The aim of this seminar paper was to describe the history of Nokia company, which is a well- known Finnish manufacturer of mobile devices. Nokia employs around 139.000 people across 120 countries and it is present in more than 150 countries around the world. This is actually an admirable achievement for a company that started its business as a small riverside paper mill in Finland. As well as this Nokia is doing business for more than 135 years.
Although Nokia is a leading multinational enterprise, a major part of its business is located in Finland, where the company has its headquarters in Keilaniemi of Espoo. As a result, Nokia ́s success or failure is crucial for Finnish economy. Besides Nokia ́s electronics, the company is also worldwide known for its „Nokia- Connecting People“ slogan, its Nokia Tune ringtone or its spectacular Snake game. This seminar paper handles the business history of Nokia, its impact on Finnish economy and employees, the most important personalities of Nokia and factors that have been responsible for Nokia ́s success and the general contribution of Nokia company to business history.
Table of Contents
1. Introduction
2. Situation today
2.1. Nokia's market share and brand strength
2.2. Nokia Business Units
2.3. Nokia and its major competitors
3. History of the Nokia Company
3.1. Pulp mill and paper production start
3.2. Rubber production
3.3. Cable production
3.4. Merger into the Nokia Corporation
3.5. The Era of Information Technology and Telecommunications
4. Nokia in the Finnish Society and Economy
4.1. Nokia´s impact on working culture
4.2. Nokiazation of Finland
4.3. The impact of Nokia on GDP of Finland
4.4. The impact of Nokia on R&D expenditure
4.5. Nokia´s impact on employment
4.6. Nokia´s impact on productivity
5. Management strategy and factors that influenced the success of Nokia
6. Personalities of Nokia
7. Conclusion
7.1. Future of Nokia-led Finland
7.2. Future of Nokia
Research Objectives and Key Topics
This paper examines the business history of the Finnish company Nokia, exploring its transformation from a local industrial enterprise into a global leader in telecommunications, and evaluates its profound influence on the Finnish economy, workforce, and national innovation landscape.
- The historical evolution of Nokia from forest industry to technology leader.
- Economic impact analysis of Nokia on Finland's GDP and R&D landscape.
- Management strategies and key leadership personalities that shaped Nokia's success.
- Evaluation of current market challenges and the company's strategic responses in the smartphone era.
Excerpt from the Book
3.3. Cable production
In 1912 Arvid Wickström founded the Finnish Cable Works in Helsinki, which had its focus in the cable and electronics business (Nokia official website, Our Company 2012). 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 2006, 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 2011, 122). But it’s also necessary to mention the Ministry of the Soviet Union, which was on the one hand a demanding but nevertheless very important customer (Ali-Yrkkö 2000, 26).
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 1920s and 1930s and became very strong in the Finnish market (Stadler 2011, 122 f.).
In the 1950s 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 1960s, the company focused also on their production and sales and expanded its business in this direction. One part of the computer division was also the R&D department working on launching Nokia’s own products. 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.
Summary of Chapters
1. Introduction: Presents the scope of the paper, detailing Nokia's transition from a small paper mill to a global multinational enterprise.
2. Situation today: Analyzes Nokia's current market position, brand strength, and the challenges posed by smartphone competitors.
3. History of the Nokia Company: Details the company's evolution through paper, rubber, and cable industries, culminating in the telecommunications era.
4. Nokia in the Finnish Society and Economy: Evaluates the company's massive influence on Finland's national GDP, employment, and R&D expenditure.
5. Management strategy and factors that influenced the success of Nokia: Discusses key strategic decisions, timing, and management approaches that propelled Nokia to global dominance.
6. Personalities of Nokia: Profiles essential leaders like Fredrik Idestam, Kari Kairamo, and Jorma Ollila, and their impact on the firm.
7. Conclusion: Summarizes the current struggles of the company and assesses future prospects for both Nokia and the Finnish economy.
Keywords
Nokia, Telecommunications, Business History, Mobile Phones, Finnish Economy, Innovation, R&D, Globalization, Management Strategy, Smartphone Market, GDP Impact, Industrial Evolution, Competitive Strategy, Digital Transformation, Market Share.
Frequently Asked Questions
What is the primary focus of this seminar paper?
The paper provides a comprehensive business history of Nokia, analyzing its transformation from a Finnish industrial enterprise into a global mobile phone giant, while assessing its socio-economic impact on Finland.
What are the central themes discussed in this work?
Key themes include industrial evolution, corporate diversification, the "Nokiazation" of the Finnish economy, strategic management in technology, and the challenges of the modern smartphone era.
What is the primary goal of the research?
The research aims to describe the historical milestones of Nokia and identify the management strategies and external factors that contributed to its rise and subsequent market challenges.
What research methodology is employed?
The work utilizes a historical-descriptive methodology, synthesizing data from academic literature, industry reports, corporate history records, and macroeconomic indicators.
What does the main body of the text cover?
It covers the historical segments (paper, rubber, cable), the 1967 merger, the shift to information technology, the impact on Finnish economic indicators, and profiles of key leaders.
Which keywords characterize this paper?
The key concepts include Nokia, Telecommunications, Innovation, R&D, Finnish Economy, and Strategic Management.
How significant was the 1967 merger for Nokia?
The 1967 merger of Nokia Ab, Finnish Cable Works, and Finnish Rubber Works was a critical turning point that created a diversified industrial conglomerate and formed the basis for future technological growth.
What role did the "Nokiazation of Finland" play in the country's economy?
The term describes the era when Nokia's rapid growth accounted for a significant portion of Finland's GDP, R&D expenditure, and exports, essentially making Finland a "one-firm economy" in many analysts' views.
Why is the role of leaders like Jorma Ollila highlighted?
Leaders like Ollila are highlighted because they orchestrated the transformation of the company from a complex industrial conglomerate into a streamlined, high-growth mobile telecommunications power.
How does the author view the future of Nokia at the time of writing?
The author expresses concerns about Nokia's declining market share in the smartphone sector but notes that the partnership with Microsoft and the Windows Phone platform are viewed as potential catalysts for recovery.
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- Alexandra Barokova (Autor), Miroslava Jergušová (Autor), 2012, The History of the Nokia Company, Múnich, GRIN Verlag, https://www.grin.com/document/340144
