Corporate coverage of this week: Nokia Corporation:

Nokia, which had its origin in Finland, evolved from pulp manufacture to mobile communications. Its interest in telecommunications started in the early 1980’s. Within a decade, it emerged as one of world’s leading player in telecommunications. Nokia’s innovations in the mobile market enhanced the lives of people, and the productivity of its business. The modular organization structure of Nokia was an example for other industries that thrived on innovation for growth. The development of user friendly mobile hand sets provided its customers access to media, internet, games, imaging etc.

Corporate home page: www.nokia.com

Nokia operates in business, with related diversification in the following segments

• Mobile Phones

• Multimedia

• Enterprise Solutions

• Networks

CEO message

“Our vision is of an information society that enables people to fulfill their potential and realize their aspirations; a vision in which information and communication technologies continue to create sustainable economic growth, enhance public welfare, increase transparency and accountability in government; a vision that aims to encourage social cohesion, grow cultural identity, sustain free markets, and foster international peace and stability.” - Jorma Ollila, Former Chairman and CEO, Nokia

Key role informations:

Mkt Cap of Nokia (NOK): 113.31B as of 2007

Top competitors: Mkt cap

Motorola, Inc. (MOT) 40.95B

Telefonaktiebolaget LM Ericsson (ADR) 63.04B

Cisco Systems, Inc. 156.94B

Challenges Ahead to Nokia Corporation:

Nokia’s concentration on the lower end is a great success but in the high end market segment, its market share is in a phase of decline. The increasing replacement market in mobile handset industry, had forced Nokia to design high end - value for money products. Nokia’s candy mobile brand image made other players to capitalize on the premium products with enhanced features offerings. Nokia’s strategy of focusing more on the customer rather than the operator, has also affected its market share and profitability. Nokia adopts a mass-market strategy and targets all segments of the Market. But

Other players like Samsung and Motorola concentrate specifically in the mid and high-end segments. Despite reduction in market share, analysts feel that Nokia will remain the market leader because of its leadership in low-end segment and its economies of scale.