NOKIA AND CELLULAR PHONE

INDUSTRY
CASE STUDY PRESENTED BY

SUMITA

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 EVOLUTION OF MOBILE PHONE
INDUSTRY

Presented by Sanjana
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 Mr. Jorma Ollila

 Increase in cellular phone sales

 Increase in profits

 Market share

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 Necessity
 Drawback
 Breakthrough
 Products for wireless communication
- Cellular telephones
- Pagers
- PDA

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COMPONENTS OF CELLULAR PHONE
INDUSTRY

- Production of phones

- Infrastructure

- Operators

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 Nordic region

 Europe

 U.S.A

 Japan

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CHANGE IN TECHNOLOGY
 The first fully automatic first generation
cellular system was the Nordic Mobile
Telephone (NMT) system, simultaneously
launched in 1981 in Denmark Finland,
Norway and Sweden.
 NMT was the first mobile phone network
featuring international roaming.
 The Swedish electrical engineer
started to work on this vision in 1966, and
is considered as the father of the NMT
system and some consider him also the
father of the cellular phone.

Presented by Sonia 7
SECOND GENERATION PHONES

 In 1990s (2G) mobile phone systems

emerged, primarily using the GSM
standard. In 1991 the first GSM
network opened in Finland.

 The second generation introduced a

new variant to communication, as
SMS text messaging became
possible. The first person-to-person
SMS text message was sent in Finland
in 1993.

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 3G GENERATION
 The main technological difference that
distinguishes 3G technology from 2G
technology is the use of packet-
switching rather than circuit-switching
for data transmission.

 The first pre-commercial trial network

with 3G was launched by NTT
DoCoMo in Japan in the Tokyo region
in May 2001, using the WCDMA
technology.

 GPRS were developed as extensions to

existing 2G networks.

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World Wide Mobile Subscribers

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List of countries by no. of
telephone in use
Rank Country Number of % population
mobile phones

1 China 747,380,000 56.0

2 India 563,794,992 47.9

3 United states 276,610,580 89.0

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 VISION
Voice goes mobile……if it can go mobile……it will.

MISSION
Connecting people 12
 EVOLUTION OF NOKIA

NOKIA started in 1965 as a

paper mill on the bank of the
NOKIANVIRTA river in
FINLAND.

The process of NOKIA’S

transformation from staid old
conglomerate into one of the
world’s most relentlessly focused
consumer technology company
was fast.

Presented by Sweta 13
 CONTD………
It was formed in 1966
through a merger of three
companies-pulp & paper,
tiers & cables, and paper
manufacturer.

Started producing analog

infrastructure & cellular
phones for the NMT-450
standards.

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 MARKET SHARES OF NOKIA AND
OTHER CELLULAR PHONE INDUSTRY

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 NOKIA’S CONTRIBUTION TO
INDUSTRY SALES REGION WISE

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NEW TECHNOLOGIES OF NOKIA
1. NOKIA MORPH CONCEPT

 Use of nanotechnology based

flexible materials, transparent
electronics, stretchable and self-
cleaning surfaces.

 Allowing the user to transform their

mobile device into radically different

shapes.

Presented by Sumita Datta

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 CONTD........
2. NOKIA 5800 EXPRESS MUSIC 3. NOKIA 4 G MOBILE

Large and sharp touch screen display Traditional Japanese hand-fan.

Scrollable and touch-enabled
LCD screen.
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CONTD........
4. NOKIA ECO-FRIENDLY 5. NOKIA-7705 TWIST
CONCEPT PHONE

Bio batteries are used Smallest messaging centric device

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 PROBLEMS FACED BY NOKIA HOW NOKIA OVERCOME
INDUSTRY

 Consumers had positive opinion  Formed numerous alliances &

of Sony's cellular phone. agreement with other firms such as
Tandy Corporation in the U.S.(1983).
 Nokia is a Japanese brand-  Nokia’s operations were based on
negative image in the U.S., decentralized structures.
market against an American firm.  No. of potential users of the digital
TDMA standard in the U.S. was
increasing with positive implications
for Nokia’s prospects.
 Fast change in the environment &
technology .

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NOKIA’S MAIN & EXISTING COMPETITORS

1. MOTOROLA

Presented by Swapna 21
Strategy of Motorola

 Focused on gaining market share and set a goal of obtaining more

than 50% of the global market for cellular terminals
 Constant renewal of technology and processes
 Stayed close to four closely coupled sectors
a) communication
b) components
c) computers
d) control
And constantly sought to create bridges between them
 High competence at mass production was core to the strategy at
Motorola
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 Contd…………
 Quality program called SIX SIGMA had been introduced and aimed
at only three to four mistakes per million process
 Wide distribution network covering most of the world. Its phones
were sold through:
a) Operators
b) Mass merchants
c) Specialty retailers
d) Direct sales
 Motorola lacked experience in consumer marketing and focused
mainly on production and market shares
 Motorola opted for a policy of decentralization

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Contd………

 Organizational boundaries were broken down, and cooperation

between personnel and management was promoted

 Result was an atmosphere of informality, where people

contacted each other across the former boundaries, creating
flexibility and a better flow of information

 This resulted in an increase in productivity (sales per employee)

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HOW MOTOROLA LEADS NOKIA
 Motorola leads Nokia in sales of phones based on CDMA, the
dominant wireless phone network standard in the U.S.
market, though Nokia has recently been more active on the
CDMA front.
 Motorola also has a stronger presence in China compared
with Nokia, and China's wireless market is growing fast. One
estimate by that country's Ministry of Information says there
are only 250 million wireless handsets in use among a
population of more than 1.3 billion. That makes China the
world's largest wireless market, and it is where Motorola did
19% of its sales in 2002 compared with Nokia's 9%.

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 2. L.M.ERICSSON

Presented by Sahil Sodhi 27

 3. JAPANESE COMPETITORS

Presented by Rizwana Khan 28

 About Japanese Mobile
Market
Japan had about 20 companies selling cellular phones in
1991.

The Japanese were trying to establish themselves in

the fast growing cellular phone market.

The Japanese home market was large, providing

potential for high volume.

 The Japanese generally had competence in large scale,

low priced, high quality production, and comprehensive
distribution network all over the world.

 By 1994, Matsushita had not yet launched a globally

competitive cellular terminal for the digital system.
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 1. Hitachi Models

Hitachi 3D Hitachi woo New Hitachi phone

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 2. CASIO MODELS

Rough riding Casio Casio W21CA Casio exilim

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 3.NEC MODELS

NEC mobile NEC phone docomo

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• Nokia’s €110 cheapest G.P.S.
enabled phone to be launched.
• Google's free turn-by-turn
navigation

Presented by Rashmi Pareta

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SMARTPHONES FOR MORE PEOPLE
•Smartphones will become accessible to more people around the
world.

•At the same time, Nokia will continue making it easier for the next
billion people to experience the Internet for the first time using
beautiful, affordable feature phones, not a PC. New mobile services –
such as Nokia Money, Nokia Life Tools and Ovi Mail – will provide
raw access to information and services where brick-and-mortar
infrastructures don’t exist.

•Mobile technology will become more intuitive, personal, and relevant

through services that triangulate your “social location.”

•One size doesn’t fit all: A broad portfolio of devices and services,
and an open ecosystem, are necessary to target distinct consumer
needs and price points.
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EXPECTATIONS
Speed
•This time it’s all about the working over the 3G or 4G networks.
•Ericsson plans to introduce a new HSPA network which is enabling a
transfer speed of 84Mbps

Industry – Connectivity, Mobile Payments and

Standards
•Samsung is working over its own operating system to be released on the
first half of the 2010. It’s simply crazy- as if this tendency will continue to
spread soon we’ll a list of confusing operating systems and a long list of
various smartphones.
•Google is planning to bring out a free navigation service.
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• A mobile phone sends and receives information (voice messages, fax,
computer data, etc) by radio communication.

• Radio frequency signals are transmitted from the phone to the nearest
base station and incoming signals (carrying the speech from the person
to whom the phone user is listening) are sent from the base station to the
phone at a slightly different frequency.

• Base stations link mobile phones to the rest of the mobile and fixed phone
network.

• Once the signal reaches a base station it can be transmitted to the main
telephone network, either by telephone cables or by higher frequency
radio links between an antenna (e.g. dish) at the base station and another
at a terminal connected to the main telephone network.
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Presented by Shatakshi Gupta
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 Frequently Asked Questions
 Why are so many base stations required?

 Transmitted signal strength falls off rapidly with distance from base stations,
and mobile phones require a certain minimum signal strength to ensure
adequate reception.

 The decline of signal strength with distance places a practical limit on

coverage of around 10 km.

 Why can't one base station serve my town?

 Radio spectrum is a precious natural resource with many different demands

upon it.

 Consequently, the amount made available to each mobile phone operator is

limited and this means base stations can only carry a limited number of calls
at any one time.
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