The Evolution of Nokia Essay

Executive Summary

This study is about the company Nokia and the Evolution of Nokia. This drumhead contains the selling schemes of the company and how does Nokia vie with its rivals India. This study shows the market size of the company in India and how the Company does operates. It discusses about the Market Environment.

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The study shows the market portion of the Nokia in India and the how does Nokia derive competitory advantage over others. The selling schemes adopted by Nokia and the tactics and the invention by the company.

Building Brand image is the Mantra of the company and accent a batch on their engineering and on consumer satisfaction.

This study analyses the impact of external an internal influences on the concern schemes of Nokia Corporation, evaluates the factors, qualifiers of Nokia ‘s promotion.

In add-on, Nokia should non merely develop new engineering, but besides has other duties for human, such as to cut down pollution and waste, which are produced by the procedure of production.


In the present old ages, the nomadic cyberspace has attracted legion media attending. We need to see why is it so of import to make new nomadic merchandises, what does consumer demands, and what sort of societal activities change affected Nokia alteration its chief starvation. hypertext transfer protocol: //

Nokia is a innovator in nomadic telecommunications and the universe ‘s taking shaper of nomadic devices. Today, they are linking people in new different ways- fusing advanced nomadic engineering with individualized services to enable people to remain near to what affairs to them.

Nokia is a universe leader in nomadic telecommunications, driving the growing and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and advanced merchandises like nomadic phones, devices, and solutions for imagination, games, media and concerns. Nokia provides equipment, solutions and services for web operators and corporations. hypertext transfer protocol: // newsid=-6156


Nokia is the universe ‘s taking nomadic phone maker and one of the top providers of web substructure merchandises.

Nokia Corporation ( NYSE: NOK ) is one of the universe ‘s largest telecommunications equipment makers. It has since established a taking trade name presence in many local markets, and concern has expanded well in all countries to back up client demands and the growing of the telecommunications industry.

The company was formed by an applied scientist, named Fredrik idestam in 1865, who started as a wood-pulp factory and started fabricating paper in southern Finland near the Bankss of river. hypertext transfer protocol: //

Finish gum elastic plants, a maker of gum elastic goods, impressed with the hydro-electricity produced by the Nokia wood mush, merged up and started selling goods under the trade name name on Nokia. After World War 2, it acquired a major portion of the Finnish Cable Works portions. The Finnish Cable Works had grown rapidly due to the increasing demand of power transmittal and telegraph and telephone webs in the World War 2. Gradually the ownership of the gum elastic plants and overseas telegram plants companies consolidated. In 1967, all the 3 companies merged-up to organize the Nokia Group. hypertext transfer protocol: //

Nokia has played a pioneering function in the growing of cellular engineering in India, get downing with the first-ever cellular name a decennary ago, made on a Nokia Mobile phone over a Nokia-deployed web.

Nokia started its India operations in 1995, and soon operates out of major offices like in Delhi, Mumbai, Kolkata, Chennai, etc. The Indian operations comprise of the French telephones concern ; R & A ; D installations in Bangalore, Hyderabad and Mumbai ; a fabrication works in Chennai and a Design Studio in Bangalore.

Over the old ages, the company has grown manifold with its work force with its work force strength increasing from 450 people in the twelvemonth 2004 to over 15000 employees in 2008 ( including Nokia Siemens Networks ). Today, India holds the differentiation of being the 2nd largest market for the company globally. hypertext transfer protocol: //


Nokia is one organisation that is peculiarly affected by the interplay of different macro environmental factors. These Macro environmental factors are made up of Political, Economics, Society, and Technology, or what is specifically known as the PEST Analysis. Nokia is a communications company with specific focal point on nomadic phone engineering. The undermentioned utilizations PEST Analysis on Nokia.


As markets are deregulated, both operators and makers are free to move independently of authorities intercession. In states like India and China where Partial ordinances exist, authorities intercession does take topographic point.

Legal restraints such as the G3 engineering restraints that Nokia must take into history because many concern purpose to do net income so they may be tempted to misdirect their clients about monetary values, quality of merchandises and the handiness of merchandises.

Economic Factor

With rise in incomes, people have more disposable income which enables consumers to be more selective with their pick of nomadic phones. So carry throughing the most basic demands of the user demands ( text messaging and phone calls ) and monetary value is an of import factor. Nokia has emerged as a trade name supplying nomadic phones to all the people at monetary value people can buy.


The rise of the alleged information society has made telecommunications progressively more of import to consumers, both in footings work and leisure. Users are more cognizant of nomadic phone French telephone pick and promotion due to increased information available. Nokia has been successful in supplying information to the people with the aid of supplying all the information on the web site and advancing their merchandises following the ethical codification of behavior and authorities ordinances.

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Technological FACTORS

It was in 1990s, that Nokia decided to concentrate on the nomadic phone market. In order to be in front of its rivals, debut of technological promotions is critical to Nokia. The Latest engineerings are found in Nokia ‘s nomadic phone such as WAP ( cyberspace ), prognostic SMS, and picture and camera maps. The planetary market tendencies now are to blend Personal computer maps with the nomadic phone.

There has been much planetary promotion in engineering such as MMS, Bluetooth, WAP, GPRS, cameras, etc.

Nokia has been supplying the French telephones with all the latest engineerings to the people in India and Globally. hypertext transfer protocol: //


Suppliers are the of import people in the company ‘s overall client value bringing system and they provide resources to the company to bring forth goods and services. ( Kotler et al, 2008 )

Like Nokia ‘s parts comes from different providers in from different parts of the universe. The grade of provider concentration is more as providers provide all the parts to the company.

Dickering power of clients

The clients are the ultimate mark of the company. Nokia ‘s monetary value scheme helps all sort of clients as Nokia design its merchandise for the hapless people and for rich people as good. Nokia has great fiscal strength, immense graduated table and immense trueness. Peoples are loyal to the trade name and will go on to purchase. hypertext transfer protocol: //

Customers have comparative information about the merchandise in footings of monetary value and characteristics. Individual clients have low shift cost and are monetary value sensitive.

Menace of New Entrants

Technology and merchandise designs are protected with patents. High fixed cost agencies that volume is indispensable for the companies. Nokia holds the place of being the market leader in the nomadic industry in India. It would be hard for any company to come in the market and vie with already bing house. Huge capital investing is required for any new company to come in the market.

Nokia have the fiscal clout to discourage new entrants.

Menace of utility merchandise

Substitute to Mobile phones is really difficult to happen but one of the menaces to mobile phones can be internet telephone. Features like Skype are used by batch of people for doing calls locally and abroad.

Millions of persons and concerns use Skype to do free picture and voice calls, send instant messages. Peoples use Skype to do low-priced calls to land lines and Mobiles.

Lot of people prefer to utilize internet telephone to do calls. Though the menace is non high and is non preponderantly used by all the people.

Competitive Rivalry within an industry

The nomadic industry has merely grown by 10 % during 2007. The major rivals to Nokia are Sony, Motorola, LG, Blackberry, Apple ‘s I-phone. There is a diverse competition in the industry as every company comes up with new engineering phones with advanced characteristics.

Every nomadic company is seeking to vie against other. But Nokia has competitory advantage over the other companies and enjoys its good will.


Competition is inevitable in any industry. In some instances, competition is so heavy that it constantly leads to monetary value wars. However, there are other industries that do non needfully vie on monetary value entirely. hypertext transfer protocol: //

For a successful selling, a company must supply greater client value and satisfaction than its rivals. Sellers must derive strategic advantage by positioning their offering strongly against rival ‘s offerings in the heads of consumers. ( Kotler et al, 2008 )

India is a really large state with and dumbly populated. The market in India for nomadic phones is extremely disconnected and is a metameric market. There are batch of nomadic phone trade name exists in the county which suits different people harmonizing to their demand and wants. Therefore there is non merely individual rival, in fact there are batch of rivals exists in the market for Nokia.

In the low monetary value section, phones which Chinese phones and LG exists which fulfil the demands of the people who can non afford expensive phones. So they are the rivals for Nokia in the low monetary value section. Samsung, LG, Motorola phones are the chief rivals for Nokia in the mid monetary value section. Premium section consists of the phones like Blackberry and Apple I-phones which are the chief menace to Nokia.

In 2009, the market portion of Nokia was 63 % which is manner in front from all the other nomadic companies. hypertext transfer protocol: //

Nokia continues to rule the Indian market because of the company ‘s good will and the trade name consciousness among the clients. ( GMID, 2009 )

Nokia is a market leader in India but is confronting tough competition from participants like Samsung, LG, Apple ‘s iPhone and Blackberry to call a few.http: //

Apple ‘s I-phone and Blackberry is a tough competition for Nokia as these Telephones are premium phones and got all the characteristics and are more advanced than Nokia premium phones. There is one more ground to this as entry of any new merchandise in the market keeps the involvement of the clients. So Nokia has to bear in head about the rivals and to get the better of these by establishing the nomadic phones with more advanced characteristics than their rivals. hypertext transfer protocol: //

Selling Scheme


The market consists of many types of clients, merchandises and demand. The seller has to find which sections offer the best chances. ( Kotler et al, 2008 )

  • The people in India are extremely involved and as they change their phones every 6 months
  • Since people in India are extremely connected to the trade names they use and are loyal to their trade names, so they tend to pay higher monetary values for French telephones
  • Customers buy from good known trade names
  • There exists construct of Design goaded purchase


  • Peoples in India usage nomadic phones as a manner accoutrement
  • Peoples tend to pass much on their nomadic French telephones and expression for good expressions with functionality.
  • As nomadic phones are like manner symbol for people in India, they keep on updating their French telephones and experience embarrassed if their French telephone in out-of-date

The company section the markets harmonizing to the consumers and so aim them individually and fulfill their wants. The company section it on the footing of geographic, demographic, psychographic and behavioral factors.

Market cleavage that Nokia has chosen to take is the young person market concentrating on pupils aimed 13-19 as market research has shown that some of the young person market are having big sum of pocket money and most have no existent committednesss to pass it on and that means they have tonss of disposable income and able to pass more on new nomadic phones.


It involves measuring each market section ‘s attraction and choosing one or more sections to come in. Company like Nokia should aim sections which it can productively bring forth the greatest client value and prolong it over clip. ( Kotler & A ; Armstrong, 2008 )

So Nokia got different nomadic French telephones get downing from inexpensive phones to expensive 1s. The company uses same logo to aim for each of its cell phone as they have goodwill and the trade name value in the market.

So Nokia in India targets the people of middle- category as they the cell phones are largely consumed by these people in India. They besides target the people of lower and higher category as good with their different French telephones.

Nokia ‘s immediate mark is rural India. Peoples of age 25-50, makes up to 80 % of the Nokia nomadic phone market. The primary mark of Nokia is the heavy users as they heavy users have the ability to purchase the merchandise. This is so because users like latest merchandises with latest and advanced characteristics. Nokia targets international pupils, adolescents and the concern category people in India. hypertext transfer protocol: //


WhenNokiapositions its trade name in the crowded Mobile phone market place, its message clearly convey together the engineering and human side of its offer in a powerful manner. The specific message that is conveyed to consumers in every advertizement and market communicating ( though non needfully in these words ) is “ Merely Nokia Human Technology enables you to acquire more out of life ”

It is besides represented by the ticket line, “ We call this human engineering ”. This gives consumers a sense of trust and the consideration by the company. Nokia understand that engineering is merely enabler so that a client can bask the better life.

Nokiathus uses a combination of aspirational, benefit-based, emotional characteristics, and competition-driven placement schemes. hypertext transfer protocol: //

Selling Mix

It refers to the 4 P ‘s namely monetary value, merchandise, publicity, topographic point.

Monetary value

It is one of the of import factors which should be kept in head as monetary value has an irrational side: something that is expensive must be good. In India, the monetary values start from Rs 2000 and goes to 50000 Rs. So Nokia designs phone for all sort of users from economical phones to expensive phones.

Nokia merchandises are really lasting and dependable. Nokia ‘s runing life under natural fortunes is longer than other phones. It is known for its lastingness: “ If it ‘s Nokia than it has to be good ”. All the Nokia phones come with the guarantee of one twelvemonth and 6 months on the accoutrements of the merchandise. The incident of BL5 batteries proved that Nokia is a dependable company and cared about its clients. hypertext transfer protocol: //

Topographic point

Nokia ‘s success is chiefly attributed to distribution trades they inked- of the estimated 79000 retail mercantile establishments in India selling nomadic phones, Nokia had a presence of 72,000 of them. hypertext transfer protocol: //

Company has made easiness of telling Nokia French telephones all over the state. There are around 1, 00,000 distributers of Nokia French telephones across the state. Nokia French telephones are available at more topographic points than its rivals. Launch of “ Nokia Concept Stores ” which makes consumer feels that he/she is standing in the center of the cellular tech-hub. hypertext transfer protocol: //

Nokia phones are widely available all over India. Nokia nomadic phones are available at about every nomadic mercantile establishment in India.


Promotion means activities that communicate the virtues of the merchandise and carry mark clients to but it. ( Kotler et al, 2008 )

Nokia promotes its trade name through film channels, football lucifers, cricket lucifers, music channels ; Etc. Nokia promotes its trade name by patronizing certain events like Indian Prime Minister conference ( Cricket ) in which Nokia tied up with the squad Kolkata Night Riders and promoted its trade name by patronizing the squad. The company besides sponsored the an sole five-song music album “ Nokia 2 hot 2 cool ”. hypertext transfer protocol: //

The company promotes its merchandises through advertizement, media and etc.


Strategic alteration is frequently considered as a necessity for companies to last in a disruptive environment. Intense competition and rapid technological alteration are frequently mentioned as primary motivations for companies to accommodate their corporate scheme. hypertext transfer protocol: //

Nokia is basically altering its concern theoretical account to transform both the company and the industry. As quoted by Nokia president Olli-Pekka Kallasvao, “ To win in this new environment, we need to offer consumers resistless solutions that improve their lives. He said that Nokia ‘s scheme of uniting alone services with high quality devices will increase client keeping. He besides said that success in the changing concern environment would necessitate bravery and a displacement off from the conventional: “ We can non anticipate to make it all entirely. We have to work together with certain rivals, new participants and spouses in new ways. We have to vie and co-operate. We are working more closely with many other companies, including operators and spouses. We expect more such partnerships to come. ” hypertext transfer protocol: // a=49669

Nokia ‘s scheme is to construct sure consumer relationships by offering compelling and valued consumer solutions that combine devices with context enriched services. hypertext transfer protocol: //

Nokia scheme in India is to affect as many consumers as they can and for making so, they have been coming up with different sort of nomadic French telephones and with typical characteristics and inventions to maintain the good will and to pull consumers by selling the phone at the monetary value lower than its rivals.


Today it is a merchandise race, while Nokia plays on its trade name image entirely. It is non sufficient to contend the merchandise race.

Nokia Company can be classified as market leader hereunder mobile phone market, and it can be easy detect their broad scope of merchandise which may be excessively frequently to alter its theoretical account within one series e.g., Nokia 3210 until now Nokia 3350.Despite the rapid alteration in one series, it still looks rather similar as the old theoretical account which has merely launched in the short period before.So it would be helpful for Nokia to establish the merchandise seasonably, and Nokia should hold merchandise life- program ( specific clip tabular array ) in order to inform and guarantee the end-users who need to purchase a truly new model.Nobody in the existent universe is willing to purchase the merchandise, which is traveling to alter and obsolete in the following few days.These can be assisting Nokia in the facet of client ‘s satisfaction and give the opportunity to the users to choose.

It is besides found that some of the Nokia ‘s Mobile Handsets are really expensive and sometimes they get out of range of the consumers and their rivals take advantage of it as the phone with about same characteristics and same design from different company cost consumers the same. Nokia has highest monetary value scope compared with all the rivals, so if the monetary value is floated unreasonably to the end-users, it is non a good manner for Nokia to accomplish its long term ends. Reasonable monetary value is the best manner for Nokia to derive both profitable and client ‘s satisfaction.


It may be argued that trade name extension following the stretching way may be excessively absurd.Nokia has been successful at trade name stretching from a paper maker to provide nomadic phones and web service.

Since, Nokia has been the market leader of the nomadic web in India and has been invariably improvizing their merchandises and widening their web to make all the people in India, they are ever being advanced. Peoples go on the name of the trade name in India and are loyal to the trade name they choose.

Nokia ‘s extension to the rural countries is a large accomplishment of the company as people in the rural countries have besides entree to Nokia phones now.

The market portion of the company is manner in front as compared to its rivals. Nokia in India enjoys the place of Mobile Phone Leader in India.



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