...MANAGEMENT ASSIGNMENT NOKIA CASE STUDY JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY SUMMARY Nokia, once a world leader in wireless telecommunications, has lost nearly 39% of its market share to its competitors and in some instances to no name companies. In 80s and 90s Nokia expanded through the acquisition of many other companies with various technologies. Due to this rapid expansion, Nokia lost focus of its ingenuity in wireless communications. However Nokia reorganized by selling most of its businesses which were not performing well and directed its focus once again to its wireless technologies. Acquisition of Sega in 2003 and then merger with Siemens AB in 2006 put Nokia once again in a place where it could compete its rivals. RIM’s blackberry and Apple’s iPhone are the major rivals and have a large market share from business users and consumers. * According to Nokia’s business strategy; the winning strategy is based upon the following factors. Best mobile devices regardless the price and geographical location * Provide extensive internet solutions on mobile devices * Enter into the markets by providing business mobility solutions to the corporate users Analysis: I believe that Nokia’s strategy is a winning strategy for the following reasons: * Business solutions: Innovative Business mobility solutions will attract the corporate users, since Nokia devices are based upon a very stable platform, and Nokia has a very long...
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...Executive Summary Nokia’s reign as the world’s biggest seller of mobile telephones is under serious threat from its competitors such Apple and the introduction of new Android based mobile phones. The company fell short in the smartphone era and its position as the number-one phone seller in the global market is under threat. The case study provides a brief analysis of what transpired at Nokia and how the strategy implemented by the management team from the period of the 1990s up to the 2010 led to the company losing its market shares at both ends of the mobile phone industry. During the period of 1991 and 1992 the company lost FM482million ($120 million) on its major business activities. In 1992 a new group chief executive, Jorma Ollila was appointed. Jorma Ollila’s mission was to formulate a strategy that was going to rescue the company from its losses, into a profitable organisation. The report focus on Nokia’s reason to select one area of development out of four, the significance of the introduction of new Android software for Nokia’s chosen strategy and the importance of management teams to strategic choice. In dealing with the first section on the study case , the author analysed the three elements of the strategy context used by the management team and then discussed strategic risks associated with focusing on the single development area out of four. Lynch (2012:421) defines strategy context as being concerned with the circumstances surrounding and influencing the...
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...Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its past experience. The introduction of innovative...
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...Assess and critically comment on the idea that strategic planning systems can stifle innovative thinking in organisations It is debatable whether strategic planning systems can stifle innovative thinking in organisations. Although strategic planning systems are used in order to make companies work more efficiently, they may restrict organisations from showing their true potential by stifling innovative thinking. There are other theorists that state that listening to closely to markets and strategies can create a barrier to commercialising new technology and lead to reduced competitiveness. (Ferrell 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...
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...International Management Managing Across Borders and Cultures Case study Nokia: Business Interests VS German Pressures Class 2 Group leader: Roger 12901227 Group members: Froggen 12901204 Henry 12902158 Himi 12901225 Eudora 12901203 Word count: 1953 words Menu Background (Roger) 1 Question 1 (Froggen) 2 Question 2 (Henry) 3 Question 3 (Himi) 4 Conclusion (Eudora) 5 The case study of Nokia Background As a well-known mobile handset maker in the globe, Nokia occupied a 40 percent market share once. However, with mobile industry progressing at an unprecedented rate, the competition was becoming increasingly fierce with encroaching on the market share of Nokia. Due to such situation, the whole mobile handset industry was marked by declining prices and depressed margins making companies look at low-cost production options. Nokia, was also making their efforts to reduce the cost, so they made decision to close the company in Bochum and built a new one in Romania although they were a little worried about the negative...
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...BUSS5000/CRITICAL THINKING IN BUSINESS Semester 1 2016 Assessment 4: Major Case Analysis and Evaluation Due date: Weight: Length: Monday, 23 May 10:00am on Blackboard via Turnitin 20% 1700 words (including references) Questions Read the ‘Emerging Nokia’ case that is accessible on the link that is on the BUSS5000 Blackboard site and then respond to the following questions. In responding to Question i and Question 11 below, your analysis you should only use the information that is provided in the case. Extra research can be done to substantiate your analysis and frameworks. 证实 i. Using the most relevant frameworks and concepts from those that we have covered in BUSS5000, critically evaluate and analyse the competition that Nokia faced between 1995 and 2010. ii. Identify and critically analyse any five (5) factors that you consider to have contributed to Nokia sustaining its competitive position during the 1995 and 2010 period. iii. Identify four (4) challenges you think Nokia might face in one of the emerging markets mentioned in the case and recommend ways that Nokia could address each of these challenges so as to enhance its performance post 2010. Justify your answer. Assessment Criteria Demonstrate knowledge of frameworks and business concepts covered in lectures, tutorials and unit readings. (35%) Show evidence of critical thinking in analysing the assigned case. (30%) Demonstrate responsible application of ethical and social awareness...
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...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and developed their...
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...Nokia was once the pioneer in the development of mobile phones and became in 1998 the leader in the manufacturing and sales of mobile phones (McCray et al, 2010). Nokia kept its leading position for several years and at the turn of the century Nokia’s products were revolutionary and transformed the entire industry until Nokia was overtaken by Apple with the introduction of its iPhone in 2007. The introduction of the iPhone made Apple the market leader in smart phones and Nokia’s market share started to dwindle. Nokia fell far behind in the smart phone market. What are the main causes of Nokia’s decline, a company that had once been the pioneer in the market? Nokia has been very successful and enjoyed the leading position in the mobile phone market for many years. The huge success was the pride of Finland. This leading position in the market led Nokia to develop a culture of complacency. Complacency in a market leader can lead the organisation into a position which is known as the Icarus Paradox. Overconfidence, complacency and carelessness are key symptoms of this paradox. Nokia’s culture of complacency, arrogance and close mindedness coupled with its market dominance led directly to its failure in the smart phone market. An example of this complacency and closed mindedness was given by a former manager of Nokia, Dave Grannan, who explained the reaction at Nokia when Apple released the iPhone: ‘We have tried touch screens before and people did not like them’ (Burrows, 2011)...
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...Unit 2 Vertu Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Professor: Dr. Dennis Strouble Date: September 30, 2014 Vertu: Nokia’s Luxury Mobile Phone for the Urban Rich 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 ...
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...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and...
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...Table of Contents I. Introduction 2 II. Question 1: Nokia’s mission and vision 2 III. Question 2: Alarm in Nokia’s strategic pursuits 4 IV. Question 3: Strategy and techniques recommended for Nokia 8 V. Question 4 :Technologies that Nokia should have done 9 VI. Question 5: Business level strategy Nokia should take and actions to support it. 10 VII. Question 6: Nokia and Microsoft corporate 12 VIII. Conclusion 13 IX. Reference 14 I. Introduction Operating in the turbulent and globalized business market require a well-prepared plan and vision in order to go ahead of the market and being the market leader, which would ensure the success and survival for the organization in long-term (Sadler and Craig, 2003). Failure to do so and the organization would see itself going bankruptcy in couple of years head. The case of Nokia is the typical example of the failure to catch the demand of the customers, to follow up the market and to struggle in the way to become powerful again. Nokia is well known about its products, which are mobile telephone and portable IT device. Used to be the market leader in the mobile phone industry, but the company now has been struggling in order to survive through the fast growing and many competitors of mobile phone industry. This report would invest the case study “Alarm ringing: Nokia in 2010”; analyze the situation and prospects for Nokia to be more competitive in the mobile phone market. II. Question 1: Nokia’s mission and vision The...
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...Case analysis of Nokia in 2010-Szu-Han Wang Introduction Nokia was formed 140 years ago in Finland and now the company has become the leading mobile manufacturer in more than 120 countries across the globe. The paper presents the detailed analysis of the internal and external business environment of the Nokia Company. Macro environment: Macro environment reflects those factors that are in direct control of the business. PEST analysis completely evaluates the macro environment for Nokia. PEST analysis corresponds to the political, economic, social and technological factors responsible for making any changes to the business. Political Mobile phone market is facing licensing issues like 3G/4G and new regulations. There are great security regulations. Nokia have to work within market regulations and maintain the flexibility to achieve higher network access. Economic The recent recession has adversely affected the consumer buying power thus lowering the overall sales. Another important economic factor affecting the Nokia economically is the higher costs of raw materials. These costs affect the overall costs of the products. Social Consumer is the king and its preferences can alter the selling pattern of any products. Nokia should consider the consumer demands and preferences and must include them into its products. Technological There is change of industry standards and operational frameworks. Nokia must work with telecom infrastructure providers to explore new markets. Micro Environment...
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...INTRODUCTION: The purpose of this report: Research the marketing theories and bring innovation into our marketing plan as a group. Most importantly is to work together as team, therefore we had decided that Nokia product (7210) would be the choice for our research. I. COMPONENTS OF MARKETING PLAN: Company Background: The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In 1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokia launches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Network produce telecommunications network equipments, solutions and new internet services brand. Now Nokia had 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in 2008. Nokia produces mobile phones for every major market segment and procedure, including GSM, CDMA, and W-CDMA. In the phone industry, Nokia are the world's best selling phone Nokia’s strengthened. It’s lead as the No. 1 wholesaler in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales happened. Table below which shows market share of Nokia: 1. Nokia (34.7%) ...
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...University Business School, for all their assistance. I would like to thank my parents for love and support bestowed on me. Thank you for your blessings. Also I would like to thank my friends for staying by me during the difficult parts of life. Thanks for help and love irrespective of the situations. I would also like to thank all my respondents for taking out time from their busy lives to help me with my research. Last but not the least, I would like to thank God for all. Thank You!! Nikunj Daga 3 ABSTRACT _________________________________________________________________________________________________ This research studies the marketing strategies of Nokia, a high technology company in a developing country India. The study attempts to check the role of marketing activities in success of Nokia...
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...University Business School, for all their assistance. I would like to thank my parents for love and support bestowed on me. Thank you for your blessings. Also I would like to thank my friends for staying by me during the difficult parts of life. Thanks for help and love irrespective of the situations. I would also like to thank all my respondents for taking out time from their busy lives to help me with my research. Last but not the least, I would like to thank God for all. Thank You!! Nikunj Daga 3 ABSTRACT _________________________________________________________________________________________________ This research studies the marketing strategies of Nokia, a high technology company in a developing country India. The study attempts to check the role of marketing activities in success of Nokia...
Words: 19506 - Pages: 79