TABLE OF CONTENTS

EXECUTIVE SUMMARY
1 INTRODUCTION
1.1 COMPANY HISTORY
1.2 NOKIA’S CHANGE IN FOCUS BETWEEN 1988 AND 2000
1.3 PEST ANALYSIS
2 RESEARCH ANALYSIS
2.1 SWOT ANALYSIS
2.2 ENVIRONMENT POLICY AND TECHNOLOGY DEVELOPMENT IN THE
FUTURE
3 CONCLUSION
4 RECOMMENDATION
5 REFERENCES
5.1 BOOK
5.2 PERIODICAL
5.3 WEBSITE
6 APPENDICES
Executive Summary

This report analyses the impact of external an internal influences on the business
strategies of Nokia Corporation, evaluats the factors, modifers of Nokia’s advancement,
and also considers the environment policies, and technology development in the future.

Analyzing current business situation shows that Nokia needs to:

 Differentiate its products capability between old and new category.

 Enhance its products with computer IT compatible, focusing on new technology
users.
 Maintain its price reasonably.
 Follow, practice and promote its environment policies.

The purpose of this report is to evaluate how successfully does Nokia advance its
products. Due to the modern trends of social development, whether Nokia’s environment
policy is accurately operated or not will be related to improve its reputation. In addition,
the grow of mobile terminals leads Nokia to modify its changes, therefore, Nokia has to
develop new technology to approach to a new market, which combine with PC market
not only to occupy the position in mobile phone market. Moreover, to connect PC and
mobile phone is a tendency in mobile phone market, even though to combine these two
products together. Because of this trend, Nokia creates new products to match with the
market.

The result of the report finds that Nokia does not only want to occupy the position in
mobile phone market, but also to base on its technology development to approach to the
PC market. In addition, Nokia should not only develop new technology, but also has
other responsibilities for human, such as to reduce pollution and waste, which are
produced by the process of production.

Introduction
The mobile Internet has attracted numerous media attention. We know need to consider
why it is important to create new products of mobile in the market, what does consumers
needs, and what kinds of social activities changes affected Nokia to change its main
product line..
1.1 Company History
Nokia was a manufacturer of paper in 1865. After World War II industrial products
were increased substantially. 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.
1.2 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

1.3 PEST Analysis

Nokia is classified as international organization. It’s basic for global brand which is
required to focus on macro environmental factors. Macro environmental factors include
Political, Economics, Society, and Technology 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 countries. Nokia has to
adjust its strategic plan in order to develop international market.

1.3.1 Political
It is important of a company to acquire resources from government such as economic,
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 in
modern, knowledgeable and technology based economy that is highly specialized,
internationalized and undergoing rapid structural change requires active support from the
public sector.
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.

1.3.2 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.

1.3.3 Society and Technology

In the 1980 people trend to microcomputers and Nokia try to match the tendency to
produce its main products such as computers, monitors and TV sets. According to the
changes in 1990 Nokia also changes its functions to mobile phone market. The global
market trends to connect PC and mobile phone even if 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, 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.
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 obtained the
success of mobile phone market, and Finnish Government has established its position of
technological development.

2 Research analysis
2.1 SWOT Analysis
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. 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. In case of Nokia it has numerous opportunities to be able to enlarge their
market share. Nokia still have threats to diminish in sales and gross profit. Nokia have to
create more strength and opportunity then it needs to correct its weakness and threat as
well.

2.1.1 Strength
 Global marketing (product)
Nokia is the global product so it should be at least passed worldwide qualification by
ISO. This is the reason of why Nokia can be entrusted 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. 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”. 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 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. Comparing data with Ericsson, Motorola, Sony, Samsung,
siemens and other companies. It illustrates that other brands have narrow shape of
product lines.

 Product warrantee worldwide

No matter where Nokia’s customers are if they got a problem from Nokia’s mobile
phone. They can use Nokia service worldwide wherever Nokia centers are. These can
ensure customers who worried about service system.

2.1.2 Weakness
 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. It can be conclude that Nokia still have a weak
point as higher price than the competitors.

2.1.3 Opportunity
 Product launch continuously
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. Nokia established Research and Development department (R&D)
where developers develops product line into modern modification as well quality as the
existing products.

 Users Availability
Mobile phone retail stores, the link, Phone4U and Car phone warehouse, which is spread
around London in every street. Every stores have not missed the opportunity to choose
Nokia as their product line. All the customers can be guaranteed that any damaged or loss
of Mobile phone will be service through those retail shops. 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 .

 Necessary Product For People Now

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. 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.

 New Software Market

The amount of data traffic in mobile networks is growing at a tremendous rate. People
around the world are using new mobile services which are directly relevant to personal
needs. It can access anytime, anywhere and the innovative are fully provided to
customer’s Nokia. 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.

 Joint Venture In Technology

Nokia has already joint with Hewlett Packard (HP) company it has a well reputation
about computer programs for many years. Nokia has a considerable opportunity for
enlarge their market size into PC user who prefers mobile phone compatible with PC
device as well.
2.1.4 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. 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 Internet Network Service company it is the chance
to join into the new PC market.

3 Conclusion

Crainer (1995) said, building business through elasticity may cause risks to disperse the
power of a brand, and to influence consumers’ loyalties. Nokia has been successful at
brand stretching from a paper manufacturer to supply mobile phones and network
service.

This report has argued about the kind of technology consumer need. “How to promote
the future of phones?” Nokia has already joint with Hewlett Packard (HP) Corporation
Company. Nokia has a considerable opportunity for enlarging its market size into PC
users who prefers mobile phone compatible with PC device. Nokia has established some
types of mobile phones that are similar with handhold PC, like Nokia 9210, or Nokia
9110. These kinds of mobile phone have diversified functions such as color screen,
connecting with Internet, and interacting with PC software. For instance, Nokia 9210 and
Nokia 9110 consist of Microsoft Word, Microsoft Excel, and Microsoft Power Point and
other PC software’s.

Nokia does not promote these kinds of product deeply and widely. It seems that Nokia
can not successfully join into the new market. Comparing with other brands. Nokia is
more expensive than its competitors. As the limited technological resources Nokia can
not improve its technology to attach with new PC age. For example a comparison
between Nokia and Sony in terms of its technological development is that Nokia has less
abilities to develop high technological mobile phones which combine with PDA or
computer than Sony. Sony also has combine with Erisson to produce mobile phones and
to improve its technological development.
The environment policy is also one of the most important business strategies for Nokia
but it seems does not be operated well. Nokia develops recycled batteries but while
customers change different type of mobile phones sometimes the batteries cannot be
used. Nokia is successful in sailing new products and building consumers loyalties.
There is a conflict between the environment policies and promotion activities. Nokia has
responsibilities to change its promotion and development plans.

4 Recommendation
Nokia Company can be classified as market leader in 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 launch the
product timely and Nokia should have product life- plan 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.
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. Nokia mobile
company is too strong for Sony and other new comers to compete with it. In this report it
recommends 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. 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.

5 References
5.1 Books
 Crainer, Stuart (1995), “The Real Power of Brands”, published by Great Britain, pp
122-137
 Merriden, Trevor (2001), “Business the Nokia Way”, October, published by
Capstone Publishing Limited
 Zheng, Wen Bi (2001), “A Strategic Approach of Building National Techonology
Strength – Finland as Case Study”, 30 June

5.2 Periodical
 OECD (Organization for Economic Co-operation and Development) (1996),
“OECD Economic Survey of Finland, 1996”, Paris
 Science and Technology policy council of Finland (1996), “Finland: A Knowledge-
based Society”, Science and Technology policy council of Finland, Helsinki

5.3 Website
 BBC Online News (2001), “Promoting the future of phones”, 23 December,
(http://news.bbc.co.uk/1/hi/sci/tech/1723738.stm)
 Corporation Nokia (2002), “Nokia Connecting People,” 06 Auguest,
http://www.Nokia.com and http://www.Nokiainfo.com
 Liu, Wei Yi (2001), “The Global Enterprise of Finnish: Nokia” 26 June
(http://home.kimo.com.tw/liutaho/A54.htm)