nordplusjunior
Student
Exchange Project
between
Randers Business College (Denmark) and Raahe Business College,
(Finland)
from 4 to 15 May 2003
| Finnish Market for Mobile Telephone Operators |
RADIOLINJA
by Esa Nikula, Ilkka Nyberg, Jarno Komulainen ja Tuomo Karhumaa
Radiolinja's GSM network was the first in the world
19th September 1988 Oy Radiolinja Ab is established as the first GSM operator in Finland.
27th March 1991 The world's first GSM call is made in Radiolinja's network.
1st July 1991 Radiolinja's GSM network is the first to be opened in the world.
10th January 1995 Radiolinja Eesti AS's GSM network is opened in Estonia.
18th March 1999 Radiolinja is one of four mobile telephone operators in Finland to be granted a UMTS (Universal Mobile Telecommunications System) operating licence.
April 2001 Radiolinja selects Nokia and Siemens to supply the third-generation 3G network.
26th September 2001 Radiolinja brings the GPRS (General Packet Radio Services) network and services onto the market.
14th February 2002 Radiolinja Vodafone signed an extensive partner agreement, which covers mobile products and services. Radiolinja’s and Vodafone’s agreement is Finland’s first mobile operator agreement based on extensive commercial co-operation.
18th September 2002 Radiolinja launched picture messaging service.
Radiolinja's
mission is to create and promote the wireless lifestyle - to be at the service
of people on the move. Its vision is to be the leading facilitator of wireless
communication, business transaction and entertainment services in Finland
and a significant operator on selected foreign markets.
Radiolinja's operation is guided by commonly defined values: the customer,
development of the individual, the achievement of results and innovativeness.
The values form part of daily work, and are evident in everything throughout
the operation.
Radiolinja Group operates as part of the Elisa Communications telecommunications
group in Finland and the Baltic area.
Services
Radiolinja supplies digital mobile communications services to companies and
private persons.
Radiolinja provides your mobile phone with a large selection of different
WAP, sms and call services.
Market share
In 2002, Radiolinja was the second largest mobile operator in Finland with its 30 per cent share of mobile subscriptions. Radiolinja's share of the estimated overall revenue in the mobile market was 33 per cent. In spite of the tightening competition, Radiolinja was able to maintain its market position in the service operator business.
Profitability
The
turnover of the parent company, Elisa was 1 563 000 000 € in 2002 and
the profit was
– 48 000 000 €.
Distribution channels
The retail chains Mäkitorppa Oy, Kamastore Oy, Radiolinja Solutions Oy and Radiolinja Piste Oy are in charge of the sales of mobile phones, related accessories and subscriptions in Finland and Estonia.
Target groups
Radiolinja has
not the special target groups: they offer their services for both private
customers and corporate customers.
| Strengths | Weaknesses |
| •
Advantageous junctions • Is a part of a bigger company • Works in more than hundred countries • Predecessor in communications |
•
weak audibility area • high prices |
| Opportunities | Threats |
| •
expansion • multiple services • to lower prices competitive with others |
•
market has a lot of new competitors • old competitors firm circle of customers |
What segments should be targeted?
They should target their marketing to young people.
What level of competition should be focused on?
What generic strategy should be followed?
They should develop their UMTS network, because it´s their possibility to get more customers in future.
What actions should be taken (indicate exact contents of parameters)?