Noki A Finnish Multinational Communication And Information Technology Company Essay

Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.

Nokia is the world leader in mobile phones. The decision to concentrate only on telecommunications and early investment in GSM has made Nokia to become the world leader in mobile phones. In a span of five years , Nokia's turnover increased almost 5 times from 6.5 billion euroes to 31 billion euroes. This enhanced Nokia to improve the technology and bought many new features in the mobile phones later.

Initially Nokia was not an electronic manufacture company. In 1865 Nokia started as Timber Company near the town of Nokia, Finland and then they started second paper mill when they grew significantly in their business over the period of time. The name Nokia is derived from the river called “Nokianvirta” which is in Finland.

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet

Having shed its underperforming handset business, Nokia planned to focus on telecommunications equipment, mapping business, and patent portfolio. Ballmer first approached Nokia CEO Stephen

The enterprises that operate in numerous countries to produce or provide services outside their original countries can be identified as Multinational Corporations (MNCs), or Transnational Corporations (TNCs). Usually, an MNC can produce at least 25 percent of its world output outside of its country of origin. Recently, a new breed of MNC emerges thanks to Internet based communication tools. They begin their operations in different countries very early on. Because they are small businesses, these companies are being called micro-multinationals to distinguish them from larger MNCs.

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

However, Nokia retained its mapping business thus turning the acquired business into an infrastructure equipment company. The deal, therefore, benefitted Microsoft by acquiring the control of the whole of Nokia’s supply chain while Nokia gained a stronger and more financially able partner to boost the product life on the Lumia line of smart-phones. The deal also give life to Microsoft’s traditional PC business, which is at the blink of stagnation.

Nokia said that, with the deal, it aims to focus more on its core business and information technology activities, to gain service flexibility and to cut costs.

The aim of this project is to identify how Nokia has approached its market and what has enabled the company to

Nokia was founded in 1865 in Nokia Finland as a timber and paper company. One could say Nokia from the beginning was a communication company. On the turn of the century the company started producing rubber. It was not until the 1960s when Nokia started the electronic venture. It was only in 1987 that with their major acquisition they brought the venture into reality and entered the electronic competition. With a rapid growth Nokia became one the leading European electronic companies. To increase profit Nokia was divided into five business groups which Nokia Mobile Phone is one of them. According to the case "in 1990, 68% of Nokia's sales came from electronics, compared with

Nokia has come a long way to evolve from a paper mill founded in 1865 to a world renowned mobile phone manufacturer and one of the most powerful brands in the world. In 1992 Nokia appointed Jorma Ollila as the new CEO and concentrated its focus on telecommunications. Throughout the 1990’s Nokia was

Multinational companies are playing something new and introduced a new role in local and globalization, thus, the rising numbers to achieve and strive from emerging companies in world market. It also defines to accomplish goals in organisational, local, and international management, thus, to be able to success the weakness and strength of the company must recognize to determine their capabilities before the management can proceed to international. It is very important for the multinational companies to increase the product life cycle for growing capabilities and to expand from domestic to globalization. However, many of multinational companies will be facing different dilemmas and obstacles towards to international market. Additionally, many countries have different approach towards to business market. In fact, when domestic company moving to global economy they need to involve in organizational learning and adjust to cooperate well with people and market.

Nokia had relatively strong bargaining abilities to its suppliers since it made a large scale of production. The management of the company also strictly controlled its manufacturing costs. The producing costs of the company were much lower than those of other competitors, such as Motorola. Nokia’s excellent research and development ability was the factor why the company could defeat other competitors as well. However, since Apple launched iPhone and Samsung cooperated with Google, the global mobile phone markets have significantly changed during these decades. The market share of Nokia had begun to decline. Its sale revenues and volumes also have sharply reduced. The management of the company tried to find strategies to address the dilemma which it faced: the sharply decreases in its profits and market values. Despite the relative responses which had been implemented, the performance of the company has still being falling during the recent years. Nokia announced its mobile systems, Meego and Symbian, to stop renewing applications in 2012 and 2013, respectively. In 2014, the company’s mobile phone segment and relative patents were sold to Microsoft. Investors and critics in capital markets argued what Nokia’s behaviours could improve its market value and operation performance. Before Apple and Samsung appeared, no one anticipated the telecommunication giant, Nokia, would fail

For more than a decade Nokia was the world leader in the mobile phone market. It is evident from the fact that Nokia 1100 was the world’s bestselling mobile phone. NOKIA was also one of the first companies to recognize the market potential for a product combined from gaming console and a mobile phone. Failure to recognize the market potential in the smart phone segment has put NOKIA out of the market eventually. Microsoft made one of its huge acquisitions by purchasing Nokia’s mobile business in 2014. A number of fixed costs are associated with smart phone manufacturing. By acquiring Nokia, Microsoft has fixed costs such as Intellectual property, Test equipment, and manufacturer contracts. In other words,