia a

Financial strength to tackle any sort of uncertainty in the market and also

gives the chance to grab any temporary opportunity in the market.Also the companys financial statements for the year 2010 shows that the

company has total assets of worth 39,123 million Euros which shows that

the organization is very strong financially.


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Nokia Corporation reported sales of about 4.2 billion euros in 2010 which

has risen from the sales figure in 2009 which is again a strong financial

strength as it is greater than its biggest competitors such as Motorola which

reported sales of 1.9 billion euros.

The Nokia Corporation is weak than its competitors in terms of net earnings

per share as Nokia Corporations average EPS is 0.628 whereas Motorola

Incs average EPS is 0.805 which makes it less attractive for investors as

compared to its investors.

Also Motorola Inc. is more efficient in making its short term payments with

a current ratio of 1.99, as compared to Nokia Corporation which has a

current ratio of 1.6.

Nokia Corporations five year average of total debt to equity ratio is about

0.25 which shows that for each $1 borrowed from shareholders the company

has 25 cents from its creditors which tells us about the investment decision

of Nokia Corporation that it does not rely mostly on debt and the firm faces

a fewer risk which is a strength for the company.

Nokia Corporation has an interest coverage ratio of 7.4 times which means

that it generates enough income in an accounting period to pay off 7.4 times

of its debts which again reduces the chances of Nokia Corporations

Bankruptcy and is in its favor.

On average of the last 5 year record Nokia Corporation has a net profit

margin of 8.1% which ensures availability of greater amount of finance at

the time of need for the organization.


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Strategy

Nokia Corporation has created an alliance withthe Microsoft Company through which it has

gained the opportunity to launch new mobile

phones in the market which would be based on

Windows 7 operating system.

Nokia Corporation has basically adopted the

strategy of New Product Development and

Horizontal Integration Strategy through

which Nokia Corporation plans to launch newmobile phones with core 2 duo processors and

about 1.0-1.5 GB of Ram and full HD 1080p

video recording cameras and in a new slim

design and will use Windows 7 operating

system as its basic operating system and these

cell phones will contain all the features of an

official Windows 7 which already has a great acceptance in the World to compete

in the market against other mobile phone manufacturers in the world as well as thegrowing Android (OS).

Strategic GoalThrough adopting this strategy Nokia Corporation has the opportunity to gain

access of the lost market share and to maintain its position as the # 1 mobile phone

manufacturer in the world and to compete against the other mobile phonemanufacturing companies operating in the world. Following are the main strategic

goals of this strategy

Nokia would develop new mobile phones that will be just equal to a mini

laptop as the operating system would be Windows 7 which is the most


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acknowledged operating system in the world and thus through this Nokia

will regain its lost market share.

Through applying this strategy Nokia Corporation would be able to

minimize its dependency on the Symbian software and thus would provide

its customers with a new a fast operating system.

Also through adopting this strategy Nokia Corporation would be able to

efficiently compete against its competitors in the market and with the new

Android operating system that is currently the worlds fastest growing and

acknowledgeable mobile phone operating system.


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Samsung

Samsung has ambitious plans to become the worlds leading phone maker

and displace Nokia, the current title holder in three years. With Android and

Windows Phone 7 on the riseSamsung is a big OEM backer of these twoSmartphone operating systemsand Symbians relevance being

questioned, Nokia will need to make some major strategy decisions to

maintain its position.

Unwired View says that Samsung is looking to increase its high-profit

smartphone and premium devices market as it tackles worldwide market

share. The phone-maker is looking to have smartphones and premium

mobile devices account for half of its mobile productions, placing more

emphasis on smarter devices. Another product category that Samsung willfocus on is the tablet market.

The company will be increasing production at factories in China, Vietnam,

and Brazil to meet demands. Factories in Samsungs home South Korea

will be focused on high-end products.

In its battle with other phone makers, Samsungs control of the vertical

components market may give it a competitive advantage over rivals like

Nokia. Samsung makes displays, memory chips, mobile processors, and

other components, which can help Samsung Mobile, the phone and tabletdivision of Samsung, be price competitive against rivals

Samsung Electronics continued to widen its lead over Nokia and others inthe Indian smartphone market even as RIM-Blackberry saw a slight come-back in November, the latest 'Monthly Mobile Handsets Market Review'published by CyberMedia Research reveals.

Despite the strong showing by Samsung, Nokia is likely to end up as thetop smartphone maker in India for the full year, the report showed.

According to the report, based on data collected from stockists, distributorsand others, about 7% of all phones sold in India during November weresmartphones.
http://www.unwiredview.com/2010/12/29/samsung-plans-to-become-no-1-in-mobile-replacing-nokia-in-3-years/http://www.unwiredview.com/2010/12/29/samsung-plans-to-become-no-1-in-mobile-replacing-nokia-in-3-years/


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Smartphones are so called because, like computers, they tend to run onindependent and fairly complex operating systems or software, oftenprovided by specialists like Google (Android) and Microsoft.

The smartphone segment is the most lucrative and, despite accounting forjust around 7% of the total volumes, is likely to bring in as much as 30% to40% of the total revenues due to their higher prices, though data on thisaspect is harder to come by.

According to CyberMedia Research, Samsung has a solid 34.1% share inthe Indian smart phone market as of November, followed by Nokia with22.4% and RIM (Blackberry) with 18.6%.

Nokia's loss, however, was Samsung's gain in the Indian smartphone

market.

The Korean company, which beat Nokia as India's leading smartphonemaker for November, saw its share rise to 34.1% in the month, from 27.5%for the full year (till November.) In other words, while Nokia's share felltowards the later part of the year, Samsung's went up.

Nokia has seen a dip in its Smartphone market share over the last 3 yearsdue to the lackluster performance of its Symbian operating system. Thecompany launched its new platform based on Microsoft's Windows Mango

platform in November too -- a move expected to drive its market share backup.

Another interesting number thrown up by the November report is that whilethe Blackberry maker RIM may be losing market share in its core markets,in India, it continues to hold on to, and even improve, its share.

In terms of sheer numbers, the 7% marketshare for smartphone resulted innearly 1.07 million units in November. In all, nearly 15.47 mobilephoneswere pushed into the supply chain in November, according to CyberMedia

Research.

With just one month left to go to complete the year, India saw nearly 166million (16.6 crore) handsets being sold in 2011.


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Samsung Smartphones

Share photos and contacts faster. Play multi-player games. Multi-task with ease; thanks to the increased processing power in the New

Samsung Smartphones.Get all the updates from your social world in one screen

Samsung Smartphones makes browsing, sharing, and connecting fasterand easier. With Live Tiles, People Hub, and Internet Explorer 9, you'llnever miss an update or an opportunity to post what's going on in yourworld. With an engaging interface and intuitive design, you'll be just a fewtaps away from enjoying the people and things that matter most.

Assortment of Samsung Smartphones segment

Galaxy note

Galaxy S plus

Omnia W
http://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-I9001HKAINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-N7000ZBAINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-I9001HKAINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-N7000ZBAINU


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Wave M

Samsung Smartphonesare giving tough competition to Nokiasmartphones.Galaxy, Wave, Omnia these phones are targeting middleupper class or higher class customers. These phones are providing verygood and advance features. These phones make browsing, sharing, andconnecting faster and easier. With Live Tiles, People Hub, and Internet

Explorer 9, you'll never miss an update or an opportunity to post what'sgoing on in your world. With an engaging interface and intuitive design,you'll be just a few taps away from enjoying the people and things thatmatter most.

Balance sheet of Samsung

Assets Dec 10

Current Assets

Cash 8,747.1

Net Receivables 22,832.0

Inventories 11,939.0
http://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-S7250MSDINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-I8350HKAINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-S7250MSDINUhttp://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/GT-I8350HKAINU


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Other Current Assets 11,335.2

Total Current Assets 54,853.3

Net Fixed Assets --

Other Noncurrent Assets 65,112.0

Total Assets 119,965.4

Liabilities and Shareholder's Equity Dec 10

Current Liabilities

Accounts Payable 14,337.9

Short-Term Debt --

Other Current Liabilities --

Total Current Liabilities --

Long-Term Debt --

Other Noncurrent Liabilities 40,146.3

Total Liabilities 40,146.3

Shareholder's Equity

Preferred Stock Equity 106.7

Common Stock Equity 79,712.3

Total Equity 79,819.0

Shares Outstanding (mil.) 149.7


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Conclusion

Nokia

The Nokia financial statements for the year 2010 shows that the company has total

assets of worth 39,123 million Euros which shows that the organization is very

strong financially.

The Nokia is capable of paying out its short term and long term liabilities easily

but its capacity to make payments is less than its competitors. Also the companies

earning per share ratio is less than its competitors. But despite all Nokia

Corporation can easily generate enough revenues to pay out its interest expenses

and we have also found that the company is less risky and there are fewer chances

of Bankruptcy as it does not depend majorly on debts.

Samsung

Samsung is breaking the mold here.Theyve just said that Q4 of last year

was a record breaking quarter, with profits reaching between 5.0 trillion

Korean won ($4.3 billion) and 5.4 trillion Korean won ($4.6 billion). To put

that into some context, in Q4 2010 the company posted a profit of 3.01

trillion Korean won ($2.6 billion). Analysts say that sales of high end

Smartphones and televisions helped the companyperform this well. Lee

Ka-keun, an analyst at Hana Daetoo Securities, estimates that Samsung

shipped 35 million Smartphones during the quarter. That sure is a lot, but

youve got to remember that Samsung considers Bada to be a Smartphone

operating system.
http://online.wsj.com/article/SB10001424052970203471004577143402323550914.htmlhttp://online.wsj.com/article/SB10001424052970203471004577143402323550914.htmlhttp://online.wsj.com/article/SB10001424052970203471004577143402323550914.html

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Sanjay Retail Mgt Assignmnt on Nokia and samsung