Term Paper-Nokia 2

8/6/2019 Term Paper-Nokia 2

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Part # 1 : Introduction

1.1 # Basic Information Regarding Nokia Company:

Nokia is the world leader in mobility, driving the transformation and growth of the convergingInternet and communications industries. It make a wide range of mobile devices with services

and software that enable people to experience music, navigation, video, television, imaging,

games, business mobility and more. Developing and growing our offering of consumer Internet

services, as well as our enterprise solutions and software, is a key area of focus. We also provide

equipment, solutions and services for communications networks through Nokia Siemens

Networks.

The Nokia Corporate Business Development has the responsibility to manage Nokia¶s StrategicGrowth Areas. Unit looks for breakthrough ideas that are µindustry shakers¶ - innovative business

concepts and technologies - that integrate with and expand beyond Nokia core business. Their strategic growth areas are Commerce, Financial, Entertainment and they are identified to providethe best potential for long-term growth.

By coordinating business development activities with other Nokia business units it aims toconnect people with new services that are meaningful to them and offer greater benefits byenabling more transactions on the device. Nokia focus on generating new revenue streams for Nokia and their partners. The new services stem from the local needs of consumers and localexpertise, yet also benefit from global economies of scale.

1.2 # History Of Nokia Company:

Nokia is a Finnish multinational communications corporation that is headquartered in

Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the

manufacturing of mobile devices and in converging Internet and communications industries, with

128,445 employees in 120 countries, sales in more than 150 countries and global annual revenue

of EUR 50.7 billion and operating profit of 5.0 billion as of 2008. It is the world's largest

manufacturer of mobile telephones: its global device market share was about 38% in Q2 2009,

down from 40% in Q2 2008 and up from 37% in Q1 2009. Nokia produces mobile devices for

every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).

Nokia offers Internet services that enable people to experience music, maps, media, messaging

and games. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. The company is also engaged in providing digital map

information through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries

throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and

employed 39,350 people in research and development, representing approximately 31% of the



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group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial

research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven

countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.

Besides its research centers, in 2001 Nokia founded (and owns) INdT ± Nokia Institute of

Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing

facilities located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and

Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico;

Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock

exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest

Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock

Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an

important employer in Finland and several small companies have grown into large ones as its

partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In

2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's

exports in 2003.

Finns have consistently ranked Nokia as both the best Finnish brand and the best employer. The

Nokia brand, valued at $35.9 billion, is listed as the fifth most valuable global brand in the Inter

brand/ Business Week Best Global Brands list of 2008 (first non-US company). It is the number

one brand in Asia (as of 2007) and Europe (as of 2008), the 42nd most admirable company

worldwide in Fortune's World's Most Admired Companies list of 2009 (third in Network

Communications, seventh non-US company), and the world's 85th largest company as measured

by revenue in Fortune Global 500 list of 2009, up from 88th the previous year.[22] As of 2009,

AMR Research ranks Nokia's global supply chain number six in the world.

The technologies that preceded modern cellular mobile telephony systems were the various "0G"

pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some

military mobile radio communications technology since the 1960s although this part of the

company was sold some time before the later company rationalization. Since 1964, Nokia had

developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started

developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in

English), a car-based mobile radio telephony system and the first commercially operated public

mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978.

In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira

began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the

first-generation, first fully-automatic cellular phone system that went online in 1981. In 1982,

Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.



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The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the

Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987.

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's

telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984,

was one of the world's first transportable phones. In 1987, Nokia introduced one of the world'sfirst handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to

NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had

weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed

only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately

¼4,560). Despite the high price, the first phones were almost snatched from the sales assistants¶

hands. Initially, the mobile phone was a "yuppie" product and a status symbol.

Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev

was pictured using a Mobira Cityman to make a call from Helsinki to his communications

minister in Moscow. This led to the phone's nickname of the "Gorba".

In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with

two other employees from the unit, started a notable mobile phone company of their own,

Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia

Mobile Phones.

1.3 # Gradual Development Of Nokia Company:

Nokia believes that effective research and development is vital to remaining competitive in the

mobile computing and communications industry. As of April 1, 2007, Nokia had R&D centers in

11 countries and employed 14,500 people in research and development, representing

approximately 32% of Nokia¶s total workforce. R&D expenses totaled EUR 3.9 billion in 2006,

representing 9.5% of Nokia¶s net sales. Nokia invest a substantial portion of their resources in

research and development activities within their principal business groups Mobile Phones,

Multimedia and Enterprise Solutions, Technology Platforms, and in the Nokia Research Center

(NRC).



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Company Profile

Type: Public Oyj

Founded: Tampere, Finland (1865)

incorporated in Nokia (1871)

Founder(s): Fredrik Idestam

Headquarters: Espoo, Finland

Area served: Worldwide

Key people: Kari Kairamo, CEO in the 1980s

Olli-Pekka Kallasvuo, President & CEO

Jorma Ollila, Chairman

Industry: Telecommunications, Internet, Computer software

Products: Mobile phones, Smart phones, Multimedia computers and Networks

Services: Services, Software and Online services

Revenue: ¼50.722 bn (2008)

Operating income: ¼4.966 bn (2008)

Net income: ¼3.988 bn (2008)

Total assets: ¼39.582 bn (2008)

Total equity: ¼16.510 bn (2008)

Employees: 120,827 in 120 countries (June 30, 2009)

Divisions: Devices. Services and Markets

Subsidiaries: Nokia Siemens Networks, Navteq, Symbian, Vertu and Qt Software



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A View of the Communication process:

Sender¶s field of experience Receiver¶s field of experience

Figure: Elements in the Communication process

1.

Sender 4. Media 7. Response

2. Encoding 5. Decoding 8. Feedback

3. Message 6. Receiver 9. Noise

If Nokia want to send a message through media for public they have to follow this

communication process.

Sender Encoding Decoding Receiver

Feedback Response

Noise

Message

Media



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Steps in Developing Effective Communication:

y Identifying the Target Audience:

y Determining the Communication Objectives:

y Designing a Message:

Message Content

Message Structure

Message Format

This are the steps Nokia need to follow if they want to develop an effective communication.

Now, for Nokia media plays a big part of their promotion. In order to describe the media force of

Nokia in our society we need to show some of their greatest promotional work through the

media. So, some of their greatest promotional work will be described below in the form of-

Television

Newspaper

Magazine

Billboards

Leaflet



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Television



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Communication Process

Sender¶s field of experience Receiver¶s field of experience

Figure: Elements in the Communication process

1. Sender:

The sender of this message is Nokia itself. By this Television advertisement

Nokia wanted to tell their consumers about their new mobile phone N97. In this

advertisement Nokia clearly put their afford to tell their consumers about the internet

service this mobile phone is providing.

Live 24/7 Live with

internet

24/7

Nokia

Consumers

Positive/

Negative

Reaction

of receiver

Information

about price

and location

Users build

their own

personal

internet

Television



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2. Encoding:

In this Television commercial Nokia tried to encode the message 24/7. By this

new mobile phone of Nokia they enable their consumers to use the internet service 24/7.

They also offer full touch screen mobile phone with the latest experience of music and

photo.

3. Message:

The message Nokia is sending by this television commercial is that they use the

information of user¶s choice. They are saying that users made their own personal internet.

4. Media:

Nokia is using Television as their media in this advertisement. Television is the

Process.

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Term Paper-Nokia 2