1865 Finland – Paper Manufacturing 1967 Three companies merge Today Telecommunications Significant...
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Transcript of 1865 Finland – Paper Manufacturing 1967 Three companies merge Today Telecommunications Significant...
1865 Finland
– Paper Manufacturing
1967 Three companies merge
Today Telecommunications
Significant Challenges
• Latest Technology
• “Life Goes Mobile”
• 40 New Phones in 2005
• Sales booming
Mobile Phones
Multimedia
Networks
Enterprise Solutions
In 1997 – 20 Million Units
In 2001 – 140 Million Units
#1 Producer of Cell Phones in Sales and in Market Share
Ahead of Motorola, Siemans and Samsung
Financial Status
•Company Locations
•Employees
•Customers
•Competitors
•Information Technology*Venturing * Website* E-learning
Introduction
Nokia
Largest mobile phone manufacturer & the top suppliers
Has mobile telephones to T.V. set top boxes and internet software and services
Involved in home networking and mobile displays
SWOT
• STRENGTH– Product development– Market leadership– Strong brand– Lost cost production
SWOT
• WEAKNESS– Lost market share– Nokia networks– Enterprise sector and Nokia ventures– Wireless handset performance
SWOT
• OPPORTUNITIES– China and the Asia-Pacific region– Market growth– New technologies– Enterprise market
SWOT
• THREAT– Strong competition– Market saturation in Europe– Microsoft– Virus
Porter’s 5 Forces Analysis
Threat of New Entrants
– Nokia has many rivals who wants to:• Steal customers & market share
– If Nokia doesn’t develop new innovation• Rivals will steal customer & market share
Cont’d
• A few factors that can limit the threat of new entrants in the industry includes:– Existing loyalty to major brands
– Incentives for using a particular buyer• E.g. frequent shopper programs
– High fixed costs
– Scarcity of resources
– High costs of switching companies
– Government restrictions or legislation
Power of Suppliers
• Nokia’s suppliers located everywhere– Europe– Latin America– Asia
• Vital to stay ahead of competitors and to take control of suppliers ahead of time
Cont’d
• Suppliers have more power if:– There are very few suppliers of a particular
product– There are no substitutes– Switching to another product is very costly– The product is extremely vital to the buyer,
they can do without it– The supplying industry has a higher
profitability than the buying industry
Cont’d
• Fortunately, Nokia has suppliers worldwide.
• If one suppliers cannot perform or if the price is high, they have a backup plan
Power of Buyers
• Nokia’s consumer are loyal customer who support and buy their product
• Company has established international presence with brand awareness
• The company brand helps the company to increase sales by allowing customers the freedom to purchase products from manufacturers
Cont’d
• Nokia’s consumer could place much pressure on the company if one customer has a large enough impact to affect a company’s margins and volumes, then they hold substantial power
Cont’d
• . A few of these key points that customers might have power are: – Small number of buyers– Purchases of large volumes– Switching to another product is simple– The product is not extremely vital to the buyer,
they can do without it for a period of time– Customers are price sensitive
Cont’d
• it is vital for Nokia to keep the consumers satisfied by providing new innovation with low-cost pricing
• This is important for the company because customers are the key reason to generate profit.
Availability of substitutes
• Nokia is creating new mobile telecommunications and network infrastructure
• company is always developing new mobile phone, network, and venture to help them stay ahead of their rivals
Cont’d
• The products and services provided by Nokia include: – mobile phone handsets – network infrastructure products – broadband access – multimedia devices – enterprise solutions – venture services
Cont’d
• According to Porter’s competitive forces, availability of substitutes, he stated that someone will switch if:– If the cost of switching is low
Cont’d
• 2 Factors that can affect the threat of substitute include:– the main issue is the similarity of substitutes – if substitutes are similar, then it can be viewed
in the same light as new entrant
• it is extremely vital for Nokia to make their product differentiate from their competitors
Competitive rivalry
• Nokia does not have anything to distinguish them from their rivals; the company is in huge trouble
• Porter’s competitive forces, competitive rivalry, he describes competitive rivalry as the intensity of competition between existing firms in an industry
Cont’d
• Three of the reasons why a highly competitive market might arise are: – many players of about the same size, no
dominant firm – little differentiation between competitors
products and services – a mature industry with very little growth
Cont’d
• Fortunately, Nokia are always coming up with new ideas and new innovations to differentiate themselves
• On top of that, the company is enforcing low-cost pricing with high quality mobile telecommunications
Nokia Corporation
Company’s Challenge and Opportunity
Corporate Cultural
• Corporate Cultural:Nokia’s one of the most important business strategies and competitive advantage.
• Nokia’s Motto:- Interpersonal skills:
Important and are use as a hiring guide line for the corporate.
- Cultural & Values:Unique corporate culture emphasizes and values product innovation, customer satisfaction and employees motivated by high levels of trust independence and opportunities for personal and professional enrichment.
- Cultural:** Promotes intervention
** Expected people to come up with their own views and fight for their views.
** Show high respect for individuals who take risks and are not afraid to admit mistakes.
** Admire for people for being humble, regardless of how great their accomplishments are.
Nokia Core Value• Customer Orientation:Seeing customer as the basis of all Nokia
activities
• Respect for the individual:Treating employees, business partners and
customers with respect.
• Achievement:Working toward and well-defined common
goal and strategy.
• Continuous Learning:Constantly looking for ways to improve
performance and having the courage to pursue new ideas.
Strengths
• Brand as a asset:Brand is associated with well-designed,
high quality and technologically advance products and customer-services and user-friendly.
• Strong Product offering:** Goes beyond voice-centric mobile
phones** Include entirely new functional
categories of mobile devices, such as enhanced communicators, entertainment and gaming devices and media and imaging phones.
• Advanced Technology:** Nokia is a frontrunner in developing
leading technologies with approximate 39% workforce employed in the area of research and development.
** Nearly 80% research and development achievements are reflected in the strength of registered and filed patent portfolio.
• Excellent in execution:Experience, efficiency and skill in execution
and in managing demand-supply chain to deliver new ideas and technologies in product form at the right time, and in sufficient volumes.
Happy holiday to you all