【正文】 tial customers: require advanced data and video (multimedia) services Cisco ? Data and private work/corporate applications knowhow (market leader in switched interworking。D ALLIANCE – EXAMPLE In 1995, Nokia and Cisco Systems, ., established a strategic alliance to develop ATMbased work products to provide total tele service solutions to panies. Da te All ia 。D cycles, and the right timing of product launches.” Source: Nokia press release。 press releases。 and when it?s necessary we form partnerships with other pioneers of technology。 ., cellular data transmission ? Use of cheap industry standard products as a base rather than more expensive systems Every third Nokia employee works in Ramp。D investment through ? Numerous Ramp。 annual reports。 press clippings。T) –Similar product design allows Nokia to use the same production line for multiple products and enables them to react quickly to changes in demand by shifting from one model to another Ramp。T Wireless Service for Nokia branded mobile phones Distribution ? Ramp。T Wireless Services, Sprint Spectrum, and Powertel 1986 ? Launches own brand product globally 1988 ? Divests flooring, paper, rubber, and ventilation systems businesses 1986 1988 Early and mideighties ? Aggressively sought and signed OEM deals with numerous . panies (., GTE, Delco, etc.) TIMELINE OF KEY EVENTS IN NOKIA’S . BUSINESS CONTENTS ? Company overview ? . market entry strategy ? Products ? Capabilities ? Organization Fo c use s on hig hgrowt h m a r k e t s? A l te red c a te g o ry f o c u s o f p ro d u c t o ffe ri n g t o c a p i ta l i z e o n e x p e c ta ti o n s o f h i g h g rowi n g m o b i l e p h o n e m a rk e t i n t h e U .S .– Di v e s te d m a j o ri ty o f c o n g l o m e ra te (e. g ., fl o o ri n g , p a p e r, r u b b e r, v e n ti l a ti o n )– G rew m o b i l e p h o n e s e g m e n t from 1 6 % o f t o ta l s a l e s i n 1 9 9 1 t o 6 6 % i n 1 9 9 9? In c rea s e d f o c u s o n n e tw o rk s o lu ti o n – i m p o rtan t p a rt o f U .S . m a rk e t– De v e l o p e d i n te l l i g e n t n e two rk s y s te m s i n c o o p e rati o n wi th He wl e t tP a c k a rd– De v e l o p e d A TMba s e d n e tw o rk p rod u c ts i n c o o p e ra ti o n wi th Ci s c o? Ca u g h t d i g i ta l s h i ft e a rl y i n th e p roc e s s b e f o re c o m p e ti to rs (e. g ., M o to rol a )? A g g res s i v e l y l a u n c h e d n e w p r o d u c t l i n e s b a s e d o n i ts p red i c ti o n s o f wi n n i n g te c h n o l o g i e s– In trod u c e d 1 7 n e w p ro d u c ts i n 1 9 9 8– P rod u c e d wo rl d ?s fi rs t GS M p h o n e , fu lly c o m p lia n t wi th wi rel e s s a p p lic a ti o n p roto c o l (Nok ia 7 1 1 0 )– O n l y v e n d o r to a g g res s i v e l y p u s h e v e ry 2 .5 G t e c h n o l o g y , e m e rgi n g c l e a r wi n n e r i n GP RS (E u rop e )– Fi rs t m a n u fa c tu rer t o s i m u l ta n e o u s l y l a u n c h h a n d p o rt a b l e p h o n e s fo r al l m a j o r di g i ta l s y s te m s– Ul tral ig h t No k ia 2 1 0 0 p rod u c t fa m ily c a te red to GS M , P CN, A m e ri c a ?s TDMA a n d J a p a n ?s d ig ita l s y s te mTailor s p r od ucts ? Tai l o red p rod u c t to t a rge t c u s to m e rs– In trod u c e d i n te rc h a n g e a b l e , fa s h i o n a b l e c e l l p h o n e c o v e rs to a ttrac t y o u n g e r s e g m e n tsNokia made big bets as to which technologies would emerge, redirecting resources and pany focus to emphasize these categories. PRODUCT STRATEGY “ The choice of focus is extremely important. We constantly strive to make sure we are focused on targeted markets in which the growth rate is much higher than that of the total market, Nokia?s aim is to grow somewhat faster than the targeted markets do.” – Matti Alahuta, President, Mobile Phones Da te e ff e c ti v e Tar get nam e Tar get bu s ine s s d e s c r ipt ion Ac qu is itio n p r i c e Ca pabilitie s a c qu ir e d/ s tre ng th e d5 /3 1 / 1 9 9 1 Ce n tu ry Te l e E n t p s F LP a g i n gP rovid e b e e p e r c o m m u n i c a t i o ns e rv i c e sN/A A c q u i r e d p a g i n g o p e rati o n s2 /1 5 / 1 9 9 5 G e o W o rk s , In c . De v e l o p s y s te m s s o ftw a re A c q u i r e d a n d 8 .9 5 % stakefo r $7 . 5 m i l l i o n6 /2 8 / 1 9 9 6 S y n c ro M a c h i n e Co . M a n u fa c tu re m e t a l w o rk i n g m a c h i n e ry N/A Tr a n s m i s s i o n te c h n o l o g i e sd e v e l o p m e n t6 /3 /1 9 9 7 Ip s i l o n N e two rk s M a n u fa c tu re n e tw o rk i n g e q u i p m e n t A c q u i r e d u n d i s c l o s e dm i n o rit y s ta k e1 /1 2 / 1 9 8 8 Ip s i l o n N e two rk s M a n u fa c tu re n e tw o rk i n g e q u i p m e n t $ 1 2 0 m i l l i o n A c q u i r e d re m a i n i n g m a j o rit y i n te r e s t。 North and South American markets are half of global mobile phones market 1996 1994 1997 ? CFO of Nokia deployed as Head of . business。 principal products include digital exchanges, transmission systems, and cellular systems, which are sold to PTT, public utilities, new operators, and cable TV panies ? Home, multimedia and other – includes PC and workstation monitors, as well as interactive digital satellite and cable terminals In 1998, Nokia became the world’s largest manufacturer of mobile phones, selling million handsets, and grew sales grew 51 percent from 1998 to 1999. “ Three years ago we decided to create a teleoriented pany. We have been able to implement the changes faster than we expected.” – Jorma Ollila, Financial Times, 09/07/1995 SUBSIDIARY LOCATIONS AND RESEARCH CENTERS NOT EXHAUSTIVE (5) (2) (3)