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Strategy report
TO: Proximity mobile team FROM: Danielle Tieman DATE: October 1, 2009 SUBJECT: Nokia analysis

Here is my Nokia strategy analysis. Nokia has been number one in the industry for mobile phones. New companies entering the market with new technological innovations are now threatening its status. Whether Gen-Y users will adopt Nokia for their mobile phones and service will depend on how well Nokia keeps up with these new innovations and if it can form its own niche in this competitive market.


 * Profile

The modern Nokia was formed in 1967; previously it was Finnish Rubber Works, a company manufacturing rubber. Even before that it was a wood-pulp mill, manufacturing paper in southern Finland. Nokia moved into electronics after WWII when there was a large demand for power transmission and telegraph and telephone networks. **

Nokia’s revenues come from many products, including Symbians, smartphones, concept phones, various computers, digital television, mobile money, plus numerous accessories, all of which contribute to Nokia being one of the most innovative cell phone companies.

In 2009 Nokia had a net sales of $13.6 billion with revenue of $178.7 million, 27% lower than its revenue of $1.8 billion in 2008. Nokia has not released any revenue expectations for 2010, but plans to bring revenue back up with its introduction of new products. 


 * Competitive Landscape**


 * The primary force driving competition in the mobile market is the success of the iPhone and the Blackberry. Competitors such as Nokia, Samsung, Motorola and Ericsson must decide if they want to compete with these devices or develop their own niche. Nokia has developed the Nokia "Tube," which offers similar features to the iPhone and the Blackberry, in its attempt to remain #1 in the industry. While Apple has more experience in technology, Nokia has existing distribution channels, as well as knowledge and understanding of the market which may give it a competitive advantage. **


 * Nokia’s Strategy**


 * Nokia's strategy is to act less like a traditional manufacturer and more like an internet company by connecting people in new and better ways. The company plans to increase its offering of consumer Internet services in five areas—music, maps, media, messaging and games. Nokia plans to deliver those services in an easily accessible manner to consumers world wide. Nokia attributes its success to its sensitivity to cultural differences. **

Three big initiatives are:
 * Lifecasting, which combines the mobile phone with the GPS to develop a new form of social networking.
 * Pay-By-Phone services, which is a way for people to handle money through text messaging, without the use of a bank.
 * Teaming up with Microsoft to develop Microsoft Office, business communications, collaboration, and device management software for Nokia’s Symbian phones.
 * Gen-Y Implications**

I believe that Nokia’s success will depend upon whether it carries out its plans with the same vision and strategy with which the company began. It is a good idea for Nokia to develop its own innovations rather than copying the iPhone and the Blackberry. Nokia wants to appeal to Gen-Y by formulating new programs that integrate mobile communications, music, media and information technology into one industry. To accommodate to the latest interests of Gen-Y, Nokia has been developing phones with such features as touch screens and music, which mimic those of the iPhone. However, Nokia is also making its own marks on the industry by incorporating the GPS feature to form Lifecasting and the Pay-By-Phone feature to introduce mobile money. People want simpler and more concise solutions. For that reason, I think that in time, the pay-by-phone service will be very successful. I think Nokia will do best if it continues appealing to cultures around the world by introducing the new technologies to them. Nokia must continue to compete in this innovative market or it will be left behind.

Gohring, Nancy. (2009, August 13). __New mobile competition drove Nokia, Microsoft deal.__ Retrieved on September 24, 2009 from http://www.macworld.com/article/142263/2009/08/msft_nokia.html Hoover’s, Inc. (2009). __Business Intelligence: Nokia Competitive Analysis__. Retrieved on
 * References**

September 22, 2009 from http://www.hoovers.com/nokia/ID__41820,target__business_intelligence--/free-co-samples-index.xhtml Intent Media. (2009). Mobile Entertainment for Everyone in Mobile Content. Retrieved on September 22, 2009 from http://www.mobile-ent.biz/news/33091/Nokia-revenue-down-27-in-1Q08 Kallasvuo, Olli-Pekka. (2008, May8). __2008 Nokia Annual General Meeting.__ Retrieved

on September 24, 2009 from http://www.nokia.com/NOKIA_COM_1/Microsites/AGM_2008/pdf/OPK_AGM_2008_ENGLISH.pdf Knite inparadise. __The Strategic Competitive Environment: Nokia Case Study__. Retrieved on September 24, 2009 from http://www.ideamarketers.com/?Business_Strategy&articleid=608217 Mace, Micheal. (2005-2006). __The War Between Nokia and Apple.__ Retrieved on September 24, 2009 from http://mobileopportunity.blogspot.com/2007/09/war-between-nokia-and-apple.html Nokia Corporate. (2009). Nokia: Connecting people. Retrieved on September 22, 2009

from http://www.nokia.com/about-nokia/company/story-of-nokia/nokia-now Reuters. (2009, August 26). __Nokia Launches Pay-By-Phone Service__. Retrieved on September 24, 2009 from http://www.pcmag.com/article2/0,2817,2352056,00.asp

Blog proposal
TO: Proximity mobile team FROM: Danielle Tieman SUBJECT: Blog post proposal DATE: October 27, 2009

I propose that we do our Proximity blog post on the new innovations from Nokia. This post can be used to inform new clients who are not yet aware of the newest forms of social networking (lifecasting) and handling money by text message (Pay-By-Phone services). These new features may lead to a revolution in mobile phones.


 * Rationale**

Mobile phone companies are in continuous competition to attract new users. Nokia plans to do this by introducing new ways of communicating through mobile phones. These new innovations could be the next “must have” for Gen-Y. Gen-Y is heading in the direction of condensing all technology into one device. Nokia’s new features are continuing with that trend by introducing social networking, GPS and banking to the mobile phone.


 * Sources**

I recommend that we organize the post around the following websites:

www.pcmag.com/article2/0,2817,2352056,00.asp

www.nokia.com/NOKIA_COM_1/Microsites/AGM_2008/pdf/OPK_AGM_2008_ENGLISH.pdf

www.macworld.com/article/142263/2009/08/msft_nokia.html

http://betalabs.nokia.com/betas/view/ovi-lifecasting

Report proposal
TO: Proximity Mobile Team FROM: Danielle Tieman DATE: November 22, 2009 SUBJECT: Proposal for report on Nokia

Nokia has been number one in the industry for mobile phones. New companies with technological innovations are now threatening its status. Nokia has been developing ways to ensure it remains a leader in the industry. I propose to write a report on how Nokia is positioning itself to make its technology an essential component in this market.


 * Need**

The competition in the mobile market is rapidly increasing. Companies continue to develop new and better ways for people to interact and communicate through the use of their mobile phones.

Nokia was the first company to introduce the idea of a cell phone functioning like a computer. The iPhone and the Blackberry have since dominated the mobile market with innovations that appeal to Gen-Y users. Nokia plans to continue to be the driving force that leads in the growth of mobile devices. Their innovations may change the mobile industry and result in Nokia becoming the number one choice for Gen-Y consumers.

· Nokia is developing unique applications.

· Nokia has instituted a new development plan through MetaEdit+ and now has full working prototypes of next-generation phones.

· Nokia has developed phones that benefit the environment.

· Nokia has developed anti scratch and dust resistant covers.

· Nokia has developed phones with 22 days of battery life and up to 8.5 hours of battery talking time.

Clients of Proximity who wish to target Gen-Y consumers need this report to understand the role Nokia will play in influencing future mobile device consumers and how these new applications and innovations will influence the current trends in mobile devices.


 * Topics**

The proposed report, “Nokia the Next-Generation Mobile Device?” will cover the following topics:

· MetaEdit+ product development plan for future phones.

· The need for Nokia’s new features and unique applications.

· Nokia’s “Mobile Rules Competition” for best mobile application, best technology, best innovation and best business plan.

· Nokia’s environment friendly business plan.

The report will also include attachments that compare Nokia’s devices to other Smartphones in the industry.


 * Sources**

The following items are key sources for the report:

Borden, Mark. Nokia Rocks the World: The Phone King's Plan to Redefine Its Business. //Fast Company issue 138.// (2009, Sept 1). Retrieved November 22, 2009 from http://www.fastcompany.com/magazine/138/iphone-envy-you-must-be- joumlking.html Borden reports various statistics on Nokia’s products that relate to its success. He then reports that Executive Vice President of Entertainment and Communities, Tero Ojanperä, believes that the two forces Nokia is competing against are nonconsumption and piracy. Ojanperä believes that Nokia is revolutionizing the way music is being consumed and that Nokia will become the world’s biggest entertainment media network. Farrar, Kasey. Nokia Announces 'Mobile Rules! 08' Competition Winners. //PR Newswire// //Association LLC.// (2008). Retrieved November 22, 2009 from http://www2.prnewswire.com/cgi- bin/stories.pl?ACCT=104&STORY=/www/story/03-20- 2008/0004777824&EDATE= Nokia announces the winners of the Mobile Rules 08’ Competition for best mobile application, best technology, best innovation and best business plan. The winners were companies who developed innovative applications for Nokia to use. These applications vary from a health monitoring system, to navigation, to music and games.

Ghazali, Azwar. “ Nokia launches plan to be the preferred provider of mobile devices for e-mail and messaging in the enterprise.” //Nokia Connecting People//. (2004, Nov 2). Retrieved November 18, 2009 from http://press.nokia.com/PR/200411/966991_5.html

This article is a press release that introduces a strategy plan for Nokia to become the device of choice for mobile e-mail and messaging in the enterprise market. Its plan will provide many e-mail solutions for a broad range of business-optimized mobile devices. Nokia will offer enterprises the freedom to choose one, or combine e-mail solutions, delivery options, and deployment methods to create a mobile e-mail environment for their unique needs.

Global Sources. Nokia Siemens details environment business plan. //EE Times Asia.// (2007, Nov 27). Retrieved November 18, 2009 from http://www.eetasia.com/ART_8800490791_480200_NT_00344842.HTM

This article provides details of Nokia’s environmentally friendly business plan. Nokia wants to provide wireless and wire line connectivity that uses less and less energy, and that has recyclable components and limited use of environmentally sensitive materials. More and more people are “going green” and Nokia is increasingly installing sites that are run by renewable energy.

JBC. New Nokias feature more for less. //Nokia Conversations.// (2009, Nov 4). Retrieved November 18, 2009 from http://conversations.nokia.com/2009/11/04/new-nokias-feature-more-for-less/

This article reports on new Nokia features that are not only appealing, but deliver real relevance where it matters to countries all over the world. These new phones contain anti scratch and dust resistant covers as well as 22 days of battery life and up to 8.5 hours of talk time. They also have features such as a flashlight, FM radio and a phonebook for up to five different users.

MetaCase. Nokia Case Study. MetaEdit+ revolutionized the way Nokia develops mobile phone software. //MetaCase.// (2007). Retrieved November 18, 2009 from MetaCase.

This case study examines Nokia’s new development plan from MetaEdit+. Nokia was looking for development tools that improve the productivity of development teams by applying a number of different strategies. Nokia’s productivity increased by a factor of 10 orders of magnitude productivity gains. Nokia has shifted its focus from implementation to functionality.

White, Alice. Plan a route using Maps on the Nokia N79. //Know Your Mobile.// (2009, Jan 8). Retrieved November 22, 2009 from http://www.knowyourmobile.com/nokia/nokian79/nokian79userguides/182992/plan_a_route_using_maps_on_the_nokia_n79.html

White outlines a new map application from Nokia that acts like a GPS system. This feature uses voice commands and allows users to plan their own route using several maps. GPS tracking maps can also be set to track your position on a road. Unlike the GPS navigation, this doesn't call out instructions, it just shows you where you are at that particular time. It's useful if you get lost and need to compare your current position to the planned route.

Team conference presentation proposal
Conference Ideas: 1. Will the iPhone dominate the mobile market once verizon users have access to it? 2. Will another smartphone arise as competition to the iPhone? 3. Will the iPhone adapt and appeal to the business world?

Sales letter and report prospectus
December 1, 2009

Mr. Robert Kensington, Director of Marketing Cognizant Technology Solutions 500 Frank W.Burr Blvd. Teaneck, NJ 07666

Dear Robert:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Cognizant Technology Solutions’ need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the new technology and applications being developed by mobile companies and network servers.

As you noted yesterday, Cognizant Technology Solutions feels that it must establish brand identity with Gen Y now in order to sell its services to that cohort when they enter the business world. I believe Proximity can work with you to devise a comprehensive campaign that uses new technological trends and social networking to achieve that goal.

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research. We can provide you with customized survey and focus group results to help shape Cognizant Technology Solutions’ image as a progressive technology based company. 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 Cognizant Technology Solutions on social networks such as Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Cognizant Technology Solutions’ 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. You can also visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.

Sincerely, Danielle Tieman Associate Media Analyst  || ||
 * |||| **//PROXIMITY reports //** ||

 || ||



//connecting with Gen Y using social networking media // ||   ||  <span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">Danielle Tieman <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="font-family: 'Arial','sans-serif'; font-size: 18pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> //<span style="font-family: 'Arial','sans-serif'; font-size: 10.5pt;">Broadcasting your location to your friends may cause more reliance on the Internet than ever //<span style="font-family: 'Times New Roman','serif'; font-size: 10.5pt;"> || <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 13.5pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 12pt;">As the Internet continues to grow, Gen Y relies on it more and more. Allowing people access to know one’s every move may in fact cause the opposite effect of its intentions and inhibit face to face interaction. People may form a dependency on the internet to learn the statuses of their friends and become consumed with figuring out ways to meet up with them. They may forget to enjoy the situations they are already in. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 12pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> || <span style="color: #333300; font-family: 'Arial','sans-serif';"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 18pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 12pt;">Proximity focus group results show that Gen Y users still value the social experience of communicating with their friends face to face and meeting new people in daily situations. They will still call their friends and discuss new events in their lives without the Internet being their only means of communication.
 * <span style="font-family: 'Arial','sans-serif'; font-size: 12pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">
 * **<span style="color: maroon; font-family: 'Arial','sans-serif'; font-size: 18pt;">Lifecasting: A New Form of Social Networking **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">
 * **//__<span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 18pt;">The problem __//**<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">
 * **//__<span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 18pt;">Proximity’s on-demand media solution __//**<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

This report details how mobile and social networks are teaming up to build a new way of communicating called Lifecasting. It will combine high-end mobile phones with GPS capabilities to develop a form of social networking through mobile phones. Friends will be able to hear of the current activities of their friends and learn when they are in their area so they can meet up with them. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #333300; font-family: 'Arial','sans-serif'; font-size: 12pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> ||
 * <span style="color: maroon; font-family: 'Arial','sans-serif'; font-size: 12pt;">Available now at www.proximity.edu **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">