Focusing as a strategy cornestone

1. Northern conditions

Nokian Tyres is the only tyre manufacturer in the world to focus on solutions and products that meet the special needs of customers in northern conditions. Products are marketed in all countries with northern conditions – everywhere where there is snow, forests and demanding conditions caused by changing

seasons.

2. Narrow product segments

By focusing on products designed for northern conditions, Nokian Tyres has developed special competence that delivers added value in other narrow special product segments. Key products include passenger car and truck winter tyres and forestry tyres. The objective is to have the highest customer satisfaction in the key products globally. Other special products include light truck and SUV tyres as well as harbour and mining machinery tyres.

3. Replacement markets

All Nokian-branded passenger car tyres and approximately 60% of heavy tyres are sold to users in replacement markets through special tyre outlets, car dealers and other companies engaged in the tyre trade.

Nokian Tyres’ focus strategy is supported by:

Investments in product development, production, distribution and logistics

Product development is guided by a philosophy of sustainable safety, which entails the continued renewal of the product range with the objective of always being able to provide customers with value-added innovations.

• Own production concentrates on high-margin key products.
• New products should represent at least 25% of net sales annually.
• Consistent investment in continued improvement of quality, productivity and logistics.
• Distribution is developed by expanding the Vianor network and streamlining the processes.

Open and participatory corporate culture

A basic factor behind Nokian Tyres’ success is the continuous process of personnel development, which is supported by an open and participatory corporate culture.

• The corporate culture aims to create a highly motivated working community that promotes the success of individuals and the company.

Nokian Tyres’ success factors
– unique recipe

• Focus on expertise in Northern conditions
• Own specialised R & D and unique winter tyre testing programme
• Focus on replacement markets, growing market areas and growing product segments
• Share of value added products more than 90% of own production and sales
• Production of core products in own state-of-the-art factories
• Rapidly renewing product range and innovative products
• Car winter tyre range most extensive in the world
• Skilled personnel and Hakkapeliitta culture
• Strong reputation and brand
• Own strong distribution channel in key markets
• Efficient logistics and seasonal management
• Direct contact with end users
• Special know-how in Russian and CIS markets

Read more: Nokian Tyres Annual Report 2010.