Chapter 5. Global Marketing

Nokia represents a perfect example of a multinational corporation. It has eight manufacturing facilities outside Finland, they are Manaus, Brazil; Cluj, Romania; Beijing and Dongguan, China; Komárom, Hungary; Chennai, India; Reynosa, Mexico; and Masan, South Korea. It also has retail stores all over the world and conducts research in 44 countries in order to obtain information about customers behavior and feedback on latest products. No wonder it was named number one smartphone manufacturer by 2010 global sales according to IDC. 
As you notice the company has 3 plants in India and China, two countries that are soon to be mega-markets. Nokia sees a great opportunity for its business in this countries mostly due to the huge population and the cost efficient production. On the other hand it has to take in account the fact that they are also countries with very low income. Lately company introduced its line of affordable cellphones that were mostly launched in India and the third world countries.

Middle East is another market that Nokia had successfully battled in the pass and continues to provide with new mobile devices. The company was trying to appeal to the customers sophisticated taste and demand for high-technology products in this region. This was the reason for Nokia to introduce its new phone N9 in Saudi Arabia.

Nokia N9

The Alessandro Lamanna, Nokia's Vice President of Sales, Middle East and Africa said, "The Nokia N9, which will be available in select markets across the world, is perfectly suited for this region's high-tech and style conscious consumer who demand best-in-class products. With recent figures from Gartner revealing that Nokia smartphones continue to be market leaders in MEA, claiming 41.9% of the category market, consumers in the region clearly value and trust Nokia products. Addressing this clear preference, Nokia has selected MEA as one of the first markets to launch the N9, continuing our commitment to meet customer demands for products that excel in performance and enhance their social standing."
Nokia values MEA market. Company was able to show its respect and understanding of religious culture through introduction of its two smartphone applications Ramadan Calender App and Quran App. This applications are very popular in Muslim countries. They include Islamic stories and fasting tips, prayers and Ramadan greetings. 

The only one market that keeps being a concern for the company is United States. For the past year the company closed 2 of its major stores and keeps  loosing customers mostly due to very high competition from Apple, Droid and RIM. The primary customers in the country want new and improved prototypes of IPhone, who Nokia yet to target with its upcoming WP7 phone. 

Chapter 4. Influence of Marketing Environment

Mobile phone market is in constant change. The forces of marketing environment determine many companies strategies and plans.

In today's mobile phone industry Nokia has to consider many factors to keep its head above the water. The one and the most important force that Nokia does not seem to be able to keep up with is the change in technology. Apple and Droid seem to keep a better pace at launching new and improved smartphone devices. At the end of August 2011 Nokia was able to show that they are still the biggest manufacturer of smartphone thanks to its Symbian software. That same month the company announced 3 new smartphones that will run on Symbian Belle.

Nokia701-700-600-Symbian

These three do not compensate for the long time promised Windows 7 smartphone. It starts bringing concerns among stakehoulders that the platform is not gonna be as successful as it was expected, mostly due to the delay that Nokia put on launching WP7. Would 2012 be too late, where as we already see not very impressive results of sales for Samsung version of the same phone? The company's CEO announced that their target is first time smartphone buyers. I do not know how many of those will be left by 2012. 

On the other hand as an adjustment to economic struggle company presented its customers with a new line of affordable phones Nokia 100 and Nokia 101. Phones are powered by the Series 30 OS. Both handsets come with many different features and exceptionally good battery life that can last up to 25 days on standby. 

Nokia100-101

These are perfect for customers in third world countries, but we want to see something new that is worse offering to the western market with its hight competition bar where the money is not an objective when it comes to buying a phone.

Chapter 3. Nokia is Setting an Example of Social Responsibility

Entity, organization or an individual has an obligation to act to benefit the society at large. This is a main principle of Ethics and Social Responsibility. Today we will talk about how it applies in terms of corporate world and in particular in case of Nokia Company. 

A mobile phone magnate Nokia tops the list of twenty most sustainable companies in the world. It was considered No.5 in 2008 and No.8 in 2007 according to the Fortune magazine reports. What is it that the company does to show that its goal is not only to make profits but also to improve our world? 

Nokia is famous for helping youth and opening up new opportunities to underprivileged kids. Out of the past projects we should mention Nokia CSR project in partnership with RochEd where company committed to providing music education to street children. The company is also a founding sponsor of the YouthActionNet leadership program. Together with PLAN company is helping kids in Africa to speak up for their rights. (Check the link to watch the video http://www.symbiantweet.com/tag/helping-children).

Employees as individuals are trying to contribute to companies support of different causes. Nokia encourages its workers to do so. As an employee you are allowed to take two Helping Hand Days per year in order to have time to give back to your local community or help the charity of your choice. Voluntary activities that Nokia employees are doing include blood donations, fundraising, volunteering at children's hospitals, help in renovation of local schools and nature clean-ups.

And of course Nokia is mindful of the impact of its business on the nature. Recycle your phone project let the company gather tons of old phones. Company sets a great example to other electronics manufacturers on how important it is to make a change to the old way of conducting business. Care for society and nature are main goals in company's corporate responsibility report.

Check the video on Nokia's Corporate Responsibility in China:

Chapter 2. Strategic Planing

This week we are talking about strategic moves that Nokia is taking for the future of its business. First of all lets define what is strategic planing. It is a managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunity. Company's goal under strategic plan is always growth and profitability.

Under the circumstances of the created market and high demand of smart phones Nokia took a bold move to form a strategic partnership with Microsoft Company.  Both companies agreed to pool together their technological and intellectual resources to build new mobile devices. It gives them both an opportunity for innovation. Nokia introduced its Windows Phone Platform where we should look forward to new applications as well as hardware, graphics speed and software improvements.

This move can be a great deal in terms of competition with such popular brands as Android and Iphone. Although, development team already announced that they will have to postpone the release of Windows Smart Phone until 2012 which may hurt the company's share value. 

This is "a neccesary change" according to Stephen Elop, Nokia President and CEO. Company is also experiencing a change in its Leadership Team. As of September 30, 2011 Ojanpera, Executive Vice President is leaving the company and Tero will be taking his role. 

Company's Mission Statement

Nokia indicates that their mission as a company is very simple CONNECTING PEOPLE. Although it may sound very short but a lot is included in this bold statement. The company promises to keep building and designing great mobile products to satisfy consumers with different needs. Company states that they want to bring their costumers an opportunity to get more out of their mobile.

Flexibility and innovation are the keys to success in Nokia's case which so far helped it to outrun the competitors.

From paper manufacturing to an era of cellphones. (Brief History of Nokia, Worlds Leader in Mobile Technology)

The history of Nokia Corporation begins with the foundation of the three greatest companies: Nokia, Finnish Rubber Works and Finnish Cable Works.

In 1865 Fredrik Idestam established a ground wood pulp mill in the town of Tampere (South Finland) and started manufacturing paper. Three years after he built another mill near the town of Nokia by the Nokiavirta river. In 1871 a statesman Leo Menchin who was also Fredrik's friend joined him in paper business and together they founded the Nokia Company which is still known by its original name.

At the end of 19th Century Mechelin took over as the company's chairman. With his help in 1902 company entered into electricity business. 

In 1898 another great company was created. Eduard Polon established Finish Rubber Works that was manufacturing galoshes and other rubber products. This company started using Nokia's electricity. 

In 1912 the Finish Cable Works was founded by Arvid Winchstrom. It became the biggest producer of telephone, telegraph and electrical cables. 

Shortly after the World War I the Nokia experienced financial downfall and was almost bankrupt. The Finnish Rubber Works decided to buy it in order to continue electricity supply from Nokia's generators. Eleven years later the company became a new owner of Finnish Cable Works. In 1967 the three companies merged to form a Nokia Corporation. At this point companies business included production of paper products, tires, cables, electronics, PCs, robotics, military communications and chemicals. Nevertheless, the board decided to step away from the consumers products and focus on the growing perspective of communication business. The more attention was driven to earlier created electronics section of the company's cable division. 

In 1970 the company developed the Nokia DX 200, a digital switch for telephone exchanges. Nine years after this Nokia merged with Salora Oy and on the sixth year into the merger it bought all of the companies shares. In 1984 Nokia acquired Telefonno Company and changed its name to the Nokia Telecomunications. The same year it introduced one of the world's first handheld phones. In 1991 company's equipment was used to make the world's first GSM call. 

In 1992 with the beginning of the Technology Revolution took a strategic plan and focused on its telecommunications business. By the end of the 20th Century Nokia became the world's leader of mobile phone industry.