The Nokia Phones Company Statement of the Vision, Mission and Objectives of The Company I . Mission: ¦A sustainable energy supply for everyone II. Vision: ¦A world where everyone can be connected. ¦In 2015, 5 billion people always connected, and 100 fold more network traffic. ¦It’s a world of experiences, shared experiences. Objectives of our Company Customers Responsibility ¦Grow the number of people using Nokia devices. Employee management Build new business and secure employee’s rights and benefits Social responsibility ¦To enhance business and people’s expectations for mobile device’s and services ¦Nokia’s promise is to help people feel close to what matters to them. Profitability ¦To increase number of mobile subscriptions to surpass three billion in 2008, rather than in 2010 as Nokia stated in February this year Introduction In present years, the mobile Internet has attracted numerous media attention.
We know need to consider why it is important to creative new products of mobile market, what does consumers need, and what kinds of social activities change affected Nokia change its main starching. In this report, it is important to find some information from Nokia’s background and to analysis Nokia’s further decisions in the future. Focus on Nokia’s strength, weakness, opportunity, threat, environmental policies and technologies development, to know more about Nokia’s vision and action in the future.
Company History At beginning, Nokia was a manufacturer of paper in 1865. It had a dramatic changes in last century. (Nokia, 2002) After World War II, the require of industrial products were increased substantially. (Liu, 2001) Nokia had change its function to an industrial enterprise and produce industrial products, such as chemicals and rubbers. Until 1960s, Nokia had set electronic department, and focused on develop transmission systems, this was the factor that Nokia became a famous company in the world.
About Nokia Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the Information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia’s change in focus between 1988 and 2000 Business (1988) |% Of sales |Survived |Business (2000) | |Floorings |1% |No |Transmission systems | |Chemicals |2% |No |Fixed networks | |Machinery |4% |No |Access networks | |Electrical wholesale |4% |No Wireless/mobile data | |Mobile telephones |5% |Yes |Tetra networks and terminals | |Telecommunications |5% |Yes |GSM networks | |Rubber |6% |No |Smart traffic products | |Information systems |23% |No |Multimedia | |Cables |9% |No |Internet | |Paper |10% |No |Digital exchanges | |Consumer electronics |31% |No |Mobile phones Base stations | SWOT ANALYSIS (Strengths , Weaknesses, Opportunities, Threats)
Strength and weakness analysis can be defined as internal factor in order to show how well they are performing inside the company at a moment. In case of Nokia, there is much strength where it was success in its company, whereas weakness point has only one where it was inevitable for high price- high quality. Clearly, the business does not have to correct all its weaknesses, however it should retain its strength as long as they can. In the same way, they do have to research and develop their company continuously in order to achieve the goal. In contrast, the opportunity can be classified because of their attractiveness. The key success requirement for operating in the target market is basically depended on the external factor (opportunity).
In case of Nokia, it has numerous opportunities to be able to enlarge their market share. Conversely, Nokia still have threat, which mean a challenge posed by an unfavourable trend or development that may lead into the absence of defensive marketing action, to diminish in sales and gross profit. Consequently, Nokia have to create more strength and opportunity, then it needs to correct its weakness and threat as well. 1 Strengths ¦Global marketing (product) Nokia is the global product so it is undoubted true that its products should be at least passed worldwide qualification, viz, ISO. This is the reason of why Nokia can be entrust around the whole world. High product quality Nokia concerns about product quality, which is the most important factor to satisfy customers’ needs. Nokia adds more values by superior quality or differentiated features to the market. In the meantime, Nokia still produces the products with high quality and continuously improve to the particular market. ¦Fashionable product (serve new trend ) The rise in number of users by 700 million in a little over three years will be driven by a huge rise in the number of young style –conscious users” (Nokia, 2002). That is the reason why they have to serve for young people who use their mobile for text messaging rather than phone call. Wide range of product Based on the contemporary data (see appendices),, it can be determined that Nokia has the highest number of product line compared to its competitors (more than 10 models) accordingly; it covered every class of people from (low to high class). Comparing data with Ericsson, Motorola, Sony, Samsung, Siemens and other companies. (see appendices), it illustrates that other brands have narrow shape of product lines (not more than 5 models per brands). ¦Product warrantee worldwide No matter where Nokia’s customers are, if they got a problem from Nokia’s mobile phone. Of course, they can use Nokia service worldwide wherever Nokia centers are.
These can ensure customers who worried about service system. 2 3 Weaknesses ¦High price After compared the price between Nokia and others, it can be established that Nokia has highest price in every type of its products. In this report it can be conclude that Nokia still have a weak point as higher price than the competitors. 4 5 Opportunities ¦ Product launch continuously In this report it has determined that Nokia uses Total Quality Management (TQM) which mentions more about training worker program, and makes the higher product quality. All employees are well-trained and motivated consecutively afterward production processes also developed as well.
In addition, as Merriden (2001) claims that Nokia established Research and Development department (R&D) where develops its product line into modern modification as well quality as the existing products. ¦Users Availability Nowadays, the business has steadily recovered during this period so that there are so many retail stores where it grew up continuously in London. Especially mobile phone retail stores, such as, the link, Phone4U and Car phone warehouse, which is spread around London in every street. And, of course, every stores have not missed the opportunity to choose Nokia as their product line. Consequently, all the customers can be guaranteed that any damaged or loss of Mobile phone will be service through those retail shops.
Likewise, in opportunity aspect, Nokia has an opportunity to convince the prospects to buy Nokia in those plenty of stores around the town. However the key to success of Nokia will be services that are relevant with flexible changing capabilities. (Nokia, 2002) ¦Necessary Product For People Now In recent years, businesses are involving among the downturn session, then every people are more concerned about business. Especially, time is specific in rush hours. As a result of this, mobile phone has become a popular device for everybody in the world now, especially for businessmen who really need everything in advance during specific time because time is money for them. Certainly, mobile phone has already become a necessary device for every ultimate user nowadays.
And both Nokia and Ericsson have forecasted that number of global mobile phone subscribers would increase from the current 300 million to a billion by 2003. (Merriden, 2001) ¦New Software Market Referring to the amount of data traffic in mobile networks is growing at a tremendous rate. People around the world are using new mobile services, which is directly relevant to personal needs. Definitely, it can access anytime, anywhere and, of course, the innovative are fully provided to customer’s Nokia. And nowadays Nokia has already added value through MMS for Messaging and E-mail, Java for download any applications and HTML especially for content search.
So it may attract those businessmen and teenagers who are interested in the new software market. (Nokia, 2002) ¦ Joint Venture In Technology It is be known that, Nokia has already joint with Hewlett Packard (HP) Company; it has a well reputation about computer programs for many years. As a result of this, Nokia has a considerable opportunity for enlarge their market size into PC user who prefers mobile phone compatible with PC device as well. (Merriden, 2001) 6 7 Threats ¦ Obsolete about PC tools if compare with new comers who have more specialize on PC tools Due to fierce competition in mobile phone a market nowadays caused new technology compatible with PC computer such as, Sony Ericsson which specialize on PC computer now.
Sony applied their computer system into mobile phone as well as PC computer on hand at the same time. Furthermore, nowadays people are interested in advance of computer as similar as mobile phone market. It is important that most companies has move on the PC connected and try to bread into the PC market. People want to use mobile anywhere and want to connect Internet, therefore to own or to corporate with a Internet Network Service company is the chance to join into the new PC market. PEST ANALYSIS (Political, Economic, Society, Technology) In the case of Nokia, it can be classified as international organization. It basic for global brand, which is required to focus on macro environmental factors, such as Nokia.
Macro environmental factors comprise Political, Economics, Society, and Technology, viz, PEST Analysis. It is necessary force that Nokia has to concern and know what is happening in the other countries at the moment. Because there are different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market. Political It is important of a company to acquire resources from government, such as economic policy, and science and technology policy. The success of Nokia has obtained the resources from Finnish policies which assist Nokia to advance its products. As Zheng (2001) has observed: The Finnish policies are the most important factors of Nokia.
To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector. In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Both policies issued by Finnish government and Parliament are crucial for the development both of the Finnish Economy and of national information society. Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. The state must also pursue an industrial and economic policy that provides a stable macroeconomic environment for enterprises.
General macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business an improvement in employment. As the result of this, not only Finnish Government but also international companies, such as Nokia, have play very important roles to develop their information society and national technology strength. Economic According to the fact that Russian Federation was collapsed in early 1990s and it assaulted with Finnish economics (OECD, 1996). Nokia also face with the problem, and changed its functions from single market and overall products to global market and focusing mobile phone market. Society and Technology
In the 1980s, people trend to microcomputers and Nokia try to match the tendency to produce its main products, such as computers, monitors and TV sets. (Merriden, 2001) According to the changes in 1990s, Nokia also changes its functions to mobile phone market. Nowadays, the global market trends to connect PC and mobile phone, even though to combine these two products together. On the other hand, one important future challenge of Nokia is to established its policy to follow up the environmental policy and science and technology policy of the Finnish Government. As Zheng (2001) has report: Sustainable development and environmental protection have various effects on the operation of the innovation system.
Innovation also creates new opportunities for promoting sustainable development. The markets for environmental products are expected to grow rapidly in the near future. The Finnish government offers goods facilities for taking this opportunity. National and European reforms arising from environmental objectives influence the pre requisites from innovation. [Nokia] must be used to find solution which help to implement environmental objectives as well as the objectives of innovation policy in a balanced way. (Science and Technology policy council of Finland, 1996) To sum up, the main reason of Nokia has success to advance its products are the policies and technology development of Finnish Government.
It can not be separate between Nokia’s successful of advance its product and Finnish Government’s policies, both of Nokia and Finnish Government are the winner in the international market. Nokia has obtain the success of mobile phone market, and Finnish Government has establish its position of technology development. Porters Five Forces of Action ¦ Environmental Design Design for Environment means to consider the environmental system into the development of all products, processes and services. It involves design processes that minimize material and consume with energy while maximizing the prospective for reuse and recycling. ¦Supply for Network Management Nokia set of environmental requirements for its suppliers strictly. The process for a Nokia supplier included environmental assessment. Systems of Environmental Management With ISO 14001 and certified environmental management system (EMS), which is to reduce energy consumption and improve waste management, Nokia has not only improved its production processes but also enhanced employee trainings. In addition, the suppliers of Nokia have been also required to follow the same rules. Indeed, Nokia has practice the environmental issues and reduced costs. ¦Recycled Practices Nokia claimed that it has operated recycled practices, such as energy returns and materials back to circulation. According to these environmental policies, it is debatable whether the environment policies of Nokia work.
Actually, Nokia has promote its products but does not promote its environment policies. Nokia has produce new products to the mobile market, but sometime, these products have different functions and different components, such as batteries. Although, Nokia develops recycled batteries, but while customers change different type of mobile phones, the batteries can be used. Nokia wants to promote new products and the same systems of components but the promotion activities do not work to reduce the waste of natural resources. Indeed, there is a conflict between the environment policies and promotion activies of Nokia. 8 9 ¦Technologies Development In The Future
Generally, Nokia always improve their product line through Research and development process, beside this Nokia also has multimedia compatible improvement with mobile at the same time, such as, GPRS and WAP Service. Nokia has numerous technologies which can satisfied those end-users need, such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java. Research (see appendices) and development can ensure that it stays ahead of the existing products, which seen to be shortening life cycles of product. (Marriden, 2001) And Nokia employed more than 17,000 people in R&D department over fourteen countries worldwide. Moreover, Nokia do not only mention on product. Nokia also provided customers to choose the features and service that they personally want and need. It means Nokia oes not develop only their product line, but they improve their service process to provide the most appropriate service to those customers efficiently. (Research and Development also included in technology development) Statement of the problem ¦How to promote the future of phones? ¦How to have a close customer relationship? ¦How to lessened the price of buying the parts for the production of mobile? Alternative Courses of Action ¦Enhance its products with computer IT compatible, focusing on new technology users. Pros: The products will improve its quality and services Cons: It is High in cost ¦Maintain its price reasonably. Pros: Customer loyalty will enhance Cons: he company needs to reduce the usage of highly expensive material ¦Follow, practice and promote its environment policies. Pros: The company can earn a big savings Cons: The conflict with environmental policies and promotion activity will arise Recommendation Nokia Company can be classified as market leader here under mobile phone market, and it can be easily observe their wide range of product which may be too often to change its model within one series e. g. , Nokia 3210 until now Nokia 3350. Despite the rapid change in one series, it still looks quite similar as the old model which has just launched in the short period before. Because of this problem, in this report it recommends Nokia to aunch the product timely, and Nokia should have product life- plan (specific time table) in order to inform and ensure the end-users who need to buy a really new model. Nobody in the real world is willing to buy the product, which is going to change and obsolete in the next few days. These can be helping Nokia in the aspect of customer’s satisfaction and give the chance to the users to select. On the other hand, Nokia has already become a partner of Hewlett Packard i. e. HP where they specialize at computer tools, so it was a good chance for Nokia to compete with the new competitors who specialize at computer, such as Sony, Samsung and other companies.
However, Nokia mobile company is too strong for Sony and other new comers to Compete with it. In this report it recommens Nokia to take this emerge opportunity to come over those competitors, because Nokia & HP are strong enough to be the market leader as well as it was doing now. Due to this factor, Nokia has highest price range compares with all brands; we can just recommend Nokia that if price is floated unreasonably to the end-users, it is not the good way for Nokia to achieve a long term goals. Reasonable price is the best way for Nokia to gain both profitable and customer’s satisfaction. Action Plan ¦ Nokia must promote their products deeply and widely Attachment