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About The Company:

Nokia Corporation is a Finnish multinational communications corporation that is headquartered

in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the
manufacturing of mobile devices and in converging Internet and communications industries, with
over 132,000 employees in 120 countries, sales in more than 150 countries and global annual
revenue of over 42 billion and operating profit of 2 billion as of 2010. It is the world's largest
manufacturer of mobile phones, its global device market share was 31% in the fourth quarter of
2010, up from an estimated 30% in third quarter of 2010 but down from an estimated 35% in the
fourth quarter of 2009. Nokia's estimated share of the converged mobile device market was 31%
in the fourth quarter, compared with 38% in the third quarter 2010. Nokia produces mobile
devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA
(UMTS). Nokia offers Internet services such as applications, games, music, maps, media and
messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces
telecommunications network equipment, solutions and services. Nokia is also engaged in
providing free digital map information and navigation services through its wholly owned
subsidiary Navteq. Nokia also has greater dependency on England based company duo namely
Symbian Corporation for its mobile operating systems and OVI for its mobile-based application
software development and distribution, which has made Nokia as highest-selling mobile-phone
vendor within the past few years.

Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2010, Nokia had R&D presence in 16 countries and
employed 35,870 people in research and development, representing approximately 27% of the
group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.
Besides its research centers, in 2001 Nokia founded (and owns) NIT Nokia Institute of
Technology, a R&D institute located in Brazil. Nokia operates a total of 9 manufacturing
facilities located at Salo, Fin

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 Companys Profile

Nokia Corporation manufactures mobile devices principally based on global

system for mobile communications, code division multiple access (CDMA), and
wideband CDMA (WCDMA) technologies. The company operates in three
divisions: Multimedia, Enterprise Solutions, and Networks. The Multimedia
division focuses on bringing connected mobile multimedia to consumers in the
form of advanced mobile devices, including 3G WCDMA mobile devices and
solutions. The Enterprise Solutions division enables businesses and institutions
extend their use of mobility from mobile devices for voice and basic data to
secure mobile access, content, and applications. Its solutions include business-
optimized mobile devices for end users, a portfolio of Internet portfolio
network perimeter security gateways, and mobile connectivity offerings. The
Networks division provides network infrastructure, communications, and
networks service platforms and professional services to operators and service
providers. Nokia connects people to each other and the information that

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matters to them with mobile devices and solutions for voice, data, imaging,
games, multimedia, and business applications. The company also provides
equipment, solutions, and services for its operator and enterprise customers. It
sells its mobile devices primarily to operators, distributors, independent
retailers, and enterprise customers worldwide. Nokia Corporation is based in
Espoo, Finland.

Introduction:

Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper

manufacturing company. In 1920, Finnish Rubber Works became a part of the
company, and later on in 1922, Finnish Cable Works joined them. All the three
companies were merged in 1967 to form the Nokia Group.

In the late 1970s, Nokia started taking an active interest in the power and
electronics businesses and by 1987, consumer electronics became Nokia's major
business. Nokia created the NMT mobile phone standard in 1981 and launched the
first NMT phone, Mobira Cityman, in 1987. The company delivered the first GSM
network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011 - a
precursor for all Nokia's current GSM phones - was introduced.
In the 1990s, Nokia provided GSM services to 90 operators across the world.
Another significant move of the company during this period was the divestment of
its non-core operations like IT. The company focused on two core businesses
mobile phones and telecommunications networks.

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Services Business:

With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing
itself to be at the forefront of the convergence of internet and mobility. From being a product
centric company, Nokia is now focusing to become solutions centric. The strategic shift is built
on Nokias bid to retain consumers and empower Nokia device owners to realise the full
potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the
Nokia Music Store and Nokia N-Gage around its Ovi brand.

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Nokia Siemens Networks is a leading global enabler of communications services. The company
provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure
solutions and addresses the growing demand for services with 20,000 service professionals
worldwide. Its operations in India include Sales & Marketing, Research & Development,
Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia
Siemens Networks has 47 offices and presence in over 170 locations across the country.

R & D Centers:

Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and
Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-
switched mobile technologies and communications solutions to enhance corporate productivity.
The Center in Bangalore, the biggest R&D site in the country comprises S60 Software
Organization, Common Technologies, Next Generation now called Maemo Software,
Productization and Software & Services.

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Handset Market Share:

OTHERS
LG 9%
1O%

SAMSUNG
NOKIA
23%
58%

Methodology:
We used different methodology while doing our survey. Firstly we collected
PRIMARY DATA. Our sample size was 32. We collected the datas through a
Questionnaire we designed. The questionnaire was structured and non- disguised.
We also prepared interview schedule and mailed some questionnaire.

We collected all the datas from the field directly. The sample size of our survey
was a heterogonous mix which comprised of different age group, occupations,
income level etc. We used cluster sampling and also random sampling. Since the
population is large we went for cluster sampling. Moreover it saves time and cost.
To minimize the chances of biasness we used random sampling technique. We
divided the population into different clusters according to different characteristics

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like age group, income etc. The benefit of cluster sampling is that we can get
heterogeneous mix of population.

The sample we selected belonged to our hostels, institute, and local residents and
we divided it into clusters accordingly.

Regarding the information relating to the company profile we took the help of
internet.

Nokia Brand
name
29%

User Friendly
57%

Better
Features
14%

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8

4 8

Samsung
LG
Motorola
Others

Limitations:
we found out that the customers have a blind faith regarding NOKIA which
we could not explain in quantitative terms.
The respondents were biased to some extent with the respective brands .
Our research was limited to only 32 respondents whereas in reality the
universe is too big. Hence statistical datas might change if we further
increase the sample size.
The accuracy of the datas are doubtful as the respondents were ignorant and
hesitant towards their response.

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 Time and money was another constraint in our project.

Conclusion and Recommendations:

During the course of research on this project (Preference of Nokia mobiles over
other cell-phones) we have come to know a lot of interesting facts and Information
regarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market.
Nokia still dominates the world cell-phone market share.

Nokia leads the market with 38.6% stake, beating its nearest rival Samsung which
has 16.2% stake. Motorola and LG are tied with 8.3% each. Nokia enjoys this
status of being no. 1 because of its qualities, features, price range it provides to its
customers compared to its competitors.

However, Nokia is facing certain challenges that have affected its sales at present.
Nokia has predicted low sales for 2009 and that is due to the global economic
slowdown which has resulted in sharp pull back in global consumer spending. The
sales of Nokia have also been affected quite badly by the recent launch of some
duty-free cheap cell phones. Moreover, there are some areas where its competitors
are giving a run for their money like product designing, modifications etc.

Through our collaborative research, we have found out some areas where Nokia
should emphasise more so that it continues to be the market leader and have an
edge over its competitors. These include further focus on

1. Product competitiveness: - The products of Nokia should be superior or at

least at par with the competitors regarding technology, designing and features etc.

2. Customer satisfaction: - Nokia should come up with more value added

products and effective after-sales services i.e., service centres should be well-
equipped to handle customer concerns and there should be proper co-ordination
between them. It should focus on customization to gain greater customer
satisfaction.

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3. Research and Development: - In order to retain the position of a market
leader Nokia should incorporate the latest technological innovations into their
handsets and should put stress on further development.

4. Demand and Supply: - A strong demand and supply network should be

established for smooth availability of products to the customers. So that the
customers get the product as and when they require it.

5. End to End capability: - Stress should be given on end to end capability by

integrating mobile devices applications and infrastructure.

6. Efficient, manufacturing, logistics and high quality products and services should
be maintained.

Reference and Bibliography:

Web Sites
1)www.nokia.com
2)www.mobileburn.com
3)www.iwire.com
4)www.wikipedia.com
5)www.scribd.com

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Appendix:

We also came to know how the duty free cheap mobile handsets are affecting the
growth of branded mobile sets such as NOKIA, SAMSUNG, and MOTOROLA
etc.

These cheap handsets are offering very low priced handsets and thus are attracting
many customers who were inclined towards NOKIA and other branded handsets.

We also found that Nokia has to improve its after sales service. Many respondents
were not satisfied with Nokias after sales service.

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