Strategic management – Nokia Essay
Nokia’s mission is simple: “Connecting People. Our goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Our challenge is to achieve this in an increasingly dynamic and competitive environment.” The mission of Nokia is to provide the customers with the durable, economic, stylish and reliable cell phones with better features of common use. Nokia believes that connecting is about helping to feel closer with others no matter of the distance. By using
technology to make people feel close to what matter, then growth will follow, everyone can be connected, a very human approach to technology. ?
Analysis of stakeholder
Minimal Effort – People in this level are used to have low power places few demands on the products comments and stakeholder management, like customers who are not using Nokia product, they might not give a new try.
Keep Informed- People in this level are used to have a high interest in what you are doing, but relatively low power, like employees, they are work for this company, might have plenty of ideas, but low power of make a new change.
Keep Satisfied – People in this level are used to havea high level of power but low level of interest need to be kept satisfied, like government, they have high level of power to control your operation, in this way company have try to maintain the plans to make this level of stakeholders satisfied.
Manage Closely – People in this level are used to have the key focus of your stakeholder management time and effort, like owners, managers, they will control the whole organize operation.
Identification of existing strategies
Nokia plans to form a strategic partnership with Microsoft to build a global mobile ecosystem based on highly complementary assets. The Nokia-Microsoft ecosystem targets to deliver differentiated and innovative products and have unrivalled scale, product breadth, geographical reach, and brand identity. With Windows Phone as its primary smartphone platform, Nokia would help drive the future of the platform by leveraging its expertise on hardware optimization, software customization, language support and scale. Nokia and Microsoft would also combine services assets to drive innovation. One of the planshas a broad strategic partnership with Microsoft to build a new global mobile ecosystem; Windows Phone would serve as Nokia’s primary smartphone platform. Also, renewed approach to capture volume and value growth to connect “the next billion” to the Internet in developing growth markets. Try to expand the market that by having now, to create more value.
Focused investments in next-generation disruptive technologies, try to raise more capital to have develop on their product; or to innovate a new product to have a perfect competition with others competitors. A new leadership team and organizational structure with a clear focus on speed, results and accountability, try to get a group of people intensive to make a corrective of their product, minimize the error, and make something unique. The renewed governance will expedite decision-making and improve time-to-market of products and innovations, placing a heavy focus on results, speed and accountability. The new strategy and operational structure are expected to have significant impact to Nokia operations and personnel. Read also where in business writing, the main idea of a written work should be located
Human resources: It’s about the skilled or unskilled staff in the company. Nokia do hire highly skilled staff to work on their nature of technology work and provide them a training, to keep them updates and opportunities of program developers who can work from home to compete in a competition to win prices and even offer those jobs.
Physical resources: These kinds of resources of company can be seen in the form of building, equipment and factories all around the world.
Intangible resources: Nokia has many trademarks which are worth a lot. It’s because Nokia has a strong brand name among his competitors and loyal customers.
Competences of the company are the things of that hard to trace like customers loyalty or customers behavior. It will be changed by time to time. Nowadays, a lots of company are trying to get better than Nokia, in this way, Nokia have to think a new ways to get the edge on its competitors by introducing a new product to the existing market and also selling the new product to the new market, which is hard to trace and trying to give most for consumers money.
Nokia is the market leader of mobile industry in India. Nokia is multinational company. The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail. Nokia corporate culture is one of the company’s strategic and competitive advantages. Even the company’s catch phrase, `Connecting People’, is symbolic of the culture, and helps define the purpose of its physical facilities. The company’s buildings feature lots of natural wood, large windows, warm colors and fabrics, open floor plans, pedestrian bridges, game/recreation areas, fitness centers and saunas. From the beginning, Nokia has been develop a phone that can call in and call out, which made people live more easily, and done what they said, “connecting people”, Nokia really helping others to get closer. By time-to-time, mobile are more developed, which can be send text massages, reply e-mail, and more and more go on. A few years ago, Nokia are killed by the touch screen mobile marking, which is I-phone, its make their sales drops a lots, under the plans, they have to face to the new market, try to develop their phone as in touch screen, its surprise a lot people , made their company work brand stronger as before. They had achieve making things that suit best customers randomly response to change in customers’ needs, which is two more steps than others.
Nokia is being a leader of mobile communications technology. Nokia must carry out value chain as a function and a crucial tool in corporate strategy of Nokia. The purpose of Nokia to labor development and sustainability of the wide mobility industry. It endeavors to reach people via innovative and user friendly mobile phones, tools and solutions for imagination. Being in front of its competitors and informed with the changing needs of Nokia’s customers is holding Nokia in front of mobile industry. Changes in the international business view can affect the value chain of Nokia during the next 5 years. It can be thought as matter as well value chain is not include consisted of the individual business just. It also concerns to the supply chains and distribution works. Telecom operators exert control in distribution, sales and marking. They might affect the total sales of the Smartphone’s, its might the part of the value chain for strategic analysis. Also, they device specific 3G plans for the each mobile manufacturer bundle the plan along with the Smartphone, and sell it through their distribution channel. And then the Smartphone will be set up and load full of data, and the telecom operators are willing to sell the Smartphone to increase their sales.
Summary of what delivers competitive advantage
Nokia has competitive advantage over Apple, as Apple’s I-Phones can’t connect to the newest networks of most European carriers. That creates a potential opening for Nokia as it seeks to claw back lost market share with new phones that can take full advantage of the fastest networks.Nokia is its ability to manufacture user-friendly mobile phones, the strong brand name Nokia, ability to successfully build Joint Ventures and the ability to use economics of scale. Nokia is the market leader in most of the markets across the work and as result is facing renewed competition from a variety of mobile manufacturers. Nokia needs to develop marketing strategy for each key segment of mobile users in order to face the competition.
Summary of Key strengths and weaknesses
The Strengths of Nokia, Nokia has long established identity, and lots of available resource like financial, which help their company develop. Also, they had huge market share in mobile sector. A perfect world-class research, design and engineering team as their back up. A global relationship with all major phone companies worldwide increase their well-known. A strong management team, has go through many crises, made them experience enough to handle the unexpected situation, the world’s fifth most valuable brand rated, made them more valuable. The weakness of Nokia, Nokia will likely be late in developing newly generation phone, its cause they can have the first mover advantages. High price of the product offered by the company, unbalanced price with others competitors with their similar product. Some of the product is not user friendly, might loss of customers. Their design to market takes more time than others, competitors might have chance to chase up. External audit
Political environment are usually considered as one because they are enforced by the nation’s government. It is vital for Nokia’s operation because different nations with their respective government have different rules and regulation. Nokia operating on global level must have to stick with the ground rules and regulation in different markets. The way to be success, Nokia is limiting the scope of the Nokia investigation to isolate the prohibited act, regulations and assistance from the government in order to resist the international trade. Use and abuse of copyright law to keep Nokia mobile future, intrusion or misuse of its products for any space limitations Nokia, the Economic system is crucial, because it can control the organization of production, how to produce and recipients who should use their high-end product categories. International trade is important, Nokia’s global suppliers, on the other hand, knowledge about the country’s economic situation is equally important to improve entrepreneurship together to achieve personal and financial security of future plans. As incomes rise, people have more disposable income, so that consumers have more selective with their choice of mobile phone, looking into other factors, rather than meet the most basic needs of users (text messages and phone ) and prices, such a critical factor. Social and cultural, Nokia in a diverse cultural and social class levels simply because of the different models are often released to satisfy all individuals, despite their race, nationality, religion, income level or the difference between faiths.
Phone can be easily adapted to any kind of culture that can be used to support different aspects and existing models, the individual’s lifestyle or behavior. Telecommunications consumers are increasingly important, both in work and leisure. Users are more aware of the choice of mobile phone handsets and progress, due to increased information availability. Technology in mobile phones definition, we contact manner. It not only helps shape the culture, but also changed other aspects of internal and / or external organizations such as the need to upgrade the device to connect better end product manufacturing. Nokia’s success is based on human technology innovation. Nokia through enhanced communication, explore new ways to exchange information, connecting people, allowing users to get more out of life. Environmental factors, the climate and the weather change might affect the Nokia industries. The growing awareness to climate change its affecting how Nokia industry operate new models and the product-its is both creating the new market and diminishing or destroy the existing one. Legal factors, it’s including the different ground of law, like discrimination law, employment law…etc; it does can be affect Nokia. Operating environment
Microenvironment affected customers, employees, shareholders and competitors of internal factors. Nokia’s micro-environmental assessment is the best mode of Porter’s five forces model, because it need to be considered competitors, customers, suppliers and new entrants.
Threat of new entrants:
Nokia currently holds 29% of the global market for the entire mobile phone, a new competitor, and the market will get some of their own to take a very long-term plan or something that is truly innovative and unprecedented. This is because the reality of the new entrants will require a very high investment, R & D and marketing, will be unable to publish positive results for a long time, because they are trying to build customer base and a name for himself, in a given market.
In short, the threat of new entrants is very low, rather than a factor that Nokia will have to worry about in the near future. Power of suppliers:
Nokia’s main argument is the fact that they are a global organization in the industry the highest market share, so the supplier does not want to lose such an outstanding organization. On the other hand, Nokia recently for their software will be considered a major coup over Microsoft Nokia and Microsoft alliance. Therefore, Microsoft will have a lot of power, because the deal when negotiating the price and market share, Nokia is more favorable than Microsoft.
In short, there is a moderate threat, from the supplier’s power, because although hardware vendors have very low power consumption, Microsoft in the software’s power is very high, because they are few other organizations have the expertise and skills comparable Microsoft. Powers of buyers:
The mobile phone industry is a highly competitive market; the number of choices is very extensive, causing consumers to have great power, because they can choose to go to one of Nokia’s many competitors, if they feel that Nokia is not good enough. Nokia does not sell directly to consumers in stores, making it difficult for them to sell Nokia phones have a direct impact. So this has created a very price sensitive market, because consumers are always looking for the best price.
In short, the buyers have a high amount of power, because they can buy another phone instead of Nokia. Threats of substitute’s products:
Mobile phones have become a necessity in daily life, in the life of the people, because they can do, is just one important feature of the phone. No other products have the ability to make calls, send messages, surf the Web and more in a single device. In constant communication with someone at any time and any place the idea of people making the phone a very important device. On the other hand, the mobile phone can be broken down into key function, there may be substituted, they can do a better job than the camera on a digital camera features such as a camera on a mobile phone alternative mobile phone functions.
In short, due to the fact that a cell phone is no longer just make calls, but all other functions, as well as expected on the phone at all threat of substitute products is very low. So, the only real alternative is to buy a cell phone all the features of the individual products would not be reasonable for a person at the same time around. No mobile phone consumers will find it very difficult to replace, because it can provide so many consumers in a piece of equipment, no matter what the needs of consumers. Many consumers rely on mobile phones will not be able to find a substitute, has all the features of the mobile phone. Competitive rivalry:
Competitive competition is very high, and Nokia must understand the threat of competitors, especially for their business growing popularity of Apple’s iPhone and RIM’s BlackBerry. Competitiveness Nokia is the biggest competitive threat, because in the smartphone market, they are very backward, increasing its market share, will require a lot of works in the market some of the biggest names in the business operations, such as Apple
Stars: appliances (a appliances use for the Smartphone)
Question Marks: LCD (The type of television)
Cash Cows: Mobile phones and telecommunications (The type of Smartphone) Dogs: oil & gas division
Summary of Key opportunities and threats
Opportunity factors of Nokia, Nokia has the opportunity to increase their presence in the code division multiple access market, which they are just entering as well as 3G. There is a possibility to grow in new countries like India or other small countries. Also, they have growing replacement advantage and also, supplement television market. Threat factors of Nokia, Nokia was among the latest mobile phone companies who created the 3G, so there is a risk that to be displaced by competitors like LG, Motorola etc…
Identify strategic option
Nokia-centric product line diversification multidimensional matrix that different strategic options, as well as new and existing products, new and existing markets to provide part of the strategy of choice. Choice depends on the company’s focus or priority. This choice involves the sale of existing products and new markets to develop new products that enable Nokia to respond to market expansion strategy. Another activity is the introduction of new products in the market based on the current market context, problem solving strategies to ensure the continuity of the replacement cycle. Many from outside the industry enterprises to enter the mobile phone industry, such as Microsoft and Apple (2008) diversification. Nokia can do the same to diversify into other sectors, and use their technical ability to develop new products and take advantage of its brand value, its existing marketing and promotion of these new products. Nokia choose this strategy because it is already built into the technological innovation capability, and has strong brand equity.
However, this could be very feasible, acceptable, because different products in the business market uncertainty risk. This is like a thin across different industries considers Nokia has complicated the strategic direction and management resources scattered. However, there are concerns implementation needs to ensure a successful accrual of benefits and prevent possible shortcomings. Achieve problem-solving part of the acquired business units and adjust the resistance. Although this is a much smaller problem, which may affect the results of implementation of the strategy.
This means that after the acquisition phase of Nokia, the effective integration of new business units, as part of the company to ensure a smooth transition. Finally, the implementation of resource management is another problem. Nokia chose thorough, focused on technological innovation, will help the company in the short and long-term major business units. This means that the acquired business units should strengthen Nokia’s existing capacity important capabilities, helping the company’s future innovation with a promising potential. Nokia achieve continuous accumulation return, it is necessary.
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