Nokia strategy briefing 2004

Nokia Strategy Briefing

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"The impact of mobility is shaping all areas of IT, media and consumer industries. The mobile market is already expanding into new areas of games, entertainment, media and the enterprise market, with compelling new mobile services laying the groundwork for the build-out of wireless multimedia networks. Nokia plans to remain at the forefront of these developments."Jorma Ollila Nokia Chairman and CEO, March 2004

"We gain user acceptance by offering services that enrich people's lives, allowing them to interact with the world in the different domains of life. The technology enablers are largely in place, and we must continue to protect and energize the mobile communications ecosystem by creating an environment based on open standards and platforms.Finally, we need to strive for win-win-win business models, which generate opportunities for all players and foster innovation," Pekka Ala-Pietilä, President Nokia, March 2004

Copyright© esmt 2004. This case study was written by Jamie Anderson of the European School of Management and Technology. This case is not intended to represent either effective or ineffective handling of an administrativesituation.

European School of Management and Technology, 2004

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Nokia Strategy Briefing

Introduction Nokia is the largest supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. Between 1997 and 2002 Nokia's mobile phone sales volume growth consistently exceeded market growth. Nokia employs over 60,000 people worldwide, has production locations in 10 countries,conducts research and development in 15 countries, and has a sales presence in over 130 countries. Nokia is a publicly held company with listings on six major exchanges. Approximately one-third of the company's employees are involved with research and development activities. Nokia's stated business objective is to strengthen its position as a leading systems and product supplier in the rapidlyevolving global communications industry. Nokia's strategic intent is to "take a leading, brand-recognized role in creating the Mobile Information Society by combining mobility and the Internet". Company History 1865 to 1960 - from paper to electronics From its inception, Nokia was in the communications business as a manufacturer of paper the original communications medium. Then came technology with thefounding of the Finnish Rubber Works at the turn of the 19th century. Rubber, and associated chemicals, were leading edge technologies at the time. Another major technological change was the expansion of electricity into homes and factories which led to the establishment of the Finnish Cable Works in 1912 and, quite naturally, to the manufacture of cables for the telegraph industry and to supportthe newly invented telephone. After operating for 50 years, an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a new era in telecommunications. Nokia Corporation was formed in 1967 by the merger of Nokia Company - the original papermaking business - with the Finnish Rubber Works and Finnish Cable Works. 1960s to '80s - setting new trends The '60s were moreimportant as the start of Nokia's entry into the telecommunications market. A radio telephone was developed in 1963 followed, in 1965, by data modems - long before such items were available to the general public. In the 1980's, everyone looked to microcomputers as the next 'big thing' and Nokia was no exception as a major producer of computers, monitors and TV sets. In the background, however,changes were afoot. The world's first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. There were 'transportable' mobile phones at the start of the '80's but they were heavy and huge. Nokia produced the original handportable in '87 and phones have continued to shrink in inverse proportion to the growth of the...