...MGT401 Term Paper on Submitted To: Submitted By: Mohammad Rezzaur Razzak Kamrijjaman Department Coordinator ID-12304076 BBS sec-01 Date of Submission – 15.12.14 Letter of Transmittal 15th December, 2014 Mohammad Rezaur Razzak Associate Professor BRAC Business School BRAC University Mohakhali, Dhaka. Subject: Submission of report on “Nokia Corporation” Dear Sir, With due respect, I am submitting my report on the above mentioned title for the fulfillment of the requirements of my Strategic Management (MGT401) course. I took this report as an opportunity to reflect my learning of the techniques and skills of this three months long course. I realize that my report may not be flawless; there might be some mistakes which were not noticed by me due to my inadequate professional knowledge. By collecting information for this report I also learned something very superfluous in practical. I look forward to make the optimal use of the knowledge that I gained from this course. I would like to gratitude you for giving me such a great opportunity to prove my ability in making a quality report. If any mistakes remain I heartily apologize for those. I hope you will take my mistakes with due consideration. Thanks. Sincerely yours, Kamrujjaman ID: 12304076 BRAC Business School BRAC University Acknowledgement ...
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...case study provides a brief analysis of what transpired at Nokia and how the strategy implemented by the management team from the period of the 1990s up to the 2010 led to the company losing its market shares at both ends of the mobile phone industry. During the period of 1991 and 1992 the company lost FM482million ($120 million) on its major business activities. In 1992 a new group chief executive, Jorma Ollila was appointed. Jorma Ollila’s mission was to formulate a strategy that was going to rescue the company from its losses, into a profitable organisation. The report focus on Nokia’s reason to select one area of development out of four, the significance of the introduction of new Android software for Nokia’s chosen strategy and the importance of management teams to strategic choice. In dealing with the first section on the study case , the author analysed the three elements of the strategy context used by the management team and then discussed strategic risks associated with focusing on the single development area out of four. Lynch (2012:421) defines strategy context as being concerned with the circumstances surrounding and influencing the way that a strategy develops and operates. The second section deals with the second question and the author discussed the advantages offered by Android mobile phones over Symbian’s mobile and how an organisation can gain its competitive advantage using “Porter’s Five Forces Model”. The report also provides brief discussion on the advantages...
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...Finland and Nokia Executive Summary Finland had transformed itself from a sleepy economy to a highly competitive one with maximum contribution from the telecommunications sector. Focused efforts in R&D and education helped Finland achieve this position with Nokia being a major player. While Finland maintained its ranking as a leading competitive nation in 2001, it was facing challenges. The overall growth rates were declining and the telecommunications cluster was experiencing a severe downturn. Nokia’s revenue and profits were falling and considering the fact that Nokia and the telecommunication sector played a large role in Finland’s economy, there were concerns about the level of exposure to a single cluster and company. Also, Finland was facing shortages of experienced engineers and scientists. Universities were offering programs tailored for foreign students in order to attract people to Finland. However, unemployment was increasing among the young and less skilled. Nokia was facing a challenge in evolution of standards and innovation. New standards were being developed in mobile internet services as well as software and hardware for phones and infrastructure. Smart mobile phones with multimedia messaging, internet connections and downloads from websites were being around the corner. We feel that Nokia has the options of outsourcing production to India and China to achieve reduced costs, higher production and improved benefits. They should consider development...
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... July 21, 2014 Peter Baverso NOKIA COMPANY Nokia is the leading companies in the world of communication. The company has implemented different strategies to protect its unique product as well as the market share from other competing companies such as Samsung. Although the company produces other household product, Nokia mobile is the main product of the company (Worley et al., 2011). Porter’s five forces of Nokia Company. The Nokia Company faces the porter’s five forces of completion in its daily operation. The forces include the entry by other firms, power of the buyer, power of supply, competitive rivalry and substitute goods (Rampersad & Hussain, 2014). 1. Entry by new firms The threat to entry by other firms in the market is quite low as the company has established its strong market share in the mobile phone industry. The forces are low because new companies who wish to venture into the industry have to invest heavily in terms of innovation and marketing (Rampersad & Hussain, 2014). 2. Power of suppliers The threat of power of supply is moderate as the company can acquire the new materials from many equipment suppliers. Therefore, the company can easily negotiate and bargain with the willing mobile phone hardware (Steers et al., 2010). 3. Powers of buyers The company faces a high force of power of buyers because the consumer can decide to buy the product from other companies. The mobile...
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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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...Abstract: The roots of Nokia go back to the year 1865 with the establishment of a forestry industry enterprise in South-Western Finland by mining engineer Fredrick Idestam. While in the year 1898, witnessed the foundation of Finnish Rubber Works Ltd, and in 1912, Finnish Cable Works began operations. Gradually, the ownership of this two companies and Nokia began to shift into hands of just a few owners. Finally, these three companies were merged to form Nokia Corporation in 1967. [1] Nokia Corporation engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company has four main business functions or segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Role of Strategy: Every company on a small level with very low risk or a multinational company with much more to lose than just money on the line have to have a strategy to make its name in the world with other companies in mind. Strategy is as important in an organisation like walking for a human. Behind every successful organisation there is a strategy. “It may be hard for an egg to turn into a bird: it would...
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...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 in a boycott both from carriers and retailers against Nokia that had a...
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...PORTERS FIVE FORCES Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter referred to these forces as the micro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. The five forces of porter’s five forces model are as follows: 1. The threat of the entry of new competitors 2. The threat of substitute products or services 3. The bargaining power of customers (buyers) 4. The bargaining power of suppliers 5. The intensity of competitive rivalry 1. The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. The new entrants face barriers to entry. They need to overcome them to compete successfully. Some of the barriers are capital requirement, customer loyalty, experience, etc. Specialized technology, production and distribution require high capital costs which acts as one of the barrier. The high customer’s loyalty and experience of the established firms also...
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...stakeholders include Steve Jobs, employees, lenders and the government. Apple markets Apple’s industries Person computers Person media Africa North/South America Desktops IPad I phone Apples markets Asia and Middle east Europe IPod Apple store Notebooks Apple services iTunes Apple’s products Laptops Mission statement Apple’s mission statement is to become a leader in providing simple, powerful, high-quality information products and service for people who learn, communicate, and create. External and internal analysis In order to identify the major threats and opportunities faced by Apple, conducting an external analysis is very important. The models that are going to be used include; PESTEL analysis, Porter's 5 forces and SWOT analysis (opportunities and threats). And the internal analysis analyses the factors that give an organization certain advantages and disadvantages in order to fulfill the needs of its target market. The models which are going to be used for internal analysis are - the value chain, Vrio, Tows matrix, BCG and Ansoff matrix’s. Macro environmental analysis PESTEL analysis is the best tool to...
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...After conducting a Porter's 5 forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of Nokia. These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth. Political The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot Economical ...
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...of Contents TABLE OC CONTENT 1.Introduction ……………………1 2.Current performance …………1 3.Market share………………………2and 3 4.Ansoff's Matrix - Planning for Growth…..4 5.PEST ANALYSIS………………………………………4 6.Marketing MIX………………………….6 7.Porter’s Five Forces…………………….7 8.Swot Analysis ……………………………9 9.Conclusion …. .………………………………..11 10.Recommandations………………………..11 11. References………………………………….12 The purpose of this paper The purpose of this paper is to outline the Samsung’s current situation, addressing where and how they currently operate, both in the home market and globally. Detailing such information as market share, product ranges, pricing strategies, competitor analysis, plus other key issues that are relevant to the company and products we are reviewing. We will present issues that will have an impact on the company’s future global strategy. 1.Introduction . Samsung electronics is South Korean global company, a part of the Samsung group established in 1938,employing approximately 206000 people in 197 offices across the 72 countries. The company sales is $ 143.1 billon in 2011 considerably 13% more than previous year(annual report of Samsung 2012).Samsung operates in intense competition from growing number of competitors .All of them have strong brand equity such as LG electronics ,Whirlpool ,Nokia ,Apple and Sony. Among its several products single galaxy s devises has been huge success for Samsung.It announces that it had sold 20 million units Galaxy S !! devices...
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...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 statement are...
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...Porter’s Five Forces Model Porter’s Five Forces is an economic model used to characterise industries and markets, and combine to make up the business environment. Porter explains that by studying the structure and underlying dynamics between these forces, Nokia can discover opportunities for improving their marketing strategies, along with determining the industry attractiveness, competitiveness and long-run industry profitability. These five forces are also known as "competitive forces". Michael Porter has identified five forces that are widely used to assess the structure of any industry, along with evaluating what drives competition. Porter’s five forces are: 1. Existing Competitive Rivalry 2. Potential New Entrants 3. Threat of Substitutes 4. Bargaining Power of Suppliers 5. Bargaining Power of Customers Existing Competitive Rivalry The most common and direct threat to a business or organisation is through their rivals and competitors. This usually occurs in a market that sells the same product or offers similar facilities and services, to a population of the same customer base. Overall, general markets are known and seen to be more competitive. The more firms that will operate in the markets the easier it will be for the customers to shop around. Even a minority of firms can dominate a market, for example, supermarkets; even they can cause intense competition. For example, “some forms of competition, such as price competition, are highly unstable...
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...1- What might have happened to Apple if its top executives had not supported investment in iPads? Answer- The idea of an iPad took the market by storm. If Apple’s executives had not supported the investment in iPad, then any of their rivals would have launched a tablet. Just like Samsung, HP, Microsoft did just after Apple launched their iPad. If that would have happened, then Apples share in the electronic industry would be limited to mobile phones and computers only and Apple would have lagged behind from its rivals and the scenario of today’s electronic market would have been different. 2. Why would it be unethical for Apple to sell its iTunes customer information to other businesses? Answer- If Apple ever tried to sell its customer information to any third party institution, then it would be really unethical act because Apple is carrying the trust of millions of its customers and if they sold that information to someone then that information can be used for many illegal ways, because it contain both financial and personal information of the user. So by doing this Apple will be breaking the trust of millions of its customers. 3. Evaluate the effects on Apple’s business if it failed to secure its customer information and all of it was accidentally posted to an anonymous website. Answer- Although, the protection of this type of information is among the top priority of it companies, but still if this information is leaked someday then it will be proved as a disaster...
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... No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” 1 Nokia shifting from a “Leader” to a “Challenger” – Marketing Strategy of Nokia Lumia 1020 1. Executive summary Nokia was one of the most recognized and well-loved brands in the world. It was trampled and nearly destroyed by the disruptive innovation of Apple’s iPhone and the massive success of Android OS in the smartphone sector. Nokia holds many of the key technologies for mobile devices, but lacked the foresight and leadership to seize the massive opportunity in the shift from feature phones to smartphones. (Patric, 2013) In order to regain its lost market share and return to the leadership position, Nokia created series smartphone called Nokia Lumia. In June of 2013, Nokia launched its flagship Lumia 1020 – the best shot at making a real impact in smartphone, according to Nokia. However the smartphone market becomes super competitive than ever before. Especially in China, the world’s largest smartphone market, Nokia is facing increased competition from both international and domestic rivals. In this essay, I will...
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