【正文】 (1) (3) (14) (3) (1) (4) (1) (17) (2) (3) (1) (5) (1) (2) (1) (5) (6) (3) (1) (3) (4) (2) (2) (2) (2) (2) (1) (2) (2) (2) (6) (1) (2) (3) (3) (1) (1) (1) (9) (7) (2) (2) (1) (1) (1) (1) (1) (1) (2) (1) (1) (1) (1) (1) (6) (7) (3) (2) Research Nokia covers an expansive geography. CONTENTS ? Company overview ? . market entry strategy ? Products ? Capabilities ? Organization STORYLINE ? At the beginning of the 1980?s Nokia was still a diversified pany, relying predominantly on Europe (particularly Scandinavia) to drive sales ? However, the pany realized that significant growth would be dependent on building a major presence in the . market, in high return segments ? To do so they acquired Mobira (Finland) in 1981 to gain a foothold in the rapidly emerging mobile phone sector. They rapidly grew this opportunity in the . through a series of OEM relationships (GTE, Delco, Southwestern Bell, Bell Atlantic) and a joint venture with Tandy Corporation in 1983 ? Nokia launched their own brand mobile phone in 1986 and pursued aggressive branding and alliance strategies (., Rooftop Communications, Compaq, ATamp。 ck EV P, Co r p o r a t e Re lat io n s a n d T r a d ePo li cy , Nokia Corp.Finn ishAn ssi Va n joki EV P, Eu r o p e amp。 Preside n t, Nokia C o r p . amp。 getting the right focus is the tough part.” – Jorma Ollila, CEO “The CEO has to understand the dynamics of each business the pany is in。 expands Nokia in Scandinavia and Europe ? Sells switching systems under license from allocated (French) ? Helps design world?s first international cellular system in the 1970s 1980s ? Acquires nearly 20 electronics panies over the decade and pletes key mergers – Acquires Mobira (Finnish mobile phone pany) in 1981, to gain foothold in growing mobile phone segment – Merges Salora (largest TV manufacturer in Scandinavia) and Luxor (Swedishstate owned electronics and puter firm) in 1984 ? Through the ?80s, manufactures OEM equipment for Hitachi。 obstacle to hiring top . talent ? Strong emphasis on corporate values and culture with “The Nokia Way” – teamwork, innovation, production。P Samp。D spend and react faster to changing technologies than its petitors。 Company during an oral presentation。 Company. This material was used by McKinsey amp。 Finnish managers used to manage . operations ? Succeeds in attracting top engineers because of attractive products ? Local managers have limited autonomy and accountability exists at the unit level, but head office retains final input ? Difficulty translating “The Nokia Way” to . (“The culture doesn?t have the same richness or value as it does in Europe”) ? Devotes sufficient resources to local anization to win in market (., provided resources for . to win in mobile phone segment) ? Outsources noncore technologies (., microprocessors from Intel, ponents form Motorola) and uses standard ponents to save on Ramp。T wireless services,Tandy) ? Develops and launches innovative marketing campaigns (., first to target consumers rather than professionals) ? Successfully allies and acquires to gain capabilities (., joint venture with Tandy for distribution, acquisition of Mobira to enter promising mobile phone area) High Low ? Encourages sharing of best practices but has not been very successful at doing so to date NOKIA 542513682119Key facts ? Largest 1 3 year revenues growth of petitors ? Largest mobile phone manufacturer and second largest provider worldwide (behind Ericsson) Products ? Mobile phones ? GSM/DSC works Competitors ? Ericsson ? Motorola Timeline 1865 1990s ? Developed into conglomerate (flooring, TV, footwear, etc.) until refocusing on high growth mobile phone segment in late 1980s and 1990s Divests noncore businesses 1995 1999 Americas ROW EUR Revenues $ Billions Stock appreciation (199899) 521622Nokia Samp。D to grow development capabilities (HP, Cisco, Geoworks) Organization ? Autonomy provided to senior leadership in local subsidiaries ? Top management is all Finnish。 in . 10,500 ? CEO: Jorma Ollila (Finnish) ? Most senior managers for .: –KariPeleka Wilska, President of Americas –Rich Geruson, Head of USA Sales and Marketing for Nokia Mobile Phones ? Key divisions: Mobile Phones, Nokia Networks, Communications Products ? Market cap: $ billion (as of October 27,2022) ? Key industry of focus: Mobile phones (65% of 1999 total sales) –Number 1 mobile phone maker globally –Number 2 GSM/DCS mobile phone works provider globally ? Competitors: Motorola, Ericsson COMPANY EVOLUTION Source: International Directory of Company Histories 1800s ? Founded 1865 in Finland as pulp and paper manufacturer ? Constructs own power plants as industry bees energy intensive 1960s ? Merges with Finnish Rubber Works and Finnish Cable Works in 1966 as part of diversification plan ? Begins to design and manufacture data processing, industrial automation, and munications systems ? Nokia conglomerate consists of integrated cable operations, electronics, tires, and rubber footwear ? Makes first public share offering in 1966 1970s ? Oil crisis in 1973 reduces reliance on exports (timber products and machinery) to Soviet Union (12% of sales) ? Kari Kairamo, appointed CEO in 1975, realizes that for Nokia to grow it has to expand abroad。 the longterm success of our pany requires constant agility in positioning ourselves in this dynamic industry.” – Jorma Ollila, CEO “To identify what is required in the long term you need the petencies and the products。D alliances for product development in wireless data transmission and terminal technology