...of Competitive Advantage 9 Porter’s Value Chain 12 Porter’s Generic Strategies 15 IV. CORPORATE STRATEGY 16 o o o The scope of the firm 16 Vertical and Horizontal Diversification 20 Managing the corporate portfolio 23 V. GLOBAL STRATEGY AND THE MULTINATIONAL CORPORATIONS 25 o o o o o Patterns of internationalization 25 Analyzing competitive advantage in an international context 25 International Location of Production 27 Global integration vs. National differentiation 27 Strategy and organization within the multinational corporation 28 VI. VII. VIII. CONCLUSION 28 APPENDIX 29 BIBLIOGRAPHY 30 I. Introduction COMPANY PROFILE Nokia is a Multinational communications and information technology Corporation, with headquarters in Finland. Even though, their product portfolio is quite diverse, their main products are mobile phones and IT devices. Nokia occupied the leadership position in the mobile phones’ industry for more than a decade; however in 2011 this position was lost. The introduction of the smartphones in the market, the scandal related with Stephen Elop’s memo, ex-CEO (Ratner Effect), and the loss of trust in the brand related with the too-early announcement of changing in the operating system (Osborne Effect); resulted in a boycott both from carriers and retailers against Nokia that had a strong negative impact in its performance and overall results. As a consequence, Nokia...
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...Nokia – The Success Enablers From the standpoint of innovation policy and supporting institutions the success of Nokia could be related to the Nordic decision to create the common standard Nordic Mobile Telephony (NMT). This provided Nokia with a common Nordic market of 20 million techno savvy customers before anywhere else in the world. And it provided a perfect platform for ‘infant industry development’ . When Nokia had grown sufficiently large on the back of this market it was blessed by the European Union’s decision to create a common European standard for mobile telephony – GSM. GSM grew in rapidly both in geographical scope and functions offered. Nokia was among the best positioned companies to take advantage of this the then world’s largest uniform market for mobile hand sets - Moreover, the US market didn’t manage to develop a common standard, which prevented US companies like Motorola from competing on par with Nokia globally. The Nokia Management understood that design and being user friendly was more important than being over-engineered and Nokia mobiles appealed to more age groups and customer segments than any of its competitors. It pursued the policy of design and adoption of common platform principle which provided for the growth in product portfolio by allowing economies of scale. It also enabled vigorous investment in R&D. Analog communication technology gradually gave way to digital technology , enabling operators to host new services and creating...
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...Nokia’s Social Responsibility, Environmental Activities and Practices The Nokia Corporation is a Finnish multinational communications and information technology corporation (originally a paper production plant) that is headquartered in Espoo, Finland. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, media and messaging, and free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia has a joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications equipment and services. Mobile communications have played a big role in people's lives and Nokia was already the world leader in the mobile telephone industry. The Nokia’s website shows Nokia’s head office is located in Espoo, Finland, but production, research and development, sales, and marketing activities are located around the world. The company has sales in more than 150 country, over a billion people in the world use a Nokia phone. As a market leader, Nokia aim to lead in sustainability in a responsible way by taking it into account in everything they do and improving people’s live. (Nokia, 2010) There are sections on social responsibility of Nokia: 1. Environmental protection - Nokia aims to be a leading company in environmental performance. They effort focus on four issues: Substance management, Energy efficiency, Take-back and recycling, Promoting sustainability...
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...ORGANIZATION MANAGEMENT NOKIA NAME: SHALINI DEVI A/P MANOHARAN ID NUM: DCA 07-04101148 LEC NAME: MR SELVAMATHAN SUBMISSION DATE: 28 MAY 2012 TABLE OF CONTENT INTODUCTION Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the World’s largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of ¼ 42 billion and operating profit of ¼ 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones. Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. The first Nokia century began with Fredrik Ides tam’s paper mill on the banks of the Nokian virtual River. Between 1865 and 1967, the company would become a major industrial force, but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics. From 1968-91, the newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products. In 1992, Nokia decided to focus on...
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...organizations can function properly following a certain model. The diagnostic model that will be analyzed in this paper is Burke-Litwin. BURKE-LITWIN MODEL The Burke-Litwin model describes multiple factors and drivers of change that can be seen from top to bottom in the following diagram: This model owes its original development to the work of Litwin and his associates (Litwin & Stringer, 1968; Tagiuri & Litwin, 1968), and has been refined through a series of studies directed by Burke and his colleagues (Bernstein & Burke 1989; Michela Boni, Schecter Manderlink, O’Malley & Burke, 1989). This model shows that organizational change, especially an overhaul of the company business strategy, stems more from environmental impact than from any other factor. (Burke & Litwin, 1992). Burke-Litwin posits that the causal model has foundations rooted in Katz and Kahn’s general systems theory (1992). This structure requires some definition of leadership that may create actions within an organization. These actions could likely effect the organizations meaning, cultural positioning, or even the existence of the business itself. (Sheffield, 2011) Samsung and Nokia faced several pressures, internal and external due to a continuous growth of the technology market. Those will be analyzed in this paper. DRIVERS OF CHANGE: 1. External Factor: It includes competition, external market situation, global economy and regulations. Management needs to continuously...
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...Research report on “COMPARATIVE STUDY OF NOKIA MARKETING” Submitted In Partial Fulfillment of Requirements for the Award of the Degree Of BBA Of Punjab Technical University Under The Guidance Of MR. JAGJIT SINGH Submitted by Bhupinder Narang Roll no.104142461752 B.I.S GROUP OF COLLEGE GAGRA (MOGA) Certificate of supervision This is to certify that Mr. Bhupinder Narang S/o S. Ram Nath Narang Roll No 104142461752 has completed the research project “COMPARATIVE STUDY OF NOKIA MARKETING” under my supervision in partial fulllfilment of BBA degree approved by ACITE of PTU. Signature of supervision Place: SHRUTI BATRA Date: Seal of Dean Declaration I hereby declare that the research project “COMPARATIVE STUDY OF NOKIA MARKETING” titled is my own original work and this report has not been submitted to any university and institute for award of any professional degree/diploma. Date : Place: Signature of candidate Bhupinder Narang Roll No: 104142461752 Table of Contents 1. | Declaration | | 2. | Preface | | 3. | Acknowledgement | | 4. | Introduction to the Organization A brief history of Nokia | Nokia Introduction | SCOPE | PAKISTAN DRIVEN STRATEGY | S.W.O.T | Accessories and Features | | | 5. | Maketing Objectives | | 6. | Organization’s Network: | | 7. | List Of Nokia Products | | 8. | | | 9. | Consumer Buying Behaviour | | ...
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...Nearly a decade ago, lighting struck a Philips microchip plant in New Mexico, causing a fire that contaminated millions of mobile phone chips. Among Philips’ biggest customers were Nokia and Ericsson, the mobile phone manufacturers, but each reacted differently to the disaster. Nokia’s supply-chain management strategy allowed it to switch suppliers quickly; it even re-engineered some of its phones to accept both American and Japanese chips, which meant its production line was relatively unaffected. Ericsson, however, accepted Philips’ word that production at the plant would be back on track in a week and it took no action. That decision cost Ericsson more than US $400 m in annual earnings and, perhaps more significantly, the company lost market share. By contrast, Nokia’s profits rose by 42% that year. On Ivlarch 17. 2000. a power surge caused a fire at the Royal Philips Electronics (Philips) plant in Albuquerque. New Mexico. The plant was a key supplier of semiconductor chips used in cell phones for both Ericsson aiid Nokia Coiporation: together they received 40 percent of the plant’s chip production. At the time, both companies were about to release new cell phone designs that required these chips.’ Although 4bsmaller than the nail on a baby’s pinkie,” the chips were of utmost importance to the phones’ functionality.2 In 2000 Philips’s semiconductor division was manufacturing about 80 million chips everyday. Eighty percent of the mobile phones sold...
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...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 Elop’s strategy to partner with Microsoft in order to convert...
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...Nokia Company Company’s history: The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable. After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day. Toward the end of...
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...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 mission statement and the vision...
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...Strategic Management 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...
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...Executive Summary This Marketing Plan Audit provides an analysis of the brand situation, current strategies and provides suggestions and implementation plan for Nokia Corporation. Nokia is a Finish manufacturer of mobile devices, which makes a full range of cellular phones for all major consumer segments worldwide, including Internet-enabled devices enable people to experience music, maps, media, messaging and games. Company has over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 60 billion dollars and operating profit of 2.86 billion dollars as of 2010. Nokia is the world's largest manufacturer of mobile phones: its global device market share was 31% in the fourth quarter 2010, but dropped below 30% in the first quarter 2011. In June 2011, Nokia was overtaken by Apple, as the world's biggest smartphone maker by volume. For many years Nokia enjoyed an overwhelming domination on the market of personal mobile devices. The company managed to build the strong brand, easily recognizable style of it’s devices and consumer favorite. Due to serious mistakes in product and distribution strategy, as well as growing competition from companies like Apple, Samsung ,Motorola and others, Nokia started to experience serious problems with its sales, market share and consumer loyalty. Presented Audit defines Nokia’ current issue with the Brand positioning, that caused the diminishing of the brand popularity and lowered competitive...
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...AN INNOVATION STRATEGY FOR LG ELECTRONICS Thanks to the continuous technological innovation of handsets, the rise of mobile phones has been nothing short of phenomenal and the trend is expected to continue in the years to come (Frost & Sullivan, 2006). Their continued success is down to the fact that today’s handsets have become much more than simply mobile phones. A mobile phone can function as a camera, PDA and has many other features such as gaming functions and access to the Internet. Based on 3G, broadband is also paving the way for video-telephony and TV viewing. Characterised by continuous change and innovation, the mobile phone industry then sets an exciting stage for devising an innovation strategy. Our focus will be on mobile phone manufacturer LG. LG Electronics, Inc. is in fact a consumer electronics company with two other business units (Digital Display & Media and Digital Appliances), besides the Handset unit we will focus on in our report. On a global scale, LG’s handset division is 5th in terms of market share based on handset revenue, behind Nokia, Motorola, Samsung, and Sony Ericsson (see Appendix 1). Despite not being in the ‘Big Four’, LG’s market position is that of a strong challenger considering the many other ‘me too’ competitors that exist (e.g. NEC, Sanyo), but who fail to register in consumers’ minds. LG’s achievement can be seen to be mainly due to the success of their ‘Black’ series with popular models such as ‘Chocolate’ and ‘Shine’. Industry...
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...who is the new appointed president and Chief Executive Officer of Nokia Corporation in year 2010. Stephen Elop as the former head of Microsoft’s Business Division3 (MBD), was brought in to fix the numerous problems faced by the world’s leading mobile phone company, Nokia. His task for entering Nokia is an exertive job because he is expected to reverse not only Nokia’s eroding market share in the high-end smartphone industry segment but also its sharp dropping profits. The Finland-based Nokia had a presence in over 160 countries as of 2010. Although it was the world’s largest mobile phone maker in the first quarter of 2010, Nokia had been losing market share consistently in the high-end mobile phone market. Due to its profit margins have a dropping figure that caused by the company threats, year 2010 has been considered as a tough year for Nokia. On the end of second quarter of Nokia, the company received a substantial drop in profits. According to the analysts, the company’s problems started since 2007 when smartphone portfolio created by competitors and catch an enormous attention on the market. The company loses its customers in the high-end mobile phone market and failed to establish its presence in the world's largest smartphone market, United State as the company failed to create striking smartphone constitutes to catch the eyes of customers among the competitors. To improve the company situation, Nokia decided to overhaul its management and therefore brought in Stephen...
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... both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. | | Nokia's market share falls below 30 per cent Helsinki: Nokia Corp. reported better than expected first-quarter profits Thursday but its global market share dropped to below 30 per cent for the first time in over a decade as the world's top cellphone maker continued to lose ground to rivals. The Finnish company's net profit in January through March fell euro5 million to euro 344 million ($499 million) from a year earlier. Revenue grew 9 per cent to euro 10.40 billion. The company's share price climbed several per cent as markets had anticipated a greater fall in profits and lower sales, but closed almost unchanged at euro 5.96 ($8.65) on the Helsinki Stock Exchange. The Finnish company has faced stiff competition in recent years in the high-end sector, particularly from Apple Inc.'s iPhone, Android-based handsets and Research in Motion's Blackberry. Nokia sold 24 million smartphones in the period, 13 per cent more than in 2010, but its market share for the devices plunged to 24 per cent from 39 per cent a year earlier, according to Strategy Analytics market research. The company's overall global market share also fell - to 29 per cent, its lowest level since the late 1990s. A year ago its total market share was 33 per cent and 31 per cent in the previous quarter....
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