...the largest company in mobile phone market, Nokia was once on the top in its category. From operating paper mill in Finland, Nokia transformed itself into a multinational telecommunication giant. By 1998, Nokia is the world leader in mobile phone.1 Sadly, what once a giant has now become an underdog fighting for survival due to the strategy erosion. The global market share held by Nokia smartphones was continuously declining from the 48.7 percent in the third quarter of 2007 to only 3.5 percent in the third quarter of 2012.2 Despite Nokia holds a solid value of its brand in terms of awareness through years of effort, Nokia is still struggling to revitalize its brand equity. The followings will focus specifically on understanding the rationales and outcomes of brand development decisions in order to justify those using marketing theories, and evaluating the importance of the role of marketing mix in Nokia. BRAND DEVELOPMENT DECISION Brand Strategy In latest primary brand strategy, Nokia takes on revitalizing strategy (Riezebos, 2003) by cooperating with Microsoft. Windows phone operating system is built into Nokia smart phone as an ingredient branding to generate a competitive advantage. This action intends to encourage customers’ awareness and replaces MEEGO, a former self-developed smart phone operating system, also to differentiate from others major OS in the market. Customer-Based Brand Equity Model - Salience Although Nokia mobile phone business has been acquired by...
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...Jayamoorthy Arulmani 1. Do a SWOT analysis of the Nokia-Microsoft Strategic Alliance in the Global Mobile phone industry. SWOT Analysis is referred in 4 terms which is used in competitor analysis of each company must care about four terms as follows as Strength: * World biggest cell organization, * Extension more than 50 nations and a business’s offer of 31%, * Continuous innovative work area, * Cells are incredible value extent making it reasonable by any social class and signifying its prevalence, | Weakness: * Claims a backup serving its advanced mapping and route, * Amassing of the administration areas in the created nations when contrasted with creating ones, * Presenting telephones aren't utilize cordial so couldn't accomplish the normal achievement, * The new promptings are basically for the high innovation telephones as opposed to advancements with respect to low value sparing telephones, | Opportunities: * Nation telephones for prominent telephones are hard to interpret, * Nokia have a high game changer over its rivals regarding brand mentally separate biggest piece of the overall industry and infiltration, * Has the crest time to enter developing markets in India | Threats: * Advancements are liable to expand piece of the overall industry alongside deals, * Contenders like Samsung, Sony Ericson, and Motorola are presenting methods which will expand their advancement excellently, * Nokia doesn't decrease the cost of the more established...
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...Communication PGDM Batch 2 Term 6th Management Control System Activity – Project Report On Nokia Strategies Adopted By Nokia In Order To Achieve Its Goals Submitted to: Submitted by: Prof. Aniruddha Durafe Rajkamal Paroha Anshuman Singh Parihar INDEX * Introduction to Nokia * History of Nokia * Mission & Vision * Goals & Objective * Organizational Culture * Management Control System in Nokia * Nokia Product Mix * Strategy Formulation * Strategy Adopted by Nokia to achieve its goals * Strategy Goal Introduction to Nokia 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 € 42 billion and operating profit of € 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 Idestam's paper mill on the banks...
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...II. Mission, Vision, Core Values 2 INDUSTRY ANALYSIS 3 o o o o Pest analysis 3 Porter’s Five Forces of Competition Framework 4 Market Segmentation 5 Key success factors 8 III. COMPETITVE ADVANTAGE ANALYSIS 9 o o o Emergence 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...
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...BIRKBECK UNIVERSITY OF LONDON Marketing Analysis Nokia Gabriel Fernando Scherer The Marketing Challenge - FFMN012H4 Neil Coade 18/11/2014 BRIEF HISTORY Nokia is a Finnish company with over a hundred years of history. When funded in 1871 the company used to produce a range of different products, such as tires, boots and cables. In 1967 Nokia merged with the Finnish Cable Networks and the Finnish Rubber, becoming a company dedicated to telecommunications, and was the first company to lunch a mobile phone in a car in 1982. After 10 years, in 1994 Nokia concentrated itself in the telecommunications with the GSM technology, launching the 2100 series. The company predicted to sell four hundred thousand phones, but the sales reached twenty millions. Nokia became a world leader for the next 10 years, when in 2004 started to lose market quotes, losing 35% of the world market. It’s in 2007 when Apple lunched its first Iphone that the loss of Nokia leadership was consolidated, since there only drops in the market and profits. In 2011 the process of Nokia being bought by Microsoft started and nowadays Nokia Mobile is part of Microsoft group. NOKIA’S VISION AND MISSION Nokia’s vision has been the same for about 20 years and it is simple: Connecting people. Its vision is to transform the whole world in a small village, making possible a small farmer in Africa to connect with the world as well as facilitating the communication of a big CEO in New York. Their challenge...
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... 2.3 PESTEL.................................................................................7 2.4 Porters 5 Force ....................................................................8 2. Internal Analysis 9 2.1 Microsoft Competency Framework....................................9 2.2 Microsoft VRIN Framework.................................................10 2.3 Microsoft Strengths and Weaknesses ..............................10 2.4 Nokia Competency Framework...........................................11 2.5 Nokia VRIN Framework........................................................12 2.6 Nokia Strengths and Weaknesses......................................12 3. Issues and Challenges 13 3.1 Microsoft’s Issues................................................................13 3.2 Nokia’s Issues......................................................................13 4. Underlying Logic and Strategic Direction 14 4.1 Underlying Logic..................................................................14...
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... 40 SBS JABR - Vol 3 Abstract Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people all around the world. After over a decade of leading the mobile industry, Nokia, between 2007 and 2012, has fallen behind its competitors who have more recently entered the market. The gap between Nokia, and the competition has increased significantly and Nokia is now struggling in an effort to try to regain its role as a global competitor. In this article, we are trying to understand what has happened, what the current situation is, and what Nokia could do to return to full profitability and leadership in the current, global marketplace. In order to do that, we have attempted to analyze Nokia’s business-level positioning strategy, including market positioning of its strategic business units, as well as how the positioning strategy influences the competitive and/or cooperative dynamics of the industry. Additionally, we will analyze Nokia’s corporate-level strategy, identifying the businesses the company is in and is considering entering, how they are related or unrelated, and whether and how they create additional value. Keywords: Nokia, Business, Communications technologies, Disruptive technologies, Telecommunication Industry, Introduction Within its nearly 150-year history, Nokia has evolved from its origins in the paper industry to become a world leader in mobile communications. Today, Nokia brings mobile products and services...
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...Born of Finnish ingenuity, The Nokia Corporation is a multinational communications and information technology corporation. From this corporate giant’s headquarters, which are located in Espoo, Finland, they press tirelessly toward a 4 point strategy: build a new winning mobile ecosystem in partnership with Microsoft, bring the next billion online in developing growth markets, invest in next-generation disruptive technologies and increase focus on speed, results and accountability. Primarily Nokia is known for mobile telephones and portable IT devices. However, it has branched into Internet services realizing that on trend phenomenon such as games, applications, media and messaging and music are now a part of global cultural permanently. By utilizing subsidiaries such as Navteq, Nokia is able to offer free digital global mapping information. Siemens Networks is also a Nokia ally in services and telecommunications network equipment. All this being said, the brainchild founded in 1865 has expanded to a telecommunications icon and connected to important links to ensure forward thinking, thus remaining in the top ten of the world producers in this area. In this case study we will review the process necessary to save one of the most precious commodities that a technologies company has: time. Time is the enemy to a technology corporation as the first to debut a new concept or improve upon an existing one is the company to receive the bulk of the market’s trust and repeat patronage...
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... 3 2. Macro-Environmental Analysis 4-7 3. Mobile Phone Industry Analysis 7-10 4. Critical Success Factors 10-13 5. Scenario Planning 13 6. Reference 14-15 7. Appendix 16-18 1. Introduction Nokia, one of the international communication and information technology company in the world which found in Finland. Their main products are phone and portable IT equipment. It also provides Internet services, including applications, games, music, media and communications through its Ovi platform, and free digital map information. Nokia is the largest vendor of mobile in the world since 1998 to 2008. However, in this past 5 years, Nokia has suffered declining market share because of the increasing of the other smart phone from other company like Apple and Samsung. From February 2011, Nokia has been partnership with Microsoft, as part of Nokia smartphones using Microsoft's Windows Mobile operating system (replacement Symbian). In October 2011, Nokia launched its first Windows Phone handsets Lumia 710 and 800. We will analysis in following parts,...
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...Week 3 Strategy and Positioning Analysis Part 2 Joshelyn Wooten Kaelin A. Love-Smith Sophia Taylor Olando Hart MKT/421 July 19, 2016 Dr. Duane Scott * Describe how your marketing efforts and marketing mix will change with each phase in the product life cycle * Explain how the packaging you will use for your product or service will add value Marketing Strategies Used By Nokia Marketing Published: 23, March 2015 Nokia was founded by Fredrik Idestamin in 1865 as public limited company. Nokia is leading the cellular phone industry with around 38% of the market share, while Motorola, which is American based is having 12% of total market share. Nokia used to be a diversified conglomerate up till 1980 with business that includes pulp, rubber tire production, paper, telecommunication equipment, cable manufacturing, and consumer electronics. The geographic target market of Nokia was mainly limited to Scandinavia (70% market share) and US (33% market share) (123helpme, 2010). Nokia never enjoy a monopoly in any market including Finland and the company share is due to its competitive marketing strategy, state of the art product designing and manufacturing, pricing strategies and creative marketing campaigns. The company has constant record of launching new products that either have a low costs or cutting-edge technology. These two characteristics of the firm gives it competitive advantage and the company is still the most profitable company of the mobile-phone manufacturing...
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...Nokia’s global strength is its ability to know and understand its market. Nokia has a practical understanding of what consumers need, value, and can afford depending on their geographical location and demographics. By providing the right products, features, and price, the firm has successfully built long-term brand value all over the world. In emerging markets, Nokia offers durable, attractive, and affordable cell phones. For example, in Indian market, people have an average income therefore; they did not want to spend $600 for a cellphone. Instead of introducing a smartphone with thousands of applications, Nokia focused on the basic functions of cellphone and sold with cheaper price from $30. Furthermore, Nokia also makes it a point to involve the local consumers with offerings that appeal specifically to them. Nokia has done this by adding a music store (Nokia Music Store) on the cell phones. Nokia adds music to this store from around the world, as well as and most importantly artists from that local area. 2. What can Nokia do to gain market share in the United States and Europe where its presence is not as strong? Facing to two strongest and biggest competitors as Apple and Samsung, Nokia has been losing their market share and loyal customers. There was an outstanding event that happened in just one month ago, Microsoft bought the cellphone department of Nokia. It meant people would never see Nokia as the Final brand name as before. There are some reasons explained for Nokia’s...
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...Growth Strategy of Nokia Established in the earlier claims, Nokia is a well-known brand, possibly one of the most recognisable names in the mobile phone industry. However, the presence of competitors tends to pose a consistent threat to their overall market share. Thus, Nokia is not exempt in finding a way to leverage their assets and existing people to sustain a consistent trend of growth and development. The following highlights the proposed growth strategy of Nokia in China. Integration of Human, Technology and Process Nokia realises that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that Nokia is involved in an industry where companies have to deal with rapid growth rates. This means that they have to develop a means to promote business development by maximising the assets which they possess. In addition, the end-users of Nokia products are not the sole consumers of the company. Distributors, direct sellers and sales managers are also considered as a major contributor to the overall sales of Nokia. Thus, they should also be treated as customers. Development and growth is ensured provided that Nokia applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006) Placing Value in Sales The modern consumer is wise; at least that’s what Nokia have to presuppose in order to make the most of the market. Nowadays, manipulative...
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...1. The relationship between organizational structure and organizational culture Organizational structure and organizational culture have a dependent relationship with one another. In the business world, management structure determines the behaviors, attitudes, dispositions and ethics that create the work culture. If a company's organizational structure is strictly hierarchical, with decision-making power centralized at the top, the company's culture will likely reflect a lack of freedom and autonomy at the lower levels. If a company's management structure is decentralized, with shared power and authority at all levels, the culture is likely to be more independent, personalized and accountable. The way a company allocates power and authority determines how employees behave. These choices manifest in a company's organizational structure and organizational culture. Organizational structure is the way a company arranges its management and lines of authority. It determines roles, responsibilities and the flow of information within the company. Work culture results from those decisions. Most companies use a hierarchical structure that looks like a pyramid on paper. The chief executive or president sits at the very top of the pyramid. His direct reports, usually the vice-presidents, are on a line under him. Their direct reports are on a line under them. The pyramid stretches outward and downward based on the number of levels of management the company needs to operate according...
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...Channel 5. Context 6. References 7. Annexure Page No. 3 3 7 9 11 13 14 15 16 I. Consumer Analysis A sample of 8 consumers was taken for an exploratory research, the objective of which was to identify needs, desired attributes, relative importance of attributes and how different competitors are rated on the attributes. The consumers were chosen in the following manner: • 4 existing smart phone users (1 Nokia, 1 Samsung, 2 Micromax) • 1 intending buyer of smart phone • 3 switchers – 2 from Nokia to Samsung; 1 from HTC to Nokia 1.1 Consumer Insights Consumers, belonging to the age group of 21 – 25 years, who were students from an urban background, were chosen. The following details the research done amongst this sample population. Consumer 1 (Existing Samsung User) Age 21 years Student Occupation Urban User Category Samsung Galaxy S Current Model of Phone Nokia Xpress (Feature Phone) Switched from? Touch Screen, Android, Applications, Need Processor Touch Screen, Android, Applications, Attributes Processor Android > Processors > Applications Relative Attribute importance Samsung > Nokia Competitor rating Google-Nexus Alternatives evaluated A combination of conjunctive and Decision rule /heuristic lexicographic heuristic Social Any factors that influenced the buying? No specific loyalty Loyalty Consumer 2 (Existing Micromax User) Age 24 years Student...
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...Smartphones: New challenges for the industry. Nokia and the Operating System of the future. Term-paper: Strategy II Deadline: 07/12/2010 | Bachelor in Business Administration Student Numbers: 0874165 | 0878950 | 0830480 A bstract Nokia is the biggest mobile phone manufacturer in the world. It produces and sells more mobile telephones than any other company in the globe. This gives them a competitive advantage, especially in terms of scale of its operations. However, the fact that it has been slow to adapt its technology and production line to current trends, has given space for other companies to challenge its global dominance, especially in medium-long term. Smartphones are the next step in an extremely turbulent industry where innovation is the key for survival. It is for this reason that Nokia must adapt to continue its expansion for benefit of its different stakeholders. We present an analysis based on three strategic alternatives regarding the Operating System Nokia should use to implement its new line of smartphones, in order to compete with already established player in this segment and ensure long-term profits at the same time as bringing the highest levels of satisfaction to every of its stakeholders. Contents 1. Introduction ......................................................................................................................................... 1 2. What is a smartphone and how smart are Nokia’s phones? .............................
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