Nokia has made a remarkable trans­ formation over the past two decades from an obscure Finnish conglom­

features and applications. This consumer base is so criti­ cal to Nokia’s growth that it has created a business dM­ sion focused entirelyoncreating software and services for it, including music, video, games, maps,messaging, and media. Today, Nokia’s products range from $30 basic models to $600 smart phones that include video editing, voice-guided navigation, and thousands of applications. Nokia’s future also lies in its growing line of mobile computers,devices with the advanced capabilities of a computer that fitinto the palm of your hand.

• viewing Apple,Sony, and canon as threats as much as tra­

erate  to  a  cell

phone    power­

Nokiatakes abroad perspective on competition as well,

house. Now the

ditional

rivals

Motorola and Samsung. Competitors’ prod­

world’s largest manufacturer of mobile          tele­ phones, it has over  1 billion users  and  a global market share  of  33

percent  in  2010.

ucts ll<e the iPhone, 81ack8erry, and Android smart phones haveallgained si”1ificant market share. Although84percent of itssales consist of cell phones,Nokia is focused on mak­ ing itssmart phones durable,reliable,and affordable tocon­ sumersinernErging markets,asit didwith cellphones.

As a global leader,Nokia understands how criticalit is to have afinger on the pulse of countries and cultures all over the world.With 16 different R&D factories, manufao­ turing plants in 10 countries, Web sites in 7 countries, and

The company sells approximately 11 cell phones fN0rY second and is the standout leader in Asia, Eastern Europe,and Africa.

Nokia’s transformationstarted in the early 1990s with its strategic decisionto divest its product portfolio and fo­ cus entirely on telecommunications. Business soon ex­ ploded, in part due  to Nokia’s mastery in innovating telecommunicationstechnologies.Nokiawas akey devel­ oper of new mobiletechnologies like GSM (Global System for Mobile Communications) that allow consumers to roam internationally and use new data services like text messaging. Although the firm has struggled in North America-in part because many networks there use a different wireless standard  (CDMA) than  in Europe

{GSM)-its globalfootprint is still impressive.

Nokia’s sucoess also derives from its broad strategic view of how to build a global brand andinternational con­ sumer base.The company sells awide range of products and services in all price ranges to different types of con­ sumers allover theworld. Inshort, itsapproach is •A11 price points,allmarkets.” Nokia has a practical understanding of what consumers need, value, and can afford depending on their geographical location and demographics. By provid­

650,000 points-of-sale-the widest distribution network in the world-Nokia strives to be a global leader but lo­ cally relevant. It forms relationships with local business partners, gets involved in the community,and works to earn consumers’ trust ona local level.

In India,for example, the company has increased its local involvement by including in the Nokia Music Store a significant percentage of songs by local and regional artists,adding thousands of localcustomer care services, and supporting a local environmental initiative cal ed

• Planet Ke Rakwale” that encourages consumers to recy­ cle their old phones and batteries.Nokia even added the tagline, •Made in India for India.»

Today, with a value of nearly $35 billion, Nokia is the fifth most valuable global brand in the lnterbrand/ BusinessWeek ranking,surpassing Google. Samsung, Apple,and BlackBerry.The brand continues to rank well in consumers’ minds as high quality,robust, easy to use, and trustworthy-aperfect combination for succeeding in both emerging and mature countries.

ing the right products,features,and price, the firm has suc-       .

cessfully built long-term brand value all over the world.

With the bulk of industry growth coming from devel­  oping markets,Nokia has made sure its cheapest hand-                                                  3·

sets are appealing-and profitable-in markets such as

China,India, and Latin America.On the flip side,to sus­ tain its market leadership and compete in challenging markets like Europe and the United States, it has launched a range of high-end handsets with advanced

1. What have been the keys to Nokia’s global strength?
2. What can Nokia do to gain market share in the United States and Europewhere its presence is not as strong?
3. In the ever-changing world of mobile technology,what are the greatest threats to Nokia’s global presence?