NOKIA – THE MARKET LEADER’S EXPERIENCE

ABSTRACT• Nokia has sales in over 130 countries manufactures at 16

facilities in 10 countries and conduct R&D in 11 nations.

• The company has over 51000 employees and has an annual sales turnover of more than $ 33 Billion.

• Nokia was founded by Mr. Fredrik Idestam

• The plant in Sriperumbudur exports to over 50 countries and produces 100 million phones per year.

• in 1981, Government of Finland sold 51% of its state owned Finish telecom company to Nokia.

Question 1:

• What are the external factors that led to Nokia’s growth in Finland?

• Heavily forested and sparsely populated

• Heavy snow in Scandinavian countries will lead to disruption in land line communication

• Digital wireless communication was advantageous

Question 2:• Cut-throat competition exists in Mobile handset market. List

down at least 3 proactive strategies for Nokia to stay ahead of other rivals in the days to come in the global market space?

• Need for related diversification

• Design modifications should be done

• Up gradation of technology

Secrets of success

• Size:

- Nokia’s vast production volume is an obvious advantage.

• Streamlining:

- Nokia’s decision to focus on only one market after years of diversity was a courageous one