What type of company is nokia

This happened after the acquisition with Nokia Ab, which consisted of both the wood and the rubber industries. In this time the company also started with the production of industrial parts, rubber bands or raincoats About Nokia, Nokia History It became very popular in the country, so that almost every Finnish family was a proud owner of Nokia Rubber Works products.

Mostly the production of shoes was so successful that it could compete against the Russian imports Nokian Jalkineet, The Story. This success was the basis for the company to expand its business also into foreign markets. In s the company started to export winter tires and footwear and in the s the tire industry got the name Nokian Renkaat Oy because of its cooperation with Renkaat Oy.

Also in the cooperation still was prolonged until the years , where the rubber industry was sold off step by step.

Stolle , 3 f. Because of the development of telephones and telegraphs there was a high demand for cable products at the beginning of the 20th century. The most important products of the Finnish cable works were telephone, telegraph and electric cables Stolle , 4.

One of the main raw materials was rubber produced by the Finnish Rubber Works. The main customers of the company were other industrial companies which bought electrical cables and wires Stadler , Also the cable production has been hardly hit by the World War I and its negative impacts, because of the increased raw material prices. Despite of these facts, the cable production could expand the business in s and s and became very strong in the Finnish market Stadler , f.

In the s the Finnish Cable Works could take the advantage of the new inventions - radios and TVs - and could produce not only telephone cables, but also coaxial cables. It was also able to penetrate the foreign markets in Europe as well as the Middle East. With computers coming on the market in the s, the company focused also on their production and sales and expanded its business in this direction. After the merger of three independent industries into the Nokia Corporation, which will be described in the following chapter, the cable production remained the most profitable business area of Nokia.

It generated more revenue than the other industries did together. Unfortunately the Finnish recession has weakened the company, which resulted in selling off the cable production division in Stolle , 4 f. It consisted of five businesses at that time: rubber, cable, forestry, electronics and power generation Official website of Nokia, Our Company The target of the merger was to create a more international and liberal company from three companies that have already been under the same ownership for a certain period of time Stolle , 5.

Later were all of them in the ownership of the Finnish Rubber works until the above-mentioned merger in A B Alexandra Barokova Author. Add to cart. Table of content Table register Illustration register Abbreviation register 1.

Introduction 2. Nokia and its major competitors 3. The Era of Information Technology and Telecommunications 4. Management strategy and factors that influenced the success of Nokia 6. Personalities of Nokia 7. In Nokia sold its mobile and devices division to Microsoft. Additional acquisitions have positioned Nokia to be a global technology leader in the communications industry.

In the Nokia brand re-entered the mobile handset market through a licensing agreement with HMD Global, allowing them to offer phones under the Nokia brand. Nokia's sales margins were naturally reduced, but of greater concern, production capacity was built up without a commensurate expansion in the sales network. With little brand identification, Nokia feared it might have a difficult time selling under its own name and become trapped as an OEM. In Nokia reorganized its management structure to simplify reporting efforts and improve control by central management.

The company's 11 divisions were grouped into four industry segments: electronics; cables and machinery; paper, power, and chemicals; and rubber and flooring.

In addition, Nokia won a concession from the Finnish government to allow greater foreign participation in ownership. This substantially reduced Nokia's dependence on the comparatively expensive Finnish lending market.

Although there was growth throughout the company, Nokia's greatest success was in telecommunications. Having dabbled in telecommunications in the s, Nokia cut its teeth in the industry by selling switching systems under license from a French company, Alcatel.

The Finnish firm got in on the cellular industry's ground floor in the late s, when it helped design the world's first international cellular system. A year after the network came on line in , Nokia gained percent control of Mobira, the Finnish mobile phone company that would later become its key business interest as the Nokia Mobile Phones division.

Mobira's regional sales were vastly improved, but Nokia was still limited to OEM production on the international market; Nokia and Tandy Corporation, of the United States, built a factory in Masan, South Korea, to manufacture mobile telephones. These were sold under the Tandy name in that company's 6, Radio Shack stores throughout the United States. In , eager to test its ability to compete openly, Nokia chose the mobile telephone to be the first product marketed internationally under the Nokia name; it became Nokia's "make or break" product.

Unfortunately, Asian competitors began to drive prices down just as Nokia entered the market. Other Nokia products gaining recognition were Salora televisions and Luxor satellite dishes, which suffered briefly when subscription programming introduced broadcast scrambling. The company's expansion, achieved almost exclusively by acquisition, had been expensive.

Few Finnish investors other than institutions had the patience to see Nokia through its long-term plans. Indeed, more than half of the new shares issued by Nokia in went to foreign investors. Nokia moved boldly into Western markets; it gained a listing on the London exchange in and was subsequently listed on the New York exchange. Nokia's rapid growth was not without a price. In , as revenues soared, the company's profits, under pressure from severe price competition in the consumer electronics markets, dropped.

Chairman Kari Kairamo committed suicide in December of that year; not surprisingly, friends said it was brought on by stress. Simo S. Vuorileto took over the company's reins and began streamlining operations in the spring of Nokia was divided into six business groups: consumer electronics, data, mobile phones, telecommunications, cables and machinery, and basic industries. Vuorileto continued Kairamo's focus on high-tech divisions, divesting Nokia's flooring, paper, rubber, and ventilation systems businesses and entering into joint ventures with companies such as Tandy Corporation and Matra of France two separate agreements to produce mobile phones for the U.

Industry observers blamed cutthroat European competition, the breakdown of the Finnish banking system, and the collapse of the Soviet Union. But, notwithstanding these difficulties, Nokia remained committed to its high-tech orientation. Late in , the company strengthened that dedication by promoting Jorma Ollila from president of Nokia-Mobira Inc. Forbes' s Fleming Meeks credited Ollila with transforming Nokia from "a moneylosing hodgepodge of companies into one of telecommunications' most profitable companies.

Having divested Nokia Data in , Nokia focused further on its telecommunications core by selling off its power unit in and its television and tire and cable units the following year.

The new leader achieved success in the cellular phone segment by bringing innovative products to market quickly with a particular focus on ever smaller and easier-to-use phones featuring sleek Finnish design.

Nokia gained a leg up in cellphone research and development with the acquisition of the United Kingdom's Technophone Ltd. The company that eventually became Nokia was founded in southern Finland as a pulp mill company in Over the decades it expanded into then-emerging industries such as electrical power generation and manufacturing telephones.

In the s, Nokia was a conglomerate selling everything from toilet paper to car tires. But by the late s, it had spun-off almost everything except its telecommunications businesses. But it lost that title in to Samsung. And its fortunes in mobile just kept sliding. Although Nokia created one of the first smart phones, the Nokia Communicator in , Apple and Google were the ones that ultimately convinced the masses they needed the mobile internet. Getting out of the commodity smartphone trade and concentrating on the potentially more lucrative business of equipping the companies responsible for connecting those phones to the internet seemed like a shrewd move.