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Nokia Company And Value Chain Analysis

Paper Type: Free Essay Subject: Marketing
Wordcount: 2710 words Published: 8th May 2017

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The technology in the world is highly rapid rated and just business who might adjust to quick changes in the electronic market can struggle. Technology is perpetually developing. Different companies to present opinion with more innovative products. The customers are given information about the market. They may simply from one company to another company. The challenging is so difficult amongst companies.


This assignment will explain about nokia company. Besides it will illustrate innovations of nokia, analysis of company and marketing strategy of nokia. Moreover it also will say recommendations about nokia company and value chain analysis of nokia company.

Today , in the world which has high technology, many people see innovations as an area of their daily life. Innovations such as mobile phones are expedient and carriable and it is selled in a mixture design, shape and colour with unlike functions. Nokia is becoming the directing brand in the mobile phone market have with success enlarged their electronic market by succeeding more than 1,6 billion mobile phone definitions through the world. They help carry out a main human need for social contact with nokia’s duty to contact people. Nokia constructed bridge amongst people as they are quitre apart. Nokia is the world director in the mobile telecommunication. Nokia began the external market in 2000. they made a rise their sales with technology of networks and products. They centre on individualised communication technology. Nokia innovated technology to let people to access internet applications ,tools and services instantly.they take care the problem that the person said them , build up the networks system more for wide.so they may enlarge quicker than other industry on electronic market.

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History of nokia begins in 1895, as engineer Fredrik Idestam founded a wood pulp mill in southern Finland and began manufacturing paper. Because of European industrial enterprise and the development using up of paper and card board nokia soon become productive. In 1895 Fredrik Idestam handed over the reins of the company to his son in law Gustaf Fogelholm.( http://www.about-nokia.com/history/)The products of nokia were sold aboard first to Russia after that to the france and uk. The factory of nokia appealed an imperative workforce and a small residential area developed around it. A community called nokia still exists on the riverbank of Emakoski in southern Ireland. The hydroelectricity which the woodpulp mill used appealed the Finnish Rubber Works to found a factory in nokia. The Finnish Rubber Works purchased the majority of the Finnish Cable Works shares after world war II. The companies were merged to form the nokia Group.( http://www.about-nokia.com/history/). When the nokia group was organised, the sales of nokia group as 3 percent was produced and the nokia electronics supplied job for so many people.

Processes of nokia quickly enlarged to different business areas and products throughout the 1980s. the plan was to make it large quickly in all their business areas. Nokia was an important television manufacturer and in the Nordic countries in 1988.(http://www.about-nokia.com/history/). Nokia launched its first 3G phone which is called nokia 6650.

Today nokia is a leader of the world in digital technology such as mobile phones, wireless data solutions, multimedia terminals. Success of nokia is reposed on stable innovation. Human technology of nokia is about increasing communication and searching new ways to interchange knowledge.


Companies in each business area innovate products. There are competitive situation amongst companies. It creates competitive advantage. Companies are trying to get the better of this in an industry. It can be seen in the mobile phone market. Nokia has been leader of this market recently. But , nokia has so many rivals such as Samsung , sony. The products which is innovated are accepted as an advantage and companies might increase the products life cycle. It is as a product is decaying and is being resuscitated. Nokia still holds the largest share of the mobile phone market, but its sales and profits are stagnant while those of rival Samsung electronics of korea are zooming(daft,2007)

Many organizations would like to keep their situation of director as business mostly assume the approach as being better to direct than adopt. For companies to direct, they should find any such competition and evaluate its furiousness and deflect getting left back.

An abstract from the journal Innovation Implementation: Overcoming the challenge by Katherine Klien and Andrew Knight has stated that “In changing work environments, innovation is imperative. Yet, many teams and organizations fail to realise the expected benefits of innovations that they adopt. A key reason is not innovation failure but implementation failure-the failure to gain targeted employees’ skilled, consistent, and committed use of the innovation in question.

According to this adjustment from the journal, it has been discussed that some companies who innovate and extend a brand too far and in the long run could fall short. This is thought as troubled innovation. These kind of innovations can be seen in nokia. Companies think that product innovation is a crucial effect. That is why they try to manage it successfully. Innovation is complicated and companies are aided to make it simpler to get by crushing it in to parts on a sample.

There are so many innovations in Nokia technology. I would like to talk about nokia 67 00 classic. It is a new innovation. Nokia has always brought off to plus bread and butter phones to their line up. This innovation might be used by both business and casual people. Nokia was likely the first one to establish mobile phones having bluetooth including color display with the 6230i and 6310i. the next one is the nokia 6300 classic which is similar to the other ones. But it is little bit better by developing. The trusted candy bar design had a flush keypad and smooth flowing lines. The hand set is designed such that it weights only 116g and also has a much improved battery life of around 5 hours talktime along with the standby time of around 300 hours. This feature is certainly considered far better as compared to its older version which is called 6300.

the menu for this mobile phone is so self generated. Person does not need to get an direction book. Because this phone has got 5 way navigation system. Nokia established the new innovation which is 6700. it is described as GSM quad band handset which is enabled with 3G system. Because of that people can send and receive data to another people. Ä°t is fitted out with a 5 megapiksel camera. Ä°t can be took quality photos and videos. Ä°t has autofocus lens, flash models and LED flashand a committed 4X digital zoom power. Normally some mobile phones Has got limitations. But , this phone does not have any limitations. Ä°t is increased its capacity of memory to 8 GB as micro SD chip. This is helpful for people. Because one wants to save photos and videos person can store them without influencing the normal function of phone. Ä°t is an usual multimedia player with RDS FM radio that can be played some latest songs and music.


Value chain become a known management’s strong analysis tool for strategic planning. Kotelnikov (2001) defined value chain as a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. Value chain is a crucial tool to business improvement because it adopted the opinion that according to Kotelnikov (2001) “success in digital economy is the implementation of an integrated value chain that extends across and beyond the enterprise”

The bigeminal value chain people who take part in company such as managers, customers workers should hand over value and endeavour for a common purpose.

Nokia is being a leader of mobile communications technology. Nokia must carry out value chain as a function and a crucial tool in corporate strategy of nokia. The purpose of nokia to labour development and sustainability of the wide mobility industry. Ä°t endeavours to reach people via innovative and user friendly mobile phones, tools and solutions for imagination.

Forms and styles in an invariably developing product such as mobile phones are so important for Nokia. Being in front of its competitors and informed with the charging needs of Nokia’s customers is hold nokia in front of mobile industry. Changes in the international business view can affect the value chain of nokia during the next 5 years. This is so because of comfoming to charge and making essential allotment for it is crucial for nokia. Ä°t can be thought as matter as well value chain is not include consisted of the individual business just. Ä°t also concerns to the supply chains and distribution works.


Strengths and oppurtunities

The strengths of Nokia are scarcely for or few between Nokia company have been the company which win the european quality awards. The opportunities in nokia are interminable as a environmental leader. The nokia has the advantage of benefits of innovations, particularly in the handset market. They presently control of so many of the handset market. Nokia is nearly twice that of Motorola. Consequently Nokia brought in the superlative differences in the mobile phone industry. Nokia showed new ventures adn improvement. Nokia’s two top competitors are Motorola and Ericsson. All three companies offer cellular phones that are technically similar. Further more, indicated that brand equity is represented by customers’ recognition of consistent quality, satisfactory physical attributes of the product, and other emotional satisfiers. (Duffy, J. 2000)

Moreover , Nokia has so powerful marque acknowledgement. Nokia mobile phones have qualifications more than only methods of speaking such as a fashion situaton. This was an answer of consumer satisfaction. Nokia realised that the mobile phones which look smart could be more effective for people than its techniqual qualifications outside the people’s care of dependability and good serving. Thus , the mobile phones of nokia has become popular. Ä°t made them reliable brand. Consumers are searching mobile phones because of its name. This authority has resulted it to rise its popularity. Consequently , the organizations expect to get this advantage and go on to improve productive and clever processes of mobile technology. Especially they expect to get an advance from the improvement of their new technology of phones which continue the 3G technologies.

Weakness and threats

Ä°n spite of Nokia goes on to control in the mobile phone market, nokia should be cognisant of the rising challenge in an industry. Which is tightly bordering on a developed market. The yearly sales of mobile phones is decreasing substantially. The challenge had risen to deal with this developed market. Nokia must keep on top of this challenge particularly when the japanese companies attempt getting the direct on the improvement of the next generation phones.

Organisational structure of Nokia

Nokia’s organizational structure is pliable and variable, uncessantly boosting innovation and organised improvement.organizational plans of nokia alter as rapid as the mobile phone industry alters. In the mobile phone industry, a flexible organizational structure is crucial because the designs appropriate for business development change as quickly as the business itself. Nokia said that operations outsourcing would be instrumental in helping operators achieve further operations expenditure savings and move away from day-to-day operations of their networks and focus on serving their customers. (Nordic Business Report, Feb 20 2004)

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Nokia Ventures Organization (NVO) launched in 1998 is a good sample of Nokia’s pliable organizational structure. NVO was founded to test and improve emergent opinions that had the potential to produce great amounts of revenue. NVO searches many business opportunities and incorporates the feasible ones into Nokia’s operating business. Over the past 15 years, Nokia has exited from many businesses which did not fit into its overall plans.

For Nokia, organizational abilities means that having the skill to have people jointly capable of working together in a quickly changing environment by improving a new product and taking it to market. It also implies, having the people in the organization able to work together in an attempt to innovate, to reply to consumer needs, to see the value suggestion and to decently carry out the organization’s strategy.

Nokia has a powerful dominant culture, and the pronounced orientation for a decisional or power base which greatly gravitates around the dominant Finn culture. Deployment of Nokia ability in various wireless domains is the hallmark of Nokia’s present strategy.


  • It should protect itself threats from its rivals
  • It should be ready quick change in the market which can be reason increasing of costs, quick obsolescence of mobile phones, new standards and rules
  • A new focus in customer segment should be required to keep its market leadership.
  • It should challenge from coming out rivals and as overcapitalized market.
  • It needed businesses and applications improvers to hedge commitments to Nokia platforms due to stiff competition faced outside its dominant market.
  • It faces market impregnation in the industry causing new endorsers to go down and sales improvement to worsen

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To sum up, The Nokia company examined in this assignment comprises the modern pliable global organization that by technological innovation and attractive design appeal moves fleetly via the booming wireless telecommunication market. The company is a director in the mobile phone business in the consumer products and one of the main players in the business networks units as well. When it comes to delivering product design innovations to mobile device users, nokia is the company against which all others are judged.(lindholm,keinonen, 2003). It innovates the best technology and plays important role in improving a new standard for communications to the future. With sales growth and the market size and potential in the future showing no signs of dropping, Nokia is in a large place to successfully improve and keep its controller position. Some dangers could become from the rising challenge but Nokia’s research and powerful brand recognition because of its design will sustain the company in the spotlight for a long time.


Nokia history available online [http://www.about-nokia.com/history/ accessed date 15.01.2010]

Klein, Katherine J. Knight, Andrew P. innovation implementation:overcoming the challenge(2005) Blackwell publishing Volume 14 Number 5, 243

BRIGHTLY L. Nokia 6700 classic – a new innovation(2009) AVAILABLE online

[http://www.articleblast.com/Reviews/Products/Nokia_6700_classic_-_a_new_innovation/ accessed date 12.01.2010]

Kotelnikov j.(2001) synergising value chain, T3 business e-coach

“Nokia seeks operations outsourcing market increasing” Nordic Business Report, Feb 20 2004

Duffy, J. 2000, “Measuring customer capital”, Strategy & Leadership, Vol. 28 (5) p.19

Lindholm C,Keinonen T.(2003) Mc Graw Hill publishing ,208

GRAPHS AVAILABLE ONLINE[http://www.nokia.com/about-nokia/financials/key-data/graphs accessed date 28.01.2010]

Daft R.L. (2007) Organization theory and design, thomson learning academic resource center 9th edition ,156


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