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ALKESH DINESH MODY INSTITUTE FOR FINANCIAL & MANAGEMENT STUDIES

ACKNOWLEDGEMENT
We would like to express our gratitude to Prof. ANITA BOBDE who gave us this golden opportunity to do this interesting project on the topic : SWOT ANALYSIS OF NOKIA vs. SAMSUNG This also meant that we got an opportunity to enhance our knowledge in the subject matter through a lot of Search & Research

PRESENTED BY: Sneha Ramesh Sumit Mehta Chinmay Save Siddharth Burman Manthan Sheth Khan Mohammed Imtiyaz Rachit Tiwari Guidance: PROF. Anita Bobde (103) (62) (84) (113) (97) (116) (109)

HISTORY OF NOKIA
Nokia's history starts in 1865, when it was established by an engineer Fredrik Idestam. It first started as a paper manufacturing company

Expanding into Electronics After World War II the Finnish Rubber Works and the Finnish Cable Works companies consolidated. In 1967 -the companies were merged to form the NOKIA Group Nokia is known today as the largest manufacturer of mobile phones, having about 40 percent of the world market share in the second quarter of 2008. This company is even the reason why Finland is a prosperous country in which it is accounted for about 30 percent of the nation's market capitalization. But Nokia had a really humble beginning-it all started in 1865. In 1865, an engineer named Fredrik Idestam started a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company's sales achieved its high-stakes and Nokia grew faster and faster. Nokia exported paper to Russia first and then to the United
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Kingdom and France. The Nokia factory employed a fairly large workforce and a small community grew around it. In southern Finland a community called Nokia still exists on the riverbank of Emkoski. Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-electricity produced by the Nokia wood-pulp (from river Emkoski), merged up and started selling goods under the brand name on Nokia. After World War II, it acquired a major part of the Finnish Cable Works shares. The Finnish Cable Works had grown quickly due to the increasing need for power transmission and telegraph and telephone networks in the World War II. Gradually the ownership of the Rubber Works and the Cable Works companies consolidated. In 1967, all the 3 companies merged-up to form the Nokia Group. The Electronics Department generated 3 % of the Group's net sales and provided work for 460 people in 1967, when the Nokia Group was formed. At the same time, new legislation allowed the Finnish telecommunications authorities to set up a mobile network for car phones that was connected to the public network. The result was Nordic Mobile Telephony (NMT). Opening in 1981, NMT was the world's first multinational cellular network. During the following decade, NMT was introduced in many other countries and launched the rapid expansion of the mobile phone industry. At the end of the 1980s a common standard for digital mobile telephony was developed. This standard is
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known as GSM (Global System for Mobile Communications). In 1991 Nokia made agreements to supply GSM networks to nine European countries and by August 1997 Nokia had supplied GSM systems to 59 operators in 31 countries. In1988, in Nordic countries Nokia was a large television manufacturer and the largest information technology company. In 1980s nokia expanded their business sectors and products. The strategy was to expand rapidly on all fronts. Nokia came to its feet quickly as the company started streamlining its businesses. In May 1992 Nokia made the strategic decision to divest its non-core operations and focus on telecommunications. The company's 2100 series phone was an incredible success. In 1994, Nokia sold 20 million handsets the goal was to sell 500,000 units. It has been rumored that a group of businessmen tried to offer Nokia to the Swedish telecom company Ericsson during the recession (1990s). In 1992, the company decided to focus more on the telecommunications business. In the same year, Nokia launched its first GSM handset, which is the Nokia 1011. It was in 1994 that the Nokia tune was launched. It was the Nokia 2100 that featured this famous classic phone tune. The success of Nokia continued until the world's first satellite call was made in 1994 using a Nokia mobile phone. And in 1997, Nokia introduced a classic game highly associated with the company-Snake
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The middle Ages (NOKIA)

1960s: Beginning of Nokias journey into telecommunications as an extension into its research activity in semiconductors 1970s: Majority of telephone exchanges were electromechanical analog switches. Nokia began developing the digital switch (Nokia DX 200) equipped with high level computer language and Intel microprocessors gradually evolved into the multifaceted platform. It is still the basis for Nokia's network infrastructure today.

Till now (NOKIA)

1980s: Nokia's operations rapidly expanded to new business sectors and products. The strategy was to expand rapidly on all fronts. A common standard for digital mobile telephony was developed. This standard is known as GSM (Global System for Mobile Communications). 1990s: The telecommunications and mobile phones divisions were the supporting pillars of the Nokia. 1992: Nokia made the strategic decision to divest its noncore operations and focus on telecommunications. 1994: the goal was to sell 500,000 units. Nokia sold 20 million.
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 2000s 2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phone 2004 - First Wi-Fi Phone- Nokia Communicator (N9500) 2005 Local UI in additional local language

2006 Nokia manufacturing plant in Chennai-----the story begins

HISTORY OF SAMSUNG

SAMSUNG first started as a small export business in TAEGU, KOREA.

It has grown to become one of the worlds leading electronics companies specializing in digital appliances and media, semiconductors, memory and system integration. 2000s:TV Phone and Watch Phone Make Guinness Book of World Records

Unveils the Worlds Fastest Graphics Memory Chip

Samsung Electronics and Yahoo! Form Strategic Alliance Develops Unique All-in-one DVD Player Developed world's first 512Mb DRAM
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The middle Ages (SAMSUNG)

2005:Released the world's first 7 mega pixel camera phone -Developed the world's first OLED for 40" TV -Became the official sponsor of Chelsea, the renowned English soccer club -Developed the first-ever speech recognition phone -Produced the first wrinkle-free steam washer -Sold more than 20 million cellular phones in the U.S -Developed the world's first 60-nano 8GB NAND Flash memory chip -Ranked top in mobile phone sales in Russia

Latest Milestone (SAMSUNG)

2009:Launched major restructuring of its businesses -Cooperates in creating a foundry with Xilinx of the US -Developed the worlds first 40 nanometer DRAM -Announced its Blue Earth solar-powered phone -Released its V-line Crystal Rose LCD TV

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-Samsung is found No. 1 in customer loyalty for 8 years consecutively by Brand Keys of the USA -Samsung Digital Imaging developed an innovative hybrid digital camera -Built the worlds largest mobile phone as recorded in the Guinness Book of World Records

Nokias Strategy in India

Expand mobile voice

Drive consumer multimedia

Bring extended mobility to enterprises Clearly defined objectives and goals Right timing of decisions Determination and risk taking Foreseeing and using rising market opportunities

Creating the future

Product Innovations Nokia : 1) Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G.[
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2) On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad

Samsungs Strategy in India

Aggressively hawking flip-tops and clamshells with polyphonic ring tones and colour screens. Nationwide distributor and retail presence in the domestic consumer durables market. Samsung has been associated with the Lakme India Fashion Week (LIFW) for its Mobile Phones. The Company used the LIFW-2005 as a platform to launch its D-500, Worlds Best Mobile Phone in the Indian market. Set up a handset manufacturing facility in India

Product Innovations Samsung: 1)Samsung Blue Earth Phone

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2)Samsung Navibot

Nokia vs Samsung
Nokia Revenue NET INCOME FIRST MOBILE PHONE Headquarters Market Share(India) Employees Market Share 40.99 Bn Euros 891 million Euros MOBIRA CITYMA N Espoo, Finland 54.1% 129746 36.6%
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Samsung 21 bn USD 2.3 Bn USD

SC-100

Suwon, South Korea 9.7% 276000(Samsung Group) 21.9%

(World)

Market Shares In the World

Market S hare
Others Motorola LG Samsung Nokia 0.00% 10.00% 20.00% 30.00% 40.00% Market Share

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Market Share In India

Market S hare
Nokia Samsung Sony Others

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What is SWOT Analysis

It is a non-financial planning tool. It links the analysis in terms of advantages and disadvantages; and the internal and external business environment (in a matrix format). The Strengths and Weaknesses are defined by measures such as market share, loyal customers, level of customer satisfaction and product quality. Opportunities are new potential areas for business in the future, such as new markets, or new conditions in existing markets. Threats describe how the competition, new technology, or other factors in the business environment may affect the business's development.

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SWOT ANALYSIS

Advantages of SWOT Analysis

Consolidate strengths Minimises Weaknesses Helps to Grab Opportunities Minimises Threats Facilitates Planning Facilitates Alternative Choices Helps to Innovate Ensure Survival & Success
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SWOT Analysis On Samsung and Nokia

Strengths of Samsung New product concept to rollout in five months Catching the pulse of the consumer, offering good designs & understanding Emotions Heavy investment in technology, product design, and human resources Focus on innovative products for the high-end market

Strengths of Nokia
Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other companys product Strength of the corporate brand. Complexity improves its Competitive position Design, the branding and the technology
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Backwards compatibility - protection from a Japanese onslaught Lending personality to its products (fashion statement) Effective advertisement and market communication Not only a tool for business but being an item of everyday convenience

Weaknesses of Samsung
Not pro-actively coming out with newer models Lack in product differentiation. Different models at different price points Focus on mass market instead of niche markets Not very user friendly designs.

Weakness of Nokia
Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main
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issue. The service centers in India are very few and scare. So after sales service is not good Lapse has opened up space for smaller competitors Potential threat from Microsofts entry into mobile telephony Ericsson- king of wireless infrastructure Design to market takes more time

Opportunities of Samsung
Distinguish its service from competitors. Offer product variations Demand for cell phones driven by the service providers or carriers Tie up with service providers Lowering the price of a phone by just $20 in many countries could increase its affordability by 43 %.( As per a study report)

Opportunities of Nokia
Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors
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around. With the opportunity like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation Highest growth in markets such as China and Latin America Feature-loaded phones to act as an offset Providing value at a reasonable lifetime cost Life style marketing and segmentation Building a worldwide supplier network Preempting competitors in critical markets Managing competitive interaction

Threats of Samsung
Motorolas dominance in the U.S, Nokias popularity in the European market competitors, including Sony, Ericsson, and Siemens eating into its share, controlling more than half of the world market Aggressive. Not keeping track of the new trends in the market Not an accessory and fashion statement
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Threats of Nokia
Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the Biggest threat - complacency Inflection point - a disruptive technological change New competitors with different skills and potent brands challenge 3G will increasing competition between suppliers Cheaper midrange models from Motorola and other

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Product Features
NOKIA 1680 CLASSIC General : 2G network GSM 900/1800 Size : Dimensions-106x46x15mm Weight-73.7g Display : Type-TFT colour Size-120x180 pixels Sound : Vibration,Polyphonic,MP3 Ringtones Memory: Phonebook-upto 1000 entries,11mb user space Camera: 640x840pixels,video recording Features: Messaging-Sms,Mms,Email Browser-WAP 2.0/HTML JAVA-MIDP 2.1 Voice memo

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Nokia 3120 Classic

General: 3G network UTMS 850/2100 Size : Dimensions -111x 45x13 mm Weight-80 g Display:TFT colours-16m Size 240x320 pixels,2.0 inches Sound : Alert types-vibration, downloadable polyphonic, MP3 Ringtones Speakerphone-YES Memory: Phonebook-Upto 2000 entries,internal-upto 24mb external- expandable upto 8gb GPRS-Class 32 EDGE-Class 32 3G-yes Features: Messaging SMS, MMS, Push email Browser:WAP 2.0 ,JAVA 2.0, MP3 ,MP4,eAAC+, Organiser, T9

NOKIA N96

General: 2G Network GSM 850 / 900 / 1800 / 1900 3G Network HSDPA 900 / 2100 Size: 103x55x18 mm Weight[ 112 g Display: Type TFT, 16M colors Size 240 x 320 pixels, 2.8 inches Memory : Call records Detailed, max 30 days Internal 16 GB storage, 128 MB RAM C ard slotmicroSD, up to 32GB Camera: Primary 5 MP, 2592x1944 pixels, Carl Zeiss optics, autofocus, LED flash Features : DVB-H TV broadcast receiver, Dual slide design,WMV/RV/MP4/3GP video player Kickstand

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Nokia 5800 navigation

General : 2G GSM 800/1500 3G HSDPA 900/2100 Memory Phonebook : Practically unlimited Call records Detailed, max 30 days Internal 81 MB storage, 128 MB RAM Card slot micros', up to 16GB, 8GB Data: GPRS Class 32 EDGE Class 32 3G HSDPA, 3.6 Mbps WLAN Wi-Fi 802.11 b/g, UPnP technology Features : Regional maps , Lifetime pedestrian and vehicle voice-guided navigation licenses Car mount and car charger in retail package, WMV/RV/MP4/3GP video player Battery Standard battery, Li-Ion 1320 mAh(BL-5J) Stand-by Up to 408 h (2G) / Up to 408 h (3G) Talk timeUp to 9 h (2G) / Up to 5 h (3G) Music play Up to 35 h

Nokia 5530 General:2G network GSM network 850/1100 Size: 104x49x13 mm,68cc Weight- 107g Display: Type- TFT touchscreen, - Proximity sensor for auto turn-off - Accelerometer sensor for auto-rotate - Handwriting recognition DATA : WLAN-Wi-fi802.11 Bluetooth-YES Camera : Primary- 3.15 mp, 2048x1148 pixels pixels, autofocus, LED flash Video- Yes, VGA@30fps Features : OS- Symbian OS v 9.4 series 60l CPU -ARM 11 434 MHz processor WMV/RV/MP4/3GP video player MP3/WMA/WAV/RA/AAC/M4A music player Flash Lite 3.0

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Samsung s9110

General : 2G Network GSM 900 / 1800 Size : Dimensions 57.5 x 41.1 x 12 mm Weight 91.0 g Display : Dimensions 57.5 x 41.1 x 12 mm Weight 91.0 g Features: MP3 player - Dictaphone - Currency Converter - Voice recognition - Voice memo - T9

Samsung I9000 General : 2G Network GSM 850 / 900 / 1800 / 1900 3G Network HSDPA 900 / 1900 / 2100 Size : Dimensions 122.4 x 64.2 x 9.9 mm Weight 119 g Display : Type Super AMOLED capacitive touchscreen, 16M color - TouchWiz 3.0 UI - Multi-touch input method - Accelerometer sensor for UI auto-rotate - Touch-sensitive controls - Proximity sensor for auto turn-off - Swype text input Memory : Phonebook Practically unlimited entries and fields, Photocall Internal 8 GB/16GB storage, 512 MB RAM, 2GB ROM Card slot micros', up to 32GB

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Samsung s5230

General : 2G Network GSM 850 / 900 / 1800 / 1900 Size: Dimensions 104 x 53 x 11.9 mm Weight 92 g Display: Type TFT resistive touchscreen, 256K colors - Accelerometer sensor - Handwriting recognition - Smart unlock Memory Internal 50 MB Card slot microSD, up to 16GB (verified), buy memory Data: GPRS Class 12 (4+1/3+2/2+3/1+4 slots), 32 - 48 kbps EDGE Class 12 WLAN Wi-Fi 802.11 b/g

Samsung B7620 Giorgio Armani

General: 2G Network GSM 850 / 900 / 1800 / 1900 3G Network HSDPA 900 / 1900 / 2100 Size : Dimensions 118.5 x 58.3 x 16.4 mm Weight 164 g Display : Type AMOLED resistive touchscreen, 16M colors (65K effective) Advanced R tilting touchscreen display - Full QWERTY keyboard - Accelerometer sensor for auto-rotate Memory : Internal 8 GB storage, 256 MB RAM, 512MB ROM Card slot microSD, up to 32GB Data: GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps EDGEClass 10, 236.8 kbps 3G HSDPA 7.2 Mbps, HSUPA 5.76 Mbps WLAN Wi-Fi 802.11 b/g, DLNA Features : Giorgio Armani fashion applications, Work & Life mode - MP3/WAV/e-AAC+/WMA/AMR player - DivX/XviD/MP4/3gp/H.263/H.264 player - Photo/video editor

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Samsung S3650 Genio Touch

General : 2G Network GSM 850 / 900 / 1800 / 1900 3G Network HSDPA 900 / 2100 Size : Dimensions 105 x 56.8 x 15.7 mm Weight 135 g Display : Type TFT resistive touchscreen, 16M colors Size :240 x 320 pixels, 2.8 inches, Full QWERTY keyboard Accelerometer sensor for auto-rotate Memory : GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps EDGE Class 10, 236.8 kbps 3GHSDPA 7.2 Mbps WLANWi-Fi 802.11 b/g Camera : Primary 3.15 MP, 2048x1536 pixels, video Features Geo-tagging, smile detection

Conclusion
Although Nokia has an edge over Samsung in terms of Market Share and Revenue and is also the Market leader in the mobile production and communication business yet Samsung over the past years has emerged as the biggest competitor and its share and profit is also rising . Hence Nokia should be vary of Samsung and other competitors .
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