NOKIA制胜美国市场报告ppt课件

1、CONFIDENTIALDiscussion documentNokia Case Study: Winning in the U.S.RatingProduct Product and category selection Products optimized for US marketCapabilities Resources Research and development Market relations Distribution and sales channels Marketing Alliances and acquisitionsOrganization Aspiratio

2、n and priority Talent Decision making andresponsibilities Culture, values and style Coordination mechanisms FINGERPRINT NOKIA Rationale Focused on high growth categories (e.g., mobile phones, digital) Anticipated shift to digital technology in the U.S. before competitors and directed resources to op

3、timize opportunity; tailors products to target customers (e.g., fashion covers for younger segment) Some difficulty to attracting top-tier local senior management due to glass ceiling (e.g., all senior leadership in Finnish0; Finnish managers used to manage U.S. operations Succeeds in attracting top

4、 engineers because of attractive products Local managers have limited autonomy and accountability exists at the unit level, but head office retains final input Difficulty translating “The Nokia Way to U.S. (“The culture doesnt have the same richness or value as it does in Europe) Devotes sufficient

5、resources to local organization to win in market (e.g., provided resources for U.S. to win in mobile phone segment) Outsources non-core technologies (e.g., microprocessors from Intel, components form Motorola) and uses standard components to save on R&D spend and react faster to changing technologie

6、s than its competitors; leverages partnerships for more efficient R&D (e.g., JV with Cisco, Geoworks, HP) N/A Creates broad distribution reach through numerous, innovative relationships with retailers and distributors (e.g., Sears, AT&T wireless services,Tandy) Develops and launches innovative marke

7、ting campaigns (e.g., first to target consumers rather than professionals) Successfully allies and acquires to gain capabilities (e.g., joint venture with Tandy for distribution, acquisition of Mobira to enter promising mobile phone area)HighLow Encourages sharing of best practices but has not been

8、very successful at doing so to dateNOKIA542513682119Key facts Largest 1 -3 year revenues growth of competitorsLargest mobile phone manufacturer and second largest provider worldwide (behind Ericsson)Products Mobile phonesGSM/DSC networksCompetitorsEricssonMotorolaTimeline 18651990s Developed into co

9、nglomerate (flooring, TV, footwear, etc.) until refocusing on high growth mobile phone segment in late 1980s and 1990sDivests non-core businesses19951999AmericasROWEURRevenues$ BillionsStock appreciation (1998-99)521622NokiaS&PS&P cell and wireless indexCAGR %Capabilities First to use mass marketers

10、 as distributors (e.g., selling mobile phones in Radio Shack)Uses alliances for distribution channels (e.g., AT&T Wireless Services, Sears)Adopts consumer rather than professional focus in marketing, unlike competitorsUses alliances in R&D to grow development capabilities (HP, Cisco, Geoworks)Organi

11、zation Autonomy provided to senior leadership in local subsidiariesTop management is all Finnish; obstacle to hiring top U.S. talentStrong emphasis on corporate values and culture with “The Nokia Way teamwork, innovation, production; difficult to implement in U.S.Excellent opportunities for advancem

12、ent-fast career tracks, early responsibility, rotation programsHierarchy and bureaucracy reducedYoung, innovative, non-rigid leadership styleRated in Fortune top 100 firms to work for in the U.S. ProductGrew mobile phone segment from 16% of total sales in 1991 to 66% in 1999Allied to gain product ex

13、pertise (e.g., Motorola to standardize technology, Cisco and HP to develop network products)Technology design innovator; first to market with many product innovations Tailored product to target key customers (e.g., phones with fashionable, changeable covers to attract young segment)BackgroundLevers

14、for success19.86.2Founded as paper mill58% CAGREnters U.S. through Tandy JVGrows mobile business in U.S.19881983Acquires Mobira1981Operates as a conglomerate1960sCONTENTS Company overview U.S. market entry strategy Products Capabilities Organization NOKIA COMPANY BACKGROUND Founded 1865, in Finland,

15、 as a pulp and paper mill Entered U.S. in 1983, when cellular service was just launching in the U.S. Global employees 55,260; in U.S. 10,500 CEO: Jorma Ollila (Finnish) Most senior managers for U.S.: Kari-Peleka Wilska, President of Americas Rich Geruson, Head of USA Sales and Marketing for Nokia Mo

16、bile Phones Key divisions: Mobile Phones, Nokia Networks, Communications Products Market cap: $193.3 billion (as of October 27,2000) Key industry of focus: Mobile phones (65% of 1999 total sales) Number 1 mobile phone maker globally Number 2 GSM/DCS mobile phone networks provider globally Competitor

17、s: Motorola, Ericsson COMPANY EVOLUTIONSource: International Directory of Company Histories1800sFounded 1865 in Finland as pulp and paper manufacturerConstructs own power plants as industry becomes energy intensive1960sMerges with Finnish Rubber Works and Finnish Cable Works in 1966 as part of diver

18、sification planBegins to design and manufacture data processing, industrial automation, and communications systemsNokia conglomerate consists of integrated cable operations, electronics, tires, and rubber footwearMakes first public share offering in 19661970sOil crisis in 1973 reduces reliance on ex

19、ports (timber products and machinery) to Soviet Union (12% of sales)Kari Kairamo, appointed CEO in 1975, realizes that for Nokia to grow it has to expand abroad; expands Nokia in Scandinavia and EuropeSells switching systems under license from allocated (French)Helps design worlds first internationa

20、l cellular system in the 1970s1980sAcquires nearly 20 electronics companies over the decade and completes key mergersAcquires Mobira (Finnish mobile phone company) in 1981, to gain foothold in growing mobile phone segmentMerges Salora (largest TV manufacturer in Scandinavia) and Luxor (Swedish-state

21、 owned electronics and computer firm) in 1984Through the 80s, manufactures OEM equipment for Hitachi; Ericsson, Northern Telecom, Granada, IBM Enters U.S., in 1983 through JV with Tandy Corporation to sell Nokia phones under Tandy nameLaunches first product (mobile phones) marketed internationally u

22、nder Nokia brand name in 1986Nokia has evolved substantially since its foundation, moving from a Finnish paper mill, to a diversified Finnish conglomerate to a global wireless leader.1990sAggressively grows mobile phone business in the U.S.Buys Tandys share of JV in 1993 to fully own factories in U.

23、S. and South KoreaSigns significant contracts to increase distribution channels (e.g., AT&T Wireless Services)Conglomerate phaseExpands in Scandinavia and EuropeAcquires and allys into mobile phones and U.S.Allys to strengthen U.S. positionTimeHorizon 1Drive core growthHorizon 2Build momentum of eme

24、rging growth enginesHorizon 3Secure future optionsProfit“We are now benefiting from the visionary technological solutions we made years ago; the long-term success of our company requires constant agility in positioning ourselves in this dynamic industry. Jorma Ollila, CEO“To identify what is require

25、d in the long term you need the competencies and the products; getting the right focus is the tough part. Jorma Ollila, CEO“The CEO has to understand the dynamics of each business the company is in; in order to understand where the future lies. Jorma Ollila, CEOSource: Annual reports; press clipping

26、sLEADERSHIP COMMITMENT ACROSS THREE HORIZONSWhen planning Nokias future development, CEO Jorma Ollila distinguishes clearly between three waves. The first wave emphasizes the continuous exploitation of Nokias core businesses. The second wave requires the identification of capabilities and products t

27、hat will have impact on Nokias success in the immediate future. Finally, the third wave determines the companys future direction through setting aspirations and placing options.PLANNING ACROSS THREE TIME HORIZONSProfitHorizon 1Horizon 2Horizon 3Drive core growthBuild momentum of emerging growth engi

28、nesSecure future optionsProducts Boost mobile phone sales through brand-building efforts Make product extensions such as “Swatch-like neon-colored mobile phones Expand product range through new features and complementary accessories, such as phone covers or different battery sizes Create R&D allianc

29、es for product development in wireless data transmission and terminal technology Increase sales of fixed and cellular network to public telecom operators Win private telecom operators as new customers Launch first wireless products (e.g., Nokia 9000 Communicator, a portable with phone, fax, , Intern

30、et access all in one)Markets Further penetrate Scandinavia, parts of Western Europe Improve positioning in Asia/Pacific, US, other EU-countries through stronger distribution network Prepare for full deregulation of telecom industry and entry into remaining marketsTimeHorizon 1Drive core growthHorizo

31、n 2Build momentum of emerging growth enginesHorizon 3Secure future optionsSource: McKinsey analysisNameRoleNationalityJorma OllilaChairman and CEO, Nokia Corp.FinnishPekka Ala-PietilPresident, Nokia Corp. &Communications ProductsFinnishMatti AlahuhtaPresident, Mobile PhonesFinnishSari BaldaufPreside

32、nt, NetworksFinnishMikko HeikkonenEVP & General Manager, CustomerOperations, NetworksFinnishOlli-Pekka KallasuvoEVP and CFO, Nokia Corp.FinnishDr. Yrj NevvoEVP and CTO, Mobile PhonesFinnishVeli SundbckEVP, Corporate Relations and TradePolicy, Nokia Corp.FinnishAnssi VanjokiEVP, Europe & Africa, Mobi

33、lePhonesFinnishSENIOR MANAGEMENTSource: Annual Report Spent 6 months in the U.S. in 1999 Spends 50% of his time in Silicon Valley * As of January 2000Source: Epsicom Business Intelligence NOKIA ORGANIZATIONAL STRUCTURE “I am influenced by the American way of managing companies; solving problems thro

34、ugh organising and motivating people, rather than seeking a technical solution. Jorma OllilaNokia GroupJorma Ollila, CEOHead office functionsCFOInternational Trade PolicyTechnologyResearch CenterGeneral CounselHuman ResourcesCommuni-cationsInternational Trade AffairsNokia NetworksNokia Mobile Phones

35、Nokia Communications ProductsNokia Multimedia TerminalsNokia Industrial ElectronicsNokia VenturesNokia Research CenterNokia Internet CommunicationsNokia Ventures FundInternal Venturing UnitNokia Wireless Business CommunicationsNokia Wireless Software SolutionsNokia IP Application and Connectivity Pl

36、atform02,0004,0006,0008,00010,00012,000World telecom equipment indexS&P 500NokiaNOKIA STOCK PRICE COMPARISON$ ThousandsSource: Data streamValue1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Nokia clearly outperforms the market and its competition.131618212562595854682121232219Asia-Pacifi

37、cEurope19951996199719981999NOKIA SALES BY REGIONEuro MillionsNokias sales in North America have grown dramatically in the late 90s with a CAGR of 58 percent, while European contribution to sales has diminished steadily shrinking.North America6,1916,613 8,84913,32619,772CAGRPercent34372658Source: Ann

38、ual reports100% =7426ROWFinland(676)1991 100% = EURO 2,600982ROW1999 100% = EURO 19,772Finland (395)Nokias sales in Finland have fallen dramatically as a percentage of total sales.Source: Annual reportsEuro MillionsNOKIAS FINLAND SALES COMPARED TO REST OF WORLDNOKIAS INDUSTRY FOCUS AND PRODUCT MIXEu

39、ro MillionsSource: Annual reportsSales by product333016129Consumer electronicsCables and machineryMobile productsTelecommuni-cations1991 100% = EURO 2,600Basic industries66295Network solutionsMobile products1999 100% = EURO 19,772Home, multimedia, and otherNokias productsMobile products full range o

40、f digital and analog cellular phones, wide-area pagers, as well as accessories and components for mobile phonesNetwork solutions telecommunication systems and equipment for both fixed and mobile networks; principal products include digital exchanges, transmission systems, and cellular systems, which

41、 are sold to PTT, public utilities, new operators, and cable TV companiesHome, multimedia and other includes PC and workstation monitors, as well as interactive digital satellite and cable terminalsIn 1998, Nokia became the worlds largest manufacturer of mobile phones, selling 40.8 million handsets,

42、 and grew sales grew 51 percent from 1998 to 1999.“Three years ago wedecided to create a telecom-orientedcompany. We have been able toimplement the changes faster thanwe expected. Jorma Ollila, Financial Times, 09/07/1995SUBSIDIARY LOCATIONS AND RESEARCH CENTERSNOT EXHAUSTIVE(5)(2)(3)(1)(3)(14)(3)(1

43、)(4)(1)(17)(2)(3)(1)(5)(1)(2)(1)(5)(6)(3)(1)(3)(4)(2)(2)(2)(2)(2)(1)(2)(2)(2)(6)(1)(2)(3)(3)(1)(1)(1)(9)(7)(2)(2)(1)(1)(1)(1)(1)(1)(2)(1)(1)(1)(1)(1)(6)(7)(3)(2)ResearchNokia covers an expansive geography.CONTENTS Company overview U.S. market entry strategy Products Capabilities Organization STORYLI

44、NE At the beginning of the 1980s Nokia was still a diversified company, relying predominantly on Europe (particularly Scandinavia) to drive sales However, the company realized that significant growth would be dependent on building a major presence in the U.S. market, in high return segments To do so

45、 they acquired Mobira (Finland) in 1981 to gain a foothold in the rapidly emerging mobile phone sector. They rapidly grew this opportunity in the U.S. through a series of OEM relationships (GTE, Delco, Southwestern Bell, Bell Atlantic) and a joint venture with Tandy Corporation in 1983 Nokia launche

46、d their own brand mobile phone in 1986 and pursued aggressive branding and alliance strategies (e.g., Rooftop Communications, Compaq, AT&T Wireless Services) to solidify their presenceNokia was the first player to use mass market distribution channels for telecommunications equipment.Source: Interna

47、tional Directory for Company Histories, Annual Reports, press clippings1992Begins to aggress-ively market own branded products 198319921993199519971983Cellular service launched in U.S.; JV with Tandy Corp. to sell Nokia phones through 6,000 Radio Shack stores; JV includes joint ownership of factorie

48、s1992Nokia and Tandy Corp. open a mobile phone factory in Texas; North and South American markets are half of global mobile phones market199619941997CFO of Nokia deployed as Head of U.S. business; U.S. subsidiary sees immense growth from 1997-991993Acquires Tandys share in both manufacturing compani

49、es; overall, operates 5 factories; continues selling through Tandy retail formatsDe-emphasizes consumer electronics business1995New distribution facility opened in Fort Worth, TXGranted license to American Portable Telecom (private cellular network operator) for PCS 1,900 MHz product1996Signs signif

50、icant contracts with AT&T Wireless Services, Sprint Spectrum, and Powertel1986Launches own brand product globally1988Divests flooring, paper, rubber, and ventilation systems businesses19861988Early and mid-eightiesAggressively sought and signed OEM deals with numerous U.S. companies (e.g., GTE, Delc

51、o, etc.)TIMELINE OF KEY EVENTS IN NOKIAS U.S. BUSINESSCONTENTS Company overview U.S. market entry strategy Products Capabilities Organization Focuses on highgrowth markets Altered category focus of product offering to capitalize on expectations of high growing mobile phone market in the U.S. Diveste

52、d majority of conglomerate (e.g., flooring, paper, rubber, ventilation) Grew mobile phone segment from 16% of total sales in 1991 to 66% in 1999 Increased focus on network solution important part of U.S. market Developed intelligent network systems in cooperation with Hewlett-Packard Developed ATM-b

53、ased network products in cooperation with Cisco Caught digital shift early in the process before competitors (e.g., Motorola) Aggressively launched new product lines based on its predictions of winning technologies Introduced 17 new products in 1998 Produced worlds first GSM phone, fully compliant w

54、ith wireless application protocol (Nokia 7110) Only vendor to aggressively push every 2.5G technology, emerging clear winner in GPRS (Europe) First manufacturer to simultaneously launch hand portable phones for all major digital systems Ultra-light Nokia 2100 product family catered to GSM, PCN, Amer

55、icas TDMA and Japans digital systemTailors products Tailored product to target customers Introduced interchangeable, fashionable cell phone covers to attract younger segmentsNokia made big bets as to which technologies would emerge, redirecting resources and company focus to emphasize these categori

56、es.PRODUCT STRATEGY“The choice of focus is extremely important. We constantly strive to make sure we are focused on targeted markets in which the growth rate is much higher than that of the total market, Nokias aim is to grow somewhat faster than the targeted markets do. Matti Alahuta, President, Mo

57、bile Phones Date effectiveTarget nameTarget business descriptionAcquisition priceCapabilities acquired/strengthed5/31/1991Century Tele Entps-FLPagingProvide beeper communicationservicesN/AAcquired paging operations2/15/1995GeoWorks, Inc.Develop systems softwareAcquired and 8.95% stakefor $7.5 millio

58、n6/28/1996Syncro Machine Co.Manufacture metalworking machineryN/ATransmission technologiesdevelopment6/3/1997Ipsilon NetworksManufacture networking equipmentAcquired undisclosedminority stake1/12/1988Ipsilon NetworksManufacture networking equipment$120 millionAcquired remaining majority interest;dea

59、l was subject to regulatoryapproval2/18/1999Intalk CorporationProvide wireless solutionsN/ALeverage freedom of wireless LANsto gain access to network files, theInternet, e-mail, video and videoteleconferencing from any location3/10/1999Diamond LaneCommunicationsDevelop ASDL technology$125 million9/1

60、/1999RooftopCommunicationsCorporationManufacture telecommunicationequipment$57 millionInternet protocol technology10/22/1999Telekol CorporationProvide telecommuncations services$56.5 millionIP telephony and wireless LANoffering; enhancing technology“know-how” in corporatecommunications applications1