INTRODUCTION

Nokia is the largest mobile manufacturing company in the world.It is also into 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
has a global device market share of more than 33% and converged device market share of about 41%
.It not only produses devices for all segments:CDMA,GSM and WDMA but also provides a number of
internet services like 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.

TIME-LINE OF NOKIA

• NOKIA 1865-1967:Birth of Nokia as a paper producing mill to the path of

becoming Nokia Corporation as rubber,cable,forestry,electronics & power
generation entity.

• NOKIA 1968-1991:Nokia's foray into mobile communication.

• NOKIA 1992-1999:Journey of becoming world leader in mobile phones.

• NOKIA 2000 to uptill now:Leading the mobile industry with diversified

profile.

POSITIONING & REPOSITIONING OF NOKIA

The story behind the evolution of mobile manufacturing mammoth Nokia will definitely be a surprise
to many people.Nokia started its business as a paper producing mill.It was set up by Fredrik Idestam
who built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland in the year
1865.Later on, he built a second mill by the Nokianvirta river and from this place Nokia gets its
name. It was a great success. Idestam’s invention won a bronze medal at the Paris World Exposition in
1867, and he is considered to be the father of Finland’s paper industry. Those were the days when
there was a strong demand for paper in the industry, the company's sales acheived its high-stakes and
Nokia grew faster and faster. The Nokia exported paper to Russia first and then to the United Kingdom
and France.

Nokia got merged with Finnish Rubber Works, a manufacturer a Rubber goods and started selling
goods under the brand name on Nokia.It also acquired a major part of the Finnish Cable Works
shares to utilize the growing power transmission and telegraph and telephone network market. In 1967,
all the 3 companies Nokia Ab, Finnish Rubber Works and Finnish Cable merged-up to form the Nokia
Corporation.This was the era when Nokia positioned itself as a consumer electronics producer.This
was the time the Nokia was trying to get hold of the telecommunications sector.

This era started with a joint venture between Nokia and leading Finnish television maker Salora.,
named Mobira Oy which is a Radio telephone company.With the deregulation of European
Telecommunication market a new era for mobile phones began.It witnessed the launch of the Nordic
Mobile Telephone (NMT) service in 1981 followed by the invention of The Nokia DX200 in
1982.NMT became tthe world’s first international cellular network.It was also the first to allow
international roaming, and caught on fast both inside and outside Europe. Nokia successfully
developed the digital switch (Nokia DX 200) thereby replacing the prior electro mechanical analog
switch. The Nokia DX 200 was embedded with high-level computer language as well as Intel
microprocessors which in turn allowed computer-controlled telephone exchanges to be on the top and
which is till date the basis for Nokia's network infrastructure.Nokia soon introduced the first car
phones:The Mobira 450 to the network.Later on it also launched its portable version Mobira
Talkman.To overcome the problem of bulkyness it came with Mobira Cityman:the first handheld
mobile phone for NMT networks and a model that became a classic.

By 1987 Nokia became the third largest TV manufacturer in Europe.the MikroMikko became the best
known computer brand in Finland