Nokia Mission Statement and Business Strategy, Essay Example

Introduction

Nokia is the world’s largest maker of cell phones. The company sells its products all over the world and it is not a surprise that China is the company’s single largest market, accounting for approximately 20 percent of sales (Hoovers). This is because the company has historically focused more on affordable, mass-market products but the competitive landscape has been changing recently due to customers’ move to smartphone. Smartphone market is dominated by Apple and Android-based devices and Nokia realizes it has to become competitive in smartphone industry in order to ensure its survival and profitability.

Legal Name: Nokia Corporation

Mission Statement

Nokia’s mission is best described by the company’s motto “Connecting People”. Nokia builds great mobile products that connect billions of people worldwide. People at Nokia are excited by ideas and opportunities and believe anything is possible (Nokia Corporation).

Core Products/Services

Nokia has developed five main product categories to meet the needs of different markets in which the company operates. They are Explore, Live, Classic, Achieve, and Entry. Explore line is the most innovative of all Nokia’s offerings and is aimed at the tech-savvy crowd. Explore also lets Nokia demonstrates its technical capabilities and is most commonly known as the N-Series. The Live and Classic are aimed at the mass market. The business strategy behind these products is to focus on one particular feature and do it really well. The products are also well-designed in terms of style.

The Achieve line is aimed at the enterprise sector and the professionals and is commonly known as the E-Series. The last line is the Entry line which is an entry-level line and aimed at the emerging markets (Saunders). The focus here is more on the price than the product feature because most customers in emerging markets have lower income levels than those in developed countries and a significant portion of them may be buying their first mobile device ever.

To achieve greater efficiency and more focused approach to business, Nokia has formed a new business structure which consists of two distinct business units, i.e. Smart Devices and Mobile Phones (Nokia Corporation). Thus, new business structure means Explore and Achieve product lines are the responsibility of Smart Devices business unit while Mobile Phones unit handles the other three lines now.

Market Needs

Nokia’s products satisfy the customers’ need of communication for both personal and work-related reasons. We live in a world where connectivity has become a commodity and people can be reached anywhere and any time. Nokia helps make it possible by providing products at different price ranges and with different features so that everyone is able to choose a combination of price and features that best suits his needs and circumstances.

Most mobile devices’ customers look for one or more of these five product characteristics: ease of operation, handset features, performance, physical design, (J.D. Power and Associates) and price. The customers may give different weight to one or more of these product characteristics, depending upon their needs. For example, smartphone customers may focus more upon performance and features while entry-level phone customers may give higher priority to price and ease of operation.

Core Values/Principles

Nokia’s core values are respect for the individual, continuous learning, achievement, and customer satisfaction. Nokia expects all of its employees to hold these values in everything they do including workplace, labor relations, community involvement, health, safety, and the environment (Nokia Corporation).

The company also believes in being a good corporate citizen of the communities in which it operates. The company undertakes community development projects and encourages its employees to volunteer in their respective communities. In addition, the company also sponsors programs for youths as well as advancement of education (Nokia Corporation). In addition, Nokia also understands the importance of protecting the environment and has adopted responsible social and environment business practices (Nokia Corporation).

References

Hoovers. Nokia Corporation. 9 March 2012 <http://www.hoovers.com/company/Nokia_Corporation/crxtif-1.html>.

J.D. Power and Associates. Ratings. 9 March 2012 <http://www.jdpower.com/consumer-ratings/ratings.htm?study=909201177>.

Nokia Corporation. Community. 9 March 2012 <http://web.nokia-asia.com/about-nokia/community>.

—. Nokia and sustainability. 9 March 2012 <http://www.nokia.com/global/about-nokia/people-and-planet/>.

—. Nokia outlines new strategy, introduces new leadership, operational structure. 11 February 2011. 9 March 2012 <http://press.nokia.com/2011/02/11/nokia-outlines-new-strategy-introduces-new-leadership-operational-structure/>.

—. Our vision and strategy. 9 March 2012 <http://www.nokia.com/global/about-nokia/company/about-us/about-us/>.

Saunders, Alec. Nokia’s evolving product strategy. 17 February 2008. 9 March 2012 <http://www.saunderslog.com/2008/02/17/nokias-evolving-product-strategy/>.