Strange are the events that take place in business. A company which was founded when telephone was not yet invented went on to become the world’s largest mobile phone maker. Nokia, Finland’s most remarkable success story, having evolved from a timber and rubber company on the banks of the Nokia river way back in 1865, has today become the leading player in the booming market for mobile phones in the space of two decades. Now, it is one of world’s outstanding business success stories. A shapeless conglomerate that made everything from tyres to televisions in the 1980s, the Helsinki company took the plunge in right earnest into mobile telephony, which was revolutionized with the advent of GSM. Once Nokia concentrated on mobiles, there was no looking back. Today, the company sells one-third of the world’s mobile handsets – more than the combined share of its two closest competitors, Motorola and Samsung.

The company is now all set to take advantage of the imminent convergence between mobile phones and the Internet.

Nokia launched its first mobile phone, the Talkman, in 1984. The handset was large and heavy by today’s standards, but the company did not have the slightest doubt that it would be the best friend of everyone. The rest is for everyone to see and experience.

With annual revenues exceeding ¤23 billion in the last nine months of the last year, it also takes pride in being the largest vendor of telecom equipment in the world.

The mainstay of Nokia’s business are its mobile phones’– around 205 million, of which were sold in the three months till September last. Over 65 million of them were made by Nokia. The complexity of modern handsets places Nokia on the list of the world’s leading computer-makers. Nokia also qualifies to be one of the world’s leading camera-makers as the use of camera-phones becomes more widespread.

Today, Nokia is leading the market worldwide, especially in Western Europe and Asia- Pacific, It captured a 32.6-per cent market share, selling more than 66.9 million units in the third quarter of 2005, a 28-per cent jump from the 52.2 million it sold in the same quarter of last year, according to a report published by Gartner.

What drove sales for Nokia are the ten new phones the company shipped for the global system for mobile communications (GSM) market and five for the code division multiple access (CDMA) market. The Nokia 6680 was the strongest model in the wideband CDMA market.

Headquartered in Finland, Nokia is a major supplier of digital technologies, including mobile phones, cellular and fixed telecommunications networks, wireless data solutions, multimedia terminals and computer monitors. The mobile leviathan represents about

3.5 per cent of gross domestic product and nearly 25 per cent of all exports in Finland, the country with the highest density of mobile phones in the world.

As banner advertisements with the name of Nokia is a common sight in every part of the world, it is only to be expected of the mobile giant to have a presence in India, one of the fastest growing mobile markets on earth.

In the developed world, the mobile market is becoming saturated. As most adults already carry a mobile phone, existing subscribers are switching in droves to today’s more advanced models. The ladscape in India is somewhat diffrenet. Here, both new and existing users are driving the market. Meanwhile, the number of mobile phones in use has overtaken the number of fixed-line phones in 2004.

No wonder, so many firms are jockeying to have a piece of the action in India. When India witnessed the introduction of mobile phones in the mid-1990s, Motorola, Ericsson and Nokia were the major players in its handset market. However, as things stand today, Nokia is way ahead of its rivals with more than 74-per cent market share, compared to around 32 per cent globally. According to ORG GFK estimates, in the colour segment too, the company has increased its market share to 55 per cent in March 2005 from 33.7 per cent in October 2004. Its nearest rival in the Indian market is a distant second with 7.8 per cent in March 2005.

In 2005, Nokia was recognized as the “Brand of the Year” by the Confederation of Indian Industry, India’s apex industry association. Its high brand recall, well-established distribution channels and being”“most preferred by the consumers contributed to making its choice for the award.

Mr. Sanjeev Sharma, Managing Director, Nokia India, said, “Nokia was judged by brand consulting firm Vertebrand as among the ten most valuable brands in the world, and it was an honour to receive the award in India, too.” He added, “This award is particularly gratifying for us, since we are only 10 years old in India. This is also reflective of the rapid evolution of the mobile phone from a corporate productivity tool to an essential communication device for people from all walks of life.” Last year, it won the prestigious Golden Peacock Innovative Product/Service Award for the N1100. In 2004, it was also declared““most respected company in the consumer durables sector” by Businessworld magazine. The company was also invited by Harvard University to talk about its amazing success in the Indian the market.

Nokia’s business and market strategies combined with management style in India have merited the legitimate attention worldwide. What made the company a resounding success story is its extensive product range, anticipation of consumer trends at the very outset and a retail strategy. Nokia was the first to introduce a phone for the fashion segment, the 8210.

Keeping in mind the specific needs of the customers, Nokia introduced the first “Made for India” model, the 1100, which is the largest selling model in the Indian GSM handset market. Another phone which has been introduced by the company specifically for India is 1108. These phones have been developed after intensive research on the Indian customer’s specific needs.

With a view to developing an intimate bond with the local customers, Nokia introduced tunes like Sare jahan se achcha in its 5110 model. In 2001, the mobile giant introduced the Hindi text messaging facility in the 3610 model.

Nokia has recently launched a campaign named Jaago India Jaago which captures a new era of mobility. Elaborating the rationale behind the Jaago India Jaago advertising campaign, Mr. Sharma said, “ Indians are extremely proud of how the country has been progressing. The growth of mobility is one of the key indicators of the economic progress in India. The advertising campaign therefore uses the“‘Talking Alarm’ functionality of the Nokia 1110 and 1600 as a metaphor to convey how more and more Indians were waking up to mobility through Nokia handsets and participating in the progress.”

Sensitive to rising costs, Nokia is all set to manufacture in India. It has set up a manufacturing facility for mobile devices in Chennai, the state capital of Tamil Nadu in southern India. The company has invested US$100-150 million in the facility, where the production is expected to begin in the first half of 2006. Pekka Ala-Pietilä, President & Head of Customer & Market Operations, Nokia Corporation, said, “Establishing a new factory in India is an important step in the continuous development of our global manufacturing network.”

As the CDMA market in Asia-Pacific is on its way to robust growth, Nokia set up its Code Division Multiple Access (CDMA) facility in Mumbai, which provides software and technical support to CDMA consumers in India and other Asia-Pacific countries.

“Nokia views Asia-Pacific as an important region for Nokia’s CDMA operations. The creation of a new CDMA R&D facility in India is part of the continuous expansion of Nokia’s global efforts to grow and invest in the CDMA business in this region. We are also constantly looking at opportunities to expand our R&D activities to include markets outside the US. The establishment of such a facility in India testifies to our long-term commitment to this region,” said Soren Petersen, Senior Vice-President & General Manager, CDMA Business Unit, Mobile Phones, Nokia.

Reiterating Nokia’s commitment to the growing CDMA market in India, Sanjeev Sharma, Managing Director, Nokia Customer and Market Operations, India, said, “India is one of the fastest growing cellular markets in the world. With the rapid growth of Nokia’s CDMA customer base in India and the region, our R&D facility in Mumbai will help us provide centralized software support and technical expertise to cater to the specific market needs in India and this region.” Nokia has R&D centres in 11 countries throughout the world. The company considers that R&D is paramount in realizing Nokia’s vision of “Life Goes Mobile” and retaining its leadership role in mobile communications. In 2003, nearly 20,000 employees – almost 40 per cent of the company’s total workforce – worked in the area of research and development. 

The Indian market for mobile games is expected to reach $336 million by 2009. This summer, Nokia debuted its first game device in India (the N-Gage QD). India is an important destination for Nokia. The company considers the country among top five markets in the world. Providing network equipment and mobile handsets in the country, Nokia’s presence in India dates back to 1995 when the company started its operations here.

India’s first mobile call was made via Nokia GSM network and on Nokia handset in 1995. Nokia has strong leadership across major segments of the Indian market: monochrome, colour and camera. Making another stride in the Indian market, in March last year Nokia opened a dedicated Concept Store to ensure an easy and informative shopping experience.

The store which is based on the pattern followed by Nokia’s concept stores in the European countries features the full range of the company’s offerings, including handsets, mobile enhancements, ring tones, graphics, games, software and exclusive Nokia merchandise. Mr. Sharma said, “We are constantly looking to enhance the consumer’s experience with the Nokia brand. The Nokia concept store provides customers with an interactive and informative shopping experience and the opportunity to experience the product before making a purchase decision.” Besides offering Nokia products, the store also houses an Experience Zone and a Nokia Lounge.

As part of its distribution strategy, Nokia has ensured that it has a presence of its priority dealers in more than 255 towns. It has the widest care network with a presence in 408 cities. The company has some 560-odd care centres with 25 hi-tech facilities.