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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/8/12/2019 Sanjay Retail Mgt Assignmnt on Nokia and samsung
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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-N7000ZBAINU8/12/2019 Sanjay Retail Mgt Assignmnt on Nokia and samsung
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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-I8350HKAINU8/12/2019 Sanjay Retail Mgt Assignmnt on Nokia and samsung
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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