“Innovation is the specific instrument of entrepreneurship... the act that endows resources with a new capacity to create wealth.” Drucker, F Peter

The main purpose of a business is to build up market share by creating more customers. To this end, marketing and innovation are the key tools which can produce results. Apart from these all other is part of the cost of doing business efficiently. Innovation is the specific tool of entrepreneurs, that means by which a firm can exploits the change as an opportunity for the business5.

Types of Innovation

Innovation isn't only about new products or technology, most of the companies they limit their effort only exploiting and generating ideas for the new product and technology. There is no doubt about that new product and technology is a one kink of innovation but apart from these there are various dimension of innovation.

  1. Product/Service Innovation
  2. Operational Innovation.
  3. Business model Innovation.
  4. Strategic Alliance i.e. Partnership, Merger
  5. Portfolio Innovation

These are the major sort of innovation moreover there are6 :

  1. Industry Innovation
  2. Experience Innovation
  3. Cost innovation

Mobile Telecom Industry

In the last 20 years telecom industry has grown and evolved at an incredible pace, people changing the communication way dramatically and transforming everyday life along the way. Already mobile phones penetrate the half of the globe, now people cannot thing without it. In the developed nation mobile phone industry is in maturity stage and some mature market surpassing 100% penetration.

The rapid growth has promoted a dynamic and competitive evolving technology and innovation. It is an exciting and demanding time for a device manufacturer, service provider or a software developer.

The first commercial fully automated cellular network (1G Generation) was launched by the Japan by NNT (Nippon Telegraph and Telephone Corporation) in 1979 and the network coverage was full metropolitan area of Tokyo. Within five years NNT had been covered the full country and became the first 2G Network provider. After Japan Nordic Mobile Telephone was launched 1G network simultaneously Denmark, Finland, Sweden, and Norway. In the early 1980 several countries like UK, Canada, and Mexico had launched 1G Network and the first 1G network was launched in the USA in 1883. In the year 2001, again Japan commercially launched the first 3G network .Now we are using 4G networks which means Broadband Fourth Generation. The time line of the mobile industry is not that much old but already it has gone long way.

Six out of ten people around the world now have mobile phone subscriptions. Association of Telecommunication union estimate that by the end of 2009 mobile subscription reach 4.6 billion globally .In 2008 it was 4.1 billion globally compared with 1 billion in 2002.

Source: Association of Telecommunication UnionFile:Mobile phone subscribers per 100 inhabitants 1997-2007 ITU.png

According to this graph in 1997, only 1% inhabitant was using mobile phone where as in 2002 it was 11%. By the 5 years, user of the mobile phone increased by 10%. 97% people from the developed country, they were using mobile phone in 2007 and globally it was 45%. In 2009 this ratio is more than 50%.

Mobile set Manufacturer

In mobile phone handsets, in Q3/2008,Nokiawas the world's largest manufacturer of mobile phones, with a global device market share of 39.4%, followed bySamsung (17.3%),Sony Ericsson(8.6%),Motorola(8.5%) andLG Electronics(7.7%). These manufacturers accounted for over 80% of all mobile phones sold at that time. Other manufacturers includeAppleInc.Audioox(nowUTStarcom),Benefon,BenQ-Siemens,CECT,HTC Corporation,Fujitsu,,Philips,RIM,Sagem etc.

Smart Phone is the new and advance phone which is differs from the typical mobile handset in two ways. Its almost like PC, its run by the operating system and user can get the maximum facilities from this sort of phone. Currently there are many smart phone manufactures in the globe i.e. Symbian, RIM Blackberry, Apple iPhone, Windows mobile etc.

Among of all Symbian is the market leader. Symbian is the treaty of some leading mobile manufacturing company who use the unified software. In this partnership, companies are Sony-Ericson, Nokia, Samsung, Motorola Siemens etc.

Source: Market share of Smartphone operating systems as of Q2/2009 byCanalys.


Nokia is now the largest mobile phone company in the world and they currently captured the almost 40% market share in the world. Nokia is the Leading Finish origin multinational company, its operate business in 120 countries with more than 128,445 employees. In Q3 2009, Nokia's total global market share is 38%; it was at the same level as Q3 2008.

Mobile phone device is key product of Nokia. Nokia also provide internet service moreover 'Nokia-Siemens Network' is the leading telecommunication network solution provider in the globe.

Nokia: Mission, Vision, Strategy

Nokia's Innovation Approach

Now world is more competitive than the previous period. For that reason , every corporation wants to be unique to the customer point of view whatever the industry is each and every firm must have some sort of advantage which do not have to the others .This is basically the Competitive advantage commonly used by business to achieve and maintain advantage over the competitors.

According to Michael Porterhas described a category scheme consisting of three general types ofstrategiesthat are commonly used by businesses to achieve and maintaincompetitive advantage, these are known as Generic Strategy

  1. Cost leadership

This strategy emphasis on efficiency. By producing high volume of standardized product hopping to achieve economies of scale and low cost of production.

  1. Market Segmentation
  2. Product Differentiation

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