Nokia Company: History, Analysis, and Business Overview

This document provides an in-depth understanding of Nokia Company, including its history, location, and names of businesses within the organization. It also includes an external analysis using Pestle analysis and an internal analysis using SWOT analysis. The document explores the rationale for selecting Nokia and its market area.

Nokia Company

Nokia
Table of Contents
NOKIA............................................................................................................................................2
Location.......................................................................................................................................2
History of the organization..........................................................................................................3
Names of businesses within the organization..............................................................................3
Rationale (justification) for selecting Nokia................................................................................4
External analysis of Nokia...........................................................................................................4
Pestle analysis...........................................................................................................................4
Internal analysis of Nokia............................................................................................................5
SWOT ANALYSIS..................................................................................................................5
References........................................................................................................................................6
Appendices......................................................................................................................................7
2

Nokia
NOKIA
Location
The Nokia’s headquarter is in Espoo, Finland which is one of the greater Helsinki Metropolitan
area. The phones of Nokia are also made in different parts of the country such as in Hong Kong,
Mexico, China, Brazil and Germany (NOKIA, 2019).
History of the organization
It is observed that Nokia has been considering the needs of the changing world from last 150
years. From the starting in 1865 Nokia has attained success from many years in the different
industrial sector such as cable, television, mobile phones, paper products, and rubber boots.
Nokia also focused on the telecommunication sector that was started in 1990’s. The first GSM
call was done in 1991 by using the Equipment of Nokia. With the rapid growth in the phone
sector the Nokia was introduced in 1998 (NOKIA, 2019).
In 2003, the Nokia Company introduced the first camera phone and 2011 to maintain the
competition level from Ios and Android operating systems. It has been analyzed that the
company entered into the strategic partnership with the other company named as Microsoft. In
2014 the company sold the mobile and devices division to the Microsoft Company. In 2015,
acquisition of Franco- American telecommunications equipment enhanced the scope of the
company portfolio and also maintained the customer base. In 2016, the company re entered into
the mobile handset business with a proper licensing agreement with HMD global that provide to
offers phone under the brand of the company (NOKIA, 2019).
Names of businesses within the organization
It is examined that there are two businesses of Nokia: Nokia networks business and Nokia
technologies. In these two businesses, there are six groups of the businesses more in 2017 which
are related to Mobile networks, fixed networks, global services, IP networks and also Nokia
software (NOKIA, 2019).
It has been analyzed that company also considered the acquisition strategy by focusing on
creating a leading company, end to end 5G portfolio. There are many businesses that are
acquired by the company in the highly competitive. The acquisition was considered by the
company to maintain the customer base. According to the graph, it is evaluated that in 2012, the
3

Nokia
company acquired with Motorola solutions. In 2014, the company sold the devices and focused
on creating the Nokia technologies. In 2016, Nokia emphasizes on acquiring the companies such
as gain speed and ALCATEL – LUCENT. In 2018, Nokia acquired the five businesses which are
Deep Field, Comptel, Nokia Shanghai Bell, Unium and space time insight (NOKIA, 2019).
Rationale (justification) for selecting Nokia
This business is selected to have in-depth understanding of the history and market area of the
Nokia Company. It is important to have proper analysis on this as it has achieved the large
market again after the downfall in the overall sales. By taking this company into consideration it
could easy to have proper knowledge of the competitors that are present in the market and also it
will boost the knowledge in relation to internal and external factors on which the Nokia focused
on market its products and services in the highly competitive market.
External analysis of Nokia
External analysis of Nokia will be highlight by considering the Pestle analysis tool. In this tool
the emphasis is given on the different external factors such as:
Pestle analysis
 Political factor
The political factor plays an important role that affects the operational activities of the company.
It is examined that the activities of the company are conducted on global platform so if the
government modify the laws in relation to export and import then direct impact is on the overall
sales. Political riot is one of the major issues that are faced by the company in Egypt and Libya
market and due to this the overall sales of the company has been reduced. Also, in the UK
market there are new laws that are introduced in the market and due to this the company has to
emphasize on considering the different rules that are implemented by the government
(Fakhrutdinova et al., 2015).
 Economical factor
Due to the economic recession, the overall market of the Nokia Company was reduced but
particularly the decrease was seen on Europe and USA market. There are also different things
such as labor share to value impacted the consolidated rate of 39.8% and due to this the export
duty also enhanced (Kappos, 2018).
4

Nokia
 Environmental factor and social factor
In the present era, the company market share has been lost in Asia only because China and India
started manufacturing the Nokia handset by their own which is cheaper. The handsets which are
introduced in the market are offered in less price o the customers. Therefore, it can be said that
socio and environmental factor is considered as a challenge for the Nokia Company in the
market of Asia (Zhou, 2016).
 Technological factor
The company focused on launching latest technological advance products in the market such as
Smooth touch screen, god quality camera ad also motion capture phones. This has helped to
capture the large market share in relation to the other competitors such as Apple and HTC
(Ahmed, Majid and Ahmed, 2019).
 Legal factor
The company reduced the entire expenditure by considering the lesser quality materials in the
products which is also known as the illegal factor. Global legal issues are important to be
considered by the company so that it could be easy to boost the satisfaction level of customers
towards the services and products offered in the market (Bala and Singh, 2016).
Internal analysis of Nokia
SWOT ANALYSIS
Strength
1. Global reach
The Nokia Company offers its products in130 countries but there are research and development
departments in 15 countries. According to different culture and language needs the products are
produced such as English, Dutch and Chinese (Fakhrutdinova et al., 2015).
2. Serve new trends and designs
The company introduced a wireless game in which with the use of radio and TV the players can
solve the mystery. So, it has created the interest of the customers towards the products. Also, it
5

Nokia
has been noted that the company has the largest number of the product line (more than 10) if
compared with the competitors (Fakhrutdinova et al., 2015).
Weakness
1. High price
The company provides products of high quality at high price. But the high price act as one of the
weakness for the company in some specific area of the market, such as in the middle and low
group people (Laamanen, Lamberg and Vaara, 2016).
2. Problems related with new development
The company provided the color screen mobile phone in 2002 but this was late because the
competitors such as Sony and Samsung already introduced it early. This has enhanced the
weakness for the company as majority of the people already used the products (Kappos, 2018).
Opportunities
1. Joint venture in technology
The Nokia Company has also connected with Hewlett Packard Company in the technology as it
has a good image in the market. Hence, it can be said that the company has the opportunity to
boost the market share.
Threats
1. Major threats in the Market of PC
It is seen that the competition level is high in the market which has caused the new technology
compatible with the PC computer. Sony Ericsson has also specialization in the PC computer and
Sony has also focused on the computer system that will be converted into the mobile phones.
Also, in the high level of competition the company is facing the challenge to attract the
customers towards products and services offered in the market (Laamanen, Lamberg and Vaara,
2016).
6

Nokia
References
Ahmed, J.U., Majid, M.A. and Ahmed, A., 2019. Nokia 3310: Welcome Back!. SAGE
Publications: SAGE Business Cases Originals.
Bala, M.R. and Singh, D.P., 2016. Nokia: Its not over yet, A Come Back in 2016. International
Journal of Management, IT and Engineering, 6(2), pp.222-234.
Fakhrutdinova, E.V., Fakhrutdinov, R.M., Kolesnikova, J.S. and Yurieva, O., 2015. New Start of
Nokia. Mediterranean Journal of Social Sciences, 6(13), p.61.
Kappos, D.J., 2018. Innovation-Based Technology Standards Are Under Threat. MIT Sloan
Management Review, 59(3), pp.1-5.
Laamanen, T., Lamberg, J.A. and Vaara, E., 2016. Explanations of success and failure in
management learning: What can we learn from Nokia’s rise and fall?. Academy of Management
Learning & Education, 15(1), pp.2-25.
NOKIA.(2019). Our businesses .[Online] Available at:
https://www.nokia.com/sites/default/files/nokia_ar17_en_or_businesses_web.pdf. [Accessed on
9 April 2019].
NOKIA.(2019). Our history.[Online] Available at: https://www.nokia.com/about-us/who-we-
are/our-history/. [Accessed on 9 April 2019].
Zhou, X., 2016, April. Study on the Multinational Companies Global Strategy and International
Economic Cooperation of Western Companies. In International Conference on Education,
Management and Computing Technology (ICEMCT-16). Atlantis Press.
7

Nokia
Appendices
Figure 1: Different businesses of Nokia Company
(Source: NOKIA, 2019).
Figure2 : Acquisition of the companies by Nokia Company
(Source: NOKIA, 2019).
8

Nokia
9