...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and developed their...
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...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and...
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...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through following...
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...Unit Three Nokia Case Study Analysis Kaplan University School of Business and Management MT460-01 Management Policy and Strategy Dr. Carrie A. O’Hare March 18, 2013 Unit Three Nokia Case Study Analysis Introduction (Do not remove these headings,;) Nokia conducted an in-depth analyst of it Cell Phone Company. It was losing in the marketing department due to the success of the Android. Under new management, the company started on a new venture to adopt Microsoft’s new unproven Window phones. It was going to be the primary operational system for the company. The market reacted poorly, and the company share price took a 14 percent dive as according to the company fourth quarter earnings report (nokia.com). To improve on their down fall, Nokia have to be able to compete with the rest of the big cell companies. To do this, they must adopt an alternate smartphone mobile operating system to get Nokia back on the right track. Nokia needs to conduct a Strength, Weakness, Opportunity and Threat analysis to ensure that they continue to stay afloat. By improving on their existing cell phone company and expanding their old style then they will be able to hang with the other big companies. Synopsis (Background) of the Situation Nokia is a Finland base company that had the hand on the market until the new cells phones came into play. The new leader of the company is Stephen Elop, which came over from Microsoft, to improve the company. Elop compared Nokia to man standing...
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...Strategic Analysis Nokia Introduction / Case Context Nokia for many years was the largest mobile phone company in the planet. It sold in 2010 the great amount of 450 millions mobiles around the world (Gartner, 2011). However, today Nokia has been challenged and has lost market share due competitor’s pressure. According to Douglas Perry, “Samsung has become the world's largest cell phone maker in Q1 2012, overtaking Nokia for the first time”(2012). Nokia has been left behind because if its inability to quickly respond to innovative competitors, such as RIM with Blackberry and Apple with IPhone. Nokia’s rivals are not just in North America, but all around the world. Asian competitors threaten Nokia by taking control on the mass population with low costs. Researcher have said, Nokia has been experiencing “lower-margin, feature phone business in emerging markets from cheaper Chinese handset makers” (Financial Times, 2011).“The once-dominant phone maker was described as needing to jump from a “burning platform” earlier this year by Stephen Elop, chief executive”(Charles, 2012).These factors have been critical in driving Nokia to re-elaborate and re-think its corporate strategy, core capabilities and vision. Recognizing that their strategy needs to be reformulated and successfully implement a good strategy is what’s going to make Nokia increase their market share. On February 2011 Nokia and Microsoft made a strategic partnership to make Windows phone as their smartphone...
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...Executive Summary Nokia’s reign as the world’s biggest seller of mobile telephones is under serious threat from its competitors such Apple and the introduction of new Android based mobile phones. The company fell short in the smartphone era and its position as the number-one phone seller in the global market is under threat. The 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...
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...The case study of Nokia Table of content Acronyms 2 Executive summary 2 1.0 Case background 3 2.0 Method 3 3.0 Large scale organizational change 3 4.0 Body of analysis 3 4.1 Background to this change 3 4.2 Key pressures 4 4.2.1Environmental pressures 5 4.2.1.1 Market decline pressure 5 4.2.1.2 Hyper competition Pressures 6 4.2.1.3 Reputation and Credibility Pressures 6 4.2.2 Organizational pressure 7 4.3 Relevant management models 7 4.3.1 SWOT analysis 8 4.3.1.1 Strength and weakness 8 4.3.1.2 Opportunity and threats 8 4.3.2 Scenario Planning Model 9 4.4 Organizational change unfolded over time 10 4.5 Overall evaluation of the change 11 5.0 Conclusion 12 6.0 References 13 7.0 Appendices 13 Acronyms ...
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...STRATEGY Case Study [Type the author name] CASE STUDY ON PROFITABLE BUT RISKY STRATEGY OF APPLE INTRODUCTION: A long term plan and action that is formulated to help a company to setback and achieve a competitive advantage against its competitor and rival is called competitive strategy. This type of strategy is frequently used in marketing, promotion and advertising operations by somehow questioning the rivalry's service or product. Competitive strategies are vital to businesses which are competing in markets for the leading position, the market which is deeply saturated with substitutes for consumers. (Porter,2008). This case study is truly about the competitive strategy of Apple. Apple was founded in 1976 by two Steve Job and Steve Wozniak. Apple initiated its early reputation by making user friendly personal computers and keeping the price high against those made by the competitors. Their first computer was the Apple Macintosh (MAC). It was launched in 1984. From the very first, Apple’s strategy was innovative and profitable. Innovation brings risk with it. So Apple always followed innovative, risky but a highly profitable strategy. Apple is a front line company in industry of electronics whether in cell phones, tablets, personal computers and music devices etc. Apple’s software is actually the one which is greatly designed and programmed. Apple charge premium and comparatively high price from the consumers when compared with prices of its alternatives. Apple is actually...
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...1.0 STRATEGIC PROFILE AND CASE ANALYSIS PURPOSE 1.1 Strategic Profile The case study is about the challenges faced by Stephen Elop who is the new appointed president and Chief Executive Officer of Nokia Corporation in year 2010. Stephen Elop as the former head of Microsoft’s Business Division3 (MBD), was brought in to fix the numerous problems faced by the world’s leading mobile phone company, Nokia. His task for entering Nokia is an exertive job because he is expected to reverse not only Nokia’s eroding market share in the high-end smartphone industry segment but also its sharp dropping profits. The Finland-based Nokia had a presence in over 160 countries as of 2010. Although it was the world’s largest mobile phone maker in the first quarter of 2010, Nokia had been losing market share consistently in the high-end mobile phone market. Due to its profit margins have a dropping figure that caused by the company threats, year 2010 has been considered as a tough year for Nokia. On the end of second quarter of Nokia, the company received a substantial drop in profits. According to the analysts, the company’s problems started since 2007 when smartphone portfolio created by competitors and catch an enormous attention on the market. The company loses its customers in the high-end mobile phone market and failed to establish its presence in the world's largest smartphone market, United State as the company failed to create striking smartphone constitutes to catch the eyes of customers...
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...Contents Page Purpose 4 1. External Analysis 5 2.1 Industry Life Cycle............................................................5 2.2 Market Analysis....................................................................6 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 ...
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...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and developed their...
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...Journal of Business and Management, 2015, 3, 446-452 Published Online October 2015 in SciRes. http://www.scirp.org/journal/ojbm http://dx.doi.org/10.4236/ojbm.2015.34045 Analysis of Nokia’s Decline from Marketing Perspective Jianzhong Jia, Yuchan Yin School of Business Administration, South China University of Technology, Guangzhou, China Email: 844375919@qq.com Received 28 September 2015; accepted 24 October 2015; published 27 October 2015 Copyright © 2015 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/ Abstract Nokia was a synonym for the mobile phone industry for a long time; however, when it came into the era of smart phones, the former leader was under an awkward situation. Nokia sold its mobile phone business to Microsoft on September 3, 2013. A company following Kodak with the legendary color failed in the impact of the new technology revolution. This was a typical case of the subversion of an industry; therefore, the author believed that it was necessary to analyze the process. This paper studied Nokia’s decline mainly from the three parts. First of all, looking back Nokia’s development process from the glory to the decline, it can be divided into three stages: the transition period, the peak period and the decline period, followed by analyzing the reasons of its decline from three parts: Nokia executives’ grasp for...
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...Research Report Submitted To Sir Khalid Jamil Ansari Prepared By Babar Saeed (BM-25208) Bashir Ali (BM-25178) TABLE OF CONTENTS Acknowledgement 02 Executive Summary 03 Company Introduction 04 Company History) 05 a) First Mobile Phone 06 b) GSM Introduction 06 c) Strategic Change 07 Vision, Mission, Organization Direction 07 Environmental Analysis (Internal) 09 Environmental Analysis (External) 12 a) Pestle Analysis 12 b) Porter five forces Analysis 14 SWOT Analysis 18 Market/Competitor Analysis 19 Strategic Analysis 23 a) Corporate Strategy 25 b) Business Strategy 25 c) Operational Strategy 25 d) Supply Chain Strategy 26 e) Defensive Strategy 26 f) Competitive Strategy 26 Nokia Marketing Strategies Analysis 27 a) Segmentation by Geographically 27 b) Segmentation by Demographically 28 c) Segmentation by Consumer / Business 28 Marketing Mix Strategies 29 a) Product b) Price c) Place d) Promotion Key Strategic Issues Face Nokia 30 Nokia Leading Mobile Series 31 a) N Series 31 b) E Series 32 c) X Series 33 d) Asha Series 33 e) Lumia Series 34 References 35 ACKNOWLEDGEMENT One of the great pleasures of writing the report is acknowledging the efforts of our teacher and friends whose hard work, cooperation, friendship and understanding were crucial to the preparation of this report. First of all, we would like to acknowledge the efforts of Sir Khalid Jamil Ansari whose sincerity, loyalty, hard working and...
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...questions need to be answered for the development of Nokia Denmark in surviving the increasingly competitive mobile device market. Therefore, thorough analysis of feasibility and compacts of JRD should be done, in terms of pros and cons. Due to limited space, most relevant and significant factors will be discussed. For the positive aspect, JRD can benefit Nokia in the following aspects: Effective Cost and Higher Efficiency: By making use of the competitive advantage for the low labor price in China and Taiwan, Nokia can achieve more effective resource allocation: with less investment to obtain higher efficiency, just as mentioned in the HBR case. Foxconn has a series of advantages Nokia can make use of to achieve higher quality and faster speed to market. Focus on Core Competencies: By outsourcing to Foxconn, Nokia will have more resource to target on core competencies. For the cons, JRD might jeopardize Nokia in the following aspects: Overlooked Costs: The reduced cost from labor wage saving is somewhat overemphasized while other tangible or intangible costs are overlooked. For instance, the training for engineers in Foxconn. The process will take time and man power, and the high turnover could make the cost much higher. Other costs include quality inspection, supplier management, custom compliance and so on. Failure to consider these costs can be hazardous, as in Boeing’s case for 787 Dreamliner. Off-shore Supplier Management: proper amount of internal resource should be...
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...Apple Inc Strategic Recommendations for the Future Apple Inc is a globally respected business organisation and is an acknowledged pioneer in its areas of operations in the technology sector. Primarily a manufacturer and marketer of personal computers and peripherals, software and networking solutions, the company’s product line includes the Macintosh range of desktop and notebook PCs, the Mac OS X operating system, the IPod digital music player, the ITunes music store, the IPhone, the IPad tablet, the X Serve G5 servers and X Serve storage products (Apple Computer Inc, 2011, p 1). The company sells its products through its chain of retail stores, third party wholesalers and online channels. The company’s main markets are in the Americas, Europe, the Middle East, Japan and South East Asia. It also has a growing presence in China and India (Apple Computer Inc, 2011, p 2). Apple’s vision statement is elaborated as “man is the creator of change in this world. As such he should be above systems and structures and not subordinate to them”. The company’s mission statement is as under: “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings”. (Masi, 2009, p 2) 2. External Analysis 2.1. Environmental Analysis Apple Inc is one of the largest of global corporations in terms of market capitalisation and has important products...
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