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The Finnish Structured Cell Phone Company Named Nokia Marketing Essay

The following coursework will be achieved on the Finnish based mostly CELLULAR PHONE Company known as Nokia. Grouping A; Industry dynamics and KNOW-HOW would be the chosen subject of concentration. As Mobile phones are such a technologically dependant industry it requires the broadest review of the idea of innovation. This theme interests the writer of this article greatly, as Group A benefits a better knowledge of the problems encountered by Nokia. The issues of formulating and then employing a strategy want thoughts for a company so heavily reliant on technological innovation. Therefore it is more important to find out about the Resources of Invention, Types and Patterns of advancement used. Competing with others in the industry and looking for dominance over means of doing things. Also timing is of great importance for a business in that fast moving scientific field. The reasoning behind why I've decided to concentrate on the company Nokia and not merely the industry of cellphone is due to dominance of certain countries in this industry. Also to give the right amount of weight to these companies will make the essay focus heavily on the countries that the topic has lay out for all of us to avoid. The reason Nokia was chosen is mainly due to its unorthodox origin among technical companies. Most technology based companies are from the US of your, Japan, Germany, France or U. K. At exactly the same time being a relatively strong rival from a Scandinavian country Finland requires further research, in order to understand how it handles to contend with these industry giants. The target towards accomplishing this coursework is to understand how the creative endeavour of Development is afflicted by real life pushes of the industry such as timing, competition, and the existing limitations and state of technology.


The method chosen for the purpose of this essay is chiefly Extra data collection through Literature from several sources. The literature is from physical catalogs from the college or university and county libraries along with the majority of literature taken from the relevant sites on the internet. Primary data collection in the form of Research among several acquaintances and friends internationally were conducted to start to see the success of the company on the market not only within the U. K but also internationally in places such as Mumbai, India.

Main Body

The storyline of Nokia's creativity begins in 1865 with a Finnish mining engineer called Fredrik Idestam, who established a groundwood pulp mill in the city of Tampere, in southern european Finland, and began manufacturing paper. Many years later Idestam and Leopold Mechelin founded Nokia Small and moved the business and businesses to metropolis of Nokia. Fast forwarding to 1966 where time the business got branched into several businesses and in 1967; Finnish Silicone Works, Finnish Cable television works and the Nokia Company merged to form a new global conglomerate the Nokia Corporation. At one time or another in its long and illustrious background the business was involved with a variety of sectors such as Electricity era, the Plastic Industry, developing of Communication cords, paper products, robotics, plastics, aluminium and chemicals. The first Nokia chairman Bjorn Westerlund (Jan 27 1912 - Mar 11 2009) was responsible for setting up the original electronics section. In the later 1990s under the chairmanship of Jorma Ollila the business decided to target exclusively on telecommunications divesting itself from all other non telecommunication businesses, thus crafting Nokia as we realize it today. Inside the two decades of divesting itself from all the businesses and focusing only on telecommunications the Nokia Corp as expanded into Finland's greatest company responsible for a 3rd of market capitalisation of the Helsinki stock exchange in 2007 and also acknowledged with increasing the complete country of Finland's GDP by 1. 5% in 1999 and also accounting for 25% of the nation's export in the entire year 2003. Nokia brand itself is outlined as the fifth most effective global brand valued at $34. 9 billion by Business Week in '09 2009. Current Leader and CEO Olli Pekka Kellasvuo is quoted declaring (During last year's Nokia World) that, "We've the chance to put the energy of the Internet in the hands of more folks in more places than any company. And that is exactly what we have been doing. " Nokia's products have reached across the world you start with the first cell handset by the company the Nokia 1011 and ever since the business has applied new technology and design to their cellular devices. With collaborations that have resulted with the recent Rihanna Concert, Shakira in Latin America and Priyanka Chopra for the Nokia 3600 and 7610 Supernova adverts emphasize the development setter in Nokia's Design. By exploring into their market segments Nokia has divided their customer bases, segregating them in places where market penetration is highest. Nokia targets four markets simultaneously; firstly there is the Explore range: this is Nokia's specialized leadership product line that pushes the limitations of the requirements mobile phones; this is released as its N series which is targeted towards technology leaders and young explorers. Nokia has only just lately released its Maemo range which is the integration between Mobile computing and telephones the first being the N900. Second market segregation is the Live range which targets a broader consumer basic in particular these mobiles have key features, are extremely stylish and inspirational in character including the Nokia express Music. The Achieve range is the venture series of mobile phones targeted towards business consumers and pragmatic market leaders and life trippers they are capable of organising personal schedule and multi tasking. The Connect range is targeted on low end cell phones for the simpleness seeker just like its tag range hooking up simply.

To differentiate itself from other competition such as Samsung, Sony Erikson, Motorola, Apple, Blackberry and others Nokia has generated new services that only operate on Nokia Phones including the 'Ovi' store that is the one stop shop offering press and information through communal interconnection and navigation, 'Comes with Music' an online music store similar to the Apple iTunes store. And point and find an app produced by Nokia in the U. K. and USA. This iphone app allows the user to search predicated on images captured by the phone's camera of real life objects and provides the user information about this thing from the web. That is an application that is pursued at great expense by Google because of its own phone operating system the Android.

Research and development:

Nokia is convinced that effective R & D is vital towards staying competitive in the traveling with a laptop and communications industry. The R & D division at Nokia operates in a cross types manner with research centres in Helsinki Finland, Berkeley California, India, Boston, Dallas, China, Singapore and more round the world. Co-operation with the likes of Cambridge University and MIT bring design advancement forward. THE BUSINESS all together has R & D occurrence in 16 countries, used almost 40, 000 people, which is 31% of the business's workforce. Over 6 billion in 2008 where put in towards R & D in attempting to forward mobile phone technology with enhancements conforming with their consumer's needs. Nokia's research has spurred many assignments such as the Mobile millennium, which is a research partnership that delivers drivers with real time traffic information. As well as the Nokia Mobile Augmented Actuality Request which is the technology behind point and find that uses the phone's camera to consider images of real life objects and offer information on them. As the internet at its main is a text based technology, se's that use words are highly efficient and popular. But in order to search for images a whole degree of search infrastructure had to be created that converter images in lines on data that may be matched up with similar lines of data produced from a couple of images on the internet. Collaboration between Cambridge's Nano science centre and Nokia has the two entities focusing on 'Morph' which is dependant on the concept that one day nano technology allow devices to be built with flexible displays, clear electronics and self cleaning surfaces.

The main point out of Nokia's Development strategy is the fact that Nokia is actually engages in community driven wide open innovation. The company has formed strategic alliances with a healthy community of partners which brings innovation to market quicker. Two instances are Nokia Website and Nokia Beta Laboratory. Besides every one of the above, Nokia has deployed a passionate team towards safeguarding the brand and its own intellectual properties to battle counterfeiting. Presently Nokia own 11, 000 branded innovations and its own Global stock portfolio includes 42, 000 patents and patent applications of which is data files 1, 000 annually. Along with IPR safeguard Nokia recognize that importance of being the first ever to market a certain new device or product (First Mover Gain).


Nokia must work hard as they have strong opponents such as Apple. It can contend with Apple by increasing the branding of these phones. And become open to use alternative party companies in order to make the apps that increases the software range and overall flexibility of Smart phones. Demand wise the high cost of its Explorer range (N Series phones) can deter potential prospects, increasing marketing for the live and connect range of telephones could solve this.


Phones as wearable devices, as fashion accessories. Morph is a potential, but having have a look at nano technology, this technology continues to be a way away, several years, even a decade.

Another idea is to have a feature that sets advertisements (Nokia calling this product Adtronics) on the telephones payed for by the marketers, and the advantage for the client is that the area of the profit is handed down onto reducing their bills. This is a genuine options as the price for bandwidth is ever shedding, and Nokia can be the first to take benefit of this design aspect of the business. This setup has been in existence with a great many other press, such as free newspaper publishers, television programs that produce their gains through advertisers rather than the end customers. This will be a win- win situation.

Nokia Research Centre

Nokia is the world's largest manufacturer of Cell phones, portable music player and camcorders. (Quoted by Joe McCarthy, Nokia's Theory Scientist, within an interview concentrating on the Nokia Research Centre).

Nokia's view on Creativity: 'Innovation drives Progress and Margins'.

Innovation isn't just about top quality that is the new varieties of technology development is not the finish all and become all of development. Software of existing technology into new forms is also a kind of innovation. For example; Use of Computer like Symbols on telephone, a cheap pen (Stylus) for individuals to be written on screen, Radio built into phones, Flashlight, Audio tracks Messages etc. are products that existed before in other styles outside of mobile phones, but were incorporated in to the design of Nokia Devices due to applicability of the features.

Nokia as a firm was created to churn out new innovations. Its corporate and business strategy drives business renewal. The Nokia Research centre drives invention through tactical research. Business development drives business innovation and incubation in domains beyond current cores (Collaboration with the Nanotech branch in Cambridge University). Forum Nokia drives advancement through creator community by allowing alternative party companies and amateurs to contribute to the sea of suitable programs to be utilized with the devices of Nokia. Project funds scan ground breaking set up business and provide money for a slice of possession or collaboration, and grant its large status to companies seeking to penetrate new marketplaces by sitting on the shoulder of giants like Nokia. Technology for Devices; Customer concentrated; innovation and sustained competitiveness in devices. Services and Software; Efforts at development in offering and business models to increase services business for Nokia. Marketplaces; Attempts at advancement for operational quality, and sales and marketing capability. Nokia creates its own culture of products that are its own category of products compatible to its devices and for the utilization of its end users by providing a variety of applications for all your needs of its customers. For example, smart2go, twango, loudeye, enpocket, intellisync, Nokia2. 0, Websites, Nokia Beta Labs, Nokia Infopedia (Wikipedia for Nokia), Nokia Alpha Labs, Nokia Jam, Nokia Way Cafe, Sociable Phonebook, Nokia Second Life, Lead User Technology etc.

Following is an Interview of Nokia's Past VP of Corporate and business strategy, Jarkko Sairanen concentrating on the concepts behind Nokia's innovation recipe:

There is not any secret: innovators tend to experiment, to try new things also to test out ideas. Jarkko states the need to accept failing and accepting that some repeated work will be conducted during research for the organization. You need a small group that extends all around the organization to place another idea onward. Nokia is not really a textbook example of a systematic approach to owning a pipeline and stock portfolio of ideas where they rationally and analytically make a decision they can afford for example seven out of ten ideas, a community makes up to date decisions predicated on examination of data, if your tactical decision is clear, this is a far more powerful way.

Systems methodology: radical advancement runs beyond just planning features or standalone products, clubs consider the framework and the ecosystems where the overall solution delivers benefits for those area of the value chain. This approach allows others to achieve success while creating value that supports and encourages Nokia's platforms. Jarkko's answers highlight the necessity for innovators to switch from a 'feature' to a 'system' frame of mind.

Sustainability: don't limit your company's opportunity to a one-off. Think of what it takes to become a serial innovator and the alternative evolution paths to attain a given eye-sight, "make what you are doing sustainable in the long term".

Agility: modify, think of what must be done for your creativity to stay relevant as time passes, "being agile means continually embracing the surroundings as it changes and grasping the opportunities it offers".

Innovation culture: network, decentralize and empower. "Don't try to guide or drive from the most notable down. A whole lot of decisions happen deep in the business, we don't possess another process or an incentive structure for invention - it's part of the work that people do, our company is a networked organization that is connected to innovation, many people are extremely interdependent, instead of thinking in terms of silos and different kingdoms".

Forward looking view: develop a vision; look at trends across the value chain, like the competitive environment. Provoke strategic thinking and articulate missions and guiding rules. Leverage this understanding in the present: "we do perspective work, which we call the Nokia World Map; the result is available for all our employees, so everyone can read it and people can discuss it. This stimulus is brought into the organization and people start off to act on it, and realization begins".

Emerging Business Device: this is Nokia's corporate and business venturing device, leveraged to 'incubate seeds', affecting different teams experimenting with potential enhancements, "this product has dedicated funding, so they can go to market fast and easily test things. And we build seed products for deeper advancement at the Nokia Research Centre". As shared at the beginning of this post, there is certainly another finance which targets assets on start-ups, this one being the same to a capital raising fund.

Timing: "we move things when feasible into our primary activities, but we shouldn't move them prematurily. . Discovering the right time and having a low 'burn off rate' so inventions do not expire too early are critical things. Managers require insights and intuition if they are to understand why is sense at what stage".

Be local and global: "A lot of innovation took place in Europe because we standardized smartly () the web paradigm and the interpersonal networking innovation Web 2 2. 0 () has been driven in america (. ) check out China, which has its model () take things locally or regionally where they are simply delivered, and deploy what can be deployed globally".

Go-to-market capabilities: for innovations to realize their potential, there's a dependence on a company's 'backbone' that's capable of producing, shipping, reselling and providing.

http://consultaglobal. wordpress. com/2007/12/15/nokias-innovation-recipe-there-is-no-blueprint/

Primary research carried out by doing a review among classmate, colleagues and friends from Mumbai, from the 37 people questioned 14 say to own a Nokia cell phone. With almost 40% of folks surveyed the email address details are as expected for the company like Nokia which encounters such strong competition from the likes of Apple, Yahoo (HTC), and Samsung etc. Before the popularisation of the Iphone however, 21 out of the 37 claimed to obtain held a Nokia mobile phone. Which means that Nokia proceeded to go from a 60% market talk about of an informal survey, to only 40% in less than 5 years. Which means that the company must concentrate its resources in order to overcome the threat of Apple's iPhone. The reasoning behind iPhone's success is myriad apps it provides because of its customers on its online stores. Nokia just can't compete with the sheer quantity of apps available for the iPhone. Only way it can match this inside our opinion is signing up for forces with Google. Although Google has entered the Mobile phone market by partnering with HTC (Taiwanese company), it still markets its cellphone software to others. Its mobile phone software the Android is something that Nokia may want to spend money on. Also earlier in the essay we talked about that Google is spending a substantial investment in order to set-up something that Nokia has recently done. The image search software. Since both companies have something each other need, it looks like a match made in heaven. Also with Android in its arsenal Nokia can prove to be a legitimate hazard to Apple, the current dominant entity in the market.

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