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1) Overview of Nokia Corporation
In 1967, three Finnish companies merged to form the Nokia Corporation; entering the telecommunications market and establishing a corporate position of innovation; aesthetically-pleasing products and high technology development. During the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the further acquisitions of French, Finnish and German firms operating in consumer electronics operations which provided the basis for the long term acquisition growth strategy (Steinbock, 2001; www.nokia.com)
The cellular industry is tpically divided into two parts: cellular infrastructure and mobile handsets. Nokia has operated in both of these segments but most of its recent success derives from handsets (Steinbock,2001) The company includes four business groups: mobile telephones; multimedia; enterprise solutions and networks. The mobile device business accounts for 80% of Nokia's revenue and 82% of its profit, and despite recent declines, Nokia still controls nearly a third of the global handset market (Schwartz, 2005)
Nokia has production in 11 countries and a global network of distribution, sales, customer service and other operational units (www.nokia.com)
1.1 Current Position
Nokia is ranked as the fifth most valuable brand in the world earning $40 billion in sales within 140 countries. With 55,000 employees worldwide and a focus on a global mindset, innovative corporate culture, R&D and high market segmentation; Nokia has built a strong global market position.
In the past 3-5 years, Nokia has been losing market share to its major handset development ...