Nokia Corporation is a multinational communications corporation, focused on delivering products and services in the wired, wireless telecommunications, and information technology industries. Headquartered in Keilaniemi, Espoo, Finland, Nokia is one of the fastest growing companies in the world. Presently, they have more than 120,000 employees across the world with annual revenue of €50 billion as of 2008. Nokia currently produces a wide variety of mobile phones and smartphones in addition to a handful of accessories. In addition to concentrating on mobile telephones and IT devices, Nokia also offers digital map information, navigation services, and Internet services. Nokia is the second largest mobile vendor by making 86.3 million shipments in 4Q 2012, after Samsung who made 106.5 million shipments. During that period, Nokia and Samsung dominated the industry market share which was 23% and 19%, respectively. Despite having a large improvement of net sales in the fourth quarter of 2012, Nokia experienced a net operating loss of approximately €3,106 million.
In 1865, Fredrik Idestam, a mining engineer, opened his first wood pulp mill at the Tammerkoski Rapids in south-western Finland. Three years later, he opened a second mill by the Nokianvirta River which inspired him to name his company Nokia Ab. throughout the 1970s; Nokia enhanced their involvement in the telecommunication industry by producing radio telephones for the Finnish army and emergency responders. By 1987, Nokia introduced one of the first handheld mobile phone, the Mobira Cityman 900, and offered their first handheld phone for GSM, which is the European standard for digital mobile technology. Nokia successfully narrowed their focus to mobile phones and network infrastructure. From 1998 to 2012, Nokia has grown to be the most prominent vendor in the mobile device market (Williamson, 2012). However, for the past few years, Nokia has been experiencing a steady decline in market share as Apple and Google’s operating system dominates the smartphone market. Nokia’s share price sits around $3.42 (MarketWatch, 2013), which is significantly lower than in 2008 where their ADR was $25. Symbian and Meego were Nokia's main smartphone operating system until 2011. On February 11, 2011, Nokia made an announcement that it would use Microsoft's Windows Phone OS as its primary Smartphone platform and Symbian would be its franchise platform. This was a strategic decision by Nokia to adopt Microsoft’s software as a differentiated and innovative smartphone feature to attract consumers in the Android and iPhone market.
Mission & Goals
“Connecting People. Our goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Our challenge is to achieve this in an increasingly dynamic and competitive environment.” According to Nokia’s mission statement, they aim to enhance communication among mobile phone users globally. Nokia continues their mission to deliver high quality devices that provide access to a wide range of apps and social networks. Nokia does not only provide apps for its smartphone devices but also for its Internet enabled feature phones which offer the greatest overall experience and value proposition.
Nokia aims to connect people across the world and enable the global transfer of information with easy-to-use and innovative products. Nokia’s product line consists of mobile phones, devices and solutions for games, media, and businesses. In 2011, Nokia and Microsoft entered strategic alliance to produce a Windows Phone, Nokia Lumia, to compete in the iPhone and Android market. In January 2013, Nokia unveiled Lumia 520 which targeted price sensitive consumers as they tried to regain their dominance in emerging markets such as China. The Lumia 520, which is €139 before tax, will be the cheapest handset in Nokia's current Lumia collection....