BACKGROUND OF NOKIA CORPORATION

Nokia is a Finnish multinational corporation which was founded on 12 May 1865 as a

single paper mill operation. The history of Nokia does not begin with the production of phones
instead it began with the production of paper, where the founder of Nokia Fredrik Idestam
established a paper mill in south-western Finland.  The name, ‘Nokia’ actually originated after
Fredrik Idestam opened the second mill on the banks of the Nokianvirta river in 1871. The name
of the river inspired Finnish to name his company as Nokia. Through the 19th century the
company expanded branching into several different products until it became a
telecommunication company. In 1967, Nokia Corporation was formed through the merger of the
three companies which are Nokia, Suomen Gummitehdas and Suomen Kaapelitehdas. In the late
20th century, the company took advantage of the increasing popularity of computer and mobile
phones until they become the most influential phone company in that era. Nokia Corporation is
the world's largest manufacturer of mobile phones, serving customers in 130 countries.

Nokia is divided into four business groups which is Mobile Phones, Multimedia,
Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data
products in consumer and corporate markets. The Multimedia segment sells mobile gaming
devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions
group develops wireless systems for use in the corporate sector. Wireless switching and
transmission equipment is sold through the company's Networks division.

Nokia's vision statement is "Connecting People". By connecting people, they help fulfill a
fundamental human need for social connections and contacts. Nokia builds bridges between
people both when they are far apart and face-to-face, and also bridges the gap between the
information they need. Nokia aims to ensuring that all people in the whole world are connected
by providing them with communication and internet devices which would facilitate connection.
Through the communication over the phone or the internet, people are in position to come
together and get connected. While, the mission of Nokia company is to build great mobile
products and to enable billions of people everywhere to get connected.
 Nokia is product and service based company. They have make so many phone model that
slowly come out with the new features and technology advancement. One of the biggest
achievement of Nokia company is when they fully ventured into making mobile GSM handsets,
which led to the manufacturing of the Nokia 2100 series of feature phones. These feature phones
were the first to come with the iconic Nokia Tune ringtone. With this new features Nokia had
sold over 20 million units of this mobile phone across the globe. It was a blockbuster, the Finnish
company never expected to ship such a massive number of units.

Nokia aimed to meet their different customers’ needs with different types of mobile
phones. Nokia has started to collaborate with Microsoft in order to bring in smartphone to the
market. However, Nokia also has to pay a great attention to improve the innovative ability in
order to win the competitive advantage among Apple, Samsung, HTC and others brand.
Therefore, Nokia can rejuvenate the existing mobile phones with more features and lower prices
point in order to compete among their competitors. By improving the technological innovation
ability, this will helps Nokia moving forward in the market all the time.