Strategic management report Nokia company Essay
The corporate strategy of Nokia management has witnessed marvelous success in the field of mobile communications. Its success lies in Nokia’s achievement of the key position in the cell phone market. Nokia is expanded through all the international markets including Europe, Asia-Pacific, Middle-East, Africa, China and North America. By producing the best mobile devices and services, Nokia promises to connect everyone together. Birth of Nokia: history and background Way back in 1865, Fredrik Idestam established his paper mill at the Tammerkoski Rapids on the banks of the Nokiavirta river in south-western Finland (Vision and Strategy, 2008).
This is where the birth of the future mobile conglomerate took place. Between 1865 and 1967, the company continued to grow as a major industrial force. In 1967, the company took merger with a rubber firm named Finnish Rubber Works founded by Arvid Wickstrom in 1898, and a cable company called Finnish Cable Works started by Eduard Polon in 1912. The new merger gave birth to the Nokia Corporation, the pioneer of mobile communications and cell phone industry. Vision To connect people in new and better ways – this is what Nokia aims at (Vision and Strategy, 2008). In terms of communication, the global scenario
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Nokia also focuses on how to help people communicate easily. With simple and effective consumer solutions, Nokia is committed to build trusted consumer relationships by maximizing its lifetime value to consumer. By delivering its best mobile solutions, Nokia aspires to enhance and capture market growth in emerging markets. Goals and objectives The main objective of Nokia is to engage in the telecommunications industry as well as other sectors of the electronics industry that include – manufacture and marketing of telecommunications systems and equipment, mobile phones, consumer electronics and industrial electronic products.
The company is also interested in participating in other industrial and commercial operations. Besides, Nokia is willing to get involved in securities trading and other investment activities. Competitive environment At the international level, there is a progressive and continuous increase in consumer involvement with technology and communications. People are now more aware of how to broaden their modes of communication. The role of social networks is significantly effective in this context. Internet has amalgamated the entire globe into one united global village. This altogether has created new challenges for Nokia.
Its major competitors are – Sony Ericsson, Motorola and Samsung. By 2007, Sony Ericsson was the fourth largest cell phone manufacturer in the world after Nokia, Motorola and Samsung. By the end of the third quarter of 2008, the sales of Sony products increased largely due to the launch of the Walkman and Cyber-shot series. Significantly, Motorola has improved profitability since 2004. Aiming at challenging Nokia to become the handset market leader, Motorola has launched a number of series of innovative handsets, which helped the company to distance itself from its closest competitor, Samsung.
Whereas Samsung has dethroned Motorola by the end of the third quarter of 2008 with 22. 4% market share in the US cell phone market. Motorola remained in the second position of the US market with its market share falling to 21. 1% from 32. 7% in 2007 (Ziegler, 2008). Company performance review Nokia’s market control in 2007 was quite prominent in Europe and Asia-Pacific with 39% and 22% net sales in these regions respectively (Vision and Strategy, 2008). China is the topmost market with net sales of €5,898 million in 2007. The following figures make a clear picture of its market supremacy in 2007.