Table of contents
Nokia Target Market Strategy
Marketing Mix Strategy
Key Strategy Issues Face Nokia
Environment Analysis: S.O.W.T Analysis
Competitive Analysis: Porter’s Five Forces Model
Financial Ratio Analysis
Other Issues to be considered in pursuit of a Potential Investor 11.
Five year Stock Chart for Nokia Corporation-US(NOK) As on 22-04-2011 12.
Industry Analysis- Year to date (As on 22-04-2011)
The progress of technology has altered our daily life routine dramatically. In recent 2 decades, people have seen the big convenience brought by colour TV, telephone, laptops, mobile phone and etc. Among them, the contribution of mobile phone is especially prominent: given the integration of technologies of Internet, laptop, and communication etc, the small and good looking handset will enable us ubiquitous application of modern multi-functions. The advantage of 3G even further attracts our minds with colourful imagination. During the up gradation of our living style, we owe a lot to the companies of the handset industry, especially those popular giants including Nokia, Motorola and Samsung etc... When they change our living successfully, they realize their developing targets as well. For example, according to the Fortune Global 500 in 2005, Nokia and Motorola ranked 130th and 138 respectively1. Thus, they are recognized by the society. It’s unpredictable for a company to achieve great goals without correct strategies to employ. In the fierce competition of handset industry in China, the correct competitive strategies are required for the participant to win market shares. Surely, sometimes the right strategies are difficult for survival. Nokia, as the no. 1 in the handset industry of China, is certainly the biggest winner through exertion of correct competitive strategies. As is mentioned above, the competition in handset industry in China will become even fiercer along with the emerging trend such as the advent of 3G, the alteration of distributing channels, and the improved level of industrial centralization etc. So competitors should promptly adopt relevant changes of their competitive strategies to adapt to new environment. 2. Company Background
Nokia Corporation is a Finnish multinational communications and information technology corporation that is headquartered in Keilaniemi, Espoo, Finland. Over the past 150 years, Nokia has evolved from a riverside paper mill in south-western Finland to a global telecommunications leader connecting over 1.3 billion people. During that time, Nokia made rubber boots and car tyres. They generated electricity. They even manufactured TVs. Changing with the times, disrupting the status quo – it’s what Nokia always done. Early Days
In 1865, mining engineer Fredrik Ides tam sets up his first wood pulp mill at the Tammerkoski Rapids in south-western Finland. A few years later he opens a second mill on the banks of the Nokianvirta River, which inspires him to name his company Nokia Ab in 1871. In 1898, Eduard Polón founds Finnish Rubber Works, which later becomes Nokia’s rubber business, making everything from galoshes to tyres. Nokia rubber boots become a bona fide design classic, still on sale to this day – though Nokia no longer make them.
Electronics go boom
In 1912, Arvid Wickström sets up Finnish Cable Works, the foundation of Nokia’s cable and electronics business. By the 1960s, Finnish Cable Works – already working closely with Nokia Ab and Finnish Rubber Works – starts branching out into electronics. In 1962, it makes its first electronic device in-house: a pulse analyser for use in nuclear power plants. In 1963, it starts developing radio, telephones for the army and emergency services – Nokia’s first foray into telecommunications. By 1987, Nokia is the third largest TV manufacturer in Europe. Three become one...
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