The Nokia Corporation (Nokia Lumia in India)
The telecommunications industry is rather diverse. Nokia is a corporation that happens to be a major player in the telecommunications industry. Nokia is a Finnish based corporation that deals solely with the manufacture of mobile phones.
Triple Bottom Line Analysis
Recently, Nokia merged with the Microsoft Corporation. After the merge, Nokia then launched the Nokia Lumia Smartphone. The Nokia Lumia Smartphone was the world’s first windows phone. The Lumia gained much recognition in the industry. This was a great boost for Nokia Corporation in terms of profit generation, customer attraction, diversification of the market scope, among many other vital aspects. To start off, the paper will discuss and elaborate more on the aspect of profit focusing on the Lumia Smartphone in India.
Recent research indicates that Nokia has been facing stiff competition from other mobile phone corporations such as Apple (the I-phone) and Samsung. As a result of the stiff competition, Nokia decided to venture into mobile phone markets in developing nations such as India, among other nations. Before venturing in the Indian Smartphone market, Nokia Lumia was generating little profit for the corporation. However, after venturing into the Indian Smartphone market, Nokia realized an increase in the total profit generated after launching Nokia lumia in the market. Research indicates that the number of sales doubled in the Indian market for various reasons.
For starters, India is among the fastest developing nations in Asia. This means that a majority of the people in India are not in a position to afford luxurious phones such as the I-phones and so on. Nokia has set reasonable prices for the Nokia Lumia. For instance, there are different varieties of the Nokia Lumia. There is the Lumia 520, 720, and so on till the recent Lumia 1520. The prices of the different models of the Nokia Lumia are set as per customer affordability. For instance, the Lumia 520 is cheaper compared to the Lumia 1520. Therefore, the prices of the Nokia Lumia are flexible in a manner that suits the financial level of the people in India. This fact explains the increased number of sales that have in turn increased the profit generated.
India is also known to have a rather large population. The large population has also created a large market scope for the sale of the Nokia lumia. The increased market scope meant that Nokia would be in a position to make more sales, consequently increasing the total profit generated.
Research indicates that over the years, Nokia has formulated various strategies with the intention of minimizing the effect of Nokia devices on the environment. These strategies have been incorporated in the Indian Market for Nokia Lumia devices. Of these strategies, Nokia plans to initiate a program that will foresee the recycling of Nokia devices.
Nokia held awareness campaigns in over eighty five countries (India being among these countries). The awareness programs encouraged Nokia users to forward their devices (old devices) to Nokia for purposes of recycling. This step would enable Nokia to enhance environmental sustainability. Nokia also planned to conserve energy by manufacturing mobile phones (the Nokia Lumia for example) that do not consume too much energy. Nokia has managed to actualize this aim by manufacturing phones that come with pre-installed energy savers (battery saver). Nokia has also manufactured phones (the Lumia for example) in a manner that the phone is programmed in a way that it sends alerts to the user, instructing the user to unplug the charger. This step has also enabled Nokia to foresee the conservation of energy.
Nokia has also promoted the conservation of the environment through Nokia software. The Nokia Corporation has programmed the Nokia software in a manner that the software enables the users to download Eco programs and services for free. These eco programs and services enable the user to understand more about the environment and expose the users to better ways of ensuring environmental sustainability.
From the discussion, it is evident that Nokia has taken measures to ensure environmental sustainability. For instance, Nokia was able to conserve 354000MWh in 2007-20012. This marked a significant reduction of an estimated six percent. Therefore, it is correct to claim that Nokia’s efforts are net-positive. This fact is justified by the enormous efforts (those discussed above) to conserve the environment by manufacturing environment –friendly devices.
Nokia’s social impact
Over the years, Nokia has been able to maintain proper customer relations. This fact has in turn boosted Nokia’s public image and reputation. For instance, Nokia has ensured that it (Nokia) is able to maintain proper relations with its customers by promoting proper communication. Nokia has established websites, face book pages, twitter handles, among many other communication platforms where the employees are able to freely interact with customers. Through communicating with its customers, Nokia is able to gather the views, and the thoughts of the customers. The views and thoughts gathered enable Nokia to understand the needs and wants of the customers. Thus, Nokia incorporates these needs and wants in the Nokia products and services (Ramaswamy & Namakumari, 2009,).
Nokia has also initiated programs that enable the corporation to directly contribute to community based programs. In India, Nokia has shown support to community programs through sponsorships, donations, and community partnerships. In India, Nokia has also initiated youth programs. These youth programs have enabled Nokia to offer support to students that cannot afford to pay for schools fees (Nokia sponsor’s the education of these students). Nokia also offers employment opportunities to these youths (Häikiö, 2002,).
These activities (proper communication with customers and supporting community programs) have enabled Nokia to reinforce social relations. The people have grown to appreciate the efforts of the corporation consequently, boosting the corporation’s reputation and social image. This fact then justifies the claim that socially, Nokia (more so in India) has generated a net-positive impact.
4C’s Stakeholders Analysis
Stakeholders may be described as the people or the groups of people that are: directly affected by the activities of an organization, involved in the daily activities of an organization, and those that are of great interest to the organization. These stake holders are categorized into two, the internal and external stakeholders.
Nokia’s internal stakeholders
The employees in Nokia are among the internal stake holders of the corporation. The employees in the corporation ensure that the day to day activities in the corporation are carried out as expected. The employees contribute immensely to the development of Nokia. Nokia ensures that it involves the employees in vital issues that affect the corporation, Issues such as growth and development, corporate values and so on. By involving the employees in corporate issues, Nokia is able to meet the expectations and the needs of the employees.
The shareholders are other internal stakeholders in Nokia. The shareholders act as the partial owners of an organization. As the name suggests (shareholder), the shareholders hold shares in a company. Therefore, the shareholders own a major part of an organization’s capital. The shareholders expect an organization to foresee the equal division of profit, rewards, dividends, and bonuses. Nokia then implements strategies to ensure the equal division of bonuses, dividends, rewards, and profits among the shareholders. These strategies enable Nokia to meet the needs and expectations of the shareholders.
The suppliers are among the internal stakeholders. The suppliers foresee the provision of necessary raw materials to an organization. This role makes the suppliers very vital and important. The suppliers expect things such as regular communication, advanced payment, early payment, competitive value, and soon. Therefore, Nokia implements strategies that foresee the early payment for services provided by the suppliers. Nokia also implements strategies that foresee competitive advantage for the suppliers. By doing these, Nokia meets the needs and expectations of the suppliers (Ramaswamy ; Namakumari, 2009,).
Nokia’s external stakeholders
Among Nokia’s external stakeholders is the local community. The local community expects a corporation such as Nokia to chip in during community programs. Nokia has foreseen the sponsorship of community programs. For instance in India, Nokia has sponsored programs initiated to create both cancer and AIDs awareness. Nokia has also initiated partnerships with education organizations. These partnerships are then able to cater for the education of the youth. By taking these steps Nokia meets the expectations of the local community.
The government is another external stake holder. The government is a significant body that determines the manner in which an organization operates. The government issues licenses that give the organizations the go ahead to carry out the manufacture, the production, and the distribution of goods and services. The government expects the organization to pay taxes, and revenues. The government also expects the organization to provide employment, and to comply with all the rules set by the government. Nokia ensures that it complies with the regulations set by the government in the respective countries it operates in. Nokia also ensures that it (Nokia) pays tax and necessary revenue to the government. Nokia has also foreseen the provision of employment opportunities to a great number of people worldwide. Therefore, Nokia meets the expectations and the needs of the government (Model, 2011,).
Nokia has several market segments. Among these segments is the Demographic Segmentation. The demographic segment focuses on issues such as age, preferences, and the general characteristics of the population. Research indicates that Nokia has manufactured phones that suit the different age groups in the society. For instance, Nokia has manufactured smart phones that appeal to kids, young adults, and the adults (Nokia Case Study , 2008,).
Nokia has also manufactured mobile phones observing the different income levels of the population. For instance, Nokia has manufactures the Nokia Lumia phones. These phones are categorized in a manner that meets the different financial levels of the population. The Nokia Lumia 520 is cheaper than the Nokia Lumia 1520.
Nokia also manufactures mobile phones that meet the requirements of the different genders. For instance, Nokia manufactured the Nokia ROXO. The Nokia Roxo was manufactured to target the females. The phone comes in diverse colors that appeal to the female gender. Nokia focused on women as their major target group.
Nokia has had to deal with the ever rising levels of competition in the telecommunication industry. Among Nokia’s major competitors are Samsung, and Apple. Nokia has had to deal with other indirect competitors such as Motorola and LG. the LG Company is one known for the diverse manufacture of electronics. LG manufactures electronics such as televisions, home theaters, among many others. LG also deals in the production of mobile phones. LG incorporates the latest technologies in a majority of its products. This fact creates competition for Nokia. LG deals in the manufacture of electronics. This fact also creates competition for Nokia that happens to deal solely with the manufacture of mobile phones (Gru?newa?lder, 2008,).
Motorola is another company that has created competition for Nokia. Motorola was the first company to manufacture the first mobile phone. This means that Motorola has had more exposure to the manufacture of mobile phones compared to Nokia. However, over the years, Motorola lost its glory and recognition. This fact has minimized the competition set by Motorola.
The paper will focus on Samsung as the major competitor for Nokia. Samsung acts as the major competitor for Nokia because of several reasons. Among these reasons is the fact that Samsung and Nokia are the largest phone manufacturing companies worldwide. The two companies occupy the largest market share in the telecommunications industry. Another reason is the fact that people worldwide opt to purchase Samsung and Nokia brands.
Samsung has had several strengths that have created competition for Nokia products. For starters, Samsung products are designed in a manner that is appealing to the users. For instance, the Samsung phones are ultra thin, and the slide structure makes the Samsung brands rather appealing. The quality of Samsung phones is also good. The Samsung brands are up to date with the latest technological innovations. However, the Samsung phones have had weaknesses. Among these weaknesses is the poor camera resolution. The Samsung phones functions are too poor and easy to use.
- Gru?newa?lder, A. (2008). Analysis of Nokia’s Corporate, business, and marketing strategies. Mu?nchen: GRIN Verlag GmbH.
- Häikiö, M. (2002). Nokia-the inside story.
- Model, N. (2011). 5200. Nokia Corporation, 2. Nokia Case Study: How can Nokia maintain its market position in the mature European market?. (2008). Mu?nchen: GRIN Verlag GmbH.
- Ramaswamy, V. S., & Namakumari, S. (2009). Marketing management: Global perspective, Indian context. Delhi: Macmillan.