...and Lukas 2000). In order to truly understand and analyse whether innovative thinking is being constrained by strategic planning systems, it is essential to understand which strategic planning systems are being used, whether their implementation limits the allowance to new and different approaches to organisations, and whether companies in real-life are being affected by this constraint. Before analysing whether innovative thinking is oppressed by strategic planning systems, it is important to define what a strategic planning system is. According to the BNET Business Dictionary (2007), strategic analysis is ‘…the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy’. There are many different tools and analytical methods that are used by companies but there are three main types of analyses: the SWOT Analysis, the PESTLE Analysis, and the Porter’s Five Forces Model. Most companies use these strategic planning systems in order to analyse the information regarding markets and before making any major business decisions. It is these strategies that make a company successful but it can also hinder a company’s ability to be creative and innovative in a time where the...
Words: 1745 - Pages: 7
...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through following...
Words: 6204 - Pages: 25
...Nokia Rise and Fall EMSE 6005.10 – Organizational Behavior For The Engineering Managers Professor Andy Sakka Abhishek Thakur Akshat Amrut Oswal Nokia history: Nokia was founded by Fredrik Idestam, a mining engineer in 1865. The name Nokia was decided in 1871 when he opened his second paper mill on the bank of Nokianvirta river. Nokia started out with making paper which incidentally was one of the very first technologies used for communications. Fredrik Idestam was the chairman of the company till 1896 when he retired, and Leo Mechelin took over as the chairman. Under Mechelin, Nokia started a new business unit of electricity generation. In 1898, Eduard Polon founded the Finnish Rubber Works, which later became Nokia’s rubber business. They were making everything from galoshes to tires. In 1912, Finnish Cable Works was established by Arvid Wickstrom, which later became Nokia’s cable and electronic business. In 1967, all three of these jointly owned companies came together to form the Nokia corporation. Nokia’s first thrust in telecommunications came when they began developing radio telephones for the army and emergency services. During this period, the company was involved in many businesses including paper products, tire manufacturing, footwears, communication cables, televisions , electricity generation machinery, robotics , chemicals, plastics and many more. By 1987,, Nokia became one of the leading manufacturers of TV in Europe. By 1990, Nokia decided to concentrate...
Words: 4460 - Pages: 18
...Abstract: The roots of Nokia go back to the year 1865 with the establishment of a forestry industry enterprise in South-Western Finland by mining engineer Fredrick Idestam. While in the year 1898, witnessed the foundation of Finnish Rubber Works Ltd, and in 1912, Finnish Cable Works began operations. Gradually, the ownership of this two companies and Nokia began to shift into hands of just a few owners. Finally, these three companies were merged to form Nokia Corporation in 1967. [1] Nokia Corporation engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company has four main business functions or segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Role of Strategy: Every company on a small level with very low risk or a multinational company with much more to lose than just money on the line have to have a strategy to make its name in the world with other companies in mind. Strategy is as important in an organisation like walking for a human. Behind every successful organisation there is a strategy. “It may be hard for an egg to turn into a bird: it would...
Words: 2314 - Pages: 10
...of Nokia's legendary handsets, you always got the same thing: that famous signature logo, holding hands. And for more than one generation, it was hand-holding Nokia did best - carrying people through, bit by bit, the mobile revolution. Because way before we were shouting, "Damn you autocorrect", we were grappling with new-fangled predictive text. In the days before highly customizable backgrounds and operating systems, there were swappable (and very, very cool) fascias. And, of course, more than 12 years before anyone ever made birds angry, there was the mobile game to rule them all: Snake. Nokia were by no means the first company to release a commercially available mobile phone, but it was the first to do it really well, and with true mass appeal. "Back in the 1990s there weren't these other big brands," says Ben Wood, an analyst at CCS Insight. "Nokia were so dominant. People didn't talk about what brand, it was just about the number, 3210, or whatever you had. They took users on a journey." Era of complacency So far, so good - but then one presentation changed everything. "Complacency had kicked in," Mr. Wood continues, "they felt they could do no wrong. "Then all of a sudden, in January 2007, Steve Jobs walked on to a stage and pulled an iPhone out of his pocket and changed the world forever." The fall was swift. According to figures from analyst firm Gartner, Nokia's smartphone market share in 2007 was a dominant 49.4%. In subsequent years, it was 43.7%, then...
Words: 398 - Pages: 2
...HOW TO IMPROVE NOKIA 'S MARKET SHARE IN HONG KONG Table Of Content 1.0 Executive Summary 2 Introduction 2.1 Company Background 2.2 Company Mission and Strategy 3 Project Objective 4 Analysis of the business environment 4.1 PEST Analysis 4.2 SWOT Analysis 5 Competitors Analysis 5.1 Marketing Mix Analysis 5.2 Strategic Group Map 5.3 Key Critical Success Factors (KSFs) 5.4 The Five Forces of Competition 6 Recommendation 7 Conclusion 8 Appendix 9 Reference Introduction Nokia is a communication and information technology corporation. Its principal product is mobile telephones and Smartphone. It also produces a wide range of technology products and services. Nokia is also the world second largest maker of the mobile phone, after Samsung in 2012. (BBC, 2012). Although Nokia was the world largest maker of mobile phones from 1998 to 2012, its share price has a significant drop in these years. The price has famed from a high of US$40 in 2007 to under US$3 in 2012. (Jon, C, O. 2012) ,due to the result of the growing use of Smartphone of other vendors, like Apple and adoption of Google’s Android operation system. As mentioned by Don, 104.8 millions Android-based smartphones and 26 millions Apple smartphone has been shipped, but only about 11 millions of smartphones with Symbian and Windows Phone, the main operation system of Nokia. From the performance of Nokia, there is a need of changes within the organization for them...
Words: 6099 - Pages: 25
...TABLE OF CONTENTS INTRODUCTION ………………………………………………………………………3 TOYOTA……………………………………………………………………………......4 TOYOTA BRANDING STRATEGY………………………………………………… 5 NOKIA…………………………………………………………………………………. 6 NOKIA BRANDING STRATEGY…………………………………………………….7 REFERENCES INTRODUCTION Observing the 2013 and 2014 world global branding ranking, I noticed that the top ten brands are mostly brands that the 21st century would consider as essentials. Brands like Coca-Cola and Mac Donald’s (Food) apple (communication), Toyota (Transportation) etc. Innovative and technological product are the brands that are mostly at the top, highly innovative products who are also committed to a sustainable drive are seen growing from the bottom spot also. The top five spot remained unchanged from 2013 to 2014. With the top spot remaining unchanged so many changes were made at bottom spot and Nokia was a big fall out declining tremendously from 57 position all the way to the bottom three, Apple maintained the first position with a value of 118,863$m and a +21% while google and Toyota still maintained their spot, bottom slackers like Gap moved a spot up from 100 to 99th position. My research will be focused on Nokia and Toyota, talking about the the brands, their marketing strategies, how they have been able to increase their sales globally and their ranking performance among the global brands. TOYOTA MOTOR MANUFACTURING COMPANY Toyota is one of the worlds, popular...
Words: 1350 - Pages: 6
...The current market situation for nokia is full of competition. Different companies are offering different kinds of plan and service to attract other companies’ customer. They are providing smart phone in the market to take first position. They come out with new idea and technology front of the consumer. Every mobile phone companies now-a-days has putting more effort to make the latest upgraded phone. The leader of today’s mobile phone market is android, htc, and apple. They gradually increase their market share by providing better service. In this situatition for nokia, it is difficult to ensure the continuous growth in the future and sit in the first position. For these nokia has to continue the analysis work efficiently. ENVITONMENTAL ANALYSIS FOR NOKIA Analysing the environment is vital in the strategic decision making for any organization as well as nokia.As nokia corporation is world largest network provider ,they should be more careful about the analysing of internal and external environment. External environment analysing for nokia:- the noticeable environment factors which are important to the success of nokia are political,economic,socio-cultural,technological,legal and ecological. Political:-political factors refer the formal and informal rules made by government. For staying on the continues growth, nokia will have to be careful such kinds of government rules- * Tax policy * Environmental...
Words: 1019 - Pages: 5
...Week: The Mission Statement Synopsis of the Situation: Vertu is luxury phone company that is owned by Nokia. There was a shift in operating systems for the cellphones created by Nokia by the new CEO Stephen Elop. Elop decided to create a partnership using Microsoft’s “new but unproven Windows phone as its primary smartphone operating system” (Wong, 2011). This did not go over very well as the companies share dropped by $0.14 the day that it was announced. This was just Nokia though as Vertu continued to provide the Vertu experience by not following suite with Nokia in changing operating systems. Vertu was able to stay at arm’s length from Nokia’s decisions and that is what kept them alive as a company. In all honesty, Vertu is one of the reasons that Nokia has funding. Vertu’s sales helped to support this adventure that Nokia was undertaking. Here is where the choices come into play. Vertu has markets across the world in places such as Asia and Russia which could support the much needed over haul of Nokia. This could also be the starting of letting go of Nokia as a business and focusing on Vertu. Alternative Solutions 1. Vertu has a solid market where the profits that are brought in could carry Nokia as a business so keeping Vertu as the main bread winner company. Nokia took a dive after the partnership with Microsoft was announced and having something to fall back on could be the answer. 2. Nokia’s headquarters is located in Finland while Vertu’s headquarters...
Words: 957 - Pages: 4
...forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of Nokia. These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth. Political The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot Economical Nokia are vital to the...
Words: 1028 - Pages: 5
...EN Case No IV/JV.12 ERICSSON / NOKIA / PSION / MOTOROLA Only the English text is available and authentic. REGULATION (EEC) No 4064/89 MERGER PROCEDURE Article 6(1)(a) INAPPLICABILITY Date: 22/12/1998 Also available in the CELEX database Document No 398J012 Office for Official Publications of the European Communities L-2985 Luxembourg COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 22.12.1998 In the published version of this decision, some information has been omitted pursuant to Article 17(2) of Council Regulation (EEC) No 4064/89 concerning non-disclosure of business secrets and other confidential information. The omissions are shown thus [… ]. Where possible the information omitted has been replaced by ranges of figures or a general description. PUBLIC VERSION MERGER PROCEDURE ARTICLE 6(1)(a) PROCEDURE To the notifying parties Dear Sirs, Subject: Case No IV/JV.12 – ERICSSON / NOKIA / PSION / MOTOROLA (SYMBIAN II) Notification of 20 November 1998 pursuant to Article 4 of Council Regulation No. 4064/89 1. On 20 November 1998, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EEC) No 4064/89 [ OJ L 395, 30.12.1989 p. 1; corrigendum OJ L 257 of 21.9.1990, p. 13; as last amended by Regulation (EC) No 1310/97, OJ L 180, 9. 7. 1997, p. 1, corrigendum in OJ L 40, 13.2.1998, p. 17 .] by which Motorola, Inc. (“Motorola”) would acquire joint control in Symbian Limited (“Symbian”). As a result of the operation...
Words: 1666 - Pages: 7
...Case Study Introduction Finland-headquartered Nokia was a global telecommunications equipment manufacturer that also operated a luxury mobile phone brand called Vertu. Vertu was founded by Frank Nuovo by using precious materials, fine jewels and exotic leathers (Kwong & Wong, 2011). Vertu was unique, luxurious and one of a kind, for a moment in time. Synopsis of the Situation Nokia has been one of if not the leader in the telecommunication equipment industry for a long time. Under the new management of Stephen Elop, he allowed Nokia’s chief designer, Frank Nuovo design and run at arm’s length in England the creation of the never-seen before luxury phone called Vertu. With the birth of the Vertu phone, it showed growth in 70 countries selling mobile phones (Kwong & Wong, 2011). Things would not stay golden forever though. Key Issues After years of being that one-of-a-kind luxury mobile phone competitors began wanting in on the niche but profitable market. Technology was also growing faster than Vertu phone were keeping up with. With this revenues began to fall. Elop made the executive decision to partner with Microsoft windows to adopt their operating system since Nokia’s was OP becoming obsolete. Define the Problem Elop’s strategy to partner with Microsoft in order to convert over to Windows OP system failed due to the a .14 cent drop in Nokia’s share prices the day of the closing on the partnership. Does Nokia keep Vertu at arm’s length or pull it in closer...
Words: 817 - Pages: 4
...MGT401 Term Paper on Submitted To: Submitted By: Mohammad Rezzaur Razzak Kamrijjaman Department Coordinator ID-12304076 BBS sec-01 Date of Submission – 15.12.14 Letter of Transmittal 15th December, 2014 Mohammad Rezaur Razzak Associate Professor BRAC Business School BRAC University Mohakhali, Dhaka. Subject: Submission of report on “Nokia Corporation” Dear Sir, With due respect, I am submitting my report on the above mentioned title for the fulfillment of the requirements of my Strategic Management (MGT401) course. I took this report as an opportunity to reflect my learning of the techniques and skills of this three months long course. I realize that my report may not be flawless; there might be some mistakes which were not noticed by me due to my inadequate professional knowledge. By collecting information for this report I also learned something very superfluous in practical. I look forward to make the optimal use of the knowledge that I gained from this course. I would like to gratitude you for giving me such a great opportunity to prove my ability in making a quality report. If any mistakes remain I heartily apologize for those. I hope you will take my mistakes with due consideration. Thanks. Sincerely yours, Kamrujjaman ID: 12304076 BRAC Business School BRAC University Acknowledgement ...
Words: 6267 - Pages: 26
...world’s No. 1 mobile maker and the first brand of phone everyone owned. Nokia were by no means the first company to release a commercially available mobile phone, but it was the first to do it really well, and with true mass appeal. During the late 1990s and early 2000s the 147-year-old Finnish company became a global technology star: In some emerging markets, so the story goes, the word ‘Nokia’ became a generic term for ‘mobile phone.’ But becoming synonymous with phones is where it all went wrong. Nokia sold phones in the hundreds of millions, controlled supply chains and had the tightest relationships with carriers. Customers meanwhile had to do mobile computing on a screen the size of their thumb. While Apple was designing the iPhone and Nokia was selling half a billion phones each year, Google bought a company called Android and announced an Open Handset Alliance, a grouping of industry players who would come together to build an open source OS for smart phones. Nokia was invited to join but refused to demean itself. As a result, Nokia’s brand image is declining since 2008. In 2007, Nokia had a market capitalization of €110 billion; by May 2012 this had fallen to €14.8 billion. Nokia failed to build a marketplace that would have lured in users and application developers. But alike touch screens, it was not as if Nokia did not try. They tried multiple times and failed every time. Situation analysis The Nokia of today is a very different, much diminished company compared to...
Words: 6314 - Pages: 26
...Nokia Case Study Introduction: The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. This essay will firstly assess and consider the balance of marketled and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary (Prahalad and Hamel, 1990; Mintzberg et al, 1995; Greenley and Oktemgil, 1996). Following the discussion, the essay just analyzes Nokia’s strategies and empirically justified the reciprocal and complementary relationship between these two approaches. On the process of Nokia’s development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry...
Words: 3630 - Pages: 15
