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· Telecom
From Wikipedia, the free encyclopedia
| Nokia Corporation | |
|---|---|
 | |
| Type | Public – Oyj (OMX: NOK1V, NYSE: NOK, FWB:NOA3) |
| Founded | Nokia, Finland (1865) |
| Headquarters |  Espoo, Finland |
| Key people | Fredrik Idestam, Founder in 1865 Kari Kairamo, CEO in the 1980s Olli-Pekka Kallasvuo, President & CEO Jorma Ollila, Chairman |
| Industry | Telecommunications |
| Products | Mobile phones Smartphones Multimedia computers Networks Software and services |
| Revenue | ▲ €51.058 bn (2007)[1] |
| Operating income | ▲ €7.985 bn (2007) |
| Net income | ▲ €7.205 bn (2007) |
| Employees | 112,262 as of December 31, 2007[2] |
| Subsidiaries | Nokia Siemens Networks Vertu Navteq (pending merger) |
| Slogan | Connecting People |
| Website | www.nokia.com |
Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB:NOA3) is a Finnish multinational communications corporation, focused on wired and wireless telecommunications, with 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.058 billion euros as of 2007.[1][3] It is the world's largest manufacturer of mobile telephones: its global device market share was about 40% in Q4 of 2007.[2] Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipments, solutions and services.
Nokia's corporate headquarters are located in Espoo, a city neighbouring Finland's capital Helsinki. It has sites for research and development, manufacturing and sales in many continents throughout the world. Nokia employed 21,453 people in R&D in 2006.[3] Nokia Research Center, founded in 1986, is Nokia's industrial research unit of about 800 researchers, engineers and scientists.[4] It has sites in seven countries: Finland, Denmark, Germany, China, Japan, United Kingdom and United States. Production facilities are located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Fleet, England; Bochum (closing planned for mid-2008),[5] Germany; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Cluj-Napoca, Romania[6] and Masan, South Korea.[7][8] Nokia's Design Department remains in Salo, Finland.
Nokia plays a very large role in the economy of Finland: it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007; a unique situation for an industrialized country.[9] It is an important employer in Finland and several small companies have grown into large ones as Nokia's subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. In 2006, Nokia generated revenue that for the first time exceeded the state budget of Finland.
Finns have ranked Nokia many times as the best Finnish brand and employer. Nokia is listed as the 5th most valuable global brand in BusinessWeek's Best Global Brands list of 2007 (1st non-US company),[10] the 20th most admirable company worldwide in Fortune's World's Most Admired Companies list of 2007 (1st in network communications, 4th non-US company),[11] and is the world's 119th largest company in Fortune Global 500 list of 2007, up from 131 of the previous year.[12]
Contents[hide] |
[edit] History
[edit] Pre-telecommunications era
What is known today as Nokia (pronounced /ˈnoʊkiə/,[citation needed] Finnish IPA: [ˈnokiɑ]) was established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on the banks of the Tammerkoski rapids in the town of Tampere, in south-western Finland. The company was later relocated to the town of Nokia by the Nokianvirta river, which had better resources for hydropower production. That's also where the company got its name that it still uses today. The name Nokia originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the old Finnish word originally meaning a dark, furry animal that was locally known as the nokia, or sable, later pine marten.
Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Shortly after World War I Finnish Rubber Works acquired Nokia Wood Mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. All these three companies were merged into the Nokia Corporation in 1967.
The Nokia Corporation created in the 1967 fusion was involved in many sectors, producing at one time or another paper products, bicycle and car tires, footwear (including Wellington boots), personal computers, communications cables, televisions, electricity generation machinery, capacitors, aluminium, etc.
[edit] Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in the 1960s. In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment.
[edit] First mobile phones
Nokia had been producing commercial and military mobile radio communications technology since the 1960s. Since 1964 Nokia had developed VHF-radio simultaneously with Salora Oy, which later in 1971 also developed the ARP-phone. In 1979 the merger of these two companies resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the Nordic Mobile Telephony (NMT) network standard that went online in the 1980s and in 1982 it introduced its first car phone, the Mobira Senator for NMT 450 networks.
Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunication branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900. While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately €4,560).[13] Despite the high price, the first phones were almost snatched from the sales assistants' hands. Initially, the mobile phone was a "yuppie" product and a status symbol.
In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy. One year later, Nokia Mobira Oy became Nokia Mobile Phones and in 1991 the first GSM phone was launched.
[edit] Nokia's involvement in GSM
Nordic Mobile Telephony was the world's first mobile telephony standard that enabled international roaming, and provided valuable experience for Nokia for its close participation in developing Global System for Mobile Communications (GSM). It is a digital standard which came to dominate the world of mobile telephony in the 1990s, in mid-2006 accounting for about two billion mobile telephone subscribers in the world, or about 80% percent of the total, in more than 200 countries. The world's first commercial GSM call was made in 1991 in Helsinki over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a Nokia phone.
[edit] Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX200, a digital switch for telephone exchanges. In 1982, a DX200 switch became the world's first digital telephone switch to be put into operational use. The DX200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products.
For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987 the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications.
In the 1970s and 1980s Nokia developed the Sanomalaitejärjestelmä ("Message device system") for Finnish Defence Forces. [14]
[edit] Personal computers
In the 1980s, Nokia produced a series of personal computers called MikroMikko.[15] However, the PC division was sold to ICL, which later became part of Fujitsu. That company later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Finland (in the town of Espoo, where computers had been produced since the 1960s) at the end of March 2000[16], thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT displays for PC and larger systems application.
[edit] Challenges of growth
In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields, mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious financial problems, a major reason being its heavy losses by the television manufacturing division (these problems probably contributed to Kairamo taking his own life in 1988). Nokia responded by streamlining its telecommunications divisions, and by divesting itself of the television and PC divisions. Jorma Ollila, who became the CEO in 1992, made a strategic decision to concentrate solely on telecommunications. Thus, during the rest of the 1990s, Nokia continued to divest itself of all of its non-telecommunications divisions.
The exploding worldwide popularity of mobile telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the mid-1990s. This prompted Nokia to overhaul its entire logistics operation. Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scale.
[edit] In the new millennium
 | This article or section may contain an inappropriate mixture of prose and timeline. |
In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, with layoffs and organizational restructuring[17]. This, however, diminished Nokia's public image in Finland[18][19], and produced a number of court cases along with an episode of a documentary television show critical towards Nokia.[20]
Despite these occasional crises, Nokia has been phenomenally successful in its chosen field. This growth has come mostly during the era of Jorma Ollila and his team of about half a dozen close colleagues. In June 2006, this era came to an end with Ollila leaving the CEO position to become the chairman of Shell. The new CEO of Nokia is Olli-Pekka Kallasvuo.
On February 2006 Nokia and Sanyo announced a MOU to create a joint venture addressing the CDMA handset business. A few months later, in June, both companies announced ending their negotiations without agreement. Nokia also stated their decision to pull out of CDMA R&D, with the intention to continue CDMA business in selected markets.[21]
On February 10, 2006, Nokia acquired Intellisync Corporation, a provider of data and PIM synchronization software.
On June 19, 2006, Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms. Both companies will have a 50% stake in the infrastructure company, to be headquartered in the Helsinki area, and to be called Nokia Siemens Networks. The companies predict annual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokia employees will be transferred to this new company.
In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune.[22][23]
In May 2007 Nokia announced its Nokia 1100, with over 200 million units shipped, is the best-selling mobile phone of all time and the world's top-selling consumer electronics product.[24]
In July 2007 Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media.[25]
In August 2007 Nokia launched a series of web services under the brand name Ovi that allows users to download games, maps and music directly to their phones.
In September 2007 Nokia announced their intention to acquire Enpocket, a supplier of mobile advertising technology and services.[26]
In October 2007 Pending shareholder and regulatory approval, Nokia acquires Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 bn.[27]
At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads.[28]
At Mobile world conference in Barcelona, Nokia announched the launch of Nokia N96 model. .[29]
[edit] Product divisions
Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks, plus various horizontal entities such as Customer and Market Operations, and Technology Platforms.
On June 20, 2007, Nokia announced that it would reorganize into three business units, effective January 1, 2008:
- Devices: This division combines its existing mainline mobile phones division with the separate subdivisions manufacturing Multimedia (Nseries) and Enterprise (Eseries) class devices as well as formerly centralized core devices R&D - called Technology Platforms, headed by Kai Öistämö.
- Services and Software: This combines the existing Enterprise and Consumer driver services businesses previously hosted in Multimedia and Enterprise as well as a number of new aquisitions (Loudeye, Gate5, Enpocket, Intellisync, Avvenu), headed by Niklas Savander.
- Markets: The successor organization to Nokia's Customer and Market Operations division, represents the sales, marketing and manufacturing functions of the company, led by Anssi Vanjoki.
[edit] Mobile Phones
Nokia's Mobile Phones division provides the general public with mobile voice and data products across a wide range of mobile devices. The division aims to target primarily high-volume category sales of mobile phones and devices, with consumers being the most important customer segment. The devices are based on GSM/EDGE, 3G/WCDMA and CDMA cellular technologies.
Nokia believes that design, brand, ease of use and price are mainstream mobile phones' most important considerations to customers. Nokia's product portfolio includes camera phones with features such as megapixel cameras and MP3 players which appeal to the mass market.
In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile telephones feature digital cameras, it is also believed that Nokia has recently overtaken Kodak in camera production making it the largest in the world), Nokia is now also the leading supplier of digital audio players (MP3 players). Nokia aims to sell 80 million music phones by the end of 2006, outpacing sales of devices such as the iPod from Apple.[30]
In the year 2007, Nokia increased its range by offering 5 megapixel camera mobile phone Nokia N95 having Carl Zeiss Lens.
[edit] Multimedia
The Multimedia division's purpose is to design devices and applications that bring multimedia experiences to their customers. These devices allow people to create, access and consume multimedia, as well as share their experiences with others. The devices are included with a wide range of connectivity such as GSM, 3G/WCDMA, WLAN and Bluetooth. Nokia Multimedia Nseries extensively uses Symbian OS.
The Multimedia group also works with other companies outside the telecommunications industry to make advances in the technology and bring new applications and possibilities in areas such as Internet services, optics, music synchronization and streaming media.
[edit] Loudeye
In August 2006, Nokia acquired online music distributor Loudeye Corp for $60 m. The company has been developing this into an online music service in the hope of using it to generate handset sales. The service is expected to launch in late 2007 and would rival iTunes.
[edit] MOSH
In August 2007, Nokia launched their new social network, dubbed MOSH. MOSH by Nokia is the first-ever social network built by a handset manufacturer. MOSH aims to bring social, media-based networks to the mobile environment. Users can upload, download, share, and bookmark a variety of media - audio files, video files, documents, applications, games, images.[31]
[edit] Comes With Music
On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative, a program that would partner with Universal Music Group International to bundle a year's worth of unlimited, DRM-free downloads with the purchase of a Nokia phone. Following the termination of the year of free downloads, tracks can be kept without having to renew the subscription. Downloads will be both PC- and mobile-based.[32]
[edit] Enterprise Solutions
As the name implies, the Nokia Enterprise Solutions offers businesses, corporations and institutions a broad range of products and solutions, such as enterprise-grade mobile devices, underlying security infrastructure, software and services. Nokia also works with a range of companies to provide network security, bring mobilized corporate e-mail and extend corporate telephone systems to work with Nokia's mobile devices. A range of companies (Microsoft, eDeskOnline) have tailored their enterprise software to run on Nokia phones.
[edit] Nokia Siemens Networks
- Main article: Nokia Siemens Networks
Nokia Siemens Networks (previously Nokia Networks) provides mobile network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. Networks focuses in: GSM, EDGE, 3G/WCDMA and WiMAX radio access networks; core networks with increasing IP and multiaccess capabilities; and services.
At the end of 2005, Nokia Networks had more than 150 mobile network customers in more than 60 countries, with its systems serving in excess of 400 million subscribers.
On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, called Nokia Siemens Networks. The Nokia Siemens Networks brand identity, created by London and Tokyo based branding agency Moving Brands, was subsequently launched at the 3GSM World Congress in Barcelona in February 2007[33] [34].
[edit] .mobi and the Mobile Internet
Nokia was the first proponent of a Top Level Domain (TLD) specifically for the mobile internet and, as a result, was instrumental in the launch of the .mobi domain name extension in September 2006 as an official backer.[35][36][37] Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month.[38] It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.[39]
[edit] Corporate affairs
[edit] Historical logos
 Nokia Company logo. Founded in Tampere in 1865, logo 1966. |  Nokia – Finnish Rubber Works Ltd, founded in Helsinki in 1898. |  The Nokia "arrows" logo before its Connecting People logo. |  Nokia introduced its "Connecting People" advertising slogan, coined by Ove Strandberg.[40] The current logo's slogan uses Nokia's proprietary Nokia font. This earlier font shown here was Times Roman SC (Small Caps).[41] |
[edit] Corporate governance
The operations of Nokia are managed by the Group Executive Board (left), under the direction of the Board of Directors (right). The Chairman and the rest of the Group Executive Board members are appointed by the Board of Directors. Only the Chairman of the Group Executive Board can belong to both, the Board of Directors and the Group Executive Board. The operations of the company are managed within the framework set by the Finnish Companies Act,[42] Nokia's Articles of Association[43] and Corporate Governance Guidelines,[44] and related Board adopted charters.
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[edit] Corporate culture
Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy.
The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail.
Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation and Very Human.[47]
[edit] Research cooperation with universities
- Helsinki University of Technology, Finland
- Tampere University of Technology, Finland
- Stanford University, United States
- Massachusetts Institute of Technology, United States
- University of Cambridge, United Kingdom
- University of Glasgow, United Kingdom
[edit] See also
[edit] References and footnotes
- ^ a b Nokia − Annual Information 2007
- ^ a b "Q4 2007 Quarterly results". Press release.
- ^ a b Nokia in brief
- ^ Nokia Research Center, October 2007
- ^ Nokia Press Release – Nokia plans closure of its Bochum site in Germany January 15, 2008
- ^ Nokia Press Release - Nokia to set up a new mobile device factory in Romania March 26, 2007
- ^ Nokia - Production units
- ^ Nokia - Economic impact - Company impact - CR Report 2006 - Corporate responsibility
- ^ (Finnish) Taloussanomat.fi – Ulkomaalaiset valtaavat pörssiyhtiöitä
- ^ BusinessWeek – The 100 Top Brands 2007 (Scoreboard)
- ^ Fortune − World's Most Admired Companies 2007 - Top 50
- ^ Fortune – Global 500
- ^ Nokia – Mobira Cityman – The move to mobile
- ^ Finnish Defence Forces http://www.mil.fi/maavoimat/kalustoesittely/index.dsp?level=81
- ^ Old-Computers.com — Nokia MikroMikko 1
- ^ EIR Online — Nokia Kilo Plant
- ^ Nokia Networks takes strong measures to reduce costs, improve profitability and strengthen leadership position
- ^ Nokia Networks to shed 1,800 jobs worldwide; majority of impact felt in Finland
- ^ Nokia Networks axes 1,800 staff
- ^ YLE.fi − Nokia's Law
- ^ [1] [2] [3] [4]
- ^ Boston.com
- ^ HELSINGIN SANOMAT
- ^ Reuters, 2007-05-03, Nokia's cheap phone tops electronics chart
- ^ Nokia acquires Twango. 2007-07-26
- ^ Nokia to acquire Enpocket to create a global mobile advertising leader, 2007-09-17
- ^ Reuters. "Nokia Offers $8.1 bn For Navteq", New York Times, 2007-10-01. Retrieved on 2007-10-01.
- ^
- ^ Nokia N96 Launched. 2008-03-06
- ^ Nokia Media and Music Tehcnologies
- ^ Nokia launches MOSH social network - Mobilize and Share
- ^ Nokia World 2007: Nokia outlines its vision of Internet evolution and commitment to environmental sustainability]
- ^ Brand New: The Wave of the Future
- ^ Identityworks: Reviews - 2007 - Nokia Siemens
- ^ http://domainsmagazine.com/Domains_1/Domain_6853.shtml
- ^ dotMobi Investors | dotMobi
- ^ Microsoft Word - dotMobi-Haumont-EDITS3.doc
- ^ Nokia Ad Business
- ^ Nokia introduces mobile ad services | CNET News.com
- ^ [5] Helsingin Sanomat 2003-06-01 (finnish)
- ^ Nokia's Art Director Juhani Pitkänen, Nokia Strategic Marketing, Brand Identity (2007-09-03)
- ^ New Finnish Companies Act designed to increase Finland's competitiveness
- ^ Nokia – Articles of Association, May 10, 2007
- ^ Corporate Governance Guidelines at Nokia
- ^ a b Nokia − Corporate Governance. Retrieved on 2007-8-7.
- ^ Change in the Nokia Board of Directors (December 28, 2007)
- ^ Nokia – Nokia Way and values
[edit] Further reading
- Michael Lattanzi, Antti Korhonen, Vishy Gopalakrishnan (2006). Work Goes Mobile: Nokia's Lessons from the Leading Edge. ISBN 0-470-02752-5 .
- Christian Lindholm, Turkka Keinonen, Harri Kiljander (2003). Mobile Usability: How Nokia Changed the Face of the Mobile Phone. ISBN 0-07-138514-2 .
- Martti Häikiö (2002). "Nokia: The Inside Story". ISBN 0-273-65983-9 .
- Trevor Merriden (2001). Business The Nokia Way: Secrets of the World's Fastest Moving Company. ISBN 1-84112-104-5 .
- Dan Steinbock (2001). The Nokia Revolution: The Story of an Extraordinary Company That Transformed an Industry. ISBN 0-8144-0636-X .
[edit] External links
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