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EXECUTIVE SUMMARY

For this project, we have chosen the company NOKIA. Nokia is a mobile telecommunications
company, and offers far more than just mobile phones for everyday use. They offer networking
solutions for businesses that help businesses stay connected and communicate with each other at
all times and places. For them, Nokia also offers special mobile phones with exquisite and
unique functions and options. In this project, we will first talk about what Nokia is and what they
do. We will talk about their history, and how they came to where they are today. Vision, goals,
and their strategy are discussed, as well as their wide variety of products and services offered for
the regular consumer, businesses, and service providers. Nokias success benefits were some
advantages they had in the market. These also include the advance technology and features, as
well as services they offer to their consumers. However, like most other companies, Nokia has
some weaknesses, but we consider these to be very minimal, and almost only come down to their
competition. Lastly, we will talk about their informational business model. This model includes
Nokias work organization, control system, industrial relations, human resources, business
strategy, and finally, enterprise organization. We will look closely at and discuss all of these
elements, and why we think that they are relevant to Nokia.
Nokia has recently undergone a major organizational restructure. As a result of this
restructuring, Nokia has revised it goal, mission and strategy into clear and specific
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objectives. On Nokias website they state, Our goal is to be a good corporate citizen wherever
we operate, as a responsible and contributing member of society. We take part in long-term
projects aimed at helping young people create their own place in the world, for example
through our global youth programs. They hope to fulfill their goal by following their mission
statement that is, By connecting people, we help fulfill a fundamental human need for social
connections and contact. Nokia builds bridges between people both when they are far apart and
face-to-face and also bridges the gap between people and the information they need. Nokia
plans to achieve its goal and pursue its mission by implementing its strategy of, Expand mobile
voice, drive consumer multimedia and bring extended mobility to enterprises.
There are many different products Nokia offers within a common product line. This
common product line is cellular phones and accessories. Nokia offers many different cell phones
with many different features. Nokia, however, is more than just a manufacturer. In addition to its
manufacturing base, Nokia offers cellular phone and digital television service though in limited
areas. It may seem that Nokia has a limited product line but when include with the research and
development of these areas, their service and manufacturing portfolios become more impressive.
As it can be assumed the cellular phone market is very lucrative. In 2003, according to
The Journal.com, Nokia had sales of $37.1 billion and profit of $4.53 billion. This encompasses
all revenue and profit areas, with a market share in the phone industry of nearly 35%. This
market share has declined, at least in the first quarter of this year, to 29%. Rival phone
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manufacturers are stealing market share away from Nokia, while Nokia failed to meet the
demand for its phones in the first quarter. More recent estimations of market share where not
available as of November 2004.
Technology is absolutely crucial to the prosperity of Nokia. Technology is what sets
Nokia apart from its competitors. As a pioneer in the development of cell phone capabilities,
Nokia uses cutting edge technology in mobile instant messaging, browsing, video, imaging,
music, and emailing. Security while using the features is also one of their primary
concerns. With new bluetooth technology, Nokia is providing peace of mind in information
transfers. Data synchronization and wireless Internet capabilities are also part of Nokias
advanced mobile technology. Also using advanced technology is the digital television service
they provide, but pioneers in this field they are not.
As can be imagined with any large employer, Nokia offers many different employment
opportunities. These opportunities are available for almost every educational level, with jobs
varying from janitor to research development specialist. As both a manufacturer, service
provider and research development firm there are many different positions available. In the
service field there are phone assistance that work with customers and their accounts, while actual
technicians work in the field fixing disruptions in service and connecting accounts. The research
department

creates

new

technology

for

the

manufacturing

sector

to

put

into

production. Obviously, there are the necessary departments such as accounting and human
resources that facilitate the everyday operation of the company. The management team
coordinates the focus and strategy of the overall company and works to improve upon existing
procedure. The entire employment structure is tiered in the fact that each member of each
department is accountable to an overseeing authority. In fact, even the chief executive officer of
the company is accountable to the board of directors. This accountability forces the ethical
behavior of each member of Nokia, since the board is ultimately accountable to the stakeholders
of the company. The entire structure is similar to and umbrella in shape, funneling together
towards the peak, but then funnels back out to the stakeholder at the top. Everyone is
accountable.
Nokias group structure is slightly different than its employment structure. The business
structure is entirely segmented while the employment structure is segmented but yet connected
through the manufacturing process. The structure is actually segmented with separate functions
in each area .

INTRODUCTION

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the
first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed
network.
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Nokia started its India operations in 1995, and presently operates out of offices in New Delhi,
Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The
Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad
and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from
450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens
Networks).

Objectives: Our objectives behind doing this project was to know,

1. Why customers prefer Nokia over other Brands?

2. The areas in which Nokia performs better?

3. How the Brand Nokia effect the consumers Psychology?

4. Strategies to be adapted by Nokia to be the to keep their market base?

5. To analyze the brand NOKIA acceptability by the customers.

Results: we came to know that people prefer Nokia because of mainly its range of products,
Availability, durability and user friendliness. It is facing close competition from other players
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like Motorola, Samsung, LG etc.we also came to know the strategies adapted by Nokia to
maintain its market position as number one. We also came to know that NOKIA Brand name
matters when a person purchase nokia mobile handsets. Other findings are discussed in details in
the main body.

Conclusion: During the course of research on this project (Preference of Nokia mobiles over
other cell-phones) we have come to know a lot of interesting facts and Information regarding
Nokia. Nokia is undoubtedly the market leader in the cell-phone market. Nokia still dominates
the world cell-phone market share. Nokia leads the market with 38.6% stake, beating its nearest
rival Samsung which has 16.2% stake. Motorola and LG are tied with 8.3% each. Nokia enjoys
this status of being no. 1 because of its qualities, features, price range it provides to its customers
compared to its competitors.

Recommendation: Through our collaborative research, we have found out some areas where
Nokia should emphasize more so that it continues to be the market leader and have an edge over
its competitors. These include further focus on

1. Product competitiveness: - The products of Nokia should be superior or at least at par with
the competitors regarding technology, designing and features etc.

2. Customer satisfaction: - Nokia should come up with more value added products and effective
after-sales services.

3. Research and Development: - In order to retain the position of a market leader Nokia should
incorporate the latest technological innovations into their handsets and should put stress on
further development.

4. Demand and Supply: - A strong demand and supply network should be established for
smooth availability of products to the customers.

5. End to End capability: - Stress should be given on end to end capability by integrating
mobile devices applications and infrastructure.

Devices business

Nokia has established itself as the market and brand leader in the mobile devices market in India.
The company has built a diverse product portfolio to meet the needs of different consumer
segments and therefore offers devices across five categories ie. Entry, Live, Connect, Explore

and Achieve. These include products that cater to first time subscribers to advanced business
devices and high performance multimedia devices for imaging, music and gaming.

Nokia has been working closely with operators in India to increase the geographical coverage
and lower the total cost of ownership for consumers. Today, Nokia has one of the largest
distribution network with presence across 1,30,000 outlets. In addition, the company also has
Nokia Priority Dealers across the country and Nokia Concept stores in Bangalore, Delhi, Jaipur,
Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a
complete mobile experience.

Services business

With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing
itself to be at the forefront of the convergence of internet and mobility. From being a product
centric company, Nokia is now focusing to become solutions centric. The strategic shift is built
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on Nokias bid to retain consumers and empower Nokia device owners to realise the full
potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the
Nokia Music Store and Nokia N-Gage around its Ovi brand.

Infrastructure business

Nokia Siemens Networks is a leading global enabler of communications services. The company
provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure
solutions and addresses the growing demand for services with 20,000 service professionals
worldwide. Its operations in India include Sales & Marketing, Research & Development,
Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia
Siemens Networks has 47 offices and presence in over 170 locations across the country.

R & D centers

Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and
Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packetswitched mobile technologies and communications solutions to enhance corporate productivity.
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The Center in Bangalore, the biggest R&D site in the country comprises S60 Software
Organization, Common Technologies, Next Generation now called Maemo Software,
Productization and Software & Services.

INDUSTRY OVERVIEW
Nokia Corporation is a Finnish multinational communications corporation that is headquartered
in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki.Nokia is engaged in the
manufacturing of mobile devices and in converging Internet and communications industries, with
over 123,000 employees in 120 countries, sales in more than 150 countries and global annual
revenue of EUR 41 billion and operating profit of 1.2 billion as of 2009 It is the world's largest
manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009,
up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about
40% in Q4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market
segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet
services such as applications, games, music, maps, media and messaging through its Ovi
platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipment, solutions and services Nokia is also engaged in providing free digital map
information and navigation services through its wholly-owned subsidiary Navteq.

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Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and
employed 37,020 people in research and development, representing approximately 30% of the
group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.
Besides its research centers, in 2001 Nokia founded (and owns) INdT Nokia Institute of
Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing
facilities located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and
Suzhou, China; Farnborough, England; Komrom, Hungary; Chennai, India; Reynosa, Mexico;
Jucu, Romania and Masan, South Korea Nokia's Design Department remains in Salo, Finland.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock
exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest
Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock
Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an
important employer in Finland and several small companies have grown into large ones as its
partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In
2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's
exports in 2003.
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In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008,
it was the 27th most respected brand among Finns, down from sixth place in 2007.] The Nokia
brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the
Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company). It is the
number one brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable
company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in
Network and Other Communications Equipment, seventh non-US company), and the world's
85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from 88th
the previous year. As of 2009, AMR Research ranks Nokia's global supply chain number six in
the world.

Some firsts for Nokia in India

1995 First mobile phone call made in India on a Nokia phone on a Nokia network

1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

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2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

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

2005 Local UI in additional local language

2006 Nokia manufacturing plant in Chennai

2007 First vernacular news portal

Some Achievements for Nokia

Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008

Ranked the No 1. MNC in India by Business world, Indias leading business weekly,
2006

Ranked as the No. 1 telecommunications equipment vendor in the country by Voice &
Data for five consecutive years 2008, 2007, 2006,2005 and 2004
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 Ranked as the 9th most powerful brand by Millward Browns BrandZ 2008

Ranked worlds 4th most valuable brand by Interbrand, 2007

Ranked Asias most trusted brand by the Media-Synovate, 2006

Handset Market Share

Nokia: 59.5%

Sony: 8.1%

Samsung: 7%

Motorola: 5.9%
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Nokia said on Friday the cellphone market totaled 1.26 billion phones last year, above its
earlier forecast of 1.14 billion, and reduced its share of sales to 34 percent from an earlier
forecast of 38 percent.

Research group Gartner said the grey market -- mostly in China, India and Latin America
-- totaled 145 million phones last year.

Nokia said new measurement tools enable it to better estimate the number of handsets
being sold by some new players.

"These include vendors of legitimate, as well as unlicensed and counterfeit, products with
manufacturing facilities primarily centered around certain locations in Asia and other
emerging markets," Nokia said.

Nokia repeated it expected the overall 2010 phone market to grow 10 percent while its
market share would be unchanged at 34 percent.

The comments boosted Nokia shares, which trimmed an earlier high of 10.91 euros to
settle at 10.80, up 2 percent, by 1539 GMT.

"This is a good thing for Nokia because it is really showing that they want to measure the
real market and grey market has been a big driver in 2009," said Gartner analyst Carolina
Milanesi.
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"It is an opportunity for them to go after and try and actually win over users in that
segment as well," he said.

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