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Strategic Analysis Nokia

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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 platform (Nokia Microsoft, 2011). Furthermore, the recession has taken a toll on Nokia, because its creating difficulties in shortening the period of mobile replacement by consumers. Due to this economic downturn, customers stay longer with their phones and therefore, are not engaging in the shorter period of continuing mobile replacement.

Nokia needs to develop the ability of...

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