A PROJECT REPORT ON REPORT ON “COMAPRISION BETWEEN NOKIA MOBILES & SAMSUNG MOBILES”
For the Degree of MASTER OF BUSINESS ADMINISTRATION ADMINISTRATIO N
CONTENT CHAPTER 1 INTRODUCTION
Introduction of mobiles
CHAPTER 2 NOKIA
Introduction of Nokia
Company profile
History of Nokia
Future of Nokia
Vision of Nokia & Today’s Nokia
The first mobile phone
Different technologies.
CHAPTER 3 SAMSUNG
Introduction of Samsung
Company profile
History of Samsung
Samsung telecommunication
Samsung vision
CHAPTER 4 RESEARCH METHODOLOGY
Introduction
Research Objectives
Developing the Research Plan
Research Approach
Research Instrument
Sampling Plan
Contact Method
Collection of the information
Limitation of Research
Objectives of Research
CHAPTER 5 REVIEW OF LITRETARTURE CHAPTER 6 ANALYSIS & INTERPERATON CHAPTER 7 CONCLUSION IMPORTANT FINDING OF THE STUDY BIBLIOGRAPHY ANNEXURE
Chapter 1
INTRODUCTION Definition of Mobilephone :The cellular telephone (commonly “mobile phone” or “cell phone” or “hand phone’) is a long range portable electronic device used for mobile communication. communication. In addition to the standard voice voice function of a telephone, current mobile phones can support many additional ser s er vi ce s s uc h as se s s or te xt me s s a gi n g, e m ai l, s w it ch in g fo r ac c e s s to the Internet, &MMS for sending and receiving photos and video. Most current mobile phones connect to a Cellular network of base sta s ta ti o n s, wh i ch is in t ur n in t e rc o n ne c t e d to t he p ub l i c sw it c h ed telephone networks phones. Cellular telephone telephone is also defined as a t ype of short-wave analog or digital telecommunication telecommunication in which a subscriber has a wireless connection from a mobile telephone to a relatively nearby transmitter. transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone service is available in urban areas and along major highways. As the cellular telephone user moves from one cell or area of coverage to another telephone is effectively passed on to the local cell transmitter. A cellular telephone is not be confused with a codeless telephones.
Chapter 2
INTRODUCTION OF NOKIA Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is a Finnish multinational communications corporation that is headquartered headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital capital Helsinki. Nokia manufactures mobile electronic devices, mostly mobile telephones and other devices related to communications, communications, and in converging Internet and communications industries, with 130,000 employees in 120 countries, sales in more than 150 countries and global an n ual revenue of over €38 billion and operating loss of €1 billion as of 2011. It was the world's largest manufacturer of mobile phones in 2011, with global device market share of 23% in the second quarter. Nokia pr od u ce s mo bi le d e vi ce s f or e ve ry m aj o r ma rk e t se gm e n t a n d pr ot o co l , including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet ser s er vi ce s s uc h as a p pl ic a t io n s, ga me s , mu s ic , m a ps , m ed ia an d m e s sa g in g through its Ovi platform. Nokia's joint venture with Siemens, Nokia Si em e n s N e t wo r k s p ro du c e s te l e c om mu n ic a ti on s n e t wo rk e qu ip m e n t , sol s ol u t io n s a n d se r vi c e s. No k ia al so pr o vi de s fr e e - o f- ch ar ge d ig it al m ap information information and navigation services through its wholly owned sub s ub si d ia ry . Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock exchanges, and plays a very large role in the economy of Finland, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) in 2007. The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global brand in the Interbrand/Business Week Best Global Brands list of 2011. It is the 14th ranked brand corporation in Europe (as of 2011), the 8th m ost admirable Network and Other Communications Equipment company worldwide in Fortune's World's Most Admired Companies list of 2011, and the world's 143th largest company as measured by revenue in Fortune Global 500 list of 2011. In July 2010,
Nokia reported a drop in profits by 40%, which turned into an operating loss of €487 million in Q2 2011. In the global Smartphone rivalry, Nokia held the 3rd place in 2Q2011, trailing behind Samsung and Apple. On 11 February 2011 Nokia announced a partnership with Microsoft; all Nokia smart phones introduced since then were to run under Microsoft's Windows Phone (WP) operating system. On 26 October 2011 Nokia unveiled its first Windows Phone handsets, the WP7.5 Lumia 710 and 800. The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.
Type
Julkinen osakeyhtiö (Public company)
Traded as
OMX: NOK1V NYSE: NOK FWB: NOA3
Industry
Telecommunications equipment Internet Computer software
Founded
Tampere, Grand Duchy of Finland (1865) Finland (1865) incorporated in Nokia (1871)
Founder(s)
Fredrik Idestam Leo Mechelin
Headquarters
Espoo, Finland [1]
Area served
Worldwide
Key people
Risto Siilasmaa (Chairman & CEO) Timo Ihamuotila (President and CFO) Stephen Elop (EVP, Devices & Services)
Products
Mobile phones Mobile computers Networks (See products listing)
Services
Maps and navigation, music, messaging and media and media Software solutions
Revenue
€30.176 billion (2012)
Operating income
€ -2.303 billion (2012)
Net income
€ -3.106 billion (2012)
Total assets
€29.949 billion (2012)
Total equity
€8.061 billion (2012)
Employees
97,798 (2012)
Divisions
Mobile Solutions Mobile Phones Markets
Subsidiaries
Nokia Solutions and Networks Navteq
Website
Nokia.com
HISTORY OF NOKIA Established in 1865 as a wood-pulp mill by Knut Fredrik Ides tam on the banks of Nokianvirta River in Finland. Finnish Rubber Works acquired acquired Nokia Wood Mills, Telephone and Telegraph Cables. Nokia Corporation Corporation created - 1967 -paper products- car tires- personal computers-cables. Nokia began developing the digital switch (Nokia DX 200) which became a su s u cc e ss . 1991 Nokia - agreements to supply GSM networks – nine European countries. Au g us t 19 97 No k ia - G SM sy s te m s t o 5 9 op e ra t o rs in 3 1 co u n tr ie s.
FUTURE OF NOKIA By the year 2012 a quarter of all content will be user-generated and passed between friends, rather than being created and distributed by today's media brands, according to interviews with "trend-setting consumers”. The Future Laboratory spoke to 9000 consumers on behalf of Nokia, all of whom are described as "active users of technology" and thus can be trusted to tell us what the world's going to look like. As Nokia's Vice President, Multimedia, Mark Selby describes it thus:"We think it will work something like this; someone shares video footage they shot on their mobile device from a night n ight out with a friend, that friend takes that footage and adds an MP3 file - the soundtrack of the evening - then passes it to another friend. That friend edits the footage by adding some photographs and passes it onto another friend and so on."All of which will be done on their mobile phone, obviously. Driving users to prefer content mashed up by friends, as opposed to professionally- produced, are four trends which The Future Laboratory and Nokia have identified through their research. Immersive Living reflects the way people are always on-line, while Geek Culture is a reflection of how everyone wants high-tech toys these days - at least, all the people interviewed for this study’s technology for girls apparently not just technology for boys painted pink – and Localism sees users taking pride in content produced by their locality. All in all it's remarkable how closely this research matches Nokia's ideal vision of the future. Consumers using mobile phones to create and mash up content, taking power away from the media brands and placing it in the hands of those running the portals and controlling the mobile user experience.
The Vision of Nokia:“Our vision is a world where everyone can be connected. Our
vision is to ensure that 5 billion people are always connected at any given point and to achieve 100fold more network traffic.
Nokia Today:Head office in Finland; R&D, R&D, production , sales, marketing activities activities around the world. World’s #2 manufacturer of mobile devices, with 38% share in 2007
112,262 employees. Sales in more than 150 countries.
First mobile phone
The Mobira City man 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003. The Mobira City man line was launched in 1987. The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT
(Nordic Mobile Telephony) network standard, the first-generation, first fully automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks. Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to NokiaMobira Oy. The Mobira Talk man, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira City man 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had had weighed 9.8 kg (22 lb) and the Talk man just j ust less than 5 kg (11 lb), the Mobira City man weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately €4,560). Despite the high price, the first phones were almost snatched from the sales assistants' hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, 1 987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira City man to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba". In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.
DIFFERENT TECHNOLOGY:Bluetooth Technology GPRS Technology EDGE Technology JAVA Technology MMS Technology Mobile Browsing Technology
SWOT analysis analysis of Nokia Strengths
Nokia world’s largest producer and manufacturer of cell phones as well as has the largest distribution network around the world.
It is also known for the Creativity, Innovativeness, durability & reliability. It has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM) Nokia leads the global cell phone industry Nokia dominates the world cellular industry because it has the Strong R & D facilities. Nokia also possessing the all fashion strategies and four style new generation characteristic from manufacturers It has diverse work force and advanced technology.
Weaknesses
It has declared its profits had dropped by 40 % in 2010. Nokia mobile phones prices are higher as compare to the prices of china mobiles handsets. Nokia presence in the US cellular industry is very low and in Japan it has very weak position. In India Nokia has few service centers and very appalling after sales service In Japan Nokia closed the mobile handset distribution and also canceled the distribution of E71 handset due to low market preference.
Opportunities
In 2011, the global cell phone industry expected to grow by double digits Today, Asia-Pacific mobile phone industry is one of the fastest-growing industry in the world. Developing countries like China, Bangladesh, India and Pakistan has enormous demand potential. Nokia had a 50-50 joint venture with Siemens of Germany Youth wants the stylish aesthetics, fashionable handsets, it drive the new market for players.
Threats
Consumers are becoming more complicated in the choice of handset due to new styles by china mobiles. Difficult for sellers to differentiate their products and retain loyalty. Nokia is facing very strong price pressure from china and other mobile producers Nokia is losing global market share after the arrival of several Chinese producers In the Asia/Pacific emerged competitive forces. Apple, RIM and the other different sellers have created strong pressure for Nokia.
Chapter 3
INTRODUCTION OF SAMNSUNG Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and are the largest South Korean chaebol. Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2011 revenues), Samsung Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C&T (respectively the world's 35th- and 72nd-largest construction companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest insurance company), Samsung Everland (the oldest theme park in South Korea) and Cheil Worldwide (the world's 19th-largest advertising agency measured by 2010 revenues). Samsung produces around a fifth of South Korea's total exports and its revenues are larger than many countries' GDP; in 2006, it would have been the world's 35th-largest economy. The company has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River".
Type
Business unit
Industry
Telecommunications
Founded
Seoul, South Korea (1977)
Headquarters
Suwon, South Korea
Key people
Geesung Choi, President
Products
Mobile phones Smart phones Telecommunication Systems MP3 Players Laptop computers
Annual Revenue
138 Billion USD (2011)
Net income
$ 2.3 Billion USD (2007) 221,726 (2011)
Employees Parent
Samsung Electronics
Website
Samsung consumer www.samsung.com
HISTORY Unlike other electronic companies Samsung origins were not involving electronics but other products. In 1938 the Samsung's founder Byung - Chull Lee set up a trade export company in Korea, selling fish, vegetables, and fruit to China. Within a decade Samsung had flour mills and confectionary machines and became a co-operation in 1951. Humble beginnings. From 1958 onwards Samsung began to expand into other industries such as financial, media, chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was established producing what Samsung is most famous for, Televisions, Mobile Phones (throughout 90's), Radio's, Computer components and other electronics devices. 1987 founder and chairman, Byung - Chull Lee passed away and KunHee Lee took over as chairman. In the 1990's Samsung began to expand globally building factories in the US, Britain, Germany, Germany, Thailand, Mexico, Spain and China until 1997. In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They sold businesses to relieve debt and cut employees down lowering personnel by 50,000. But thanks to the electronic industry they managed to curb this and continue to t o grow. The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsung developed the 'lightest' mobile phone of its era. The SCH-800 and it was available on CDMA networks. Samsung has made steady growth in the mobile industry and are currently second but competitor Nokia is ahead with more than 100% increase in shares.
Samsung Telecommunication Telecommunicationss Samsung Telecommunications
is one of five business units within
Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. Headquarters is located in Suwon, South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007, growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300 million mobile devices and set still in second after Nokia with 300.6 million mobile devices sold in the first three quarter of 2011.
Subsidiaries and and affiliates As of April 2011, Samsung Group was comprised of 59 unlisted companies and 19 listed companies, all of which had their primary listing on the Korea Exchange stock exchange. Company
Symbol
Samsung Corporation
000830
Shilla Hotels and Resorts
008770
Samsung Securities
016360
Samsung Fine Chemicals
004000
Samsung SDI
006400
SI Corporation
012750
Samsung Electro - Mechanics
009150
Samsung Fire & Marine Insurance
000810
Samsung Engineering
028050
Samsung Electronics
005930
Samsung Techwin
012450
Samsung Life Insurance
032830
Cheil Industries
001300
Samsung Card
029780
Samsung Heavy Industries
010140
Cheil Worldwide
030000
Market Korea
122900
Credu
067280
Ace Digitech
036550
Samsung Vision Samsung India's Vision entails helping people improve the quality of their lives by providing them with superior quality, state-of-theart technology products at the right time and the right price. But beyond its role as a purveyor of quality products in India, Samsung seeks to contribute to the economic growth of the country though its export commitments and large scale production facilities generating secured employment for hundreds of Indian people. At Samsung, we strive to contribute to the development of the electronics and components industry in India by enhancing the knowledge levels of our workforce through the introduction of our advanced management systems and production know-how in our manufacturing facilities by introducing our Indian vendors to our world class quality systems and helping them in improving them in their own quality systems and production processes and setting benchmarks for the industry both in terms of after sales service for our products, quality systems and management techniques at our facilities or our products themselves. At Samsung, we believe in returning to the community some of the profits we earn from it, through the social causes we espouse. We view ourselves not as an MNC operating in India, but as an 'Indian Company' operating here, conforming to the laws of the country and committed to working for the Indian community. We want and to be seen as the 'Most Respected' Indian Company.
Chapter 4 RESEARCH METHODOLOGY Research is the systematic and objective search for the analysis of the information relevant to the identification and solution of any problem in the field of channel development. The objective behind this project was to get a deep insight into the answers To the questions “what are the general problem faced by the subscribers and what they expect from mobile handsets providers and study of current mobile market”. The object of the survey was the mobile users of various mobile companies. The essence of research conducted by us is to analyze the present market position of nokia & Samsung mobiles among its competitors and the problem which are being faced by customer, wholesaler, and retailers. The eventual objectives are to suggest some recommendation to the company so as to enable them to increase their market share. Only in analyzing my sample follows no conventional method. The total analyze is based on the internees the question put on before our sample size. A research of this can’t be done all once through large area in limited time so NABHA has been selected for research.
INTRODUCTION rof. Philip Kotler, “Marketing research is the systematic According to P rof. design, collection, analysis and reporting of the data and finding relevant to specific marketing situation facing the company”.
Marketing is restless, changing dynamic field. Since 1920 many important and dramatic changes have taken place in marketing, thousand of new products including those of entries of new industries such as automobiles, electronics and computer, textiles, walk product etc. have prepared in the market. The market orientations have changed from production to market.
STEPS IN MARKETING MARKETING RESEACH PROCESS
DEFINE PROBLEM AND RESEARCH OBJECTIVES
DEVELOPING THE RESEARCH PLAN
COLLECTION OF DATA
PRESENTATIONS OF THE FINDINGS
RESEARCH OBJECTIVES
Get knowledge about Nokia mobiles and Samsung mobiles.
Customer satisfaction about using their handset.
Sale of products. Know about sale pattern.
DEVELOPING THE RESEARCH PLAN The second step of marketing research process calls for developing the most efficient plan for gathering the need information. While designing a research plan we have to take decisions regarding data sources, search approached, search instruments, sampling etc. there are two plan contact which are as follows :-
1. DATA SOURCE There are two type of data source: o
o
Primary data Secondary data
Primary data : Personal interviews are conducted which enable collection of oral verbal response. This is fact to face contracted with structured or sometime even unstructured patterns. This helps in obtaining indent information.
Secondary data : Secondary data can be obtained from different magazines and annual reports, financial documents referred.
2.
RESEARCH APPROACHSURVEY METHOD:-
Survey are best suited for descriptive research companies which people’s knowledge, knowledge, undertake surveys to learn about people’s preferences, satisfaction etc. to measure these magnitude in general population. While observation and tours are best suited for exploratory research which is not the case of our study.
3.
RESEARCH INSTRUMENT
Questionnaire : A Questionnaire is prepared and use toc ollect the information. The majority of questions are close ended. Questionnaire is distributed to people to know about their preferences, quality, demand etc. this is one of the easiest method of collecting information.
SAMPLI LING NG PLAN PLAN 4. SAMP After deciding on the research approach and instrument, we must design a sampling plan. This plan calls for three decisions. a) Sampling unit :-
Here we define what is to be surveyed i.e. the target population that will be sampled. In our case the journal public in cities & towns come under the sampling unit.
b) Sample size :-
Large sample give more reliable results. In our study 100 customers were surveyed in NABHA.
Sampling Procedure: Area sampling is using because it is not practically possible to visit all places of India therefore NABHA chosen for survey.
5.
CONTACT METHOD
In this decision is taken that how the object should be contacted i.e. whether by mail questionnaires, telephone, interviews. In our research personal interview is the most convenient and reliable method.
6. COLLECTION OF THE INFORMATION The data collection phase of the marketing research is most expensive and most error prone process. There can be error some respondent can give biased or dishonest answer from collection of information. The researcher personally goes to customer to collect the reliable data. Here all knowledge of the researcher about that field comes to test the ingenuity of the research. Here we got the experience of working professionally and independently on the road which gives some taste of practical marketing. We also got a lot exposure about the market. The present study undertake is descriptive in nature and in this study questioning people pe ople with regular expertise in that are being used.
SWOT analysis of Samsung Samsung Strength
Samsung enjoys the widest range of product portfolio which includes Mobile phone, Tablet, TV/Audio/Video, Camera, camcorder, Home appliance, pc, peripherals, printer, memory cards and other accessories Samsung holds significant market share in most of the product categories Samsung is NO.2 in terms of market share in mobiles, it captured Nokia’s market share by superior innovation in smart phones Samsungs is the best in terms of design features and technology. It was the first to introduced dual screen mobiles , 65k TFT/LCD color phone, first phone with polyphonic ringtones, phones with rotating lens, thinnest and lightest note pad etc Samsung enjoys the first mover advantage in terms of introducing advance features in LCD, refrigerator, Air conditioner etc. It introduced the world’s smallest MP3 player and India’s first 17” TFT -LCD-TV -LCD-TV monitor. Samsung took advantage of the growing economy of Asian market by setting up manufacturing plant in India there by reducing logistics and supply chain costs. Samsung brand value increased by 80% in past three three years
Weakness
Samsung Mobile launched a series of Smart phones recently which led to cannibalization The demand for LCD panels is expected to decline in the future Still Nokia is considered to be the most preferred product in India in terms of ease of use, reliability and resale value Chinese products focus on economies of scale and dump into Indian market for lesser cost. This results in reduction of sales Samsung is a hardware leader but has too much of dependence for software from other parties. Online stores which sell a wide range of products are giving better deals as they don’t incur co st in distribution channel
Opportunity
Samsung is planning to make the air-condition product category more strong with unique unique technology called ‘Triple protection proposition’ proposition’ Samsung is the India’s official ‘Olympic partner’ for the 2012 London Olympic and recently launched ‘Olympic Ratna Program’. This will result enhance brand awareness and increase the sales Samsung Mobile and Home appliance has future plans of launching Customized products for Indian market. This will improve the market share in rural market The Indian youth population is growing and mobile phone sales is expected to increase due to lesser call rates Its financial position is strong and there is a scope of entering into unrelated diversification
Threats
Samsung has wide variety of product lines, failure of one product line will have impact on the other and will result in brand dilution The competitors like Nokia are focused focussed only in one segment Since India is a potential market, entry of foreign players is likely high. Foreign players like Haier have already started gaining market share in India in home appliances. Threats from Chinese products Retail Chains like Big bazaar sell consumer electronics and home appliance in low cost strategy which are procured in bulks from foreign market.
