A CASE STUDY ON NOKIA CORPORATION
Nokia’s Mission & Vision Statement
Nokia Oyj, a Finnish multinational telecommunications, information technology, and
consumer electronics company, has a rich history dating back to 1865 when it was
founded as a paper mill. Over the years, Nokia has transformed itself, most notably
becoming a global leader in mobile telecommunications in the late 20th and early 21st
centuries. Today, Nokia focuses on network infrastructure, technology, and software,
providing services to telecom operators, enterprises, and consumers. As of April 2025,
Nokia continues to be a key player in the development and deployment of 5G and future
network technologies.
Nokia's current offerings include:
✓Mobile Networks: Providing 5G and 4G network infrastructure.
✓Network Infrastructure: Offering IP networks, optical networks, and fixed networks.
✓Cloud and Network Services: Delivering software and services for network
management and automation.
✓Nokia Technologies: Focusing on technology licensing and research, including
developments in virtual reality, digital health, and IoT.
Nokia Oyj (NOK) Mission Statement
The mission of Nokia is to create technology that connects people and enables them to
shape a better future. The company strives to be a trusted partner, providing innovative
solutions that enhance lives and businesses. Nokia aims to empower individuals and
organizations to achieve their full potential, making the world more connected and
inclusive. The company is committed to quality, integrity, and sustainability in all its
endeavors, contributing to the communities in which it operates and minimizing its
environmental impact. Nokia's mission statement focuses on creating technology that
helps the world act together, emphasizing technological innovation and global
connectivity. The company is committed to delivering innovative solutions that empower
individuals, businesses, and societies to stay connected and make the most of every
opportunity.
Here's a look at the core components of Nokia's mission statement:
✓ Connecting People: Nokia's primary focus is on creating technologies that facilitate
connections between people worldwide.
✓ Enriching Lives: The company aims to develop products and services that improve
people's lives by providing access to opportunities and enhancing their overall quality of
life.
✓ Innovation: Nokia is dedicated to pushing the boundaries of technology and creating
solutions that drive progress and address the evolving needs of customers and the
world.
✓ Sustainability: Nokia is committed to building a sustainable future by reducing its
environmental footprint and creating energy- efficient and environmentally friendly
products.
Nokia's mission is about creating sustainable solutions that can benefit current and
future generations. As a global leader in technology and communications, Nokia is
committed to connecting people and businesses worldwide with innovative, high-quality
products and solutions.
Strategic mission objectives include:
✓ Delivering cutting-edge telecommunications infrastructure.
✓ Accelerating digital transformation globally.
✓ Developing sustainable technological solutions.
Nokia’s Vision Statement
Nokia's vision is to create technology that connects people and enables them to shape
a better future. The company strives to be a leader in the digital transformation,
providing innovative solutions that empower individuals, businesses, and societies to
thrive in a connected world. Nokia envisions a world where seamless communication
and connectivity are accessible to all, driving progress and enhancing the quality of life
for people around the globe. The company's commitment to innovation and
sustainability guides its work towards realizing this vision. Nokia's vision focuses on
becoming a world-leading technology and innovation company in networks and digital
infrastructure. The company wants to create a new world and transform a big planet into
a small village. Their vision is to create, build, and encourage people from all countries
to communicate with each other to create a world where everybody is connected.
Key elements of Nokia's vision include:
✓ Expanding global digital infrastructure across multiple continents.
✓ Driving technological innovation in 5G/6G network infrastructure.
✓ Cloud and edge computing.
✓ Industrial automation technologies.
Nokia aims to drive technological innovation in:
✓ 5G/6G Network Infrastructure.
✓ Cloud and Edge Computing.
✓ Industrial Automation Technologies.
Nokia's vision encompasses expanding global digital infrastructure across multiple
continents and aims to drive technological innovation in 5G/6G Network Infrastructure,
Cloud and Edge Computing, and Industrial Automation Technologies.
Nokia’s External Opportunities & Threats
Opportunities:
Growth in 5G and hyperscale infrastructure: Nokia is expanding in high-demand segments such
as data centers, hyperscalers, and network automation. Notably, it signed a multi-year deal with
AT&T to enhance 5G network automation and voice core, integrating AI capabilities .
Strategic expansion in the U.S.: To counteract tariff-related profit erosion, Nokia’s CEO is
considering boosting its U.S. manufacturing operations—leveraging its existing five sites to
secure supply chain resilience and better positioning in the U.S. market .
Post-pandemic demand rebound: Despite challenges, Nokia anticipates continued growth in
network infrastructure and cloud and mobile networks for the year .
Operating profit improvement via divestitures: Nokia's sale of its sub-sea Alcatel Submarine
Networks (ASN) unit to the French state (≈ €350M) is expected to enhance operating margins by
100–150 basis points without altering its financial outlook .
Threats:
Tariff and currency pressures: U.S. tariffs and a weaker dollar are causing significant profit
downgrades, leading Nokia to revise its 2025 operating profit guidance downward (from €1.9–
2.4B to €1.6–2.1B) .
Competitive and economic headwinds: A slowdown in markets like India, combined with
reduced 5G investments, has influenced sales and profits despite cost-cutting efforts fostering
margin improvement .
Aggressive competition and price pressures: Nokia faces stiff competition from well-funded
rivals—especially in telecom infrastructure—from competitors like Ericsson, Huawei, and
Samsung, who are pressuring margins and market share .
Competitive Profile Matrix (CPM)
A CPM rates Nokia and its main competitors across critical success factors—like product quality,
R&D, and financial strength—and assigns scores.
In a reported CPM comparing Nokia, LG, and Samsung, Nokia scored highest overall (3.1),
reflecting strong standings in key factors like R&D and market share .
While specific CPM values vary over time, this suggests that Nokia maintains competitive
strength in areas crucial to its business, notably network equipment leadership and innovation
capabilities.
External Factor Evaluation (EFE) Matrix
An EFE Matrix quantifies how well the company responds to key external factors—assigning
weights (importance) and ratings (effectiveness).
One source estimates Nokia’s EFE total weighted score at approximately 3.45, which is
respectable: a score above 3.0 indicates strong response capability to external forces (more on
this from a strategic management example) .
Another analyst’s framework (though not company-specific) suggests that a “score below 3
suggests significant challenges” may remain unaddressed .
