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Nokia Case Study

VIDEO CASE 9-1 Nokia: A Phone for Every Segment

"While practically everybody today is a potential mobile phone customer, everybody is simultaneously different in terms of usage, needs, lifestyles, and individual preferences," explains Nokia's Media Relations Manager, Keith Nowak. Understanding those differences requires that Nokia conduct ongoing research among different consumer groups throughout the world. The approach is reflected in the company's business strategy:

We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....

In fact, Nowak believes that "to be successful in the mobile phone business of today and tomorrow, Nokia has to fully understand the fundamental nature and rationale of segmentation."

THE COMPANY

Nokia started in 1865, when a mining engineer built a wood-pulp mill in southern Finland to manufacture paper. Over the next century, the company diversified into industries ranging from paper to chemicals and rubber. In the 1960s, Nokia ventured into telecommunications by developing a digital telephone exchange switch. In the 1980s, Nokia developed the first "transportable" car mobile phone and the first "handportable" one. During the early 1990s, Nokia divested all of its non-telecommunications operations to focus on its telecommunications and mobile handset businesses.

Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."

The mission is accomplished by understanding consumer needs and providing offerings that meet or exceed those needs. Nokia believes that excellence in three areas-product design; services such as mobile Internet, messaging, and network security; and state-of-the-art technology-is the most important...