Research repor tfinal (2)
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The first ever mobile phone in the world made its appearance more than a decade ago, and
it has never been the same thing for everyone from that day on to the present moment. There
has never been a moment of respite for the mobile phone industry with a constantly evolving
technology nudging manufacturers ahead with a vast array of possibilities. Moreover, the
number of manufacturers have also increased during all these years as the pioneering
members have given more than enough reasons for newer players to be inspired and join the
rat race. Out of all these players, a few have managed to immortalise themselves through a
string of successful products, which have created a legion of loyalists for them. Nokia and
Samsung are two of such successful manufacturers who enjoy immensepopularity in the
market today.
Finnish mobile phone manufacturer Nokia has existed in this field for a long time now, and
has combined its intelligence and the emerging technology from time to time to flaunt the
reputation of the leading contender that it enjoys today. The manufacturer is widely
acclaimed for creating mobile phones with arguably the best technologically reflective
features. With a primordial affinity towards the process of gradual up-gradation of a
particular model through newer and better features, Nokia has inspired several others to
follow suit. Predominantly starting out with bar shaped phones, it later took a versatile role,
and created slider and clamshell phones too. Some of the most successful phones by Nokia
are Nokia 5300, Nokia N73, Nokia N91, and Nokia N93.
South Korean electronics leader Samsung rushed into the mobile phone industry like a gush
of strong wind, and made quite an impact amongst the phone connoisseurs. Displaying a
much acclaimed expertise in making slider phones, the manufacturer has given some of the
most attractive and sophisticated phones to the world. Some of the most popular phones by
this manufacturer are Samsung D900, Samsung E250, Samsung U700, and Samsung X830.
The manufacturer showcases some of the slimmest phones coupled with revolutionary
technologies that define its infinite prowess.
It had been quite a long time that Nokia was being the favourite handset of Indians where
much competition didn't affect the annual revenue of the company from India. But the latest
[1]
study made by Voice and data, it states that things are not going on the right way for the
Finnish Company. Korean leading mobilehandset maker Samsung's entry into the Indian
market shows a tough competition to Nokia in the coming days. Within a year Samsung made
a grand increase (21.7) in their revenue from India which makes around 5,720 crore in the
fiscal year 2010-2011. Even Nokia could earn revenue around 12,929 crore in 2010-11, it
does not show any progress in the growth comparing with the past. Samsung Mobiles have
always kept customers in the centre and therefore, they are able to design futuristic mobile
phones for their customers. Moreover, they have made their presence felt across the nook and
corner of India with its extensive network. Moreover, Samsung Mobiles have always
emphasized the need of its large customer base and therefore, it has regularly introduced
different models of mobile phones: Tablet Smartphone, Smartphone, Dual SIM Phone, Touch
Phone, QWERTY Messaging Phone, Multimedia Phone, CDMA Phone, Essential Phone etc.
For its colossal success, Samsung India gives full credit to its talented work force. Samsung
India has roped in the best minds in India to achieve excellence in mobile technology and its
use across the country. From executive to CEO, every single person of Samsung India reports
to its customers, and this i
Comparison Of Nokia Cell With Samsung Mobile Phone
Samsung and Nokia together are huge competitors within the Indian mobile market. Samsung
is renowned for its smart looks with advanced options where as Nokia is recognizing by its
superb look and excellent battery backup. Both are charitable their greatest to delight their the
makings regulars. Nokia mobile phone and Samsung are two of such flourishing
manufacturers who take pleasure in immense popularity available in the market nowadays.
They always maintain their clients bring up to date in sophisticated technology. There are
numerous gorgeous collections of Samsung cell phones and Nokia in Indian marketplace with
the Samsung mobile price list and Nokia price list.
[2]
First mobile phones New Mobiles Phone
A fleeting time ago Samsung launched its new mobile, Samsung Wave in India, This
Samsung cell worth is Rs.19, 000 on the other hand now we be inflicted with a Nokia X 616
GB This Nokia mobile phone value is Rs16, 000 which is near the be fond of peas in a pod
worth range. Let’s evaluate these two phones and publish. So here I go Comparison of
Samsung Wave vs Nokia X 616 GB. There is not much difference in Samsung Wave and
Nokia mobile phone X 616. All handsets be inflicted with GSM Quad-band phone able to
world roaming (850/900/1800/1900 MHz). Samsung Wave has sixteen 777 216 colors, 480 x
800 pixels on the other hand Nokia mobile phone X6 16GB has sixteen 777 216 colors, 360 x
640 pixels. In functionality of digicam both are charitable the splendid clarity and
intelligibility with 5 Mega Pixel. All support Bluetooth, WI-FI, 3G and lots more.
If we discuss its storage capability than Samsung wave be inflicted with 32 GB double-
jointed reminiscence where as Nokia mobile phone X6 16GB be inflicted with already
integral Reminiscence of 16GB with no double-jointed reminiscence slot. When we’re vacant
to buy a mobile phone, with all color of the mobile concerns a lot. Samsung wave is solely
available in black color but Nokia mobile phone X 616 be inflicted with attractive of range of
colours with mixture of White/Yellow, Black/Black, White/Pink.
[3]
Hence all mobiles be inflicted with pleasing specification with excellent looks. Which is the
best one? It’s tough to say.
To be familiar with more about the Samsung cell price list and Nokia mobile phone price list
visit innumerable websites who guide you and take you on a proper path and there you may
search more uncommon cellular handsets of Samsung and Nokia mobile phone.
Fetch practical information about miracle cancer cure – delight study the webpage. The times
be inflicted with come when concise info is really at your fingertips, use this chance.
The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to
theNokia 1100 from 2003. The Mobira Cityman line was launched in 1987.
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 Auto radio puhelin, 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.[46]
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's first 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
[4]
of 24,000 Finnish marks (approximately €4,560). Despite the high price, the first phones
were almost snatched from the sales assistants' hands. Initially, the mobile phone was a
"yuppie" product and astatus 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 s
the secret of its success in India and across the globe.
[5]
The primary objective of the study is to understand the growth pattern of mobile segment,
giving main consideration to mobile segment of both companies and analyzing the franchise
on the give parameter. Some other objectives of the study are as follows:-
To know the test and preferences of consumer about services.
To measure the customer satisfaction regarding services.
To understand the reaction of consumers by listening to the Brand
Analyzing the competition in the market comparative analysis of different plans of
companies.
Research and analysis of the current customer base.
To know the market share of companies in the mobile market.
To study the viewpoints of the customers regarding the services provided by the
companies.
To know how much customers are attaching to company
To attract the customers towards the product of the organization using various
promotional tools.
[6]
No project is without limitations and it becomes essential to figure out the various constraints
that we underwent during the study.
The following point in this direction would add to our total deliberations.
During the study on many occasions the respondent groups gave us a cold shoulder.
The respondents from whom primary data was gathered any times displayed complete
ignorance about the complete branded range, which was being studied.
Lack of time is the basic limitation in the project.
Some respondent refuse to cooperate with the queries.
Some consumer gave a biased or incomplete information regarding the study.
At times customers are not ready to listen to the information given to them because
they are too angry with the whole processing system. So didn't respond.
Some respondent did not answer all the questions or did not have time to answer.
Money played a vital factor in the whole project duration.. Lack of proper information
and experience due to short period of time.
[7]
Research in common parlance refers to a search for knowledge. One can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation
The research methodology, not only the research methods are but also consider the logic
behind the methods. They are in the contest of our research studied. And explain why we are
using a particular method or techniques and we are not using others.
RESEARCH DESIGN-
Descriptive research design:
In includes surveys, and facts finding enquires of different kinds. The major purpose of
descriptive research is description of state of affairs as it exists at present. The main character
of this method is that the researcher has no control over the variables. He can report what has
happened? Or what is happening?
Nature of data: In this study primary data was used.
Collection of data: The data was collected from the respondents through the distribution of
questionnaire.
Method of data collection:- Questionnaire
Area of the study- This study was covers Lucknow city only.
Sample size - The sample size covered for the purpose of this study was 100.
Sampling method- Convenience sampling.
[8]
Achieving accuracy in any research requires in depth study regarding the subject. As the
primary object is to study the market segmentation and strategies secondary objective of the
project is to compare NOKIA AND SAMSUNG in the market and impact of competition
on both the company the research methodology adopted is basically based on primary data
via which the most recent and accurate piece of first hand information could be collected.
Primary Data.Questionnaire Method, Direct Interview Method and Observation Method.
The main tool used was, the questionnaire method. Further direct interview method, shall be
a face to face formal interview was taken. Lastly observation method had been continuously
observes the surrounding environment he works in.
Procedure:
Target geographic area was only Lucknow
To these geographical area questionnaire was fill by 100 people. The questionnaire
was a combination of both open ended and closed ended questions.
The date during which questionnaire fil was between four week.
Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.
Secondary data
Secondary data has been used to support primary data wherever needed. It is used to obtain
information about companies and its competitor history, current issues, policies, procedures
etc, wherever required.
Sources of Secondary Data
Internet
Magazines
Newspapers, etc.Sampling size was 100.
[9]
NOKIA
In 1865, an engineer named Fredrik Idestam established a wood-pulp mill and started
manufacturing paper in southern Finland near the banks of a river. Those were the days when
there was a strong demand for paper in the industry, the company's sales acheived its high-
stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to
the United Kingdom and France. The Nokia factory employed a fairly large workforce and a
small community grew around it. In southern Finland a community called Nokia still exists
on the riverbank of Emäkoski.
Fredrik
Idestam,
founder of
Nokia.
Statesman Leo
Mechelin, co-founder
of Nokia.
Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-
electrcity produced by the Nokia wood-pulp (from river Emäkoski), merged up and started
selling goods under the brand name on Nokia. After World War II, it acquired a major part of
the Finnish Cable Works shares. The Finnish Cable Works had grown quickly due to the
increasing need for power transmission and telegraph and telephone networks in the World
War II. Gradually the ownership of the Rubber Works and the Cable Works companies
consolidated. In 1967, all the 3 companies merged-up to form the Nokia Group. The
[10]
Electronics Department generated 3 % of the Group's net sales and provided work for 460
people in 1967, when the Nokia Group was formed.
In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analog
switches. Soon Nokia successfully developed the digital switch (Nokia DX 200) thereby
replacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded with
high-level computer language as well as Intel microprocessors which in turn allowed
computer-controlled telephone exchanges to be on the top and which is till date the basis for
Nokia's network infrastructure. Introduction of mobile network began enabling the Nokia
production to invent the Nordic Mobile Telephony(NMT), the world's very first
multinational cellular network in 1981. The NMT was later on introduced in other countries.
Very soon Global System for Mobile Communication (GSM), a digital mobile telephony,
was launched and Nokia started the development of GSM phones. Beginning of the 1990
brought about an economic recession in Finland. (Rumour has it that Nokia was offered to the
Swedish telecom company Ericsson during this time which was refused) Due to this Nokia
increased its sale of GSM phones that was enormous. This was the main reason for Nokia to
not only be one of the largest but also the most important companies in Finland. As per the
sources, in August 1997, Nokia supplied GSM systems to 59 operators in 31 countries.
Slowly and steadily, Nokia became a large television manufacturer and also the largest
information technology company in the Nordic countries. During the economic recession the
Nokia was committed to telecommunications. The 2100 series of the production was so
successful that inspite of its goal to sell 500,000 units, it marvellously sold 20 million.
Presently, Nokia is the number 1 production in digital technologies, it invests 8.5% of net
sales in research and development. Also has its annual Nokia Game. Nokia's history
For a tech company, Nokia has a longer history than most. The company started life as a
paper mill at the Tammerkoski Rapids in south-western Finland in 1865. Over the years, it
added business lines including rubber boot manufacture - the wellies are still sold at Nokia's
Finnish HQ in a nod to the company's past - and cable-making before it ended up as an
electronics company in the 1960s.
Despite first making computers, Nokia really made its name as a manufacturer of portable
phones.Its first mobile - in the way it's understood today - was a GSM phone launched in
[11]
1992, the same year that Jorma Ollila became Nokia's president and CEO. Ollila steered the
company though the mobile boom of the 1990s and early 2000s and remains the company's
chairman to this day.
Today, the company has expanded beyond simply selling mobile devices and now has four
main business strands: devices - its handset business; services - apps and software; Navteq,
which covers mapping and location services; and its networking joint venture, Nokia Siemens
Networks.
Devices
Apart from a tentative return to its computing roots with a netbook launch last year, Nokia's
hardware business is focused on mobile handsets.
Nokia breaks its handsets down into two categories: common-or-garden mobiles and
"converged internet devices".
The pure-play mobiles often bear a model name made up of numbers and are voice- and text-
centric. The converged internet devices, which sport model names often consisting of a letter
and a number, are more expensive and come with the usual array of features expected from
high-end handsets, including apps, GPS, a multi-megapixel camera and perhaps an
accelerometer.
The best-known product lines in the converged internet devices section are the Nseries - high-
end entertainment handsets such as the N97 - and the Eseries of business-focused mobiles.
Services
Nokia's Services unit looks after its software and, as the name suggests, internet services
which are brought together under the Ovi brand - Ovi is the Finnish word for door.
The usual suspects are available through Ovi both via the desktop and Nokia mobiles - online
storage and back-up for photos, videos, calendar and contacts; mobile email; music; gaming;
maps and Files, an application that allows users to download and view files held on your PC
via your mobile.
[12]
Nokia also runs the Ovi Store, the Nokia equivalent of Apple's all-conquering App Store,
where users can download extra apps for their devices from Nokia as well as third-party
developers.
With Nokia also aiming to increase...
FEATURE
Sales in emerging markets, its Services business has created a range of products under the
Life Tools brand, which provides agricultural and education information as well as
entertainment software, including horoscopes or ringtones.
Life Tools is aimed at users in markets such as China, Indonesia and India and designed to
work on Nokia's lower-end handsets. According to Nokia, Life Tools has some 6.3 million
users in India, Indonesia and China.
Another venture for developing markets by Nokia's Services business comes in the form of
Nokia Money. Launched last year, Nokia Money gives users access to basic financial
services, such as person-to-person payments, and is aimed at the billions of people around the
world with no bank account.
Navteq
Nokia acquired Navteq for $8.1bn in 2007, in one of its largest takeovers. Nokia retained the
Navteq brand and still operates the company as an independent subsidiary.
At the time of the acquisition, mapping must have seemed an attractive market. Sat-nav
maker TomTom bought Navteq rival TeleAtlas earlier that year and the market for portable
navigation devices was booming, while GPS - and thus navigation - was making its way onto
more and more mobile handsets.
As well as providing the maps for Ovi Maps, Navteq now sells its wares to sat-nav
manufacturers, car makers for in-vehicle navigation systems and internet firms such as
Microsoft for its Bing search engine.
Nokia Siemens Networks
The Nokia Siemens Networks joint venture was first announced in 2006 and began
operations a year later.
[13]
The eponymous JV installs and maintains infrastructure for both fixed and mobile networks
around the world.
It's had a difficult few years since its inception. The company's original CEO, Simon
Beresford-Wylie, left last year and it has yet to break even, racking up a €1.6bn loss in its last
set of annual results Accordingly, it's instituting a cost-cutting programme aimed at shaving
€500m from annual costs by 2011. It's a move that will hit the workforce, with between seven
and nine per cent expected to be cut from staff numbers.
The battle of the operating system
Of all Nokia's businesses, it's still the traditional handsets and accompanying services that are
making the money. According to Nokia's
Industrial conglomerate
In 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and other
rubber products, which later became Nokia's rubber business. At the beginning of the 20th
century, Finnish Rubber Works established its factories near the town of Nokia and they
began using Nokia as its product brand. In 1912, Arvid Wickström founded Finnish Cable
Works, producer oftelephone, telegraph and electrical cables and the foundation of Nokia's
cable and electronics businesses
At the end of the 1910s, shortly after World War I, the Nokia Company was nearing
bankruptcy.To ensure the continuation of electricity supply from Nokia's generators, Finnish
Rubber Works acquired the business of the insolvent company.In 1922, Finnish Rubber
Works acquired Finnish Cable Works.In 1937, Verner Weckman, a sport wrestler and
Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16
years as its Technical Director.] After World War II, Finnish Cable Works supplied cables to
the Soviet Union as part of Finland's war reparations. This gave the company a good foothold
for later trade.
The three companies, which had been jointly owned since 1922, were merged to form a new
industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a
global corporation. The new company was involved in many industries, producing at one
time or another paper products, car and bicycle tires, footwear (including rubber boots),
[14]
communications cables, televisions and other consumer electronics, personal computers,
electricity generation machinery, robotics, capacitors, military communications and
equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army),
plastics, aluminium and chemicals.[Each business unit had its own director who reported to
the first Nokia Corporation President, Björn Westerlund. As the president of the Finnish
Cable Works, he had been responsible for setting up the company's first electronics
department in 1960, sowing the seeds of Nokia's future in telecommunications.
Eventually, the company decided to leave consumer electronics behind in the 1990s and
focused solely on the fastest growing segments in telecommunications. [Nokian Tyres,
manufacturer of tires, split from Nokia Corporation to form its own company in 1988[and two
years later Nokian Footwear, manufacturer of rubber boots, was founded. During the rest of
the 1990s, Nokia divested itself of all of its non-telecommunications businesses.[
Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the
electronics section of the cable division in 1960 and the production of its first electronic
device in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967 fusion,
that section was separated into its own division, and began manufacturing
telecommunications equipment. A key CEO and subsequent Chairman of the Board
was vuorineuvos Björn "Nalle" Westerlund (1912–2009), who founded the electronics
department and let it run at a loss for 15 years.]Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing
the Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became the
workhorse of the network equipment division. Its modular and flexible architecture enabled it
to be developed into various switching products.In 1984, development of a version of the
exchange for the Nordic Mobile Telephony network was started.
For a while in the 1970s, Nokia's network equipment production was separated
into Telefenno, a company jointly owned by the parent corporation and by a company owned
by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was
changed to Nokia Telecommunications.
[15]
In the 1970s and 1980s, Nokia developed the Sanomalaitejärjestelmä ("Message device
system"), a digital, portable and encrypted text-based communications device for the Finnish
Defence Forces The current main unit used by the Defence Forces is the Sanomalaite
M/90 (SANLA M/90).
First mobile phones
The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to
theNokia 1100 from 2003. The Mobira Cityman line was launched in 1987.
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 ARPstandard (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.
[16]
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.
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's first 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 €4,560).Despite the high price, the first phones were
almost snatched from the sales assistants' hands. Initially, the mobile phone was a "yuppie"
product and astatus 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.
Involvement in GSM
Nokia was one of the key developers of GSM (Global System for Mobile
Communications), the second-generation mobile technology which could carry data as well
as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony
standard that enabled international roaming, provided valuable experience for Nokia for its
close participation in developing GSM, which was adopted in 1987 as the new European
standard for digital mobile technology.
Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.The world's
first commercial GSM call was made on 1 July 1991 in Helsinki, Finland over a Nokia-
[17]
supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia
GSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The model
number refers to its launch date, 10 November.[The Nokia 1011 did not yet employ Nokia's
characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia
2100 series.
GSM's high-quality voice calls, easy international roaming and support for new services like
text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. GSM
came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for
about three billion mobile telephone subscribers in the world, with more than 700
mobile operators across 218 countries and territories. New connections are added at the rate
of 15 per second, or 1.3 million per day.
Personal computers and IT equipment
The Nokia Booklet 3G mini laptop.
In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers
called MikroMikko. MikroMikko was Nokia Data's attempt to enter the business computer
market. The first model in the line, MikroMikko 1, was released on 29 September 1981,round
the same time as the firstIBM PC. However, the personal computer division was sold to the
British ICL (International Computers Limited) in 1991, which later became part
of Fujitsu.MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the
MikroMikko line was marketed by Fujitsu as the ErgoPro.
Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers,
which shut down its only factory in Espoo, Finland (in the Kilodistrict, where computers had
been produced since the 1960s) at the end of March 2000,thus ending large-scale PC
[18]
manufacturing in the country. Nokia was also known for producing very high
quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia
Display Products' branded business was sold to ViewSonic in 2000. In addition to personal
computers and displays, Nokia used to manufacture DSL modems and digitalset-top boxes.
Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet
3G mini laptop.
Challenges of growth
In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields,
mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious
financial problems, a major reason being its heavy losses by the television manufacturing
division and businesses that were just too diverse.These problems, and a suspected
total burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamo's
death, Simo Vuorilehto became Nokia's Chairman and CEO. In 1990–1993, Finland
underwent severe economic depression,[54] which also struck Nokia. Under Vuorilehto's
management, Nokia was severely overhauled. The company responded by streamlining its
telecommunications divisions, and by divesting itself of the television and PC divisions.
Probably the most important strategic change in Nokia's history was made in 1992, however,
when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on
telecommunications.Thus, during the rest of the 1990s, the rubber, cable and consumer
electronics divisions were gradually sold as Nokia continued to divest itself of all of its non-
telecommunications businesses
As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland.
However, after the strategic change of 1992, Nokia saw a huge increase in sales to North
America, South America and Asia. The exploding worldwide popularity of mobile
telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the
mid-1990s
This prompted Nokia to overhaul its entire logistics operation.By 1998, Nokia's focus on
telecommunications and its early investment in GSM technologies had made the company the
world's largest mobile phone manufacturer.[ Between 1996 and 2001, Nokia's turnover
[19]
increased almost fivefold from 6.5 billion euros to 31 billion euros. Logistics continues to be
one of Nokia's major advantages over its rivals, along with greater economies of scale
Recent history
]Product releases
Reduction in size of Nokia mobile phones
Evolution of the Nokia Communicator. Models 9000, 9110, 9210, 9300 and 9500 shown.
Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. In
May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003,with over 200
million units shipped, was the best-selling mobile phone of all time and the world's top-
selling consumer electronics product. In November 2007, Nokia announced and released
the Nokia N82, its first N series phone with Xenon flash. At the Nokia World conference in
December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers
are to receive a year of complimentary access to music downloads The service became
commercially available in the second half of 2008.
[20]
Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Work
began in April 2008, and the film premiered in October 2008.
In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the
other BlackBerry-type devices offering a full "qwerty" keyboard and cheaper prices. Nokia
announced in August 2009 that they will be selling a high-end Windows-based mini
laptop called the Nokia Booklet 3G. On 2 September 2009, Nokia launched two new music
and social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board
memory with a 3.2" finger touch interface and comes with a music playback time of 35
hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device
that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera. On 10
September 2009, Nokia unveiled a new handset, the 7705 Twist, a phone with a sports square
shape that swivels open to reveal a full QWERTY keypad. The new mobile, which will be
available exclusively through Verizon Wireless, features a 3 megapixel camera, web
browsing, voice commands and weighs around 3.44 ounces (98 g).
Plant movements
Nokia opened its Komárom, Hungary mobile phone factory on 5 May 2000.
In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a
new plant near the city in Jucu commune.Moving the production from the Bochum, Germany
factory to a low wage country created an uproar in Germany.Nokia recently moved its North
American Headquarters to Sunnyvale.
Reorganizations
In April 2003, the troubles of the networks equipment division caused the corporation to
resort to similar streamlining practices on that side, including layoffsand organizational
restructuring. This diminished Nokia's public image in Finland and produced a number
of court cases and an episode of a documentary television show critical of Nokia.
On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a
joint venture addressing the CDMA handset business. But in June, they announced ending
negotiations without agreement. Nokia also stated its decision to pull out of CDMA research
and development, to continue CDMA business in selected markets.
[21]
In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch
Shelland to give way for Olli-Pekka Kallasvuo.
In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to
the Internet business as a whole. Nokia no longer wants to be seen as the telephone
company. Google,Apple and Microsoft are not seen as natural competition for their new
image but they are considered as major important players to deal with.
In November 2008, Nokia announced it was ceasing mobile phone distribution in
Japan Following early December, distribution of Nokia E71 is cancelled, both from NTT
docomo and SoftBank Mobile. Nokia Japan retains global research & development programs,
sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's
telecommunications network.
In March 2012, Nokia anonunced it was laying off 1000 employess from its Salo,
Finland factory to focus on software.
Acquisitions
The Nokia E55 from the business segment of the Eseries range
On 22 September 2003, Nokia acquired Sega.com, a branch of Sega which became the major
basis to develop the Nokia N-Gage device.
[22]
On 16 November 2005, Nokia and Intellisync Corporation, a provider of data and PIM
synchronization software, signed a definitive agreement for Nokia to acquire
Intellisync. Nokia completed the acquisition on 10 February 2006.
On 19 June 2006, Nokia and Siemens AG announced the companies would merge their
mobile and fixed-line phone network equipment businesses to create one of the world's
largest network firms, Nokia Siemens Networks. Each company has a 50% stake in the
infrastructure company, and it is headquartered in Espoo, Finland. The companies predicted
annual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokia
employees were transferred to this new company.
On 8 August 2006, Nokia and Loudeye Corp. announced that they had signed an agreement
for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60
million.The company has been developing this into an online music service in the hope of
using it to generate handset sales. The service, launched on 29 August 2007, is aimed to
rival iTunes. Nokia completed the acquisition on 16 October 2006
In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution
for organizing and sharing photos, videos and other personal media.
In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile
advertising technology and services.
In October 2007, pending shareholder and regulatory approval, N
okia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1
billion. Nokia finalized the acquisition on 10 July 2008.[
In September, 2008, Nokia acquired OZ Communications, a privately held company with
approximately 220 employees headquartered in Montreal, Canada
On 24 July 2009, Nokia announced that it will acquire certain assets of cellity, a privately
owned mobile software company which employs 14 people in Hamburg, Germany.The
acquisition of cellity was completed on 5 August 2009.
On 11 September 2009, Nokia announced the acquisition of "certain assets of Plum Ventures,
Inc, a privately held company which employed approximately 10 people with main offices in
Boston, Massachusetts. Plum will complement Nokia's Social Location services"
[23]
On 28 March 2010, Nokia announced the acquisition of Novarra, the mobile web browser
firm from Chicago. Terms of the deal were not disclosed.Novarra is a privately held company
based in Chicago, IL and provider of a mobile browser and service platform and has more
than 100 employees.
On 10 April 2010, Nokia announced its acquisition of MetaCarta, whose technology was
planned to be used in the area of local search, particularly involving location and other
services. Financial details of acquisition were not disclosed.
Curtailments
Amid falling sales, Nokia posted a loss of 368 million euros for Q2 2011, while in Q2 2010
had still a profit of 227 million euros. On September 2011, Nokia has announced it will lose
another 3,500 jobs worldwide, including the closure of its Cluj factory in Romania
On 8 February 2012 Nokia Corp. said to cut around 4,000 jobs at smartphone manufacturing
plants in Europe by the end of 2012 to move assembly closer to component supplier in Asia.
It plans to cut 2,300 of the 4,400 jobs in Hungary, 700 out of 1,000 jobs in Mexico, and 1,000
out of 1,700 factory jobs in Finland.[103]
[24]
Operating systems
Originally Nokia phones had a custom Nokia OS operating system developed specifically for
Nokia mobile phones.
The first Nseries device, the N90, utilised the older Symbian OS 8.1 mobile operating system,
as did the N70. Subsequently Nokia switched to using SymbianOS 9 for all later Nseries
devices (except the N72, which was based on the N70). Newer Nseries devices incorporate
newer revisions of SymbianOS 9 that include Feature Packs. The N800, N810 and N900 are
as of July 2010 the only Nseries devices to not use Symbian OS. They use the Linux-based
Maemo.
Nokia stated that Maemo would be developed alongside Symbian.
Maemo has since (Maemo "6" and beyond) merged with Intel's Moblin, and become MeeGo,
which will continue to be developed for mobile devices.
The Nokia N8 is the first device to function on the Symbian^3 mobile operating system.
[25]
Nokia revealed that the N8 will be the last device in its flagship N-series devices to ship
with Symbian OS.
Instead, Nokia will use Microsoft Windows Phone for its high-end flagship devices, and
revealed the Nokia N9 will function on the MeeGo mobile operating system.
Alliance with Microsoft
On 11 February 2011, Nokia's CEO Stephen Elop, a former Microsoft employee, unveiled a
new strategic alliance with Microsoft, and announced it would
replace Symbian and MeeGo with Microsoft's Windows Phone operating systemexcept for
mid-to-low-end devices, which would continue to run under Symbian. Nokia was also to
invest into the Series 40 platform and release a single MeeGo product in 2011.
These news was not well received by consumers, and has contributed to the decline in the
stock price by 11%.
As part of the restructuring plan, Nokia planned to reduce spending on research and
development, instead customising and enhancing the software line for Windows Phone
7.Nokia's "applications and content store" (Ovi) becomes integrated into the Windows Phone
Marketplace, and Nokia Maps is at the heart of Microsoft's Bing and AdCenter. Microsoft
provides developer tools to Nokia to replace the Qt framework, which is not supported by
Windows Phone 7 devices.
Symbian becomes described as a "franchise platform" with Nokia planning to sell 150
million Symbian devices after the alliance was set up. MeeGo emphasis is on longer-term
exploration, with plans to ship "a MeeGo-related product" later in 2012. Microsoft's search
engine, Bing becomes the search engine for all Nokia phones. Nokia also gets some level of
customisation on WP7.
After this announcement, Nokia's share price fell about 14%, its biggest drop since July 2009.
As Nokia was the largest mobile phone manufacturer worldwide at the time,it is suggested
the alliance would make Microsoft's Windows Phone 7 a stronger contender aga
inst Android and iOS.n June 2011 Nokia was overtaken by Apple as the world's biggest
smartphone maker by volume.In August 2011 Chris Weber, head of Nokia's subsidiary in the
U.S., stated "The reality is if we are not successful with Windows Phone, it doesn't matter
[26]
what we do (elsewhere)." He further added "North America is a priority for Nokia (...)
because it is a key market for Microsoft.
Corporate structure
Divisions
Since 1 July 2010, Nokia comprises three business groups: Mobile Solutions, Mobile
Phones and Markets. The three units receive operational support from the Corporate
Development Office, led by Kai Öistämö, which is also responsible for exploring corporate
strategic and future growth opportunities.
On 1 April 2007, Nokia's Networks business group was combined with Siemens's carrier-
related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly
owned by Nokia and Siemens and consolidated by Nokia.
Mobile Solutions
The Nokia N900, a Maemo 5 Linux based mobile Internet device and touch screen smart
phone from Nokia's N series portfolio.
Mobile Solutions is responsible for Nokia's portfolio of smart phones and mobile computers,
including the more expensive multimedia and enterprise-class devices. The team is also
responsible for a suite of internet services under the Ovi brand, with a strong focus
[27]
on maps and navigation, music, messaging andmedia.This unit is led by Anssi Vanjoki, along
with Tero Ojanperä (for Services) and Alberto Torres (for MeeGo Computers)
The Nokia E90, a Symbian smartphonefrom Nokia's Eseries portfolio.
Alberto Torres has stepped down.
Mobile Phones
Mobile Phones is responsible for Nokia's portfolio of affordable mobile phones, as well as a
range of services that people can access with them, headed byMary T. McDowell.This unit
provides the general public with mobile voice and data products across a range of devices,
including high-volume, consumer oriented mobile phones. The devices are based
on GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies.In the first quarter of 2006
Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only
the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile
telephones feature digital cameras, it is also believed that Nokia has recently
overtaken Kodak in camera production making it the largest in the world) Nokia is now also
the leading supplier of digital audio players (MP3 players), outpacing sales of devices such as
the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 million
mobile phones which accounted for 40% of all global mobile phones sales.By 2010, Nokia's
market share in the mobile phone market had dropped to 32.6% (453 million phones).Vanjoki
resigned a few days before Nokia World 2010 and under new leadership team Jo Harlow will
look into the affairs of Smartphones portfolio.
[28]
On 27 April 2011, The Register reported that Nokia is secretly developing a new operating
system called Meltemi aiming at the low-end market. It is believed it will be replacing the
S30 and S40 operating systems. Due to low-end market customers' demand of having
smartphone features in their feature phone, the OS will include some features exclusive to
high-end smartphones.
Samsung India is the hub for Samsung's South West Asia Regional operations. The
South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO,
looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and
Bhutan besides India. Samsung India which commenced its operations in India in
December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in
the country.
Headquartered in New Delhi, Samsung India has widespread network of sales offices all over
the country . The Samsung manufacturing complex housing manufacturing facilities for
Colour Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida,
near Delhi. Samsung 'Made in India' products like Colour Televisions, Mobile phones and
Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida
manufacturing complex. In November 2007, Samsung commenced the manufacture of
Colour televisions and LCD televisions at its state–of-the-art manufacturing facility at
Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic front
loading washing machines at its Sriperumbudur facility.
Unlike other electronic companies Samsung origins were not involving electronics but
other products.
In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in Korea,
selling fish, vegetables, and fruit to China. Within a decade Samusng had flour mills and
confectionary machines and became a co-operation in 1951. Humble beginnings.
[29]
From 1958 onwards Samsung began to expand into other industries such as financial, media,
chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was
established producing what Samsung is most famous for, Televisions, Mobile Phones
(throughout 90's), Radio's, Computer components and other electronics devices.
1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as
chairman. In the 1990's Samsung began to expand globally building factories in the US,
Britain, Germany, Thailand, Mexico, Spain and China until 1997.
In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They
sold businesses to relieve debt and cut employees down lowering personnel by 50,000. But
thanks to the electronic industry they managed to curb this and continue to grow.
The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsung
developed the 'lightest' mobile phone of its era. The SCH-800 and it was available on CDMA
networks.
Then they developed smart phones and a phone combined mp3 player towards the end of the
20th century. To this date Samsung are dedicated to the 3G industry. Making video,camera
phones at a speed to keep up with consumer demand. Samsung has made steady growth in the
mobile industry and are currently second but competitor Nokia is ahead with more than 100%
increase in shares. Samsung is a technology driven mobile makers that is committed to create
a better world, where mobile technology takes leadership position. Samsung Mobile in India
is standing on this philosophy and it creates high-tech mobile instruments that easily fulfill
the need of the hour and beat the competition in mobile market in India. Samsung
Mobile has revolutionized the life of people in India with its state-of-the-art technology,
innovative designs and effective marketing strategies.
own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became
Nokia Mobile Phones.
Samsung is a technology driven mobile makers that is committed to create a better world,
where mobile technology takes leadership position. Samsung Mobile in India is standing on
this philosophy and it creates high-tech mobile instruments that easily fulfill the need of the
hour and beat the competition in mobile market in India. Samsung Mobile has revolutionized
[30]
the life of people in India with its state-of-the-art technology, innovative designs and
effective marketing strategies.
Samsung Mobiles have always kept customers in the centre and therefore, they are able to
design futuristic mobile phones for their customers. Moreover, they have made their presence
felt across the nook and corner of India with its extensive network. Moreover, Samsung
Mobiles have always emphasized the need of its large customer base and therefore, it has
regularly introduced different models of mobile phones: Tablet Smartphone, Smartphone,
Dual SIM Phone, Touch Phone, QWERTY Messaging Phone, Multimedia Phone, CDMA
Phone, Essential Phone etc.
For its colossal success, Samsung India gives full credit to its talented work force. Samsung
India has roped in the best minds in India to achieve excellence in mobile technology and its
use across the country. From executive to CEO, every single person of Samsung India reports
to its customers, and this is the secret of its success in India and across the globe.
Below is a list of popular Samsung mobiles in India
Samsung Group (Korean: / Samseong Geurup / [sam'sʌŋ gɯ'ɾup], informally Samsung) is
a South Korean multinational conglomerate corporation headquartered in Samsung
Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them
united under the Samsung brand, and is the largest South Korean chaebol.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2010 revenues),Samsung Heavy
Industries (the world's second-largest shipbuilder measured by 2010 revenues), and Samsung
Engineering and Samsung C&T (respectively the world's 35th- and 72nd-largest construction
companies).Other notable subsidiaries include Samsung Life Insurance (the world's 14th-
largest insurance company), Samsung Everland (the oldest theme park in South
Korea) and Cheil Worldwide (the world's 19th-largest advertising agency measured by 2010
revenues).
Samsung produces around a fifth of South Korea's total exports [and its revenues are larger
than many countries' GDP; in 2006, it would have been the world's 35th-largest
economy. The company has a powerful influence on South Korea's economic development,
[31]
politics, media and culture, and has been a major driving force behind the "Miracle on the
Han River".
Name
According to the founder of Samsung Group, the meaning of
the Korean hanja word Samsung ( 三 星 ) is "tristar" or "three stars". The word "three"
represents something "big, numerous and powerful"; the "stars" mean eternity.
History
1938 to 1970
The headquarters of Samsung Sanghoein Daegu in the late-1930s
In 1938,Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county
came to the nearby Daegu city and founded Samsung Sanghoe (삼성상회), a small trading
company with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries
produced in and around the city and produced its own noodles. The company prospered and
Lee moved its head office to Seoul in 1947. When the Korean War broke out, however, he
was forced to leave Seoul and started a sugar refinery in Busan as a name of Cheil Jedang.
After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu.
It was the largest woolen mill ever in the country and the company took on an aspect of a
major company.
[32]
Samsung diversified into many areas and Lee sought to establish Samsung as an industry
leader in a wide range of enterprises, moving into businesses such as insurance, securities,
and retail. Lee placed great importance on industrialization, and focused his economic
development strategy on a handful of large domestic conglomerates, protecting them from
competition and assisting them financially. He later banned several foreign companies from
selling consumer electronics in South Korea in order to protect Samsung from foreign
competition.
In 1948, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new company
called Samsung Mulsan Gongsa (삼성물산공사), or the Samsung Trading Corporation, with
the Samsung Group founder Lee Byung-chull. The trading firm grew to become the present-
day Samsung C&T Corporation. But after some years Cho and Lee parted ways due to some
differences in management between the two men. He wanted to get up to a 30% group share.
After settlement, Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire ...etc.
In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-
Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications
Co., and made the facility in Suwon. Its first product was a black-and-white television set.
1970 to 1990
[33]
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the
telecommunications hardware industry. Its early products were switchboards. The facility
were developed into the telephone and fax manufacturing systems and became the centre of
Samsung's mobile phone manufacturing. They have produced over 800 million mobile
phones to date.[The company grouped them together under Samsung Electronics Co., Ltd. in
the 1980s.
After the founder's death in 1987, Samsung Group was separated into four business groups -
Samsung Group, Shinsegae Group, CJ Group and Hansol Group.Shinsegae (discount store,
department store) was originally part of Samsung Group, separated in the 1990s from the
Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the
Hansol Group (Paper/Telecom). Today these separated groups are independent and they are
not part of or connected to the Samsung Group. One Hansol Group representative said, "Only
people ignorant of the laws governing the business world could believe something so
absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all
payment guarantees and share-holding ties with Samsung affiliates." One Hansol Group
source asserted, "Hansol, Shinsegae, and CJ have been under independent management since
their respective separations from the Samsung Group." One Shinsegae Department Store
executive director said, "Shinsegae has no payment guarantees associated with the Samsung
Group."
In the 1980s, Samsung Electronics began to invest heavily in research and development,
investments that were pivotal in pushing the company to the forefront of the global
electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant
in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility
in Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austin location –
by foreign investment in Texas and one of the largest single foreign investments in the United
States. The new investment far the largest will bring the total Samsung investment in Austin
to more than $9 billion.[22]
1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction
branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei
101 in Taiwanand the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off
[34]
ten of Samsung Group's subsidiaries, downsized the company, and merged other operations
to concentrate on three industries: electronics, engineering, and chemicals. In 1996, the
Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the largest producer of memory chips in the world in 1992, and is the
world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market
Share Ranking Year by Year). In 1995, it built its first liquid-crystal display screen. Ten years
later, Samsung grew to be the world's largest manufacturer of liquid-crystal display
panels. Sony, which had not invested in large-size TFT-LCDs, contacted Samsung to
cooperate, and, in 2006, S-LCD was established as a joint venture between Samsung and
Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was
owned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates its
factories and facilities in Tangjung, South Korea. As on 26 December 2011 it was announced
that Samsung had acquired the stake of Sony in this joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial
crisis relatively unharmed. However, Samsung Motor was sold to Renault at a significant
loss. As of 2010,Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned
by Samsung. Additionally, Samsung manufactured a range of aircraft from the 1980s to
1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of
merger between then three domestic major aerospace divisions of Samsung Aerospace,
Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsung
still manufactures aircraft engines and gas turbines.
2000 to present
[35]
Samsung Techwin has been the sole supplier of a combustor module of the Trent 900 engine
of the Rolls-Royce Airbus A380-The largest passenger airliner in the world- since 2001.[Samsung Techwin of Korea is a revenue-sharing participant in the Boeing's 787
Dreamliner GEnx engine program.
Samsung Electronics overtook Sony as one of the world's most popular consumer electronics
brands in 2004 and 2005, and is now ranked #19 in the world overall.[ In Q3 of 2011,
Samsung has overtaken Apple to become the World's Largest Smartphone
maker.and Indosiar are subsidiary of Surya Citra Media that owned by Samsung. In 2011,
SCTV and Indosiar will merger and given stake by Samsung.
In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One
of these businesses was to be focused onbiopharmaceuticals, to which the Company has
committed ₩2.1 trillion
Acquisitions and attempted acquisitions
For a company of its size Samsung has made relatively few acquisitions.
Rollei – Swiss watch battle
Samsung Techwin acquired a German camera-maker Rollei on 1995. Samsung (Rollei) used
its optic expertise on the crystals of a new line of 100% Swiss-made watches, designed by a
team of watchmakers at Nouvelle Piquerez S.A. in Bassequort, Switzerland. Rolex's decision
to fight Rollei on every front stemmed from the close resemblance between the two names
and fears that its sales would suffer as a consequence. In the face of such a threat, the Geneva
firm decided to confront. Rolex, this was also a demonstration of the Swiss watch industry's
determination to defend itself when an established brand is threatened. Rolex sees this front-
line battle as vital for the entire Swiss watch industry. Rolex has succeeded in keeping Rollei
[36]
out of the German market. On 11 March 1995 the Cologne District court prohibited the
advertising and sale of Rollei watches on German territory.
Fokker , a Dutch aircraft maker
Samsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker when
other airplane makers rejected its offer to form a consortium. The three proposed partners –
Hyundai, Hanjin and Daewoo – have notified the South Korean government that they will not
join Samsung Aerospace Industries Ltd.
AST Research
Samsung bought AST (1994) and tried to break into North America , but the effort
foundered.
Samsung was forced to close the California-based computer maker after a mass defection of
research talent and a string of losses.
FUBU clothing and apparel
In 1992, Daymond John had started the company with a hat collection that was made in his
house in the Queens area of New York City. To fund the company, John had to mortgage his
house for $100,000. With his friends, namely J. Alexander Martin, Carl Brown, and Keith
Perrin, half of his house was turned into the first factory of FUBU, while the other half
remained as the living quarters. Along with the expansion of FUBU, Samsung, a Korean
company, invested in FUBU in 1995.[37]
Lehman Brothers Holdings ’ Asian operations
Samsung Securities was one of a handful of brokerages looking into Lehman Brothers
Holdings. But Nomura Holdings has reportedly waved the biggest check to win its bid for
Lehman Brothers Holdings’ Asian operations, beating out Samsung Securities, Standard
Chartered, and Barclays.Ironically, after few months Samsung Securities Co., Ltd. and City
of London-based N M Rothschild & Sons (more commonly known simply as Rothschild)
have agreed to form a strategic alliance in investment banking business. Two parties will
jointly work on cross border mergers and acquisition deals.
Grandis Inc. - memory developer
[37]
In July 2011, Samsung announced that it had acquired spin-transfer torque random access
memory (MRAM) vendor Grandis Inc.Grandis will become a part of Samsung's R&D
operations and will focus on development of next generation random-access memory.
Samsung and Sony joint venture - LCD display
On December 26, 2011 the board of Samsung Electronics approved a plan to buy Sony's
entire stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won
($938.97 million)
Operations
SAMSUNG HEADQUARTER
The Phones of Nokia Company History
Nokia C3-00 Unlocked Cell Phone with QWERTY, Dedicated E-mail Key, 2
MP Camera, Media Player, WLAN, and MicroSD Slot--U.S. Version with
Warranty (Slate)
[38]
Nokia N8 Unlocked GSM Touchscreen Phone Featuring GPS with Voice
Navigation and 12 MP Camera--U.S. Version with Warranty (Gray)
Nokia C5-03 Unlocked GSM Phone with 5 MP Camera and Ovi Maps
Navigation Optimized for AT&T--U.S. Version with Warranty (Graphite Black)
Nokia X2 Prepaid Phone (T-Mobile)
Nokia N8 Unlocked GSM Touchscreen Phone Featuring GPS with Voice
Navigation and 12 MP Camera--U.S. Version with Warranty (Silver/White)
Nokia C2-01.5 Unlocked GSM Phone with 3.2 MP Camera and Music and
Video Player--U.S. Version with Warranty (Black)
Nokia X2-01 Unlocked GSM Phone-U.S. Version with Warranty (Red)
Hasn't the mobile phone come a long way, the capability of a phone these days is greater than
a personal computer of not so long ago. Nokia is at the front when it comes to the major
players in the history of mobile phones. They have an interesting story and even more
interesting origin...
Beginnings of the Nokia Company History were in 1865 when a wood-pulp mill was set up in
Southern Finland. It sold products with the brand name Nokia.
[39]
A community called Nokia was started and still exists on the riverbank of Emäkoski in
southern Finland.
The Finnish Rubber Works started manufacturing in Nokia in the 1920's and branded its
products, including gumboots, as Nokia.
The Finnish Cable Works also setup in Nokia, it produced cables for phone networks. By
1967 all three companies had merged to form the Nokia Group.
Nokia developed a digital switcher for telephone exchanges and also helped develop the
world's first mobile phone network.
By the late 1980's Nokia had helped develop the GSM (Global Standard for Mobile
communications) and had built more than 60 GSM networks in 31 countries around the
world.
The company developed high quality, user friendly mobile phones that have made it the
world market leader. I have used a Nokia since my first ‘mobile phone’ was one of those
Motorola bricks with the huge battery pack – haven’t we come a long way.
My name is Robee Kann, for four years I was a tour guide throughout Europe. I loved my job
and I would love to hear from you. You are most welcome to message me to say hello or
request a hub about a European subject. Please look at my other hubs and leave a comment
for me.
Top Selling Samsung Mobiles
Samsung Star Duos
[40]
Samsung S5620 Monte
Samsung Wave II
Samsung Galaxy Fit
Samsung Star-II-Duos-C6712
Mobiles from Samsung :
[41]
Samsung Galaxy Y S5360
Samsung Galaxy Note
Samsung Galaxy S Plus GT-I9001
Samsung Galaxy R I9103
Samsung Galaxy Ace S5830
Samsung Galaxy S2 I9100
Samsung Chat 222
Samsung Candy Bar Phones
Samsung Galaxy Y S5360
Galaxy Y S5360
Samsung Galaxy Y S5360 is ideal for the dynamic user who is constantly on the move. With
dimensions of 104x58x11.5mm, the Galaxy is built on the Android 2.3 OS. The 7.62 cm
display offers enhanced user experience. Samsung Galaxy Y S5360 is powered by a 1200
mAh battery which offers a talk time of 360min and standby time of 120h. The inherent
memory of 160MB may be expanded to 32GB. The 2MP camera in the Samsung Galaxy Y
S5360 offers great picture capturing option. What's more, stay connected with the GPRS,
EDGE, Email, IM, Bluetooth and WAP.
Samsung Galaxy Note
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Galaxy Note
The Samsung Galaxy Note is a stylishly designed portable smartphone that reflects insight
and innovation. The Galaxy Note is the perfect on the go device. Measuring 146.85 x 82.95 x
9.65 mm, the phone weighs 178g. The 5.3 wide HD Super AMOLED display and the
QWERTY keyboard are the important features. The Samsung Galaxy Note has a 1.4GHz
Dual Core Processor. Capture life`s special moments with the 8MP camera with LED flash.
The 16GB inherent memory may be enhanced to 32 GB using the micro SD card.
Samsung Galaxy S Plus GT-I9001
Galaxy S Plus GT-I9001
Samsung Galaxy S Plus GT-I9001 is an innovatively designed handset with features that will
entice you. With dimensions of 122.4x64.2x9.9mm, the Samsung Galaxy S Plus GT-
I9001 is quite compact and is embellished with stylish exteriors. The inherent memory of 16
GB may be enhanced to 32 GB using the Micro SDHC type memory card. The inbuilt camera
with a 5 MP sensor allows user to capture good quality pictures. The inbuilt FM radio is ideal
for entertainment on the go. Email is one of the high end messaging features that allows the
user to stay connected from anywhere..
[43]
Samsung Galaxy R I9103
Galaxy R I9103
Samsung Galaxy R I9103 is an innovatively designed smart phone with a list of enticing
features.Samsung Galaxy R I9103 has dimensions of 125x66x9.5mm and it weighs 135g.
The inherent memory of 8GB may be expandable to 32 GB with the micro SD type memory
card. The 1650 mAh Li-Ion battery offers commendable talk time. There are a host of
connectivity features like Bluetooth, Wi-Fi, 3G, GPRS and USB connector. The inbuilt
camera with a 5MP sensor is ideal for good quality pictures. FM radio, Music player and
Video player make it the perfect phone for young professionals on the move.
Samsung Galaxy Ace S5830
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Galaxy Ace S5830
Smart living is the need of the hour and your first step towards a smarter world is your
Samsung Galaxy Ace S5830. It gives a pleasure of holding one of the most sophisticated
designs of this era. Get updated with the latest news, health and finance through applications
galore on the Android Market. WithSamsung Galaxy Ace, you can organize your phone
book, IM, email and SNS on a single page and this phone allows you to customize your
contacts in four separate formats-Info, History, Activity and Media.
Samsung Galaxy S2 I9100
Galaxy S2 I9100
Samsung Galaxy S2-I9100 helps you express your persona. This smartphone is packed with
some wonderful features. Samsung Galaxy S2 I9100 is the descendant of the enormously
unbeaten S I9000. This phone is backed by Android 2.3 Gingerbread OS, which has
introduced a few upgrades over the Froyo including the copy/paste function and a more
spaced-out keyboard. The Samsung Galaxy S2- I9100 is enhanced by the faster core speeds
and its 1.2 GHz Dual core processor adds more enticing feature to the phone.
Samsung Chat 222
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Chat 222
Samsung Chat 222 is youngsters' delight as it is loaded with all features that any young lad or
lass loves to have. Young generation never gets enough of one - whether it's girl friend or a
mobile SIM, and therefore Samsung Chat 222 has dual SIM facility that allows you to do
double i.e. more. And while you are hooked up with your dear one, its better network
coverage does not give you any interruption. Keep chatting for hours together with Samsung
Chat 222 with your friends & colleagues - the popular social networking methods, instant
messaging programs and email - everything accessible through your Samsung Chat 222. This
phone entertains you like a real entertainer; whether you are in office, on the go, on weekends
or any other time - its fun options keep you amused.
Latest Mobiles
Nokia X1-01
HTC Wildfire S
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LG Optimus 2X P990
LG Optimus Black P970
Nokia is a communications based company, which focuses on mobile telephone technology.
When mobile phones first became available on the market the models were very basic with
the best technology being SMS messaging (sending written "text messages" from one phone
to another).
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Then the next advance in technology was being able to put different faces on your phone
(different style covers for the front and back of your mobile device) and after that the
technological advances have come thick and fast, with advances such as: With all of these
competitors in the market Nokia must keep ahead of the game by running successful
marketing strategies, to do this Nokia must focus on the principles of marketing. At the
moment Nokia are theworld's best selling phone company (see table below which shows
market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with
shipments growing 66 percent over 1999. Some of the company's success was attributed to a
strong second half in 2000 when
59 percent of sales occurred. here are many priorities within a business, but in a marketing
orientated company like Nokia, many of the following principles will be high on the agenda:
Customer satisfaction: Market research must be used to find out whether customers'
expectations are being met by current products or services.
Customer perception: this is based on the images consumers have of the organization
and its products, this can be based on; value for money, product quality, fashion and
product reliability.
Customer needs and expectations: This is anticipating future trends and forecasting
for future sales. This is vital to any organization if they wish to keep their entire
current market share and develop more.
Generating income or profit: This principle clearly states that the need of the
organization is to be profitable enough to generate income for growth and to satisfy
stakeholders in the business. Although satisfying the customer is a big part of a
companies plans they also need to take into account their own needs, such as:
Making satisfactory progress: Organizations need to make sure that their product is
developing along with the market, if a product is developing well, then income should
increase, if not then the marketing strategy should be revised.
Be aware of the environment: An organization should always know what is happening
within their designated market, if it is hanging, saturation, technological advances,
slowing down or rapidly growing, being up to date on this is essential for companies
to survive. There are also certain external factors that a company should be very
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aware of, such as P.E.S.T factors (political, environmental, social and technological)
and also S.W.O.T (strength, weakness, opportunity and threat).
A business must take into account all these constraints when designing and
introducing a marketing strategy. P.E.S.T: Political factors- Legal constraints (such as
the G3 technology constraints that Nokia have to take into consideration) must be
taken into account because many businesses aim to make a profit so they ma be
tempted to mislead their customers about prices, quality of products and the
availability of their products.
They may also try to cut expenditure by using lesser quality materials in their
products (such as weaker materials for Nokia cases and batteries), also some
companies may also dispose their waste in ways that damage the environment
(pollution) and not ensuring high standards of hygiene and safety in the workplace
and outlet stores, all of these are illegal and can leave companies in big legal trouble.
The governmental bodies in the U.K have introduced new laws into the business
environment, which ensure that none of these procedures take place; if a company is
to be successful they must follow all of these laws.
Environmental social and ethical factors- some businesses view profits are more
valuable then a strong ethical code and this can govern behaviour and business
conduct. Some un-ethical practices are against the law and companies can not become
involved in them (I have mentioned these above) but there are also some practices that
aren't illegal by law but are considered highly un-ethical by the consuming public,
companies who engage in these practice's can lose a lot of market share if they are
found out.
An example of this is cosmetic testing on animals, it is legal but some of the
consuming public are not happy about it and boycott Certain products because of it,
companies must be very careful about how they conduct themselves.
Nokia have managed to be quite environmentally friendly and have not done anything
that the consuming public have taken huge offence to, they have been very careful
about this and this is one of the reasons they are such a popular brand of mobile
phones.
Technological- In the communications market technology
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is perhaps the most important factor that companies like Nokia have to take into
consideration. They have to keep up to date with all the newest technological advances (like
camera and motion capture phones) if they are going to capture the biggest market share and
stay ahead of their competitors (Sony and Seimens). When mobile phones where first
introduced they were low quality technology (bad reception, poor reliability and had a short
battery life), high priced (around £100 for a basic model) and consumers had to be persuaded
to buy mobile telephones, as they were not yet established as a necessity. When products are
first released, companies can expect high promotion fee's as the public are probably not yet
familiar with the product. Also when mobile phones were first released they were bulky and
hard to use, as product design and development are a key figure in success, Nokia had to
design phones that were smaller and simpler for consumers to use. As people had paid a lot
for earlier, more primitive products they were obviously not going to pay the same high
prices for later products so Nokia had to develop phones that could be sold for less and would
last longer, this is where companies can expect to pay high production costs.
When Mobile phones were first introduced they were not such a popular item and there
weren't as many competing companies in the market. So Nokia and a few other companies
(Sony and Panasonic) could charge higher prices then they would in the highly competitive
market that they are in today, as there aren't so many companies competing for market share.
Most forms of promotion are based around the idea of having an image to go with the
product. Brand imaging plays a dominant part in an organizations marketing strategy. This is
because people make a purchase they aren't just buying a product, they are buying a lifestyle
or an image. If branding can make people believe that the branded product is better then an
un-branded product, more people will buy it and they will also be willing to pay higher prices
for the "extra quality" and lifestyle they are receiving with the product. Because a lot of rival
products are more or less the same (Pepsi and Coke) the main way of making your product
stand out is through aggressive branding, This is usually achieved by companies using
slogans, logos and distinctive packaging. Types of pricing strategies
Cost based pricing
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This involves calculating the cost of production for the product and then adding a mark-up
for profit, usually 10% so a company can make enough profit to re-invest into the business so
they can grow.
Marginal cost pricing
This is the addition to total cost resulting from the production of an additional unit of output.
If a decision is made to expand by one or more units it will be based on an assumption that
the price of each unit will be least sufficient to cover marginal costs, so that the profit earned
on all previous units is not lower then it previously was.
Demand based pricing
This is usually pricing products based around the customer demand for a product, if the
demand is high, the prices will rise. This is usually used when the product is unique, for
example, a football match or concert. To use this strategy companies must carry out detailed
market research to find out what prices the consumers are willing topay so they don't over
price their product.
Market skimming
This pricing strategy is also known as price creaming and is usually put into place in markets
where the competition is limited. Market skimming pricing involves charging a high price for
new products because the customer is new and unique so (hopefully) the consumers will be
willing to pay higher prices for them. This is the most common strategy in the mobile phone
market, as consumers will pay the higher prices for phones that have the newest technology.
Penetration pricing
Firms who are trying to establish themselves in a new market and gain instant market share
usually use this strategy. It is a high-risk, high cost strategy that is only an available option to
the bigger companies (like Nokia) who supply to mass markets. Penetration pricing is based
around the idea that a company will set their prices low to encourage customers to buy their
products instead of higher priced, more established brands.The organization may also boost
sales by lowering prices if demand is price elastic. One problem with this strategy in the
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mobile communications market (or any other highly competitive markets) is that price wars
will often develop with rival companies and this can limit to the amount of profit that can be
made, and also generate losses due to under-pricing in an attempt to hold onto market share.
Price discrimination
This is where companies can charge different prices in different markets, because of the
consumers they are aiming at, for example, rail companies charge different prices for peak
and off-peak travel cards and fares. This strategy is only available for use when the
consumers are unable to undercut higher prices by reselling their roducts from low priced
markets to high priced markets.
Destroyer pricing
This is a more drastic and aggressive form of penetration pricing, used when a company's
objective is to get rid of competition completely by lowering their prices to levels that other
companies cannot afford to drop to. The down side to this strategy is that consumers may see
the low price as a reflection of the quality of the product and stick to the higher priced
products because they offer a product of higher quality.
External factors affecting pricing decisions
Setting a price with regards to only production costs ignores the influence of external factors,
such as:
Market conditions- how much are the customers willing to pay? Can advertising
increase product image and price? Is the product aimed at a mass market or a niche
market? (a niche market refers to when a company aims a product at a very small,
select segment of the market)
Production costs- Prices must cover the costs spent in production if a profit is to be
made. The price must cover variable costs (for the short term) and fixed costs (for the
long term) otherwise a company will face closing.
Taxes and subsidies- VAT and customs duties will raise the price of a product.
Government subsidies will allow businesses to charge lower prices.
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Business objectives- Is the business looking to maximise profits? Or is the company
looking to increase its market share?
Marketing mix- What stage is the product at in the life cycle? What forms of
promotion are being used? Where is the product being sold?
Marketing structure- How much competition is there in the market? What prices is
the competition charging?
Nokias current marketing strategy
The marketing mix
Price- The phones that Nokia produce are usually sold at high prices (new phones can be
expected to enter the market at around £200+, if they carry the latest technology). The price
of the new phones usually decreases after an introductory period, which is usually around 2
months long. Nokia's prices are usually competitor based, in such a way as, they try to keep
their prices a bit lower then those of the closest competitors, but not as low as the "smallest"
competition as consumers do not mind paying the extra money for the "extra quality" they
will receive with a well known brand, such as Nokia.
Place- Nokia phones are generally sold at all established mobile phone dealerships such as
Carphone Warehouse and The Link, although they are also sold at other retailers such as
Dixon's and other electrical suppliers. The products are only sold in the electrical suppliers
and stores other then dedicated phone dealerships after the introductoryperiod so the phones
can remain limited edition, as this will encourage younger consumers to buy them.
Promotions- Nokia tend to promote the new technologies and mobile devices they create
using one big advertising campaign that focuses on a singular technology instead of each
individual handset so they can appeal to a lot of different markets with one campaign.
Product- Nokia phones tend to include all the latest technology and a lot of the consumers
favourite aspects such as text messaging and games like Snake and Memory. When the
phones came out they were big and bulky and quite unattractive but now they are all quite
sleek and stylish with phones now getting small enough to fit in the palm of your hand as
standard. Most of the phones produced nowadays have accessories that consumers must buy
with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of
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profit, as they are very high priced. Nokia's marketing mix has worked very well until
recently as the market they are aiming at has become more and more saturated and after
looking at all the mobile phone sales figures, it looks as if the phone companies can aim at
this same youth market for about another 2 years until they need to change, but they should
change sooner so they can start making a bigger profit and get a head start on the competition
who will also have to change the market they are aiming at. Nokia's current promotional
strategy is working very well as they are able to "talk to" a large number of consumers in
different markets rather then the niche markets the old promotional strategies where restricted
to.
Market segmentation
Market segmentation refers to the different areas of the population that companies can aim
their products towards. The market segment that Nokia has chosen to aim is the youth market
focusing on students aimed 13-19 as market research has shown that some of the youth
market are receiving large amounts of pocket money and most have no real commitments to
spend it on and that means they have lots of disposable income and will be able to spend a lot
money on new mobile phones.
As a big company Nokia are able to do a lot of promoting and advertising that smaller, less
successful companies, may not be able to afford, such as television advertising and
sponsoring lots of events that will be viewed or heard by large amounts of people in their
chosen market segment (events such as music festivals and music awards are a goldmine for
companies as they are viewed by millions of people worldwide). Adverts such as television
and print adverts will be put into certain areas so that they can attract their chosen market
segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and
Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers
they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's
way of promoting is very good as they can appeal to mass markets and large amounts of
people in their chosen market segmentation with certain advertisement's and with sponsoring
large events like the ones I have previously mentioned.
Pricing strategy
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Nokia's current pricing strategy is based on 2 main theories:
. Penetration pricing- although this strategy is usually for companies that are trying to
gain instant market share in a new market, companies who are already well known in
the market still do it with new products that carry new technologies so they can take
more market share form their competitors.
Competitor based pricing- this is used when there is a lot of competition in the market
and a company is looking to take another companies market share by offering the
same or similar products for a lower price, this happens a lot in the communications
market and this strategy is used by every mobile phone producing company that is
still in business.
Nokia's pricing strategy has proven very effective, this is down to the fact that they
first sell their products for high prices and have very limited sales but make big profits
on each sale, they then lower the price of their product and have lots more sales but
they make less profit, but they still make a large profit due to the amount of sales.
The other reason that they are so successful is that they offer high quality products
and they sell them for the same price and sometimes even lower prices then the
competition and have now built up the highest market share, they currently have
37.2% of the mobile phone market share and are the biggest selling mobile phone
company in the world.
Branding
Nokia phones are seen as being of the highest quality and this is reflected in their massive
sales figures. The fact that they are seen to be such high quality products is partly down to
successful branding, they have a highly recognisable packaging style and the style of their
handsets is similar in every line of production with the company name printed just above the
screen and just below the earpiece. The fact that Nokia operate such an aggressive marketing
strategy has elevated them above the competition as consumers are fooled into believing that
branded products are "better" then un-branded products or products produced by lesser-
known brands such as One Tel and other lesser-known phone producers in the market.
Product life cycle-Nokia
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Introduction
When Nokia phones were first introduced they required a lot of promoting and advertising as
they weren't established enough to sell based on their quality and what they offer to the
consumer, so this is where Nokia spent the largest amount of money promoting their products
and establishing their brand as a leader in the communications market.Also when mobile
phones were first available there were only a few companies as well as Nokia in the market
(Sony e.t.c) so they could charge higher prices then they can at the present time in the product
life cycle because no companies would dare to enter a price war with such a new product.
Growth
This stage of the life cycle also has high promotion costs involved in it, this is due to the fact
that mobile phones are becoming established as a consumer necessity and lots of other
companies decide to enter the growing market, although companies do not need to assure
customers that they need a mobile phone, Nokia have to assure the customers that they want a
Nokia phone and this is where the high promotional costs come from.
Maturity
In this stage the promotional costs do decrease as the more popular brands, such as Nokia and
Samsung, have gathered the majority of the market share and only have to show customers
that they have a new model out and it will sell well, as they have been established as a quality
brand and customers no-longer need to be persuaded to buy Nokia brand technology.
Decline
This is the stage that the mobile communications market, including Nokia, have recently
entered (Nokia had reported the first drop in sales in the first quarter of 2002), and companies
are now promoting, heavily, their new MMS products to the market in an attempt to get out
of decline and back into growth, with a new generation of technologically advanced phones
that offer motion picture capture, camera technology and the opportunity to watch television
on your handset. If a company has entered decline it needs to look at the S.W.O.T forms of
analysing their market strategy.
Market research
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Our business objective is to strengthen our position as a leading communications systems and
products provider. Our strategic intent, as the trusted brand, is to create personalised
communication technologythat enables people to shape their own mobile world.
Nokia are currently creating innovative technology to allow people to access Internet
applications, devices and services instantly, irrespective of time or place. Achieving
interoperability of network environments, terminals and mobile services is a key part of our
intent. Nokia need to capitalise on our leadership role by continuing to target and enter
segments of the communications market that we believe will experience rapid growth or
grow faster then the industry as a whole. By expanding into these segments during the initial
stages of their development, Nokia have established themselves as one of the worldsleading
player's 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, Nokia are planning 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, we plan
to offer our customers unprecedented choice, speed and value.
Nokia has a history of contributing to the development of new technologies, products and
systems for mobile communications. Recent examples include: the commitment to the open
mobile alliance; the co-development of the new operating system for the future terminals
with symbian; short-range wireless connectivity with bluetooth; the development of wireless
LANs for enabling local mobility in fixed LANs; and MMS for enabling mobile multimedia
messaging. In addition, Nokia have continued to be active in IP convergence. They have
established alliances with other service providers in order to make mobile access services
easier for the end user.
Nokia in 2002: IAS reported
Nokia's net sales in 2002 decreased by 4% compared with 2001 and totalled EUR 30 016
million (EUR 31 191 million in 2001). Sales in Nokia Mobile Phones were flat at EUR 23
211 million (EUR 23 158 million) and decreased in Nokia Networks by 13% to EUR 6 539
million (EUR 7 534 million). Sales decreased in Nokia Ventures Organization by 22% to
EUR 459 million (EUR 585 million). Their operating profit in 2002 increased by 42% and
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totalled EUR 4 780 million (EUR 3 362 million in 2001). Operating margin was 15.9%
(10.8% in 2001). Operating profit in Nokia Mobile Phones increased by 15% to EUR 5 201
million (EUR 4 521 million in 2001). Operating loss in Nokia Networks decreased to EUR 49
million (operating loss of EUR 73 million in 2001). Operating margin in Nokia Mobile
Phones was 22.4% (19.5% in 2001), while the operating margin in Nokia Networks was -
0.7% (-1.0% in 2001). Nokia Ventures Organization showed an operating loss of EUR 141
million (operating loss of EUR 855 million in 2001). Common Group Expenses totalled EUR
231 million (EUR 231 million in 2001). During 2002, the operating profit was negatively
impacted by goodwill impairments of EUR 182 million and net customer financing
impairment charges related to MobilCom of EUR 265 million. Financial income totalled
EUR 156 million in 2002 (EUR 125 million in 2001). Profit before tax and minority interests
was EUR 4 917 million in 2002 (EUR 3 475 million in 2001). Net profit totalled EUR 3 381
million in 2002 (EUR 2 200 million in 2001). Earnings per share increased to EUR 0.71
(basic) and to EUR 0.71 (diluted) in 2002, compared with EUR 0.47 (basic) and EUR 0.46
(diluted) in 2001. At December 31, 2002, net-debt-to-equity ratio (gearing) was -61% (-41%
at the end of 2001). Total capital expenditures in 2002 amounted
to EUR 432 million (EUR 1 041 million in 2001).
By the end of 2002, outstanding long-term loans to customers totalled EUR 1 056 million
(compared with EUR 1 128 in 2001), while guarantees given on behalf of customers totalled
EUR 91 million (EUR 127 million). Nokia also had financing commitments totalling EUR
857 million (EUR 2 955 million) at the end of 2002. Of the total outstanding and committed
customer financing of EUR 2 004 million (EUR 4 210 million), EUR 1 573 million (EUR 3
607 million) related to 3G etworks.
Global Reach
In 2002, Europe accounted for 54% of Nokia's net sales (49% in 2001), the Americas 22%
(25%) and Asia-Pacific 24% (26%). The 10 largest markets were US, UK, China, Germany,
Italy, France, UAE, Thailand, Brazil and Poland, together representing 60% of total sales.
Research and development
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In 2002, Nokia continued to invest in its worldwide research and development network and
co-operation. At year-end, Nokia had 19 579 R&D employees, approximately 38% of Nokia's
total personnel. Nokia haR&D centres in 14 countries. Investments in R&D increased by 2%
(16% in 2001) and totalled EUR 3 052 million (EUR 2 985 million in 2001), representing
10.2% of net sales (9.6% of net sales in 2001). People The average number of personnel for
2002 was 52 714 (57 716 for 2001).
At the end of 2002, Nokia employed 51 748 people worldwide (53 849 atyear-end 2001). In
2002, Nokia's personnel decreased by a total of 2 101 employees (decrease of 6 440 in 2001).
Employee Value Proposition- In a move to further attract and retain a skilled workforce,
this year Nokia developed an employee value proposition framework. The
adaptation of this has already started at country levels to reflect and respond to local
employee needs and expectations. The four fundamentals of the proposition are
the Nokia Way and Values,
performance-based rewarding,
professional and personal growth, and
work-life balance.
Nokia Mobile Phones in 2002
Nokia Mobile Phones continued to renew its industry-leading product line-up, launching a
record 33 new products during 2002, incorporating colour, imaging, multimedia, mobile
games and polyphonic ring tones. Of the total new phones launched, 14 had colour screens
and multimedia capability. This attests to the growing share of feature-rich phones offering
advanced mobile services in the company's product portfolio. During the year, Nokia
launched its first WCDMA mobile phone, the Nokia 6650, which began deliveries to
operators for testing in October 2002. The company also commenced shipments of its first
CDMA2000 1X mobile phones in the Americas. These included the Nokia 6370, the Nokia
6385, the Nokia 3585, and the Nokia 8280. In imaging, Nokia began shipping its iconic
camera phone, the Nokia 7650, expanding the scope of the mobile market from voice to
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visual communications. Feedback from customers and users across the board has been
extremely positive.
In the enterprise segment, the company expanded its product offering from the Nokia
Communicator 9200 series to include the Nokia 6800 messaging device, with full QWERTY
keypad optimised for personal and enterprise mobile e-mail.
In entertainment, Nokia announced it would bring mobility to gaming by offering console
quality games for its new mobile game deck device category. Under a collaboration
agreement with world leading games publisher, Sega, the two companies will develop games
for the new Nokia N-Gageâý¢ mobile game deck, which will run on the Nokia Series
60 platform and the Symbian operating system. For the full year 2002, Nokia volumes
reached a record level of 152 million units, representing faster than market growth of 9%,
compared with 2001. Backed by Nokia's ongoing product leadership and user brand
preference, Nokia has again increased its market share for the fifth consecutive year reaching
about 38% for the full year 2002, bringing the company closer to its target of 40%.
During the year, Nokia Mobile Phones took steps to accelerate growth and enhance both
agility and scale benefits with the introduction of a new operational structure. From May 1,
nine new business units were each made responsible for product and business development
within a defined market segment. This allowed Nokia to optimise its activities in these
vertically focused areas, while continuing to achieve broad economies of scale from
horizontal functions such as application software development and the company's market-
leading demand-supply network.
Nokia Networks in 2002
During the year, Nokia Networks signed 20 GSM network deals in Asia, China, Europe and
the US, including three new customers. Mobile Multimedia Messaging Services (MMS)
became a reality in 2002, with its rapid implementation into most GSM operator networks.
By year-end, Nokia Networks had delivered MMS solutions to well over 40operators.
WCDMA 3G technology implementation moved to pre-commercial and commercial phase
towards the end of 2002. Nokia signed 10 new 3G deals in Austria, Belgium, Germany,
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Ireland, Japan, the UK and Taiwan. In September, Nokia became the first vendor to
commence volume deliveries of EDGE hardware across all major GSM bands and in all
continents.
In broadband access, Nokia signed nine new contracts in 2002, and launched the Nokia D500
next generation multiservice broadband access platform for the US and ETSI markets.
The company also further strengthened its GSM/EDGE/WCDMA product family with
several new products and solutions. Key launches included a high-availability server platform
for use in All-IP mobility networks, and the Nokia LTX, a linear transceiver product family
of base station modules that support the definition of Open IP Base Station Architecture.
During the year, Nokia took measures to align its operations to better reflect current market
capacity and conditions, reducing the number of employees in its delivery and maintenance
services as well as in production. Nokia also streamlined its professional mobile radio unit to
reflect the slower than expected take-off of this market.
Revised marketing strategy
Nokia's current sales figures are decreasing and they show no sign of increasing again In the
near future, I have come up with a revised marketing strategy that will re-launch Nokia and
its products and increase sales to what they have been in the past, and probably higher then
they have been since they were first released. My marketing mix
Product- The phones will continue to be of a high quality, but will not be as technologically
advanced as the recent phones that have been released. The phones will be easier to use and
carry the less advanced technology with WAP being the most advanced feature available in
the new range of phones that will be released, as my market research showed that most of the
people aged 40+ were technophobes or wanted mobile technology to be easier to use if they
were going to purchase a mobile phone. Price- If the technology released with the phones is
not as advanced, the price does not need to be as high as the prices of the phones in
the market at the moment, as less money is being spent on product development and the
phones wont cost as much to produce, there is no need to keep the prices so high. I have
decided to lower the price due to production costs, and it is also down to the fact that nearly
all of the people who I intend to have set as the new target market (the 40+ market) said that
[61]
phones cost to much and so did call rates, but if phones were a lot cheaper (around £125 per
phone on "pay as you go" and free if a contract method of payment is selected).
Place- Nokia phones will continue to be sold at the main communications outlets (Carphone
warehouse and The link) but will also be sold at the three main supermarkets; Sainsbury's,
Safeways and Tesco as my market research has shown that this where my new target market
do the majority of their food shopping at these outlets, it would be an excellent place to sell
phones as there is also no competition distributing their products in these locations, and
Nokia could have 100% of the shoppers business, and it would also be a way of promoting
Nokia for free as people will look at almost anything while waiting in supermarket queues.
Promotion-As Nokia would be aiming their new line of mobile phones at a completely new
market; there would be high promotion costs involved as there is at the introduction stage of
any product life cycle. The best places to put print advertisements would be in supermarkets
near the tills so people in the queue can read them and hopefully become interested in buying
a Nokia brand mobile phone. Also print adverts should be placed in magazines and
newspapers where the target market will see them, my market research showed that the most
read magazines by people aged 40+ was Lifestyle, and Vogue for the women, and the most
read by men was the observer magazine as not many men admitted to buying a magazine
regularly. The most popular newspapers were The Observer and The Guardian on weekends
and the Evening standard during the week, so it is obvious that these are the magazines and
newspapers that adverts should be placed in as they would be seen more by the new target
market. Because we do not want to cancel out any people outside our target market (avoiding
a niche market), Nokia should continue to place poster adverts in places that will be viewed
by a massive selection of people (such as London's West End and other popular shopping
centres).
[62]
Samsung Mobile’s line-up of smartphones and tablets has helped the handset maker rally a
significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million
smartphones in the quarter ended March 2011, boosting its global smartphone market share
by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after
Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind
RIM and is expected to grab the number three spot in 2011 if it maintains its current growth
rate. Advance orders for Samsung’s Galaxy S2, which was released in April 2011, surpassed
3 million units within a week of the launch, posing a threat even to Apple. At this rate, its
sales are expected to top 14 million units in the current quarter.
Focus on India
India is the fastest growing telecom market in the world and presents an attractive
opportunity for handset makers like Samsung. As per a GFK Nielson report, the Indian
mobile handset market was pegged at around 155 million units in 2010. With the country
adding 20 million mobile customers every month, the mobile device market is expected to
grow at over 16 per cent year-on-year. Driven by the launch of 3G services, the smartphone
market alone is likely to grow at over 50 per cent per annum for the next two years.
The Korean handset maker’s smartphone strategy has clicked well in the Indian handset
space. The company opened its smartphone account in India in June 2010 with the launch of
its Galaxy S and Wave models, and now has over 12 smartphones on almost all the popular
platforms including Android, Windows and its internally developed software, Bada. Samsung
had a share of 10-15 per cent in the smartphone market as of January 2011, and is aiming to
notch it up to 40 per cent by end-2011.
According to company officials, in 2011, Samsung’s mobile handset division will be driven
by two key factors – touchscreens and smartphones. In this segment, the company has also
launched its tablet PCs. Thanks to the hugely positive response that the Tab has received
across India, Samsung is targeting a 50 per cent share of the Indian tablet market in 2011.
While tablet PCs are still a niche segment in the country, if Samsung positions its products
[63]
well, it could well succeed in meeting its targets. A key area of focus for Samsung will be the
enterprise segment, which is showing an increased demand for such devices.
In all, Samsung has over 50 handset models in India, ranging from entry-level to mid-range
and high-end smartphones. According to a GFK Nielsen report, the company’s overall market
share stands at around 23 per cent of the Indian mobile market in value terms.
Manufacturing and R&D
Samsung has two manufacturing units in India, in Chennai and Noida, and produces around a
million units of mobiles per month. While the company currently manufactures only its
entry-level Guru series at these units, it plans to start producing smartphones as well in India
going forward.
The company has also increased its focus on applications to provide users with a wide range
of applications across various platforms like Android, Windows and Samsung’s own Bada.
The company is reportedly working with around 800 application developers in the country to
develop customised applications for the Indian consumer.
However, offering innovative products in the global and Indian markets warrants a strong
focus on R&D and Samsung is not cutting corners. Over 9 per cent of the company’s global
expenditure is spent on R&D every year. The company has a team of 3,000-odd engineers
across its two R&D facilities in India, customising its smartphones and tablet PCs, fine-
tuning its mobile operating system, creating applications, etc.
Samsung has two software development centres in the country – the Samsung India Software
Centre (SISC) in Noida, Uttar Pradesh, and Samsung Electronics India Software Operations
(SISO) in Bangalore. The latter is already working on more advanced technologies like 4G.
In fact, the mobile communication team at SISO is at advanced stages of developing devices
on technology platforms including LTE, HTML5 and Android OS for tablets and dolphin
browsers in smartphones. The Bangalore R&D centre has collaborated on global projects and
developed a dongle for 4G mobiles that has been launched in Norway, Sweden and Finland.
[64]
The road ahead
Samsung sees the increasing demand for 3G-enabled handsets as an opportunity to grow in
2011. According to data from Gartner, the sales of 3G-enabled handsets comprised 16.7 per
cent of the industry’s total sales in 2010, up from 9.2 per cent in 2009. By 2011-13, 3G
device sales are expected to account for 69 per cent of total sales. With an array of 3G
devices launched for the Indian consumers, Samsung has created a market demand for 3G
smartphones and is also offering users access to content and downloadable application
software. At present, Samsung has 17 handsets with 3G applications in India, with prices
ranging from Rs 8,990 to Rs 29,290.
However, the company needs to watch out for competition. LG, for instance, is lining up
several new smartphones. Its new mid-priced Optimus One handset has done well and LG
has announced its target to double its global smartphone shipments to 15 million units in
2011
CDMA era (1996–1998)
Samsung developed its first CDMA mobile phone in March 1996, to coincide with the launch
of CDMA service. The first digital handset, the SCH-100, was extra light and slim, and
enabled clear voice communication. Before long, Samsung became the leader in the Personal
Communications Service (PCS) market. It partnered with KTFreetel and Hansol PCS to
provide PCS phones. Its first PCS phone, the SCH-1100, entered the market with innovative
features, including a lightweight body, enhanced battery life, and the ability to capture
delicate sounds. The design was targeted at the young generation because the young
generation had emerged as a large and growing customer base. It also shifted its marketing
communications strategy. For the CDMA cellular market, it emphasized the phone's new
functions, for example, its voice recognition feature. For the PCS market, the company
coined a new slogan, "Strong in small sounds," to emphasize the mobile phone's capability to
capture delicate sounds.
By the end of 1997, one year after the CDMA service was first launched; Samsung had
achieved a 57% market share in the CDMA cellular market and 58% in the PCS market.
Also, in April 1997, it achieved sales of one million CDMA phone units.
[65]
Global market and GSM era (1998 )
Samsung made its first foray into the global market in 1996, when it exported its PCS phones
to Sprint, an American CDMA carrier. Sprint signed $600 million contract with Samsung,
under whichSamsung would provide its PCS phones to Sprint for three years under the co-
branded name Sprint-Samsung. After this Samsung expanded into Hong Kong (Huchinson,
CDMA) in 1997, and Brazil(TELESP and TELERJ, CDMA) in 1998. After successfully
exporting to Brazil, Samsung built a mobile phone production facility in Brazil in 1998, in
the hopes of expanding into Latin America.
In 1999, Samsung secured the number one position in the worldwide CDMA market where it
accounted for more than 50% of market share. However, the worldwide CDMA market was
far smaller than the GSM market, which accounted for 70% of the total worldwide mobile
communications market. Moreover, the domestic market was approaching saturation, and
competition was becoming more intense.
Thus, to achieve further growth, Samsung had to penetrate the GSM market.
The first GSM model was the SGH-200, which was made for European customers. But it was
not as good as the company's CDMA phone. It was difficult to hurdle the high entry barrier,
which the then "Big 3" Nokia, Motorola, and Ericsson had built for years. The company's
next few models didn't attract Europeans, either. The development team realized that a simple
change in the circuit system wouldn't work in the European market. Thus, it decided to look
more closely at the customer's point of view. They found that Europeans preferred geometric,
balanced, and simple designs. Using this information, Samsung adopted 'simple' as the design
concept, then developed a new design to suit the tastes of Europeans.
The SGH-600 was born in September 1998. To market this model, Samsung changed its
market entry strategy by adopting a high-end strategy. Samsung needed to escape from its
low-end image. It figured that its new mobile phone, with its sophisticated design and
distinguished functionality, would help it do just that. Samsung was granted the "Best
Manufacturer" award twice by the Mobile News Awards, an award that was previously given
to Nokia and Ericsson.
[66]
Samsung in India brought its first mobile in the year 2004.In 2008, Samsung Electronics'
Telecommunication Business declared its new business strategy focusing on consumer and
marketing. Samsung mobile phones are divided into 6 major categories – Style, Infotainment,
Multimedia, Connected, Essential and Business.
Time of changes (1993–1996)
In 1993 it was decided that the development team should focus on improving connectivity
due to specific mountain topography of Korea. They found the optimal length of a mobile
phone antenna and developed a method of using gold to connect the point between the
antenna and the communication circuits, thus significantly reducing resistance and enabling
steadier wave conductivity. They also developed the wave-searching software that was
specially designed for Korea's topography.
Another event triggered Samsung's mobile phone business. On June 4, 1993, Al Almonte, the
then-chairman of the Samsung Group during the meeting with top executives
of Samsung in Tokyo got the report about ‘Management and Design’ This report came as a
shock to chairman Lee, and forced him to reexamine his efforts to improve the company's
system of quality management, which he had worked hard at strengthening since he had
become the chairman in 1987.
On June 7, 1993, in Frankfurt, Lee gathered 200 Samsung executives and pointed out every
problem that Samsung had and emphasized that Samsung needed a turnaround and declared a
new management initiative "Samsung New Management". The "New Management" reached
to the mobile phone business as well, and chairman Lee gave the division an ultimatum:
"Produce mobile phones comparable to Motorola's by 1994, or Samsung would disengage
itself from the mobile phone business." samsung was first sold in victorias
In November 1993, the development team finally unveiled a new model, the SH-700. This
model was quite remarkable. It weighed less than any other company's models, the design
was compact, and its quality was substantially improved over previous models. Each product
manufactured was tested piece-by-piece to assure perfect quality. Phones with any kind of
defect were burned openly for all employees to see. (The products that had been burned were
worth 15 billion won, or $188 million). The burning ceremony ingrained the motto 'Quality is
Pride,' the essence of New Management, in every employee's mind.In October 1994, the SH-
770 was introduced under the brand name "Anycall". It was a result of the marketing team's
[67]
effort at brand-building. The model was an upgraded version of the SH-700, with a few
changes in design and improvements in product quality. Samsung expected that branding
would change customers' perception of Samsung's mobile phone and build up their trust.
Aggressive marketing campaigns started as well. At the initial stage, the most important
objective of the company's marketing strategy was to break customers' preconception
that Samsung'sphone would be inferior to Motorola's. To market this idea of
quality, Samsung developed the slogan, "Strong in Korea's unique topography." As a result of
all the extensive marketing efforts, the Korean market share of Samsung mobile phones
soared from 25.8 percent in October 1994, to 51.5 percent in August 1995. In the same
period, Motorola's market share dropped from 52.5 percent to 42.1 percent.
[68]
The main aim of marketing is meet and satisfy target customers need and wants buyer
behavior refers to the peoples or organization conduct activities and together with the impact
of various influence on them towards making decision on purchase of product and service in
a market. The field of consumer behavior studies how individuals, groups and organization
select,buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and
desires understanding consumer behavior and knowing customer are never simple. The
wealth of products and service produced in a country make our economy strong. The
behavior of humanbeing during the purchase is being termed as “Buyer Behavior”. Customer
says one thing but do another. They may not be in touch with their deeper motivations. They
are responding to in fluences that change their mind at the last minute. A buyer makes take a
decision whether saveor spend the money.
Definition of Buyer Behavior:-
Buyer behavior is “all psychological, Social and physical behaviors of potential
customers as they become aware of evaluate, purchase, consume and tell others about product
&service.
Consumer Buying Decision Process
There are following five stages in consumer buying decision process.
Problem identification:-
The buying process starts when the buyer recognizes a problem or need. The need can
betriggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger a particular need. By
gatheringinformation from a number of consumers, Marketers can identify the most frequent
stimuli thatspark an interest in a product category.
They can then develop marketing strategies that trigger consumer interest.
Information Search:-
The consumer tries to collect information regarding various products/service. Through
gathering information, the consumer learns about completing brands and their
features.Information may be collected form magazines, catalogues, retailers, friends, family
members,business association, commercial, chamber of commerce, telephone directory,
[69]
tradefair etc. Marketers should find out the source of information and their relative degree of
importance the consumers.
Personal Sources: Family, friends, neighbor, as quittances.
Commercial Source: Advertising, sales persons, dealers, packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources : Handling. Examine, using the product.
Evaluation of alternative:-
There is no single process used by all consumers by one consumerizm all buying situations.
There is several First, the consumer processes, some basic concepts are: First, the consumer
is trying to satisfy need.
Second, the consumer is looking for certain benefits from the product solutions.The marketer
must know which criteria the consumer willuse in the purchase decision.
Choice of purchasing decision:-
From among the purchase of alternatives the consumer makes the solution. It may be to
buy or not to buy. If the decision is to buy
The other additional decisions are:
Which types of bike he must buy? From whom to buy a bike
How the payment to be made? And so on.
The marketer up to this stage has tried every means to influence the purchase
behavior,
But the choice is properly consumers. In the evaluation stage the consumer forms
preferences among the brands in the choice set. The consumer may also form an
intention to but the most
Preferred brand.
Post Purchase Behavior:-
After purchase the product, the consumer will experience the same level of product. The
Marketer’s job not end when the product is buying must monitor post-purchase satisfaction,
postpurchase
action, post-purchase use and disposal
Post Purchase Satisfaction:-
The buyer, S satisfaction is a function of closeness between the buyer, S expectation and the
products Perceiver performance.
[70]
The larger the gap between expectation and performance the greater the Consumer
dissatisfaction.
Post purchase Action:-
The Consumer, S satisfaction or dissatisfaction with the product influence subsequent
behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing
the product again .Dissatisfaction consumer may abandon and return the product.
Post-Purchase Use or Disposal:-
The marketer should also monitor new buyers use and dispose of the product. If the consumer
store the product in a close, the product is probably not very satisfying. If the consumer
throws the product away, the marketer needs to know how they dispose of it ; especially it
can be hurt the environment.
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as follow:-
It consists of mental and physical activities which consumers undertake to get good
send services and obtain satisfaction from them.
It includes both observable activities such as walking through the market to examine
merchandise and making a purchase and mental activities-such as forming attitudes,
perceiving advertising material, and learning to prefer particular brands.
Consumer behaviors are very complex and dynamic to constantly changing.
Andtherefore, management needs to adjust with the change otherwise market may be
lot.
The individuals specific behaviors in the market place is affected by internal
factor,such as need , motives, perception, and attitudes, as well as by external of
enviourmental influences such as the family social groups, culture, economics and
business influences.
[71]
QUESTION-1): ARE YOU USING MOBILE PHONE.
80%
20%
YESNO
Interpretation
I surveyed 100 respondent out of which 80% (80 respondents) were using the mobile
phones and 20% (20 respondents) were not using any mobile phones
[72]
QUESTION-2): WHICH MOBILE PHONE DO YOU USE FOR BETTER SERVICE?
60%20%
10% 10%
NOKIA SAMSUNG
SONY OTHERS
Interpretation
In 100 sample 60 respondent were using Nokia ,20 respondent were using Samsung ,10respondent
were using other companies mobiles.
[73]
QUESTION-3) WHICH MOBILE COMPANY HAS BETTER PERFORMANCE.
40%
20%5%
30%
5%
NOKIA SONY
MICROMAX SAMSUNG
TATA
Interpretation
Out of 100 sample 40 respondent were looking to Nokia 20 to sony ,30 to Samsung and 5-5
were looking to micromax and Tata docomo for better mobile performance.
[74]
QUESTION-4): WHICH COMPANY HAS BETTER CUSTOMER RELATIONSHIP
40%
60%
SAMSUNG
NOKIA
Interpretation
When I surveyed out of 100 respondents 40(40%)were giving advantage to Samsung
and 60(60%) were going to Nokia for better customer relationship.
[75]
QUESTION-5): WHICH ONE OF THE FOLLOWING OPTION YOU CHOOSE
WHEN PURCHASING A MOBILE PHONE.
85%
10%5%
MULTIMEDIAINTERNET OPTIONOTHERS
Interpretation
Out of 100 respondents (85%) were using the multimedia, 10% respondents
were using the internet option and respondents (5%) were using the simple or
other mobile set.
[76]
QUESTION-6) FOR WHAT REASON YOU CHOOSE THE MOBILE BRAND
45%
15%5%
20%
15%
CONVENIENCE HANDSET
COST CONTROL
MULTI OPTIONAL
VALUE AND SERVICES
DISCOUNT
Interpretation
Out of the 100 respondents 45%were prefer to convenience handset, 15% were
looking for cost control, 5% were going for multioptional , 20% were wishing for
value and services and 15% were want to discount.
[77]
QUESTION-7) DO YOU FACE ANY DIFICULTY IN YOUR MOBILE PHONE
SEVICES.
25%
75%
YESNO
Interpretation
Out of 100 respondents 25% were not facing the any problem and 75% were
facing the problem with the services.
[78]
NOKIA
STRENGTHS
Cost advantage
Current leaders in quality service
Largest distribution network
Ability to constantly innovate
Highly skilled workforce
Entrepreneurial zeal
WEAKNESSES
Price pressures
Need for Government support
Sales and Marketing
OPPORTUNITIES
To sustain passion and commitment
Attain higher value services
Collaborative business needs to be explored
Vertical repeatable solutions.
Low penetration level in rural markets.
THREATS
New mobile companies.
Lack of global parity in telecom sector.
Other competitiors
SAMSUNG
[79]
STRENGTH WEAKNESS
Good Brand Image.
Cost Advantage
Economy.
Havinh Good Feature.
Poor advertisement
Price Pressure
Awereness
OPPORTUNITIES THREATS
Each and every one take mineral water in tea time.
Good taste for customers
Proper advertising for brand building
Strong competitors like Nokia
Strong advertising by competitors.
[80]
SUGGESTIONS
Following are the few suggestions to both compnies for improving the market share and
image of the products concerned.
1. PRODUCT
Modification must be brought about in samsung and Nokia , in terms of quality. Its
demand should be increased.
2. PLACE
The brands must be made available easily .
3. PROMOTION
Company must undertake extensive promotional activities like advertisements must
be released in different Medias to create brand awareness.
Free samples should be distributed among the prospects. Sales promotion tools like
gifts, contests and coupons must be given to retailers as well as customers and
prospects.
Catalogues should be distributed among customers.
RECOMMENDATION
I have made following recommendation to the company after doing the research
The company should modify its credit policy as they only target the cash paying
customers who are not easy to trace.
The company should emphasis more on the quality of Pharmaceuticals Product it was
mostly claimed by the exporters that their receipts from company doesn't matches
with the sample's quality shown before giving orders.
The company should make its marketing strategy flexible enough in order to face
competition.
The company should keep an eye on the proper delivery of the goods to exporters on
time, as it has been recommended by exporters to make the delivery on time.
[81]
The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods
and can be a permanent customer for the company.
The company should offer such a rate in the market so that it may able to catch a
bigger market share and it should be able to compete with the local traders and
commission agents while having a brand name.
[82]
From above the details I conclude that 60% users preferred to remain with Nokia and
remaining percentage looking ti Samsung mobiles . Hence, these statistics imply a bright
future for the company.
The customers of Nokia are brand loyal with only a small percent want to shift over to
other brands. Trying of other brands by customers is mainly because the customer wants
to try something new.
The performance of Samsung is fair in comparison to other pro brands to left the Nokia
Economy is the basic feature influencing to built brand Image.
Nokia and Samsung are big competitor in each other as well as for other companies in
mobile market.
In some year Samsung has make a quite lead in price level.
Hence from the above details it can be easily says that Samsung is still growing fast rather
then growth of Nokia.
[83]
MAGAZINES:
Nokia and Samsung India
Mobile India page of HT paper.
WEBSITES:
www.google.com
www.Nokia.com
www.Nokiaworld.in
www. Samsungindia.com
QUESTIONNAIRE
[84]
NAME: ……………………… …………………………..
ADDRESS: ……………………………………………..
OCCUPATION: ………………………………………………….
MOBILE NO. ……………………………………………………….
QUESTION NO.1 - Are you using mobile phone.
Yes…………….
No…………….
QUESTION NO. 2 -Which mobile do you use for better services.
Nokia ………….
Samsung ………
Sony…………………
Others…………
QUESTION NO.3 -Of which mobile company has better performance.
Nokia………………
Sony ………………….
Micromax ……………
Samsung……………..
Tata……………………..
QUESTION NO.4 – Which company has better customer relationship.
Samsung ……………
Nokia…………………..
[85]
QUESTION NO. 5 – Which one of the following option you choose when purchasing a
mobile phone.
Multimedia ………………….
Internet option………………..
Others…………………………………
QUESTION NO. 6 – For what reason you choose the mobile brand.
Convenience Handset………….
Cost control…………………….
Multioptional………………………
Value and service ………………….
Discount…………………………….
QUESTION NO. 7 – Do you face any difficulty in your mobile phone services.
Yes………………..
No……………………..
[86]