Nokia has expanded themselves into more then just phones. They have different models for digital satellite receivers called Nokia MediaMasters. They have Multimedia Terminals, which combine the Internet, television and broadband access, and they also have Mediascreens, which is a new concept of digital television with features such as the flatscreen display. That part of the product line is segmented into four different series. The series include, Performance Series, Business Series, Value

When Nokia first started out they were not on well economic standing at all. Net sales and profit were both really low. In 1991-1992 net profit was negative which caused return on equity to also be negative. However, from 1993 to 1996, Nokia experienced rapid growth. Due to the fact that the return on investment ratio does not exceed the growth rate, except for 1993, Nokia was always able to increase its solidity so that in 1993 the equity to total assets ratio was already 47%. It’s obvious to see that the people behind this company, like Bengt Holmstrom and Jorma Ollila, definitely knew what they were doing in order to bring a company that had negative profits in 1991 to profits exceeding $1 billion dollars in 1995. Nokia continues to create profits for themselves and in 1999 they had almost $4 million dollars in profits.

It has been said in the past that Nokia has a “secret code” to it’s success but Nokia cannot seem to put a finger on exactly what it is. Nokia passed Motorola in 1998 to become the world’s leading maker of mobile phones. According to Interbrand, Nokia has the 11th most valuable brand name in the world. One possible secret to success may be the simple fact of the history of the company itself. Nokia is actually a 135-year-old corporation. It’s original home in Finland had major product lines of diapers and boots, having no clue of the accomplishments it would have today. Nokia doesn’t have as big of an advantage that keeps them at number one like Microsoft does with Windows but Nokia has some strengths that keeps them on top. Two long lasting strengths are they companies design and branding capabilities, and sleek manufacturing efficiencies. The return on capital went up to 55.7% in 1999 from 29% in 1995. Nokia was able to really take off in 1997 when they were able to successfully produce 31 phone models. They were also able to produce 17 in 1998 and 18 in 1999.

Nokia has operating standards for its management systems, transfer of technology, and standards for business practices throughout its business units. The company has joint ventures in nine different countries and a big number of contract manufacturers who share the technology and expertise of the company. See Exhibit B for a list of Nokia’s joint ventures. As of 1998 Nokia had 21 main production sites and al

Some topics in this essay:
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