Case Study Analysis: Finland and Nokia

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Case Study Analysis: Finland and Nokia: Creating the World’s Most Competitive Economy


Nokia’s history begins in 1865 as a pulp mill in the country of Finland. In 1967 the modern corporation of Nokia was merged with a telecommunications cable corporation and electronics business and Finnish Rubber Works. This became the telecomm company that we know today. In Finland the Nordic Mobile Telephone (“NMT”) network was created in 1981 and brought several innovative aspects to the consumers. The NMT pioneered roaming technology that allowed for usage across country borders. The creation of the NMT caused the Nordic region, once a subtle region, to become the largest single mobile market of the time. This network raised the standard of mobile technology and began to be incorporated in other foreign markets. In 1979 Nokia began forming joint ventures and acquiring other companies, expanding its market and in turn becoming the largest consumer electronic company in the Nordic region during the 1980’s. Nokia then consolidated the Finnish telecommunications system in 1987, through mergers and acquisitions. In 1999, the telecommunications sector became Finland’s leading sector, making up 21% of the value added. By 2001 Nokia was in the top three competitors in mobile phone manufactures internationally, reaching sales of 30.4B Euros. The company employed over 60,000 people and production locations in 10 countries, R&D in 15 countries as well as sales in over 130 countries.


Strengths: Nokia’s innovative presence allowed it to be a market leader in mobile phones. By providing the best coverage and largest selection of models Nokia became the world leader in digital phones with a market share of 31% in 2000. Nokia consistently searched for ways to improve their product by setting up R&D facilities by leading universities and developing centers of excellence.

Nokia developed the fundamental values known as the “Nokia Way”. These four values...