Alternatives
Recommendation
Alliance with Microsoft
Thank you!
Focus on Low cost devices
Pros:
Even more reduce the cost and controls the emerging market
Down structuring the company and operates more efficiently

Cons:
Smartphone market is rising rapidly
Smartphone is replacing cell phone
Nokia is still the leader in smartphone market by 2009
Alliance with OS provider
Pros:
Quick respond time
Better compatibility, better performance
Improved R&D
Brand name

Cons:
Less control on the product
Share revenue with alliance company
Why Microsoft?
2007-2008
51%-40% for Nokia 68%-47% for Symbian
Nokia's R&D team was not reliable anymore
Nokia must return to the market with its new product ASAP to stop the decline
Both sides need help to compete with Apple and RIM
Complement each other (Hardware and Software)
WP system has more experience than other reachable OS
Problem statements
What's Nokia's next move? Should they focus primarily on developed or on emerging markets? Or both?

Threat of new entrants - high High technology requirement
High start-up fund requirement

Bargaining power of supplier - low Marketing leader

Bargaining power of buyer - moderated sell to operator and retailer

Threat of substitutes - no substitute no real substitute can replace mobile phone

Rivalry among competing firms - high Core Competency
Core-Competencies Valuable Rare Costly to Imitate Non-Substitutable

Business Level Strategy: Unclear due to high variety of products.

Resources
Tangible Resources
Physical Resources: devices, services, networks, and NAVTEQ.

Intangible Resources
Human Resources: Expertise on mobile industry and collaboration with buyers and suppliers.
Innovation Resources: constantly developing newer models and functions.
Reputation Resources: Brand name Nokia
Capabilities
Distribution: global