Nokia has largely contributed to the growth of Finland since the mid-90s. Its role in the Finnish economy in figures is as follows: it represents 10% of its GDP, half of its growth, 16% of its exports, and 60% of the capitalization of the Helsinki Stock Exchange. It is also the largest private employer (25,000 employees, or 1.1% of total assets).
In 1966, Nokia was born from the merger of three industries dating back to the nineteenth century. It is a conglomerate of highly diversified markets (TVs, tires, paper, cables, etc.). In 1988, telecommunications accounted for only 8% of its total turnover. With the fall of the Soviet Union which was its largest customer, Nokia accumulated losses from 1991 to 1993 and faced a serious financial crisis. This situation led to a change in the leadership of the company. The new leader launched a policy of focusing on telecommunications, and more particularly on the mobility of the segment.
Nokia is withdrawing gradually from most of its traditional activities to devote itself to the mobile sector, which now represents 60% of its activity. Other activities include production of electronic parts, information systems, and cables. Under its current chairman Jorma Ollila, Nokia is now the world leader in mobile communications, and has built on the growth and sustainability of the broader mobility industry. The main task of Nokia is to connect people, in order to satisfy a basic need of man, for social relations and human contacts.
This is reflected by its slogan, "Connecting People". The company seems to be doing very well financially, with a return on equity of 22% in 2005 and a turnover of 92.5% of assets. Keywords: study of Nokia, the mobile market, strategic analysis, marketing, Nokia, connecting people, branding, communication, study, mobile value chain, Motorola, LG, Sony Ericsson, Samsung, Siemens, SMS competition , organization.
In addition to these DAS, Nokia has also made a horizontal division of its business with each DAS needs according to its own characteristics.
The 3 horizontal activities are shown schematically below cons: Consumer and market; technology platform; search foresight infrastructure.
For this analysis, we find that the domestic mobile business covers several specific but interdependent. The analysis of horizontal functions will be a specific study in part (Value Chain). DAS mobile representing the bulk of its turnover, we decided to focus our efforts on.
The market for mobile consumer is born in the early 90s and has developed a very strong growth until 2000. 3 years, this market still under development, is growing less rapidly due to intense competition and high penetration rates in certain geographic areas (transition to an application for renewal only). Both phenomena require the actors involved to identify key success factors (technology, more services, etc.).
In terms of numbers, 816 million phones were sold worldwide last year. The number of terminals sold worldwide during 2005increased 21% (from 674 to 816,000,000). Interpersonal exchanges of SMS and MMS reach 12.9 billion units and generate 1.3 billion euros in 2005 while the number of MMS increased from 79 million units traded in 2004 to 262 million in 2005.
The majority of market players are primarily companies that are not specialized in mobile phones and other products that have high-tech such as computers, televisions (e.g. Samsung).
Tags: Nokia, origin and history of Nokia, strategic analysis of Nokia
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