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Strategy report
To: Proximity Mobile Team

From: Dylan Hattem

Date: September 25, 2009

Subject: Nokia strategy Analysis

The following is a strategy analysis of Nokia. Nokia, with 38% of the global market, is one of the leading wireless companies. However, it faces stiff competition, and is looking for ways to reassert itself into the US market. With a new high end smart phone, a multimedia store, and the possible purchase of Palm, Gen Y will be sure to take a second look at Nokia.

Profile

Nokia was established in 1960 when Finnish Cable Works combined with Finnish Rubber Works to build and fix computers along with other rubber products. Its electronics division made less than 5% of their profits. In 1981, the Morbia Talkman was built as Nokia’s first portable phone. By the mid 1990’s Nokia was the top in mobile manufacturing. Nokia now employees 128,445 people in 120 countries, and sell its products in 150. In 2008 its global revenue exceeded 50 billion Euros. It is also valued at $35.9 billion, listed as the fifth most valuable global brand in Business Week.

The Competitive Landscape

Every day it seems as if a new electronic device comes out. Each company is driven by competition, and in Nokia’s case, their main competition is by the iPhone and Blackberry. Both the iPhone and Blackberry are the major players in the market, and set the standard. If any company plans on contending, they must look at both of these products, and see how they can either match or better their features. One of these features is the application store for the iPhone. With over 25,000 options, there will always be something that catches ones attention.

Strategy

Nokia’s attempt to entering the market with the iPhone and Blackberry will be a huge challenge. However, if they develop a 3 part strategy, closing in on the competition is a possibility. The first part of this strategy is by developing web browsing phones. With the possible purchase of Palm, Nokia would have control over 3 major web phones: The Pixi, Pre, and Pro. The second part of the strategy is to develop an online music service, like Itunes. Nokia's challenge to Apple's (AAPL.O) iTunes, has been a key part of the company's push into services, and the extension left analysts questioning who will pay labels for the downloads. (Reuters) Even though the service hasn’t gotten off to a fast start, it is still is very promising. The last part of the strategy is to focus on being more environmentally friendly. Companies today are continually trying to find ways to do so. Aside from making great products; Nokia is dedicated to being environmentally conscious. They plan on continuing this by reducing packaging, using less energy, improving recycling levels and using more environmentally friendly materials. On September 22nd, 2009 the Dow Jones named Nokia the World’s Most Sustainable Technology Company.

Gen Y Implications

Although Nokia’s brand is recognized throughout the globe as a leader in electronics, Gen Y has been slow to purchase its products. Nokia’s biggest problem is branding its products. To capture Gen Y, they must overcome image, styling, and features. It is sad to admit, but even if Nokia offers a better phone and service than the iPhone and Blackberry, the Gen Y will still have trouble committing to their products. However, with the help of a 3 part strategy, Nokia will be sure to reassert itself to the Gen Y.

Sources

InvestorPlace. Sept.-Oct. 2009. Web. 22 Sept. 2009. []

Is Nokia Interested in Palm? 23 Sept. 2009. Web. 24 Sept. 2009. <[]>.

Nokia’s Beginnings And Climb to Global Eminence. 10 Sept. 2009. Web. 23 Sept. 2009. <[]>.

Nokia’s Beginnings And Climb to Global Eminence. 10 Sept. 2009. Web. 23 Sept. 2009. <[]>.

Nokia’s Beginnings And Climb to Global Eminence. 10 Sept. 2009. Web. 23 Sept. 2009. <[]>. Posted Dec 1, 2009 7:49 pm

Blog proposal
//paste blog proposal here//

Report proposal
To: Proximity Media Teams From: Dylan Hattem Date: November 19, 2009 Subject: Final Report Proposal

With FM on its decline, companies are trying to market a new way for listeners to hear the music they want. The Generation Y is capable of getting their music through piracy, Myspace, Youtube , Itunes , Rhapsody, and now Pandora Radio. I propose to write a report that will help show the Generation Y the advantages Pandora Radio has over other music sources, and how to learn everything it has to offer.

With a musical revolution going on, listeners are becoming more demanding in getting the music they want. Generation Y is not only tired of FM radio; with its endless commercials, and broad taste in music, but overpaying for music. The Gen Y is also becoming more persistent in hearing only the music they want to hear. Pandora radio has developed a Genome that consists of 400 musical attributes that can place songs together. This allows the listener to base their play list around what they want to hear, not what other people enjoy. Pandora is also capable of being used on most cell phones, something most music sources cannot do. This report is a necessity for all Generation Y that want to help get better acclimated to Pandora, as well as understand why it has more to offer than other music sources.
 * Needs Statement**

Along with explaining the background of Pandora, I will go into further detail including: ●Advantages of Pandora over other sources of music ●How a person can use Pandora to make personal play lists ●How "liking" or "disliking" a song affects custom play lists ●The decline of revenue in the music industry
 * Reporting Contents**


 * Annotated Bibliography**

Bonanos, Initials. (2009). Pandora: 24% of our users signed up on a mobile phone. Gigaom, Retrieved from[|http://] [|gigaom] [|.com/2009/11/19/] [|pandora] [|-24-of-our-users-signed-up-on-a-mobile-phone/] This article talks about the percentage of people signing up and using Pandora on their cell phones. Pandora has been installed on 13 million smart phones to date, meaning that about 70 percent of its Smartphone users did not have desktop accounts previously. In addition, 25 percent of the songs bought by users clicking through to the iTunes or Amazon MP3 stores are acquired via mobile devices, suggesting a real movement toward mobile usage rather than just experimentation. All of these numbers will be used throughout my final report.

(2009). Pandora leaps ahead in internet radio ratings. FMQP, Retrieved from [|http://www.] [|fmqb] [|.com/article.asp?id=1593855] This website is used to compare Pandora’s ratings to other radio websites. Some of these sites include. CBS Radio, Clear Channel Radio, Citadel Broadcasting and Entercom. The ratings are founded by "Session Starts," "Average Active Sessions" and "Average Time Spent Listening.

George, Initials. (2009). How Things work: pandora radio. The Tartan, Retrieved from [|http://] [|thetartan] [|.org/2009/11/16/] [|scitech] [|/] [|howthingswork] This article briefly explains how Pandora works. Included is Pandora’s origins, how a song is tagged, how a playlist gets built, and the huge library of songs.

Gilroy, Initials. (2009). Sirius needs to address internet radio. Twice, Retrieved from[|http://www.twice.com/blog/Reporters_Notebook/26066Sirius_Needs_To_Address_Internet_Radio.] [|php] This article talks about how Sirius radio needs to “address” internet radio. More importantly, the article talks about people using their iphones and blackberrys, instead of Sirius to listen to music in their car. Since both of the phones get Pandora for free, Sirius needs to find a way to compete with them.

Layton, Initials. (2009). How Pandora radio works. How Stuff Works, Retrieved from [|http://computer.] [|howstuffworks] [|.com/pandora5.] [|htm] This article is similar to the one written by Mr. George, but it goes into much more detail. It is a 7 page article that breaks down Pandora, and explains its competition and future. I plan on referencing this website a good amount.

Team conference presentation proposal
Some possibilities for the conference:

Google's impact on the mobile market. How companies are competing to gain a greater share of the market.

Sales letter and report prospectus
December 1, 2009

Ms. Lea Klingon, Director of Marketing Pandora Radio 701 E. Joppa Road Towson, MD 21286

Dear Lea:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Pandora Radio’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the wonderful service that Pandora Radio offers.

As you noted yesterday, Pandora feels that it must establish brand identity with Gen Y now in order be the number one source of music, becau se of FM radio’s decline. I believe Proximity can work with you to devise a comprehensive campaign that uses on-demand media and social networking to achieve that goal.

We can provide you with customized survey and focus group results to help shape Pandora as the media outlet of the future. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Pandora on social networks such as Facebook and Myspace. We have found that these ways of marketing are more successful than means such as newspaper ad s, and other conventional ways.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Pandora’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely,

Dylan Hattem Associate Media Analyst

//paste sales letter and report prospectus here//


 * Report draft**