Nokia Analysis of Marketing Strategies With Respect to NOKIA

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SUMMER TRAINING PROJECT “CONSUMER PREFERENCE” Undertaken at “NOKIA PVT LTD”
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Transcript of Nokia Analysis of Marketing Strategies With Respect to NOKIA

SUMMER TRAINING PROJECT CONSUMER PREFERENCE Undertaken at NOKIA PVT LTD

ACKNOWLEDGMENTI am grateful to my mentor Mr.Rohit Gupta who has helped me in the completion of this project. He has been a constant guiding force and source of motivation for me. It is entirely because of him that this project has attained its final shape. I would like to thank him for his valuable advice and guidance. I am also thankful to all the respondents who spared their valuable time for filling up the questionnaires and helped me out with this project. Finally, I would like to thank officers at NOKIA for there cooperation, which helped me in completing the project.

VAIBHAV SHAH

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CONTENTSExecutive Summary Chapter 1 : Introduction to the Industry Chapter 2 : Introduction to the company Chapter 3 : Research Objective and Methodology Chapter 4 : Data Analysis Chapter 5 : Recommendations and Conclusion Bibliography Annexure 6 7 12 34 39 51 55 57

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EXECUTIVE SUMMARYResearch has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the products provided by Nokia. The research was done for the corporate clients of Nokia.. Finally the results of the research verify the fact that keeping the customer satisfied is the best strategies to not only retain the existing customers but also to expand the business to new horizons.

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CHAPTER 1 INTRODUCTION TO THE INDUSTRY

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HISTORY OF MOBILES IN INDIA MobilesThe technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile communication. Mobile phones have become an internal part of the growth and efficiency of any business .The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and enlargen the adoption, development and development and evolution of the GSM standard . The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies .

Although cellular licenses were made technology neutral in September 2005, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.

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INDUSTRY PROFILEIn the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 2003. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 2005 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 2005, a new telecom policy was put in place (New Telecom Policy 2005). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

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MOBILE HANDSET INDUSTRY

With rapid consumerism sweeping the country, India has emerged as the second largest mobile handset market, poised for explosive growth by 2008. Industry observers are of the view that market within the 2006-07 could well become a global hub for mobile handset manufacturers. With an eye on the impending growth opportunities, RNCOS's market research report India Mobile Handset Market (2005) analyzes the current market scenario and the technological developments driving the demand graph. The report, quoting the experts view, estimates that the total market value worth Rs.8.05billion (US $2billion) as of 2004/05 will surge by 62% with approximately 100million subscribers nationwide in 2007. The study further reveals that Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services.

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Dominated largely by Nokia with a total market share of 59%, followed by Samsung (13%) and Motorola (7%) respectively, Indian mobile handset market is currently catering to 45 million subscribers (2005). Recent records show that Indian GSM cellular user base has grown from 43 million, as estimated in May, to 45 million in 2005, representing a growth of 3.50% in the month under review, witnessing large and propitious foreign investors flooding the market eyeing for large chunks. In addition, recent changes imbibed in the government policies that price mobile handsets at a lower end with flexible custom-duty for new entrants are startling the market with multiple models largely aimed to higher and middle-income groups.

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CHAPTER 2 INTRODUCTION TO THE COMPANY

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COMPANY PROFILEABOUT NOKIANokia 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 is a broadly held company with listings on four major exchanges.

HISTORICAL BACKGROUND At the beginning, Nokia was a manufacturer of paper in 1865. After World war II, the requirement of industrial products increased substantially. Nokia changed its function to an industrial enterprise and produced products like chemicals and rubbers. Until 1960s Nokia had set electronic department and focussed on developing transmission systems. The Journey into Tele-communications Nokias Cable Works Electronics Department started to conduct research into semiconductor technology in the 1960s.Nokia began to develop the digital switch (Nokia DX 200) which became a success. This was equipped with the high level computer language and Intel micro processors gradually evolved into the multifaceted platform that is still the basis for Nokias network infrastructure today.

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Focussing on Telecommunications During the deep recession in Finland at the beginning of the 1990s, the telecommunications and mobile phones divisions were the only supporting pillars of the Nokia. In May 1992,Nokia made the strategic decision to divest its non- core operations and focus on telecommunications. The companys 2100 series phone was an incredible success. Nokia Today Today, Nokia is a world leader in digital technologies, including mobile phones, telecommunications networks, wireless data solutions and multimedia terminals .Backed by its experience, innovation, user friendliness and secure solutions, the company has become the leading supplier of mobile phones ,fixed broadbands and IP networks. By adding mobility to the internet, Nokia creates new opportunities for companies and further enriches the daily lives of people.

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GROWTH

Nokia continued its recovery by taking 31.9 per cent of the market, up from 29.6 per cent a year ago. Motorola consolidated its strong second place, grabbing 17.9 per cent share, up from 15.7 per cent a year ago. The leading two sold 60.7m and 34m handsets respectively.

The gains came at the expense of third tier manufacturers and Siemens, which saw real unit shipments fall from 10.8m to 8.89m, a dramatic dip from 6.9 per cent share to 4.7 per cent share. On these figures, analysts must question the wisdom of BenQ's acquisition of the German giant's handset division.

Emerging markets in Asia, Eastern Europe and Africa led the way. But interest in replacing trusted handsets with 3G features wasn't particularly strong, notes Gartner.

Mission Statement, Strategy and Purposes of NokiaMission Statement Customer To maintain customer confidence by continuing to provide quality service specifically designed to meet their needs. Market To be recognised as a market innovator in the mobile phone industry to continuing to improve our business practise. Business To ensure the team has a complete understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System.

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Training To develop on going training strategies to empower personnel with skill levels essential for future company success.

The Team To create the best possible working environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.

Marketing StrategyNokias corporate responsibility strategy is to engage, improve and be accountable. They constantly measure and review their performance in economic, environmental and social issues. They engage in stakeholder dialogue and form partnerships that serve the areas they want to improve upon. They pursue focused and practical improvement programs in relevant organizational or geographical areas as part of business operations this involves business planning, internal communications, training. They increase accountability to stakeholders through reporting, and informative internal and external communications activities. What makes them unique is the way they do it. Based on the same approach that guides the rest of their activity The Nokia Way - their corporate responsibility is developed through logical steps, with much of the work concentrated inside the company, much of the work built on existing programs, and many stages taken forward in parallel. According to them it is essential to drive corporate responsibility through the companywide strategy process, support issue owners in building business cases for ethical improvement and implementation, and increase accountability to both internal and external stakeholders. For them, corporate responsibility is an integral and continuous part of decision-making in all parts of their business; taking responsibility for the consequence of their actions. Its a 15

belief that by focusing on issues over which they have most influence and which their stakeholders consider important, they will be able to mobilize more of company resources, be more proactive, and ensure long-term programs. The Nokia Strategy continues to focus on three activities to expand mobile communications in terms of volume and value:

Expand mobile voiceDrive consumer multimedia Bring extended mobility to enterprises

Expand Mobile VoiceWe believe that many opportunities for growth exist in the mobile voice market, and we intend to continue to focus on this area. In doing so, we aim to capitalize on our demonstrated efficiency and skill in execution and demand-supply chain management, and our history of innovation. The markets on which we intend to focus include markets with low mobile subscription rates relative to the size of the population, geographic areas where it is more cost-effective to build wireless infrastructure than fixed-line networks, and heavily populated areas, where factors such as poor housing infrastructure or theft of materials tilt the scales in favor of wireless solutions. We also intend to focus on markets where the need for network capacity is growing as a result of mobile network operators promoting the replacement of fixed networks with wireless.

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Drive Consumer Mobile MultimediaThey intend to enter new product and service niches, which we expect will emerge as technologies from diverse industries start to converge, especially in the area of consumer multimedia. Our strategy is to explore, identify and extract revenue from the most profitable and fastest growing segments of the consumer multimedia business and its value chain by anticipating consumer needs in this area, and developing innovative products and services. In the near term, we intend to focus on imaging and games, where we have already introduced a number of products. Our strategy to drive consumer multimedia will also involve leverage of our strong position in the consumer voice market.

Bring Extended Mobility to EnterpriseWe intend to capture profitable segments of the corporate market by offering products and services that will benefit companies and individual business people alike, including a diverse handset range as well as security and mobile connectivity solutions specifically tailored for enterprise needs. As we do this, we intend to capitalize on companies' needs for mobility and seamless mobile connectivity in their operations, and also expect to collaborate with leading technology and systems integration partners.

Business ObjectiveNokias business objective is to strengthen their position as a leading systems and products provider. Their strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Nokia innovates technology to allow people to access Internet applications, devices and services instantly, irrespective of time and place. Achieving interoperability of network environments, terminals and mobile services is a key part of their objective.

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They intend to capitalize on their leadership role by continuing to target and enter segments of the communications market that they believe will experience rapid growth or grow faster than the industry as a whole. By expanding into these segments during the initial stages of their development, Nokia has been established as one of the world's leading players in wireless communications and significantly influenced the way in which voice and other services have been transferred to a wireless, mobile environment. As demand for wireless access to an increasing range of services accelerates, they plan to lead the development and commercialisation of the higher capacity networks and systems required to make wireless content more accessible and rewarding to the end user. In the process, they plan to offer their customers unprecedented choice, speed and value. In addition, they will continue to be active in IP convergence. Nokia has established alliances with other service providers in order to make mobile access to services easier for the end user.

AREAS OF FOCUSTo achieve their business objective, their strategy focuses on: being the preferred provider of solutions for mobile communications; creating personalized communication technology; driving open mobile architecture enabling a non-fragmented global mobile services market; strengthening and leveraging Nokia, the trusted brand; and expanding our business and market position on a global basis. Mobile CommunicationsThe aim is to position Nokia as the preferred provider of products and solutions for mobile communications by providing leading communications networks that enable end-to-end service delivery for both cellular and broadband networks. They develop leading high-capacity cellular networks, platforms and 18

user applications for the mobile Internet, end-to-end broadband access solutions and Professional Mobile Radio systems. Personalized TechnologyThey want to strengthen their leadership position in converging personal digital terminal solutions. They build on their core competencies in various key areas, including design and product innovations, brand development, and effective demand/supply network management, to associated services to market. Driving Open Mobile ArchitectureNokias key commitment is to create a global and open mobile software and services market. They aim to achieve this through strong partnering with customers, suppliers and industry participants, and solid focus on end-to-end solutions in all their development activities. Strengthening the Brand--According to a variety of consumer surveys, the Nokia brand is associated with well-designed, high quality and technologically advanced products and customer services that are also user-friendly. Having invested considerable resources in establishing the Nokia name as the leading brand in mobile communications, they intend to sustain and enhance the brand through aggressive advertising, sponsorship and other marketing activities in all of their principal markets. Its a belief that the leading market position provides significant opportunities for Nokia to better understand and respond to the usage patterns of end users, and thus enhance the Nokia brand. Expanding The Business-- For more than a decade, they have actively expanded their business globally. As a result, the network systems, equipment and wireless terminals are produced and sold throughout the world. They, therefore benefit from strong economies of scale throughout the organization. Nokias strategy is to continue focused pursuit of global business opportunities by cultivating a strong local presence in all growing markets bring new product concepts and

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and pursuing partnering and acquisition opportunities in order to obtain complementary technologies and market positions. At Nokia, one of the top priorities is to continue to strengthen their leading market position in a profitable way. They believe that further market share gains are key to expanding the customer base and developing the future business potential. Their leading position also enhances the positive effects of their economies of scale, which they believe should strengthen their competitive position in the next generation of mobile communications.

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MAJOR BRANDS THAT ARE DEALT BY DEALERSMost of the executives who were surveyed had almost all the Brands of Mobile Handsets with them and the final analysis upon which I arrived at was that Nokia is the No.1 selling Handset in Delhi followed by Samsung, Motorola and Sony Ericsson.

Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology and its loyalty towards the Indian customer which certainly makes it the most superior brand. The biggest advantage that has worked in Nokias favor is its marketing strategy, which focuses more on their state of the art Handsets. They were the first company to come with a mobile with an in-built camera in it and they surely knew how to sell their product. Today almost all mobile companies have followed suit and come out with their own in-built camera mobiles. Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed agreed on this statement, not only is the after sale service excellent but also the quality and pricing of products is excellent. In such a scenario not only the existing companies but also the new entrants such as MOTOROLA, BenQ, Alcatel etc will have to justify their launch in the long run.

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NOKIA CORPORATE RESPONSIBILITYTOWARDS ENVIRONMENTWhat's in a phone?

The use of chemicals in Nokia products and processes shall be safe to humans and the environment. Meeting health and environmental regulatory requirements is a priority and a basic requirement. Nokia's approach is based on the precautionary principle. Where we have reasonable grounds for concern over the possibility of severe or irreversible damage to health or the environment, we believe that lack of full scientific certainty should not be an obstacle to triggering actions to gather and assess additional data. That may lead us to voluntarily take steps, e.g. to substitute substances of concern with safer alternatives, where feasible alternatives are available.

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TOWARDS SOCIETY Targeting life skillsAs a global company, we recognize that young people everywhere can benefit from developing essential "life skills" that help them to succeed within todays fast-changing world. Such skills including confidence, teamwork, and conflict management are often not taught in schools. To meet this challenge, we support life skills education programs that address the specific needs of young people within individual countries Examples include: Conctate provides Colombian youth with training in information technology and at the same time develops their self-esteem, creative and critical thinking, and communication skills. Kapcsolodj be supports the efforts of young community volunteers in Hungary, while equipping them with project management and budget planning skills. Leadership for health develops leadership and life skills among Nigerian youth, who are trained to run HIV/AIDS-focused initiatives. Mudando a Histora - trains Brazilian youth to serve as reading mentors to disadvantaged children.

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STRATEGIC MANAGEMENTThis report outlines the mission statement, strategy and purposes of Nokia .It analyses the impact of the external and internal influences on the business strategies of Nokia. It also emphasises the strengths, weaknesses, opportunities and threats in context of Nokias operating and marketing activities. Nokia has established its leadership in the mobile phone market owing to its successful marketing strategies and internal management. Nokias philosophy is to learn continuously, to satisfy customers and to respect individual and pursue professionalism.

SECRETS TO NOKIAS STRATEGIC SUCCESSOne can analyze the secrets behind how an enigmatic Finnish Company got an edge over the US and Asian giants to triumph as the global leader in mobile communications. Bold Strategic Intent While others debate and agonize over first mover strategies, Nokia rushes for new opportunities and products. Growing up as a small Finnish Company with few resources and no incumbent privileges, Nokia is accustomed to moving swiftly and decisively to claim its share of worldwide markets- from infrastructure to handsets and software applications. Innovation through Value Chain Through technology, innovation and segmentation, branding and design, Nokia makes innovation a top priority. Like Proctor & Gamble, it has shrewdly filled the shelves with innovative new products to dominate categories. Like Sony, it has used its umbrella brand to sell new products and services and to create footholds in new markets. Unlike its direct rivals (Motorola, Ericsson), Nokias innovation extends from technology innovation to marketing activities. Flat Organization Prior to its worldwide expansion, Nokia extended the use of IT throughout the company. As it became a process organization, it has shunned hierarchies and bureaucracy. Even the senior executives have been rotated from one 24

work task to another. The organization chart looks hierarchic but teams and networking reigns. Entrepreneurial Spirit Like the best Silicon startups, Nokia encourages entrepreneurialism throughout the ranks and views failure as a learning experience. Incentives, rewards and lifelong learning permeate the entire company. Humility is taken seriously at Nokia as in the technology sector, the arrogant of today are considered losers of tomorrow. Collective leadership Nokia relies on its executive board, with each member bringing something unique Global R & D Networks Nokias R&D efforts reflect extensive collaboration with vital research institutions worldwide. The company invests less in technology development than its rivals, but often exploits new knowledge more efficiently. Through technology coalitions it has managed to internalize new know-how while neutralizing competitive threats. Competition and Co-operation By managing its corporate and government relations with diplomacy and consideration, Nokia has been able to avoid high profile and costly anti-trust actions and competition policy struggles. Instead of trying to buy or crush potential rivals, Nokia works to cooperate with suppliers, partners, clients, even direct competitors. Customer Focus The most enduring factor is Nokias ability and willingness to listen to the customer a fact apparent in its strategy, structure and resource allocation and also in its products and services. SWOT ANALYSIS OF NOKIAS STRATEGY There are various tools which can be employed to understand the effectiveness of a companys strategies. SWOT Analysis outlines the Strengths, Weaknesses, Opportunities and Threats facing the operating strategy of a company.

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Analysing the effectiveness of strategies, strength and weaknesses can be defined as internal to an organisation. The businesses do not necessarily have to correct all its weaknesses however, it should be able to retain its strengths. The key success factor for operating in the targeted market depends on the external factor. ie. Opportunity. Nokia has numerable opportunities to enlarge its market share, however, they could be faced with a threat which could be challenge posed by an unfavourable trend or development that may lead into absence of defensive marketing action and thus diminish sales and profit.

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S.W.O.T. ANALYSIS

STRENGTHS GLOBAL PRODUCTS AND IMAGE Nokia is a global company. It not only sells its products to 130 countries but also sets up research and development departments in fifteen countries to produce its products in different culture and language needs,e.g English, Dutch, German and Chinese. HIGH QUALITY PRODUCTS 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. Meanwhile, it also continuously improves upon the existent markets. SERVING NEW DESIGNS AND TRENDS Nokia launched a wireless game which by use of sms, tv, print media, radio and internet provides clues to help players to solve a mystery. This helps Nokia to attract customers to use its products. WIDE RANGE OF PRODUCTS Nokia has the highest number of product line(more than 10 models) compared to its competitors Samsung, Ericksson, Motorola etc. PRODUCT WARRANTEE WORLDWIDE No matter where Nokias customers are, if they got a problem with their mobile phones, they can approach any of the Nokias centres. Thus, ensuring a good customer service.

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WEAKNESSES HIGH PRICE Nokia offers a good range of high quality products at high prices Though the high prices may be justified in terms of the costs to the company but this can act as a weakness in certain sections of the market e.g the middle-low income group people. Demand is skyrocketing but the price pressure is high. NEW PRODUCT DEVELOPING PROBLEMS Although Nokia provided colour screen mobile phones in September 2002,this was late as compared with its competitors such as Sony Ericsson and Samsung. This acted as a weakness as the people had already accepted the range introduced in the market and didnt want to switch.

OPPORTUNITIES JOINT VENTURE IN TECHNOLOGY Nokia has joined with Hewlett Packard(HP) Company in technology which has a very good reputation for many years. Nokia thus, has a considerable opportunity to enlarge their market size into PC users who prefer mobile phones compatible with PC device. PRODUCT LAUNCH CONTINUOUSLY - Nokia uses Total Quality Management (TQM) which mentions more about training worker program, and makes product of high quality. All employees are well-trained and motivated and consecutively production processes are also developed as well. Nokia has established Research and Development department (R&D) which develops its product line into modern modification as well quality as the existing products. NEW SOFTWARE MARKET As known, 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. Nokia has already added value through MMS for Messaging and E-mail, Java for download any applications and 28

HTML especially for content search.

So it may attract those businessmen and

teenagers who are interested in the new software market. EASY AVAILABILITY - Many mobile phone retail stores, such as, the link, Phone4U and Carphone warehouse, have spread across London in every street. And, of course, every store have not missed the opportunity to choose Nokia as their product line. Consequently, all the customers can be guaranteed that any damage or loss of Mobile phone will be serviced through these retail shops. Likewise, in opportunity aspect, Nokia has an opportunity to convince the prospects of buying Nokia in the plenty of stores around the town. However the key to success of Nokia will be the flexible changing capabilities.

THREATS THREATS IN PC MARKETS - Due to fierce competition in mobile phone market it has caused new technology compatible with PC computer. Sony Ericksson specializes 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. In this sharp competition, it is going to be harder for Nokia to grasp customers attention and they will have to focus on outstanding imagination and creativity in their marketing plans. FLUCTUATIONS IN EURO EXCHANGE RATES Most of the European countries have joined the European Union and thus because of the varied economic conditions, the currency will fluctuate a lot finally effecting the profits of the company. BLURRING OF PRODUCT BOUNDARIES This implies new entrants in the same industry like Sony, Motorola etc. who are producing almost the same product range as Nokia and thus, there is a need to change their models.

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Keeping in mind the weaknesses and threats, Dan Steinbock in an article called the Nokia revolution outlines the secrets behind the success of Nokia. Apart from the SWOT analysis, the effectiveness of Nokias strategies can also be analysed looking at the environment in which it operates.

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PEST ANALYSISNokia, is an international organisation which requires to focus on macro environmental factors. Macro Environmental factors comprise Political, Economical, Society and Technology, viz., PEST Analysis. In view of the different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market.

POLITICAL FACTORSIt is important of a company to acquire certain kind of policies from its government, such as the economic policy, and science and technology policy. Finnish policies assist Nokia to advance its products. The Finnish policies are the most important factors behind Nokias success. 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 pursued by Finnish government and the Parliament are crucial for the development of both, the Finnish Economy and of national information society. 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 and improvement in employment. As the result of this, not only Finnish Government but also international companies, such as Nokia, have to play very important roles to develop their information society and national technology strength.

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ECONOMIC FACTORSAccording to the fact that Russian Federation was collapsed in early 1990s and it clashed with Finnish economics. Nokia also faced problems, and changed its functions from single market and overall products to global market and focusing mobile phone market. During the first half of the year 2001, Nokia continued to perform strongly in the global mobile communications market and was able to strengthen its leading market position. However, the general economic slowdown in the US has recently shown signs of extending to other regions and to the wireless telecommunications industry as a whole. The slowdown could be a result of a general market deterioration - driven by economic uncertainty, the ongoing technology transition and less aggressive marketing by the operators.' In a press release on June 12, 2001 it was quoted that Nokia saw slower market growth affecting second quarter results and was to take up actions to expand leadership while maintaining strong profitability. Nokia will continue to take determined actions in all areas of the business to align its operations with the changing market conditions. Previously announced moves to increase the companys efficiency and competitiveness include operational changes to further enhance customer focus in Nokia Networks. While market deterioration has had an inevitable impact on Nokia's sales growth, their products have remained strong, their market position has strengthened and they have been able to find further efficiencies through tight control of their own performance. Nokia has countered changing market conditions by accelerating ongoing programs and generating efficiencies and cost savings. This, in combination with the current financial health and proven performance, should enable them to exit the current slowdown in a stronger position than before.

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SOCIETAL FACTORSAt Nokia, their whole business is based around communication and connecting people. One of Nokia's aims is to make it as easy as possible for their people to be satisfied working with them. Thus, it keeps various stakeholders interests in mind. Nokia develops products and services that encourage communication and learning among people and societies. They are using their strengths - connecting and communicating - to help make a difference. It complements the core business and their vision to be involved with the youth and education issues around the world, preparing young people for their future. The goal is to be a good corporate community member wherever they operate, as a responsible and contributing member of society. Sharing in the belief that prevention is better than cure, they take part in long-term projects aimed at helping young people to create a firm foundation for themselves and to find their place in the world.

TECHNOLOGICAL FACTORSIn the 1980s, there was a trend towards microcomputers and Nokia tried to match this tendency by producing its main products as computers, monitors and TV sets. Due to the changes in 1990s, Nokia also changed its functions to mobile phone market. . Sustainable development and environmental protection have various effects on the operation of the innovation system. promoting sustainable development.

Innovation also creates new opportunities for

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 satisfy those end-users need, such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java.Nokia employed more than 17,000 people in R&D department over fourteen countries worldwide. They also provided customers to choose the 33

features and service that they personally want and need. It means Nokia does not develop only their product line, but they also improve their service process to provide the most appropriate service to those customers efficiently.

MARKET SHAREDominated largely by Nokia with a total market share of 59%, followed by Sony Ericksson (13%) and Motorola (7%) respectively.

Others 21% Motorola 7%

Sony Ericksson 13%

Nokia 59%

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CHAPTER 3 OBJECTIVES OF THE STUDY AND METHODOLOGY

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RESEARCH OBJECTIVES

MAIN OBJECTIVETo find inter firm comparison of the mobile industry, by analyzing Nokia, Sony Ericsson and Motorola

SCOPE OF STUDYThe methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work.

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RESEARCH METHODOLOGY

There have been two sources of information collected: a) Primary Sources I have met retailers of the Airtel of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website.

Data CollectionIn this project both primary data as well as secondary data are used. Primary Data Primary data used in this project is collected through two methods, namely, QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD. Both these method proved to be great help in getting the required information.

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Secondary Data It is not possible to collect first hand information for each & every thing so, secondary data from various sources like Internet, D.K Neilsons report on Jan,2007, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline website were used.

Statistical & Presentation Tools UsedPRIMARY DATA is: First classified i.e. grouped qualitatively and quantitatively according to the situation or the type of the data which was collected. After classifying is represented in the form of tables i.e. systematically arranged in columns and rows. Some of the data is also graphically represented in the form of PIE DIAGRAM. SECONDARY DATA is represented: In the form of tables. By the way of BAR GRAPHS and PIE CHARTS

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Sample size and Areas covered A customer-based survey was conducted in which 100 people were asked to fill the questionnaire in which 100 people belong to Delhi. Because it was not possible to consider each and every person of both cities, PROBABILITY SAMPLE or RANDOM SAMPLE was taken.

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LIMITATIONS1. The study is restricted only to Delhi. 2. The population size is very small as compare to population size so. 3. There can be errors in sampling 4. Time constraints were present. 5. People might give their biased option

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CHAPTER 4 DATA ANALYSIS

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Based on survey using questionnaire method and answers taken from a group of 100 individuals of different ages. All data in percentage. Q.1 Do you use a mobile phone ? YES 94 NO 6

100 80 60 40 20 0 YES NO

YES

NO

Figure : 1

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Q.2 Which mobile phone do you use ? Nokia 59 Sony Ericsson 13 Motorola 7 Others 21

Nokia

Sony EricssonFigure : 2

Motorola

Others

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Q.3 Which mobile handset company is the best according to you ? Nokia 46 Sony Ericsson 30 Motorola 16 Others 8

Nokia

Sony EricssonFigure : 3

Motorola

Others

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Q.4 How much satisfied are you with the products of nokia ? Dissatisfied 16 Satisfied 52 Very Satisfied 32

60 50 40 30 20 10 0 Dissatisfied Satisfied Very Satisfied

Figure : 4

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Q.5 How would you rate the Promotional strategy of Nokia? Good 56 Ordinary 36 Terrible 8

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 5

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Q.6 How would rate Nokia on the basis of being user friendly ? Good 60 Ordinary 34 Terrible 6

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 6

Q.7 How would you rate Nokia on the basis of Performance? 47

Good 52

Ordinary 36

Terrible 12

60 50 40 30 20 10 0 Good OrdinaryFigure : 7

Terrible

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Q-8 How would you rate Nokia on the basis of Durability? Good 50 Ordinary 38 Terrible 12

50 45 40 35 30 25 20 15 10 5 0

Good

Ordinary

Terrible

Figure : 8

49

Technology Good 56 Ordinary 40 Terrible 4

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 9

50

Looks Good Ordinary Terrible

60

38

2

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 10

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Q.9 How would you rate nokia on the basis of its pricing policy ? Good 50 Ordinary 40 Terrible 10

50 45 40 35 30 25 20 15 10 5 0

Good

Ordinary

Terrible

Figure : 11

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CHAPTER 5 RECOMMENDATIONS AND CONCLUSION

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RECOMMENDATIONS

Nokia can do an excellent job to make the mobile phone easy to use. In order to maintain the leader position of mobile phone market, the company should closely focus on the tendency of marketing development. It would be good for Nokia to make out specialized products for enterprise markets. These specialized products functions would be to make the connection more quickly and handily than before. The enterprises could involve big companies, hospitals, government organizations etc. Some advantages attached to this approach are: 1. The group market is a long run market. The enterprise wouldnt change these products easily and they may require updating after a period of time. 2. This group market may get further marginal profits than the individual market and the rate of return over cost will be improved as well This is because the competitors will be less in the group market than the individual market. Analyzing the current business situation, Nokia needs to : Differentiate its products capability between the old and new category. Enhance its products with computer IT compatible, focusing on new technology users. Maintain its price reasonable. Follow, practise and promote its environment policies.

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It is also essential to treat the services and the products as equally important. The provision of a service can be attractive in itself. Developing a good understanding of how your products and services will be used and how they will change is important. Operators may well find themselves positioning R&D as a means to promote the use of bandwidth and focusing on service creation. While remaining flexible and alert to change, a company should build on standards. In a world where services will be delivered across a variety of components, one needs their component to fit in.

OTHER RECOMMENDATIONS1. Nokia has to control market skimming as it negatively attacks the brand 2. Nokia is the market leader and it should try to increase the growth rate as it had become flatter in 2005. 3. Nokia should be innovative on style and looks frint of the cell phones as it has recently sprung up in the present in order to attract youth. 4. High end mobile phones from Nokia have a hanging problem they must be tweaked to perform as desired. 5. The price of Nokia cellphones is high as compared to the grown up twins available so the buyer is unable to buy the latest available. 6. Nokia should work on a phone for the masses as it has a lot of scope, just like bird and motorola did. 7. The infrared present on the low end phones of nokia lack compatibility with the non0 nokia phones.

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8. Nokia should work upon their combination of price and features in an instrument. 9. The user interface present in both brands of phones are each of a type and are acceptable by the users.

CONCLUSIONThe findings of the research I found that nokia is the market leader in the mobile phone industry in india Nokia has storng brand image to influence and create large customer base. Nokia should Launch new mobile phones that are an optimum balance between price and features Strengths and opportunities of Nokia suggest that high quality, advanced technology, worldwide service and continuous new products are the essential factors for Nokias product development. Nokia concerns on its enterprise culture. In the company the relationship between individuals is mutual trust, fair and openness. Nokia makes courses to train its employees regularly which will assist Nokia in achieving its higher goal.

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BIBLIOGRAPHY

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BIBLIOGRAPHYWebsites http://www.news.bbc.co.uk/1/hi/sci/tech/1723738.stm http://www.amanet.org/books/catalog/081440636x_history.htm http://www.nokia.com http://reinholm.com/strategic%20management.htm

Magazines Network Magazine SDA Asia Magazine

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ANNEXURE

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SAMPLE QUESTIONNAIREQ.1 Do you use a mobile phone? Yes Q.2 a) b) c) d) Q.3 No

Which mobile phone do you use? Nokia Sony Ericsson Motorola Other Which mobile handset company is the best according to you?

a) Nokia b) Sony Ericsson c) Motorola d) Other

Q.4 a) b) c) Q.5 a) b) c)

How much satisfied are you with the products of Nokia? Dissatisfied Satisfied Very Satisfied How would you rate the marketing policy of Nokia? Good Ordinary Terrible

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Q.6 a) b) c)

How would rate Nokia on the basis of being user friendly? Good Ordinary Terrible

Q.7 1)

Rate Nokia on the basis of following: Performance a) b) c) Good Ordinary Terrible Durability a) b) c) Good Ordinary Terrible Good Ordinary Terrible Good Ordinary Terrible

2)

3)

Technology a) b) c)

4)

Looks a) b) c)

Q.8 a) b) c)

Who do you think is Nokia's biggest competitor? Sony Ericsson Motorola Other

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Q.9 How would you rate Nokia on the basis of its pricing policy? a) b) c) Good Ordinary Terrible

Q.10 What are your recommendations for Nokia?

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