Nokia- Connecting People Essay

2787 Words Feb 20th, 2015 12 Pages
Nokia - connecting people. Introduction
In 1963 Nokia starts its journey in the field of telecommunications with developing radio telephones for the army and emergency services. Since then, Nokia came a long way with launching the world’s first international cellular network and the first to allow international roaming in 1981. Nokia introducing the first car phone in 1982 and in 1991, Harri Holkeri- the Finish prime minister by then, makes the world’s first GSM phone call with Nokia handset. The strategic decision to invest in telecommunication has paid off and by 1998 Nokia is the world’s number one in mobile phones. Between 1996 and 2001, Nokia’s turnover increases almost fivefold from 6.5 billion Euro to 31 billion Euro.
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Nokia’s competitive strategy was oriented toward the quality of the products. To reach its target market, the company followed the Product concept – “the consumers favor products offering the most quality, performance, or innovative features.” (Keller and Kotler, 2012, p.9). Nokia’s products were one of the best in their categories, and their prices were higher than competitor’s. In order to maintain its market share and keeps its customers in 1991 Nokia decides to expand its Research and Development programs, and global marketing. That move prepared the company for the cellular boom that hit the world market. The development of global strategies offered Nokia the ability to respond and meet customer’s needs quickly as they developed, with the added benefits of cost reduction, improved quality and competitive leverage. In 1995 the company started to open new manufactories in China, following by others in Mexico – 1996, Brazil-1998, Hungary- 1999 and India in 2006. The company is trying to keep each of these facilities as sustainable as possible. “This means minimizing any negative environmental and social impact the facility may have - for example, by reducing its energy consumption

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