BACKGROUND Company began in early 1800’s. In 1865 Nokia was named, by Fredrick Idestam, after

a river in Finland. 1967 Nokia Corporation begins as a merger between

four existing businesses. (Forestry, rubber, cable, and electronics)

History with mobile phones began in 1981. During the 1980’s Nokia acquires many other

companies in order to enter new markets. In 1990 Nokia entered the telecommunications

market. 1994 - Nokia goes public.

THE RISE TO THE TOP Over the late 1990’s and early 2000’s Nokia

introduces several new and smaller phones in quick succession.

In 1998 Nokia introduced the 8800 series, that model went on to reach a gross profit margin of 70 to 80%.

Nokia broke new ground in 1999 when it launched its 8210 handset on the catwalk in Paris.

By 2000-2001 Nokia was firmly established at the top of the mobile phone industry controlling 35% of the market.

2000-2002 Nokia hits its market share peak of 35%.

THE FALL 2003-2004 Nokia sales fell below expectations. Late 2004 attempted to increase market share by

introducing several new phones. Nokia failed to keep up with competitors such as

Microsoft, LG, and Samsung. Nokia was unsuccessful to capitalize on the growing

popularity of color screens and camera phones. Late 2004 market share stabilizes at 32% after falling

as low as 28% in early 2004.

VISION

A world where everyone can be connected.

In 2015, 5 billion people always connected, and 100 fold more network traffic.

NOKIA’S FOUR BUSINESSES

Accelerate Adoption of business solutions

Lead and win the devices

Grow consumer internet service

Leverage scale and transform to

Solutions in infrastructure

Nokia’s Share by year(2007-2008)

APPROACH Nokia observes first, then design. Nokia acts on consumer

insights. Internet innovation, creativity, media , and service will be available

anywhere, anytime. Take a human approach to technology

Simple Intuitive Reliable

Is this current strategy working? -During 2007, Nokia gained device market share in all regions

except North America and Latin America, where market share declined. In Middle East & Africa, Nokia had excellent market share gains in 2007. Nokia continued to benefit in Middle East & Africa from its brand, broad product portfolio, and extensive distribution system. The current strategy appears to be effective in gaining market share.

NOKIA’S MARKET SHARE

SWOT ANALYSIS

Strengths -High Quality Phones Industry Leader in Innovation Cheap for consumers to buy Good Equity

Weaknesses Lagging Behind in R & D Some Short-term borrowings Smaller Sales than other phone carriers

Opportunities Cut down on least profitable businesses & concentrate on profitable main

business Increase R & D with extra operating profit Open up to other markets besides Europe.

Threats Other phone manufacturers Microsoft Samsung, LG, Sony Ericsson, Motorola, Etc.

NOKIA’S COMPARITIVE ADVANTAGE

NOKIA’S STAKEHOLDERS Anyone who has a vested interest in the

company is a Nokia shareholder. Needs of stakeholders include:

High ROE Dividends paid out Increase in stock price

With an average ROC the last 5 years of 33.8%, and an ROC last year of 47.5%, it appears that Nokia’s strategy is working.

PROFIT TRENDS AND ROE As of late 2004/early 2005, both EPS

& gross profit had all increased from the previous 3 years.

ROE decreased from ’00 to ‘01, then rebounded slightly in ‘02. From ‘04 to the present, it has jumped!

Operational unit

specific issues

Business environmentInvestigation

focus

Implication atBusiness unit

Operational unit

Business unit

Specific issues

Broad defined industry

Business unit

Implication at

Operational level

Strategic focus

Nokia strategic map

VALUE CHAIN & COMPONENTS

Suppliers

Customer groups

and needs

Complimentaryproducts

Industry regulationAnd technology

Competitors

DRIVERS OF CHANGE Foresight promotes a shared understanding

of the basic drivers of change affecting the whole business

Scenarios may be inappropriate when it is necessary and prior to be flexible and react quickly to weak market signals.

The Nokia world map provides every business units within emerging trends for the business areas and investment projects can be assessed with more details.

WHERE DOES NOKIA GO FROM HERE?

Analysts wonder if Nokia can dominate the industry again as it did in the late ’90s.

In order to reestablish themselves as an industry leader, where does Nokia need to be? Reemerge as the industry leader in telecommunications

What does Nokia need to do to get there? ID new avenues of growth Cut prices to increase market share Launches new cell phone models More aggressive marketing Launch into new markets

NEW NOKIA CULTURE AND WAYS OF WORKING & ENGAGEMENT & LEADERSHIP

Goal The Nokia Culture and Ways of working engage us all

workers in creating a world where everyone can be connected.

Goal Nokia has the best leaders in our industry. True Nokia leaders set the example throughout the

company. The Development opportunities and the recognition

provided in Nokia are highly appreciated by employees.

New Nokia Values!

NOKIA’S STRATEGY

Nokia's strategy relies on

growing, transforming, and building the Nokia business to ensure its future success.

NOKIA’S ETHICAL VALUE According to their 2007 annual report, Nokia

is “committed to the highest standards of ethical conduct, and fully compliant with all national & international laws.”

Ethical goals are: To be the best in corporate responsibility Practice good citizenship everywhere it

does business

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What does it take to impliment Nokia’s new strategy

New nokia culture And ways of working

Engagement & leadership and

New values

Nokia’s new Business strategy

A CHALLENGING FUTURE Mobile phone industry is undergoing a

vast change. Competition is becoming increasingly

technologically advanced. Mobile phone industry is becoming

more volatile. Nokia’s challenge for the future is to

identify new avenues of growth in an industry that is becoming saturated.