Nokia has largely contributed to the growth of Finland since the mid-90s. Its role in the Finnish economy in figures is as follows: it represents 10% of its GDP, half of its growth, 16% of its exports, and 60% of the capitalization of the Helsinki Stock Exchange. It is also the largest private employer (25,000 employees, or 1.1% of total assets).
In 1966, Nokia was born from the merger of three industries dating back to the nineteenth century. It is a conglomerate of highly diversified markets (TVs, tires, paper, cables, etc.). In 1988, telecommunications accounted for only 8% of its total turnover. With the fall of the Soviet Union which was its largest customer, Nokia accumulated losses from 1991 to 1993 and faced a serious financial crisis. This situation led to a change in the leadership of the company. The new leader launched a policy of focusing on telecommunications, and more particularly on the mobility of the segment.
Nokia is withdrawing gradually from most of its traditional activities to devote itself to the mobile sector, which now represents 60% of its activity. Other activities include production of electronic parts, information systems, and cables. Under its current chairman Jorma Ollila, Nokia is now the world leader in mobile communications, and has built on the growth and sustainability of the broader mobility industry. The main task of Nokia is to connect people, in order to satisfy a basic need of man, for social relations and human contacts.
This is reflected by its slogan, "Connecting People". The company seems to be doing very well financially, with a return on equity of 22% in 2005 and a turnover of 92.5% of assets. Keywords: study of Nokia, the mobile market, strategic analysis, marketing, Nokia, connecting people, branding, communication, study, mobile value chain, Motorola, LG, Sony Ericsson, Samsung, Siemens, SMS competition , organization.
In addition to these DAS, Nokia has also made a horizontal division of its business with each DAS needs according to its own characteristics.
The 3 horizontal activities are shown schematically below cons: Consumer and market; technology platform; search foresight infrastructure.
For this analysis, we find that the domestic mobile business covers several specific but interdependent. The analysis of horizontal functions will be a specific study in part (Value Chain). DAS mobile representing the bulk of its turnover, we decided to focus our efforts on.
The market for mobile consumer is born in the early 90s and has developed a very strong growth until 2000. 3 years, this market still under development, is growing less rapidly due to intense competition and high penetration rates in certain geographic areas (transition to an application for renewal only). Both phenomena require the actors involved to identify key success factors (technology, more services, etc.).
In terms of numbers, 816 million phones were sold worldwide last year. The number of terminals sold worldwide during 2005increased 21% (from 674 to 816,000,000). Interpersonal exchanges of SMS and MMS reach 12.9 billion units and generate 1.3 billion euros in 2005 while the number of MMS increased from 79 million units traded in 2004 to 262 million in 2005.
The majority of market players are primarily companies that are not specialized in mobile phones and other products that have high-tech such as computers, televisions (e.g. Samsung).
Tags: Nokia, origin and history of Nokia, strategic analysis of Nokia
[...] For this analysis, we can see that Nokia has decided to move towards economies of scale by setting up in emerging markets to offset the cost control of Samsung which "locks" the market components. It seems that Nokia favors volume strategy. Indeed, the South Korean company adopts the strategy and seems to specialize in the manufacture of components such as flash memory so that eventually specialized software such as Windows can be easily used from a mobile phone. On the other hand, at the general level, it seems obvious that the mobile phone manufacturers are following the development of the market by partnering with strategic partners to market developments. [...]
[...] In 2005, this strategic sector of the Finnish international society caused costs of 3.825 million, or of net sales. "The need for creativity and innovation is permanent as the tastes and needs of consumers change very quickly and are different depending on whether one is young, teen, man or business woman. V. Conclusion Through this strategic analysis, we can see two things: - Firstly, in terms of analysis tools, we find that they are not very operational in studying a rapidly changing industry undergoing very severe constraints of players in other industries, - Secondly, in Nokia, we find a profound transformation of both the upstream of the market (suppliers) and the downstream market (customers). [...]
[...] Thus, the new platform of Nokia and Loudeye (OD2) will transfer digital music between a Nokia mobile phone and a PC running Windows XP with Windows Media Player. In television, Alcatel and Microsoft have signed a partnership to jointly develop a technology of Internet TV. The objective is to provide operators with a solution that integrates the decoder connected to the Internet and connect to the TV and thus, in addition to receiving TV channels, allowing interactive TV, VCR function and especially a VoD service. [...]
[...] However, in France, it seems that customers of mobile phone manufacturers adopt a new position. Indeed, major retailers such as Carrefour, Auchan, and Darty now want to become distributors and mobile operators. We talk about the market MVNO of virtual mobile operators. (The mobile operator market- below diagram) This market is currently a niche but is growing steadily. This expansion of trade will have two consequences: - These new market entrants will bind partnerships with existing mobile operators with a network (eg. [...]
[...] A few examples: In a web search on its smartphones with the Yahoo partnership - Nokia allows the plant to incorporate Finnish "Yahoo! Search", the mobile search engine. Yahoo will therefore provide "the search engine web addresses and pictures " in over 10 languages Nokia Nseries and "multimedia computers" of the S60 range under this contract. The combination of experience in Yahoo web search and the Scandinavian group gave a name to this service: Nokia Mobile Search, which wwould be "unrivaled" in the market, according to Ralph Eric Kunz, vice president of Nokia. [...]
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