Premium Essay

The Rise of Finland's Nokia

In: Business and Management

Submitted By tinacaymo
Words 2665
Pages 11
The Rise of Finland’s Nokia
Case Study No. 4
By: Maria Cristina C. Caymo, PhD-M Student


The case deals with the rise of the Nokia Corporation, from the relatively small country Finland, to global leader in the mobile phone market. The original Nokia Company was founded in 1865 to produce paper from wood pulp. In 1967, three companies, Nokia, Finnish Rubber Works and Finnish Cable Works in Finland merged to form the Nokia Corporation. The new company operated in many sectors and produced a wide range of products including paper, tyres, Wellington boots, cables, televisions, computers, electrical generators, and chemicals. The case study focuses on how did this company became the world’s largest manufacturer of mobile phones with nearly 40% of global market share.

The case study also attributes this achievement on how trade and investment patterns and Finnish and global policies promoting market openness and free trade have affected the innovation process in Finland’s (mobile) telecom equipment industry. The study illustrates how regulatory, trade and investment policy choices have helped – alongside other key policies – provide the right framework conditions for innovation in this country of 5.2 million people. In addition, it examines how the private sector, and more particularly Nokia, has taken advantage of those conditions to enhance its innovation capacity.


In the 1980s, Nordic nations cooperated to move out of an investment-driven economy into an innovation- driven one. Such was their proactive effort in response to the following emerging issues faced by their economy:

a) Slowdown of global telecommunication.

b) Overall growth rates were also on the way out with the major export markets weakening.

c) The telecommunication cluster was at its peak and was also...

Similar Documents

Premium Essay

Finland and Nokia

...Finland and Nokia Executive Summary Finland had transformed itself from a sleepy economy to a highly competitive one with maximum contribution from the telecommunications sector. Focused efforts in R&D and education helped Finland achieve this position with Nokia being a major player. While Finland maintained its ranking as a leading competitive nation in 2001, it was facing challenges. The overall growth rates were declining and the telecommunications cluster was experiencing a severe downturn. Nokia’s revenue and profits were falling and considering the fact that Nokia and the telecommunication sector played a large role in Finland’s economy, there were concerns about the level of exposure to a single cluster and company. Also, Finland was facing shortages of experienced engineers and scientists. Universities were offering programs tailored for foreign students in order to attract people to Finland. However, unemployment was increasing among the young and less skilled. Nokia was facing a challenge in evolution of standards and innovation. New standards were being developed in mobile internet services as well as software and hardware for phones and infrastructure. Smart mobile phones with multimedia messaging, internet connections and downloads from websites were being around the corner. We feel that Nokia has the options of outsourcing production to India and China to achieve reduced costs, higher production and improved benefits. They should consider......

Words: 2422 - Pages: 10

Premium Essay

Nokia Strategy

...Nokia has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Nokia personality is like a trusted friend. Building friendship and trust is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand. Nokia Positioning When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is "Only Nokia Human Technolgy enables you to get more out of life" In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the company, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors......

Words: 7169 - Pages: 29

Premium Essay

Business Ethics

...Nokia rises to the challenge of the changing mobile phones market. Finland’s best known company has long been a global leader in the mobile phones market. Perhaps improbably, from its beginnings as a paper mill in 1865, this nowvenerable company whose culture and management remain rooted in Finnish values, has become one of the most resilient, globalized MNEs in an era dominated by globalization of markets. Indeed, the company attributes its staying power in markets largely to Finnish values of courage and tenacity. But it will take more than perseverance to maintain market leadership in today’s mobile phone markets. Stagnation in the handset market generally, in which Nokia has long been dominant, has presented a mammoth challenge, and it has encountered stiff challenges in the smartphone market, which is the only subsector that saw healthy growth in 2009. In smartphones, Nokia has fallen behind in technology, its Symbian operating system now showing its age. However, the fight-back has long been a Nokia speciality. In the 1990s, it was caught unprepared as new ‘clamshell’ handsets were launched by rivals, but soon recovered market leadership with new products. Its ability to respond rested in large part on its ability to exploit economies of scale and its efficient supply chains, which can produce 1.2 million handsets a day. Its production has shifted to lowcost locations, but it has excelled in the planning and logistics necessary to maintain efficient operations. Its......

Words: 612 - Pages: 3

Premium Essay


...Nokia Company Company’s history: The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable. After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day. Toward the end......

Words: 12463 - Pages: 50

Free Essay

Finland Pestle

...UNIVERSITY OF MUMBAI PROJECT ON ‘PESTLE AND DEMOGRAPHIC ANALYSIS OF FINLAND’ MASTER OF COMMERCE (BUSINESS MANAGEMENT) SUBJECT: INTERNATIONAL MARKETING SEMESTER III 2013-14 In Partial Fulfilment of the Requirement under Semester Based Credit And Grading System for Post Graduates (PG) Program me under Faculty of Commerce SUBMITTED BY RAJESHREE N. PATEL ROLL NO: 41 PROJECT GUIDE Ms. Shradha Jain K.P.B. Hinduja Collage Of Commerce, 315 New Charni Road, Mumbai 400004. M.COM (BUSINESS MANEGEMENT) III rd SEMESTER ‘PESTLE AND DEMOGRAPHIC ANALYSIS OF FINLAND’ SUBMITTED BY RAJESHREE N. PATEL ROLL NO: 41 CERTIFICATE This is to certify that Ms. Rajeshree Patel of M. Com. Business Management Semester 3rd [2013-2014] has successfully completed the project on ‘PESTLE AND DEMOGRAPHIC ANALYSIS OF FINLAND’ |Project Guide |________________________________ | |Course Coordinator |________________________________ | |Internal Examiner |________________________________ | |External Examiner |________________________________ | |Principal ...

Words: 6519 - Pages: 27

Premium Essay


...Index a) Nokia Corporation 1. Introduction 2. History i) Pre telecommunication Era 1) Industrial conglomerate ii) Telecommunications era 1) Networking equipment 2) First mobile phones 3) Involvement in GSM 3. Acquisitions 4. Logos b) Global Market Captured/Targeted By Nokia Corporation c) Peru i) Quick Facts ii) General Overview iii) Economy iv) Challenges v) Economic Indicators d) Entry Strategy For Nokia Corporation to Enter in Peru i) Political factors ii) Social Factors iii) Economical factors iv) Technological Factors v) Environmental Factors vi) Legal factors Nokia Corporation Introduction Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is the world's largest manufacturer of mobile telephones: its global device market share was about 33% in Q2 2010, down from 35% in Q2 2009 and unchanged from Q1 2010. Nokia's converged device market share was about 41%......

Words: 8281 - Pages: 34

Premium Essay


...Submission : September 13, 2005 Case: Finland and Nokia Assignment: 1. How was Finland able to move from a sleepy economy to one of the most competitive nations in the world by the end of the 1990s? 2. How was Finland able to become a world-leading nation in mobile communications? Why did this cluster emerge rather than others? 3. Why did Nokia become the world leader in mobile handsets? 4. What are the critical challenges for the Finnish government in 2001? For participants in the Finnish mobile communications cluster? For Nokia? 5. Given telecom downturn, what should the government do next? What should the private sector do? Answers: 1. Competitiveness of the nation does not lie on the government but rather depends on the capacity of its industry to innovate and upgrade (Porter, 1998). It is believed with innovation and upgrade industry as aggregate of companies would lead to increasing level of productivity. Porter emphasizes the importance of productivity as the prime determinant of a nation’s long-term standard of living. In most situations, industry will need government involvement to play its roles as facilitator (Musgrave, 1989) or through making public policy (Grindle & Thomas, 1991). However, the less the government gets involved in the economy, the better it is for the economy (Yoshihara, 2000). Within these controversial ideas on how the government should take roles in economic development, Finland’s government implemented various policies,......

Words: 1436 - Pages: 6

Premium Essay

Meh Business Management

...Gains from Trade Qualifications and Assumptions Extensions of the Ricardian Model Country Focus: Moving U.S. White Collar Jobs Offshore HECKSCHER-OHLIN THEORY The Leontief Paradox THE PRODUCT LIFE CYCLE THEORY Evaluating the Product Life Cycle Theory NEW TRADE THEORY Increasing Product Variety and Reducing Costs Economies of Scale, First Mover Advantages and the Pattern of Trade Implications of New Trade Theory NATIONAL COMPETITIVE ADVANTAGE: PORTER’S DIAMOND Factor Endowments Demand Conditions Related and Supporting Industries Firm Strategy, Structure, Rivalry Evaluating Porter’s Theory Management Focus: The Rise of Finland’s Nokia FOCUS ON MANAGERIAL IMPLICATIONS Location First-Mover Advantages Government Policy SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Trade in Information Technology and U.S. Economic Growth Learning Objectives 1. Understand why nations trade with each other. 2. Be familiar with the different theories explaining trade flows between nations. 3. Understand why many economists believe that unrestricted free trade between nations will raise the economic welfare of all countries that participate in a free trade system. 4. Be familiar with the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in......

Words: 8280 - Pages: 34

Premium Essay

Rise and Fall of Nokia

...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through......

Words: 6204 - Pages: 25

Premium Essay


...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and developed......

Words: 7002 - Pages: 29

Premium Essay

Nokia Emerging Market

...MABUD Emerging Nokia? It was December of 2009 and D. Shivakumar, the Managing Director of Nokia India was catching up over coffee with Colin Giles, his counterpart in the China office, and Chris Braam, who was in charge of operations in the Middle East and Africa. The gathering was somewhat celebratory in nature: Giles had recently been promoted to global head of sales. Before Giles left his Greater China market role, his colleagues wanted to get his thoughts on Nokia’s future in the region. The three men had no doubt that Nokia’s strategy in emerging markets had been successful: Nokia was the market leader in India and China, with market shares of 60% and 40%, respectively.1 The company also had made inroads into Africa and South America. However, Nokia had lost ground in the developed world: the company only sold one in 10 handsets in the U.S. (compared to one in three in 2002),2 and it had recently pulled out of Japan after 20 years of operations. Nokia’s revenues in Europe declined by 15% in the fourth quarter of 2009.3 However, Nokia was famous for its ability to reinvent itself. From its beginnings as a paper mill turned rubber manufacturer turned electronics company, and finally, as the world’s largest producer of mobile phones, Nokia possessed an unmatched ability to face obstacles head on and come out on top. Said former CEO Jorma Ollila, “Finns live in a cold climate. We have to be adaptable to survive."4 But what now? Should Nokia stay the......

Words: 10400 - Pages: 42

Premium Essay

International Business Midterm Notes

...Chapter 1 The Globalization of Starbucks -company focused on selling a “thirdplace” experience, rather than just coffee -first target outside US was Japan and the company established a joint venture with a local retailer -Starbucks format was then licensed to the venture which then took over responsibility for growing the Starbucks presence in Japan -Starbucks transferred employees to the Japanese operation -all employees went to training classes -stores had to adhere to design parameters established in US -took its success here and went to other foreign markets -purchases mainly Fair Trade Certified coffee to promote environmental responsibility -Starbucks has shown that glo Globalization (shift towards a more integrated and interdependent world economy): +: Expand revenue by selling around the world and reduce costs by producing in nations where lower input costs -: increases competition and drives price down Globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace Most global markets are markets for industrial goods and materials that serve a universal need the world over such as market for commodities (aluminum, oil, and wheat), industrial products (commercial jet aircraft), computer software, and financial asses Firms follow eachother around the world so greater uniformity replaces diversity Globalization of production: sourcing of goods and services from locations......

Words: 6619 - Pages: 27

Free Essay


...CHAPTER 1 INTRODUCTION 1.1 Brief History Samsung Electronics Co., Ltd.  is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and has been the world's largest information technology company by revenues since 2009. Samsung Electronics has assembly plants and sales networks in 88 countries and employs around 370,000 people. Samsung has previously been known for its position as a manufacturer of components such as lithium-ion batteries, semiconductors, chips, flash memory and hard drive devices for clients such as Apple, Sony, HTC and Nokia. In recent years, Samsung Electronics has expanded upon its manufacturing roots and diversified into consumer markets leading to an ever increasing portfolio of products and revenue stream. Fig. 1.1: Samsung Logo Samsung Electronics currently stands as one of the world's largest vendors in the mobile phone and smart phone markets fueled by the popularity of its Samsung Galaxy line of devices. The company is also one of the largest vendors in the tablet computer market thanks to its Android-powered Samsung Galaxy Tab collection and is generally regarded as pioneering the phablet market through the Samsung Galaxy Note family of devices. Samsung has been the world's largest maker of LCD panels since 2002, the world's largest television manufacturer since 2006, and world's largest manufacturer of mobile phones since 2011. Samsung...

Words: 6472 - Pages: 26

Free Essay

Information Systems

...Implementation of the Human Resource Development Strategy for South Africa ANDREW WILLIE BARTLETT 21936048 Mini-dissertation submitted in partial fulfilment of the requirements for the Master’s degree in Development and Management at the Potchefstroom campus of the NorthWest University SUPERVISOR: MS LUNI VERMEULEN 2011 i ACKNOWLEDGEMENTS I wish to hereby express my sincere gratitude and appreciation towards the following persons for their support and assistance throughout this study:  My Heavenly Father who blessed me with the opportunity, ability and strength to try to make a difference through this study.  My wife, Elaine, without whose support, encouragement and assistance this study would not have been possible.  My children, Elandre and Jade, for their support and understanding; may this achievement motivate you in your studies and development.  My personal mentor and supervisor, Ms Luni Vermeulen, for her highly professional guidance, motivation, continuous support and patience.  To all the respondents at the various institutions for their participation and valuable contributions. Thank you very much for your selfless assistance. ii ABSTRACT In 2001 the first Human Resource Development Strategy of South Africa (HRDSA) was implemented. The lack of institutional arrangements, structures, procedures, processes and capacity and the location of the HRDSA, 2001, at both the then Departments......

Words: 38361 - Pages: 154

Premium Essay


...Spring 2007 New Experiences, Emerging Consumer Issues This Update explores the emerging field of mobile commerce, generally defined as business-to-consumer commercial activities conducted via a mobile device. Technological developments within the wireless industry are giving rise to healthy growth forecasts for the mobile sub-set of electronic commerce. This paper describes the main types of mobile commerce applications available to Canadian consumers. Consumer protection issues and a number of policy initiatives are also discussed, in light of experiences of earlyadopting countries. Monitoring the consumer issues raised by mobile commerce will assuredly be required as technological developments and consumer uptake further evolve. Mobile Commerce: Winter 2010 The Consumer Trends Update is published by the Office of Consumer Affairs, Industry Canada. It provides brief reports on research or policy developments related to themes explored in the 2005 Consumer Trends Report, which is available at: The recent boom in mobile devices, in terms of both the scope and nature of usage, is heightening the potential for mobile commerce. A majority of Canadians today have access to a mobile phone 1; in fact, some have access to more than one, and a growing number even rely exclusively on wireless The pace of technological adoption: telephony. 2 Recent models integrate voice the U.S. payments example communications with various non-voice......

Words: 12997 - Pages: 52