NOKIA’S CORE COMPETENCIES

THAO NGUYEN (阮氏慶慈 ) M987z237 MARTIN KOKOR (柯偉立 ) M987z253

Industry: Telecommunications, Internet, Computer software

Founded: Tampere, Finland (1865)

Products: Mobile phones, Smartphones, Mobile Computers,

Networks,

Services: Software, Online services

Revenue: ▼ €40.99 billion (2009)

Operating income: ▼ €1.197 billion (2009)

Net income: ▼ €891 million (2009)

Total assets: ▼ €35.74 billion (2009)

Employees: 125,859 (March 31, 2010)

NOKIA CORPORATION

Nokia connects people to each other

Nokia is a world leader in mobile communications and

manufacturer

The information easy-to-use and innovative products like mobile

phones, devices and solutions for imaging, games, media and

businesses.

Nokia provides equipment, solutions and services to network

operators and corporations.

It has held the most market share since 1998.

In 2009, Nokia global annual revenue of €41 billion and operating

profit of €1.2 billion.  

NOKIA CORPORATION

Nokia's strategy has always been

built on looking forward and trying

to predict the future.

The main strategy of the Nokia

Corporation is based on

growth, efficiency and profitability

and focuses on several things.

It also emphasizes on sustainable

environmental development that

can be used to offer the best

products to the final consumer.

NOKIA’S STRATEGY

NOKIA’S CORE COMPETENCIES

Personality counts

Brand name/ Brand development

Research & development

Mass production

The ability to find the "right" person to fit

into the Nokia team is one of the

company's core competencies.

Search for the talented software engineer

or researcher requires the company to

pay great attention to personality and

behavior.

Nokia believes that technical skills are

easier to assess and to learn than

personal skills, which play a critical role in

the company's team-driven culture.

In 2009, Nokia has more than 123,000

employees in over sales in more than 150

countries.

PERSONALITY COUNTS

When hiring researchers and engineers, Nokia is almost as interested in temperament as

it is technical credentials.

Nokia motto: You can teach technology in the company much easier than you can teach

interpersonal skills, if at all.

Director of global strategic resourcing at Nokia's headquarters in Espoo, Veli-Pekka

Niitamo said. "We want people who can work in a team, who can communicate and

defend their ideas and, equally important, who can accept different opinions."

Nokia focus is not only on technical skills but also on attitudes and behaviors critical to

the creative spirit of the company.

PERSONALITY COUNTS

Nokia's core competencies consist of their brand name - brand development.

Nokia's brand is associated with well-designed high quality and technologically advanced products and a user-friendly customer service.

The downturn in telecommunications industry in 2001 did not have much impact on Nokia, with increasing operating profits that grew up to $4.8 billion and holding 37% of the global cell phone market (in 2001).

The strength of its brand can be considered attributable to its solid performance despite difficult market conditions. 

Nokia has been experiencing sales slump that has seen its market share fall from 40% to 30% for the first time.

Nokia is developing a brand strategy for the creation of regional umbrella advertising to run alongside specific initiative in individual countries. 

BRAND NAME

Nokia; 40.3

Samsung; 15.2Motorola;

9.3

LG; 9.2

Sony Er-icsson;

8.3

Others; 17.7

MOBILE MARKET SHARE 2Q 2008

Nokia is the largest phone manufacturer in the World.

The Nokia brand gradually strengthened in all areas while the

attractiveness of Motorola, the biggest rival, declined.

Nokia has huge customer recognition that other companies might not

have. Their market power also gives us hints to many of their

capabilities that will delve into in the capabilities section.

NOKIA’S BRAND DEVELOPMENT

NOKIA GLOBAL COMPANY FROM 1990S

Three Nokia’s main market areas

◦ Europe

◦ Asia Pacific

◦ America

Sales in Europe amounted to

roughly half the total

While Asia and the United States for

about a quarter each. 

The euro zone developed pretty

much as expected.

Nokia was among the first

companies to adopt the common

currency in its accounting.

In 2007 Nokia’s market share broke 40% which was mostly feed by their sales growth in emerging countries such as India and China. In India alone, 125 million phones were produced between 2006 and 2008

One of the most important success factors that has made Nokia the company it is today is their heavy investment in research in development

They spend about 9,5% of revenues on R&D (2007)

Nokia maintains global contacts to universities, research institutes and other companies to monitor and influence developments in technology

Research & Development

14.500 employees (32% of their workforce) work in 10 R&D centers all over the world

Each of these research facilities has focus on a specific subject and technology

The diversity of these locations allows Nokia to better prepare the company to compete well in the future

Research & Development

China, Beijing – They are working to take advantage of the largest mobile market and the fastest growing economy in the world – China

India, Bangalore – This team focuses on market services for both urban and rural India

Kenya, Nairobi – Understanding the unique needs of the African mobile phone users and creating concepts and visions to fulfill these needs

Research centers

Finland, Helsinki – They study the fields of user experience, mobile security, power management, computing architectures and intelligent context-aware radio

Finland, Tampere – Their research focus is on rich context modeling, new user interface and high performance mobile platform

Switzerland, Lausanne –They are researching the field of pervasive sensing and computing

United Kingdom, Cambridge – Here they develop nanotechnologies for wireless communication and ambient intelligence

Research centers

USA, Cambridge – Here they’re developing new technologies for rich context modeling and new user interfaces

USA, Hollywood – The center is focusing its research on activities in context aware social media, user interaction models, mixed reality experiences and the convergence of the internet and mobility

USA, Palo Alto – Researching mobile internet services systems, mobile business solutions, context-specific content and visual computing

Research centers

One more Nokia’s core competency is its ability to mass produce products quickly and cheaply to meet demands in the whole world

They have captured almost half of the total market share for mobile phones which makes it difficult for new companies to penetrate the market

The big number of factories around the world puts Nokia in a great position to meet world demand

Mass production

In the past years, they have also been focusing on increasing capacity of some of their factories in countries such as China and India to meet the growing demand there

Nokia’s production facilities that focus on mobile devices are located in Brazil, China, Finland, Hungary, India, Mexico, Romania, South Korea and United Kingdom

In addition to these production facilities they also have factories producing network technologies in China, Finland, Germany and India.

Mass production

Too often, companies mistake their values, assets or internal processes for a core competence

A core competence is a bundle of skills, technologies and/or strategic assets that is integral to success

Nokia focused on identifying its core competencies, looking for opportunities beyond the boundaries of its current

Conclusion

Nokia’s core competencies of finding the right person, brand development, R&D and mass production have played a vital role in their success

Its leadership position is a result of paying close attention to market needs and taking chances at the right time

Conclusion

Thank You!