【正文】 ? Increase sales of fixed and cellular work to public tele operators ? Win private tele operators as new customers ? Launch first wireless products (., Nokia 9000 Communicator, a portable with phone, fax, , Inter access all in one) Markets ? Further perate Scandinavia, parts of Western Europe ? Improve positioning in Asia/Pacific, US, other EUcountries through stronger distribution work ? Prepare for full deregulation of tele industry and entry into remaining markets Time Horizon 1 Drive core growth Horizon 2 Build momentum of emerging growth engines Horizon 3 Secure future options Source: McKinsey analysis Name Ro le National it yJorm a Olli la Cha ir m a n a n d CEO , Nokia Cor p . Finn ishPe kka Ala Pie til228。 Ne vv o EV P a n d C T O , Mob il e P h o n e s Finn ishVe li Su n d b 228。P 500 Nokia NOKIA STOCK PRICE COMPARISON $ Thousands Source: Data stream Value 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Nokia clearly outperforms the market and its petition. 13 1618 212562 595854682121232219AsiaPacific Europe 1995 1996 1997 1998 1999 NOKIA SALES BY REGION Euro Millions Nokia’s sales in North America have grown dramatically in the late 90’s with a CAGR of 58 percent, while European contribution to sales has diminished steadily shrinking. North America 6,191 6,613 8,849 13,326 19,772 CAGR Percent 34 37 26 58 Source: Annual reports 100% = 7426ROW Finland (676) 1991 100% = EURO 2,600 982ROW 1999 100% = EURO 19,772 Finland (395) Nokia’s sales in Finland have fallen dramatically as a percentage of total sales. Source: Annual reports Euro Millions NOKIA’S FINLAND SALES COMPARED TO REST OF WORLD NOKIA’S INDUSTRY FOCUS AND PRODUCT MIX Euro Millions Source: Annual reports Sales by product 333016129Consumer electronics Cables and machinery Mobile products Telemunications 1991 100% = EURO 2,600 Basic industries 66295Network solutions Mobile products 1999 100% = EURO 19,772 Home, multimedia, and other Nokia’s products ? Mobile products – full range of digital and analog cellular phones, widearea pagers, as well as accessories and ponents for mobile phones ? Network solutions – telemunication systems and equipment for both fixed and mobile works。 JV includes joint ownership of factories 1992 ? Nokia and Tandy Corp. open a mobile phone factory in Texas。 continues selling through Tandy retail formats ? Deemphasizes consumer electronics business 1995 ? New distribution facility opened in Fort Worth, TX ? Granted license to American Portable Tele (private cellular work operator) for PCS 1,900 MHz product 1996 ? Signs significant contracts with ATamp。p l a t fo rm t o b u i l d s e c u re IT s o l u ti o n s8 /2 9 / 2 0 0 0 Di s c o v e ry Co m P rovid e b ro a d b a n d / n e tw o rk s e rv i c e s $ 2 2 0 m i l l i o n B roa d b a n d D S L t e c h n o l o g ya n d s e rv i c e sNokia’s acquisitions in the . were primarily to broaden its product capabilities. PRODUCT ACQUISITIONS Source: Securities Data Corporation and press clippings CONTENTS ? Company overview ? . market entry strategy ? Products ? Capabilities ? Organization ? Developed, launched and ran innovative consumer goods marketing campaigns unlike their petitors who were running professional focused campaigns –Established brand name in the . through clever consumer segment targeting (., extensive ads on MTV to reach younger segments) Marketing ? Developed relationships with retailers and distributors to broaden and deepen market peration –JV with Tandy Corporation to sell through Radio Shack –OEM manufacturing for GTE, Delco, Southwestern Bell, Bell Atlantic mobile systems and others –Distribution agreement with Sears –Distribution contracts with ATamp。D strategy provides petitive advantage to Nokia who can react faster to changing technologies than any petitor –Use of standard ponents to enable outsourcing of noncore technologies (., micro processors from Intel, ponents from Motorola, semiconductors from ATamp。 press releases。T Wi r e less Se r vic e s, f o rNokiabran d e d mo b il e p h o n e s? Di stri b u tio n a g r e e me n t wi th r e ta il g ia n t, Se a r s? OE M man u f a ctu r in g f o r c o mpa n ies inclu d ing G TE, De lc o ,So u t h weste r n B e ll , Be ll A tla n tic mo b il e syste msNokia 6100 Series phone Nokia kept its advertising consumer friendly and easy to follow, in contrast to their petitors who targeted professionals NOKIA COMMUNICATION STRATEGY ? Since the early niies Nokia?s value proposition to the consumer has been singleminded on ?simplicity? and ?ease? of using mobile phones ? The proposition of ?simplicity? is further enhanced by the tone of voice and visuals used in the munication ? The proposition has been municated through all their munication efforts both in mass media and at pointofsale Source: Press articles。D, but still achieves a high return on its Ramp。D programs concentrating resources on future growth areas。D ACTIVITIES “We do not aim to do everything by ourselves。D partnerships. For example, at the beginning of 1994, Nokia signed an agreement with HewlettPackard to cooperate in the development of Intelligent Network systems for telemunications operators. The agreement centers around the integration and development of key IN architecture elements. Source: Press clippings。 ., routers, LAN, and ATM switches Nokia ? Experience in tele operator business ? Expertise in voice transmission infra structure and work management “This cooperation answers the need for faster building of new petencies, faster Ram