Brief History and Timeline of the Nokia Company

CASE STUDY: NOKIA TIMELINE/ BRIEF HISTORY OF THE COMPANY: Nokia, which started as a paper production plant and rose to become the world leader in mobile phones, has had a turbulent few years as it battles to produce and iPhone-killer and take on Apple and Samsung in the smartphone arena. After taking the reins in 2011 chief executive Stephen Elop signed a deal with Microsoft, saying Nokia would base its flagship smartphones on the company's Windows mobileoperating system. Since then, Nokia has moved closer and closer to Microsoft, culminating in today's news that Microsoft will buy Nokia's mobile phone businessfor €5.44 billion (£4.61bn). Here are some of the key turning points in Nokia's history: 1963: In its first attempt to enter the telecommunications market, Nokia makes radio telephones for army and emergency responders. 1982: Nokia introduces its first car phone, the Mobira Senator. 1992: Nokia decides to focus entirely on mobile phones and network infrastructure, setting a course to gradually exit its rubber, cable and consumer-electronics businesses. The company offers its first digital handheld phone for GSM, which in 1987 became the European standard for digital mobile technology. 1994: Nokia introduces the 2110, the first of the company's mobile phones to carry its signature ringtone, which was later made famous by Dom Joly's Trigger Happy TV antics. 1998: Nokia becomes the world's largest mobile phone manufacturer - a position it will hold for the next 14 consecutive years. 1999: Nokia releases the 3210, one of the most popular and successful phones in history, selling 160 million units. It is succeeded the following year by the 3310, which has since received arguably the biggest cult status of a mobile phone, and is still widely acclaimed today. 2002: Nokia rolls out its first 3G phone, the Nokia 6650, enabling users to browse the web. 2003: Nokia launches its Nokia 1100 handset. With over 200 million units shipped, it was the best-selling mobile phone of all time and the world's top-selling consumer electronics product. 2005: Nokia introduces its N-series smartphones, allowing users to listen to music, take pictures, play games, and access the internet from their phone. The first three phones of the series are the N70, N90, and N91. Nokia celebrates selling 1 billion mobile phones worldwide. 2006: Olli-Pekka Kallasvuo becomes president and CEO of Nokia. 2007: Nokia credited as 5th most valued brand in the world. Apple enters the smartphone market with the iPhone, posing a threat to Nokia's dominance. 2009: Nokia posts its first quarterly loss in more than a decade – a year after handset maker HTC releases the HTC Dream, the first phone using Google’s Android operating system. Nearly 60 per cent of smartphones today are powered by Android. 2010: Struggling to keep up with the iPhone and Android devices, Nokia hires former Microsoft executive Stephen Elop as chief executive. 2011: Elop announces a strategic partnership with Microsoft, saying Nokia will base its flagship smartphones on the company's Windows mobile-operating system and move away from its own Symbian system. Nokia launches the Lumia 800, its first Windows phone targeting the high-end of the smartphone marketplace. 2012: Samsung overtakes Nokia as the world's largest maker of mobile phones. Nokia issues its third profit-warning in a little over a year and says it will cut another 10,000 jobs in its mobile division by the end of 2013. Observers question whether it will be enough. Nokia unveils the Lumia 920, which the company refers to as the 'flagship' for the new Windows Phone 8 operating system. Nokia says it has signed a deal to sell and lease back its headquarters in Espoo, Finland. The building, which has been the handset maker's headquarters for the last 16 years, was sold to Finnish property investor Exilion Capital Oy for $221.9 million. 2013: Nokia says it will cut 300 jobs, mostly in Finland, and transfer hundreds more other employees to Indian suppliers, removing them from its payroll. Up to 820 jobs will be outsourced in this way. The latest cuts are part of a plan to slash 10,000 jobs in its mobile division by the end of the year. Nokia and Microsoft are rumoured to be in talks about the possibility of the software giant buying Nokia's phone business. The talks break off because of price worries and Nokia's weak market share. Microsoft announces plans to buy Nokia's mobile phone business in a €5.44 billion (£4.61bn) deal, in which will Stephen Elop join the software giant. BACKGROUND OF THE COMPANY: Nokia is a Finnish multinational corporation founded on the 12 May 1865 as a single paper mill operation. Through the 19th century the company expanded, branching into several different products. In 1967, the Nokia Corporation was formed. In the late 20th century, the company took advantage of the increasing popularity of computer and mobile phones. However, increased competition and other market forces caused changes in Nokia's business arrangements. In 2014, Nokia was sold to Microsoft. However, the use of Nokia branding and Nokia's licensed technology continues. In 1967, Nokia Corporation was formed through the merger of the three companies. The new company manufactured products including paper items, car and bicycle tires, rubber boots, communications cables, televisions and other consumer electronics, personal computers, generators, robotics, capacitors, Military technology and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminium and chemicals In 1960, a cable division of the Nokia group had been formed. In 1962, it produced a pulse height analyzer used in nuclear power plants. In 1967, an electronics division within the Nokia Corporation was formed. It operated for the next fifteen years, sometimes at a loss. Nokia researchers were encouraged to develop their own projects. This may have contributed to Nokia's focus on mobile phone technologies. In 2000, Nokia launched the Nokia 3310. In 2003, the Nokia 1100 handset was launched Nokia combined a video game console and a mobile phone in the "N-Gage" In April 2008, Nokia Productions started a mobile movie-making project. The movie which was presented at the Nokia Theater Angeles on 14 October 2008 was directed by Spike Lee. It was approximately 15 minutes long and comprised short segments made on phones contributed by the public. The theme of the movie was "humanity" In 2009, Nokia re-entered the personal computing market. Its product, the Nokia Booklet 3G was a Windows-based net book. The company also entered the Smartphone market The Series 40 was a phone platform used in feature phones, mainly running Javabased applications Nokia acquired Smarter phone, a company making the Smarter phone OS for "low end" phones and merged it with Series 40 to form the Asha Platform, which also used some user interface characteristics from Nokia's MeeGo platform The Asha 501 used this new operating system. The Series 40 was discontinued in late 2014. ASSESSMENT OF THE CASE STUDY: Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. Nokia also offers special mobile phones with exquisite and unique functions and options. Nokia’s success benefits were some advantages they had in the market. These also include the advance technology and features, as well as services they offer to their consumers. However, like most other companies, Nokia has some weaknesses, but we consider these to be very minimal, and almost only come down to their competition. Nokia’s informational business model includes Nokia’s work organization, control system, industrial relations, human resources, business strategy, and finally, enterprise organization.