Internal+Analysis

I shortened my internal analysis a bit, but it's still kind of long... If need be, I can try to shorten it some more. I can also change my format for my sources used. Mostly I used nokia.com but I listed the exact links so it looks like a LOT more sources. I added mine as a file rather than copying and pasting onto this page. I just uploaded the file so it's now on here for anyone to review if they wanted.

Emily

Nokia has always been a telecommunications company that has tried to develop a stronghold in the global competition of mobile networking, technology, and its related markets. //Today, with over 123,000 employees in over 120 countries, Nokia is the largest cellular phone maker in the world, with of $45 billion in sales just last year alone.// Evident by the amount of countries that the organization has a presence in, combined with the brand’s overall sales, one can see that the firm has had many successes throughout the 145 year history of the organization (although they have only been active participants in the telecommunications industry since 1971). They have been able to change with the times and reconstruct their business schematics to stay up-to-date with what consumer are looking for in a mobile device. Although they have been profitable, they have not been completely free of struggles. Throughout the 1990s they were arguably the most popular cellphone provider through most of the world, but as people began to want to use their phones not just for calls, but for photos, gaming, and entertainment, the large market share and profis that Nokia had grown accustomed to started to fall. The phones that they were producing only had one color schematic, green with a darker green, near black, text. The only game capable of being played on a Nokia device, was an extremely pixelated version of “Snake.” This is where the brand lost a portion of its customers. Samsung and Motorola, to name two main competitors of Nokia, began to develop a more sleeker phone with multiple colors and multiple options. Phones that had digital cameras included began to spark up everywhere, which is something that Nokia did not offer on any of its devices. Between internet browsing opportunities, MP3 options, and the aforementioned cameras, Nokia seemed to be falling rapidly behind all of its competitors in the telecommunications industry. The company knew that if they were not willing to change with the market, they would be facing a bleak and dismal future, probably having to cease all operations. They knew that their main problem was the internal governing structure that was present. Ideas for the firm were generated not just by the heads of the company, they were created from the ground up. Nokia prided themselves that they had always been a business that looked for ideas from all of their employees, not just the ones at the top of the ladder. They stressed that every idea, generated by any employee, was just as important as the next. The only issue with this plan was that it took a large amount of time for the ideas to get to the developing table. In order to change this, the company broke apart into four different sectors. These new divisions were: (1) the mobile phone division, (2) the multimedia division, (3) the networks division, and finally (4) the enterprise solutions division. The first two divisions produced different types of cellular phones with different ideas behind them. One was the basic phone, simply used to make calls or send a quick text message. There was not much multimedia on this phone, it was a simple handset to do simple things with. The second division is where smartphones and PDA’s that offered multimedia capabilities such as MP3 usage and photo sharing, or even browsing the web. By separating these phone types, the business was able to focus on different market segments that were all looking for different things in their cellular devices. The third division of the company, the network division, had a main idea of selling the technology that was necessary for mobile networking and wireless infrastructures. This branch of the company was one of the main hubs for Nokia’s globalization. The division wanted to bring Nokia networks to places where they had never been before. The final new branch of the company was one that had been their since the beginning. This division of enterprise solutions was the sector responsible for developing new software and and hardware for businesses and corporate customers. Here they did not compete with other cellular phone companies, they competed with companies that were big names in software production, such as Microsoft and HP. Although they were branching into new global markets that they had never participated in before, the company still knew that in order for the business to be successful, they had to create a local product for the different consumers that they were no reaching. These four divisions allowed Nokia to produce a much more specified product, which resulted from the company being able to have these separate divisions with their own specific tasks. When the companies divisions were able to focus on specific tasks, such as software development for a specific phone model, for a specific country, Nokia was able to localize their products and services to the specific areas that they were being provided in. By doing so, they have been able to develop a connection with the user through programs and applications that are now available on the Nokia devices. The company as a whole has created a mission to strive to reach the largest number of people and also to have a wide variety of phones and smart phones alike, which would never have been possible had they not broken their company up into the four divisions mentioned above. In today’s telecommunication industry, Nokia really prides themself on their high levels of customization of product and application services for each user. The corporation has developed new, highly integrated programs that are able to function for users in over 74 different countries, and also have the ability to translate into 46 different languages. Currently for the corporation, Europe acounts of approximately 37% of Nokia’s net sales, followed by Asia-Pacific at 22%, China at 13%, and North America around 5%. The remaining sales for Nokia are spread throughout the world. Niklas Savander, the head of the services diision at Nokia said recently at a press conference in Spain,"Our global footprint means we have scaled fast, reaching a really significant number of people using a variety of different phones and smartphones. We started the year with a bang with our free Ovi Maps navigation launch and we have just announced the pilot of Nokia Money running in one of India's largest metropolitan areas. Going forward, we are increasing the speed and concentrating on developing a magic experience for the people that use our services." This magical experience he speaks about is definitely what sets the company apart from its competitors. As the following numerical charts show, Nokia’s profits and market shares are far beyond their nearest competitors.
 * Here is the rough portion of mine, it needs a bit more polishing, but this is my portion of the internal analysis and the global strategy as well.** --Katie