nokia strategies

8/9/2019 nokia strategies

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Strategic Management

Process of Nokia

Prepared By:

Komal (021)

Heena Rajora (024)

Annu (030)

Richa Sharma (03)

Pooja Rana (0!)


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Industry:"elecommunica#ion$ e%uipmen#& in#erne# and compu#er $o'#are

Founded: "ampere& rand *uchy o' +inland (1,-). /ncorpora#ed in oia

(1,!1)

Founder(s): +redri /de$#am& eo echelin

Headquarters:$poo& +inland

Area served:5orldide

Key Peo!e:Ri$#o Siila$maa (chairman) 6 S#ephen lop (pre$iden# 6 78)

Products:o9ile phone$& $mar# phone$& mo9ile compu#er$& ne#or$

Services: ap$ and nai;a#ion& mu$ic& me$$a;in;& and media $o'#are

$olu#ion$

Introduction


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"evenue:


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oia?$ i$ion i$ $imply

Connecting People

ision


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Our strategic intent is to build great mobileproducts our job is to enable billions ofpeople everywhere to get connected.

Mission


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"o 9uild ;rea# mo9ile produc#$

"o help people 'eel near #o ha# ma##er$ #o #hem

"o ena9le 9illion$ o' people #o more o' li'e?$oppor#uni#ie$ #hrou;h mo9ile$

"o cap#ure olume and ;ro#h #o connec# @#he ne#

9illion people #o #he in#erne# in deelopin; ;ro#hmare#$

*oa!s and o'+ectives


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,-at Nokia strive for..


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/ua!ity in innovation


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/ua!ity in e0ecution


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/ua!ity in ercetion


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#rgani1ationa! structure


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oia corpora#ion ha$ crea#ed an alliance i#h #heicro$o'# 7ompany #hrou;h hich i# ha$ ;ained #heoppor#uni#y #o launch ne mo9ile phone$ in #hemare# hich ould 9e 9a$ed on 5indo$ ! opera#in;$y$#em.

oia corpora#ion ha$ 9a$ically adop#ed #he $#ra#e;yo' 2Ne3 Product &eve!oment4 and 2Hori1onta!Integration Strategy4 #hrou;h hich oia

corpora#ion plan$ #o launch ne mo9ile phone$ hichalready ha$ a ;rea# accep#ance in #he orld #ocompe#e in #he mare# a;ain$# o#her mo9ilemanu'ac#urer$ in #he orld.

Nokia5s strategy


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oia orld?$ lar;e$# producer and manu'ac#urer o' cellphone$ a$ ell a$ ha$ #he lar;e$# di$#ri9u#ion ne#oraround #he orld.

/# i$ al$o non 'or #he 7rea#ii#y& /nnoa#iene$$&dura9ili#y 6 relia9ili#y./# ha$ ery ;ood Cnancial po$i#ion& hi;her re#urn one%ui#y(R8)& re#urn on a$$e#$ (R8A) and ne# proC#mar;in$ (P)oia $harpen 'ocu$ on 9u$ine$$ cu$#omer$oia ha$ a S#ron; R 6 * 'acili#ie$.oia al$o po$$e$$in; #he all 'a$hion $#ra#e;ie$ and'our $#yle ne ;enera#ion charac#eri$#ic 'rommanu'ac#urer$/# ha$ dier$e or 'orce and adanced #echnolo;y.

Strengt-s


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/# ha$ declared i#$ proC#$ had dropped 9y 40 > in2010.

oia mo9ile phone$ price$ are hi;her a$ compare#o #he price$ o' china mo9ile$ hand$e#$.oia pre$ence in #he DS cellular indu$#ry i$ erylo and in Eapan i# ha$ ery ea po$i#ion./n /ndia oia ha$ 'e $erice cen#er$ and ery

appallin; a'#er $ale$ $erice/n Eapan oia clo$ed #he mo9ile hand$e#di$#ri9u#ion and al$o canceled #he di$#ri9u#ion o'!1 hand$e# due #o lo mare# pre'erence.

,eaknesses


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"he ;lo9al cell phone indu$#ry epec#ed #o ;ro 9ydou9le di;i#$"oday& A$iaFPaciCc mo9ile phone indu$#ry i$ one o' #he'a$#e$#F;roin; indu$#ry in #he orld.*eelopin; coun#rie$ lie 7hina& Ban;lade$h& /ndia andPai$#an ha$ enormou$ demand po#en#ial.oia had a 0F0 join# en#ure i#h Siemen$ o'ermanyGou#h an#$ #he $#yli$h ae$#he#ic$& 'a$hiona9lehand$e#$& i# drie #he ne mare# 'or player$.

#ortunities


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7on$umer$ are 9ecomin; more complica#ed in #hechoice o' hand$e# due #o ne $#yle$ 9y china

mo9ile$.*icul# 'or $eller$ #o diIeren#ia#e #heir produc#$and re#ain loyal#y.oia i$ 'acin; ery $#ron; price pre$$ure 'romchina and o#her mo9ile producer$

oia i$ lo$in; ;lo9al mare# $hare a'#er #he arrialo' $eeral 7hine$e producer$/n #he A$iaJPaciCc emer;ed compe#i#ie 'orce$.Apple& R/ and #he o#her diIeren# $eller$ haecrea#ed $#ron; pre$$ure 'or oia

$-reats


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AD 7HA/AAGS/S 8+ 8K/A


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ien 9y ichael Por#er in 1=,.

/# eplain ho #he Crm crea#e #he compe#i#ie adan#a;e

and alue a'#er $ome $peciCc ac#ii#ie$ hich deemed a$

alueFaddin; proce$$. /# a$ $pi#ed in#o #o par#$ in Por#erL$ alue chain mode

and #hey are Mprimary ac#ii#ie$M and M$uppor# ac#ii#ie$M.


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@Primary ac#ii#ie$M include 'olloin; $#ep$:

1. /n9ound lo;i$#ic$

2. Produc#ionJopera#ion

3. 8u#9ound lo;i$#ic$

4. Sale and mare#in;

. ain#enance


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In'ound !ogistics:

"he Crm receie #he ;ood$ 'rom #he $upplier and $#ored #hem

un#il Crm need on produc#ion or a$$em9ly line.

Production:

5here ;ood$ are manu'ac#ured and a$$em9led.

#ut'ound !ogistics:

ood$ are Cni$hed and ready #o $end #o hole$alerL$& re#ail

$eller$ or cu$#omer$.


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Sa!e and marketing:

"he Crm #ry #o mee# #he #ar;e#ed cu$#omer$ need$

i#h $or# o' mare#in; communica#ion& promo#ion

mi.

Maintenance :

*iIeren# ind$ o' $erice $uch lie: delier& in$#all

&a'#er $ell $erice and $o on.


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A'#er #he MPrimary ac#ii#ie$M are M$uppor# ac#ii#ie$M

#ha# al$o #he alueFaddin; ac#ii#ie$ #o #he

ori;ina#ion. "he MSuppor# ac#ii#ie$M are non a$ :

1. Admini$#ra#ie in'ra$#ruc#ure mana;emen#

2. Human re$ource$ mana;emen#

3. R6*

4. Procuremen#


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P#8I$I9A8 FA9$#":/n 200! i# a$ repor#ed #ha# oia $pen#


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$%9HN#8#*I9A8 FA9$#":

Su9$#an#ial improemen# and rapid 7han;e in

#echnolo;y

8%*A8 FA9$#":

Pa#en#$ ri;h# and copyri;h#$ on #echnolo;y

%NI"#NM%N$A8 FA9$#":

rea# aarene$$ o' enironmen#al e#hic$ amon;$#

$upplier$.


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$H"%A$ #F

%N$"AN$S8#,

9aita! requirements%conomies of sca!eProduct dierentiationAccess to distri'ution c-anne!s

8ega!; regu!atory'arriers

$H"%A$ #F S HI*HMotoro!a? Sonyericcson&iversityIntense Advertising

S


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$-reat of ne3 entrants

"he mo9ile phone indu$#ry i$ already a ell e$#a9li$hedmare# and #he #hrea# o' a ne en#ran# i$ %ui#e lo

"he #echnolo;y needed #o rial #he deice$ alreadyaaila9le i$ %ui#e adance i' #hey an# #o diIeren#ia#e

'rom #hem.

"he 9arrier$ #o en#ry in #he mo9ile phone indu$#ry i$hi;h 9ecau$e any ne en#ran#$ ill need hi;h

ine$#men#$ in R6*& #echnolo;y and mare#in; in order#o compe#e i#h #he e$#a9li$hed or;ani$a#ion$.

Low


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Po3er of Su!iers

Supplier concen#ra#ion : oia $upplier$ 'or hardarecomponen#$ are no# concen#ra#ed

Hi;h diIeren#ia#ion o' inpu#$ : oia doe$ no# dependon a ey e%uipmen# manu'ac#urer

o 9ar;ainin; poer o' $upplier$ : S#ron; po$i#ion o'oia hen 9ar;ainin; i#h $upplier$

/mpac# o' icro$o'# a$ a S#ra#e;ic Par#ner and a$ aSupplier

Moderate...


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$-reat of su'stitute roducts

8o3 =uyer inc!ination to su'stitute: o9ilephone$ hae 9ecome nece$$i#y 'or eeryday lie$ o'people and i#$ hard #o replace i#h any $u9$#i#u#eproduc#$.

Hig- s3itc-ing costs

Hig- riceBerformance va!ue:"he idea o' 9ein; in

con$#an# communica#ion i#h $omeone a# any#ime andanyhere mae$ #he mo9ile phone a ery impor#an#deice #o people and #he perceied alue 9y u$er(priceFper'ormance) ra#io i$ ery hi;h.

Low


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=argaining Po3er of =uyers

Increased rice sensitivity: 5i#h a lo# o' #he oiacompe#i#or$ all oIerin; $imilar paca;e$ (e.;. unlimi#ed#e#$ and call$) #he indu$#ry i$ ery price $en$i#ie i#hcu$#omer$ $eein; ou# #he 9e$# alue 'or money.

Increasing =uyer vo!ume:"he con#inued 'all inhand$e# price$ in mo$# $e;men#$& no#a9ly $mar#phone$&i#h deice$ i#h ;rea#er capa9ili#ie$ no aaila9le a# aloer price poin# hae al$o lead #o increa$e in con$umer

olume$. any o' #he con$umer$ are #ied in#o lon; #erm con#rac#$

$o $i#chin; 'rom one hand$e# #o ano#her ill 9e dicul#and epen$ie 'or #he con$umer& a$ a re$ul# #hey mayno# an# #o chan;e un#il #he con#rac# i$ Cni$hed.

High...


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9ometitve "iva!ry

oia rial$ hae moed #o $mar# phone$ and android$hile oia hae only ju$# recen#ly relea$ed #heir Cr$#$mar# phone$ leain; #hem #railin; #heir rial$ $uch a$Apple and H"7.

"here i$ al$o ery li##le diIeren#ia#ion 9e#een #hecompe#i#or$ hich mean$ any ne $mar# phone$ in #hemare#& lie oia umia& ill Cnd i# dicul# #o #emp#

ei$#in; iphone and H"7 cu$#omer$ #o $i#ch.

/n#en$e compe#i#ion 'rom lar;e companie$ $uch a$OApple& H"7& Blac9erry& Sony ricc$on and & ec#.

High...


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Nokia S-arens Strategy

("eturning t-e comany to roDta'!egro3t-)


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ProC#a9le ;ro#h /mproin; i#$ opera#in; model /ncrea$in; 'ocu$ on $mar# phone$ and 'ea#ure

phone$& includin; an increa$ed empha$i$ onloca#ionF9a$ed $erice$.

,-y s-arening;udating ofstrategies needed.


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/ne$# $#ron;ly in produc#$ and eperience$ #ha#mae umia $mar# phone$ $#and ou# andaaila9le #o more con$umer$O

/ne$# in loca#ionF9a$ed $erice$ a$ an area o'

compe#i#ie diIeren#ia#ion 'or oia produc#$ ande#end i#$ loca#ionF9a$ed pla#'orm #o neindu$#rie$O and

/mproe #he compe#i#iene$$ and proC#a9ili#y o'

i#$ 'ea#ure phone 9u$ine$$.

Nokia5s P!ans


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Planned ac%ui$i#ion o' a$$e#$ 'rom S3edenB'ased Sca!ado& hich curren#ly ha$ ima;in;#echnolo;y on more #han 1 9illion deice$.

"hi$ ac%ui$i#ion i$ aimed a# $#ren;#henin;

oiaL$ ima;in; a$$e#$.

Acquisition Strategy


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oia plan$ #o diIeren#ia#e i#$ por#'olio o'umia $mar# phone$ i#h leadin; loca#ionF9a$ed $erice$ includin; navigation andvisua! searc-applica#ion$ $uch a$ #he

recen#ly announced Nokia 9ity 8ens. Addi#ionally& #he company plan$ #o e#end i#$

mappin; #echnolo;y #o mul#iple indu$#rie$ #o$#ren;#hen #he pla#'orm and ;enera#e ne

reenue

Product &ierentiation Strategy


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o /n o9ile Phone$& oia in#end$ #o improe i#$compe#i#iene$$ and proC#a9ili#y.

o oia aim$ #o 'ur#her deelop i#$ Series Eand Series G deice$& and ine$# in ey

'ea#ure phone #echnolo;ie$ lie #he oiaBro$er& aimin; #o 9e #he orldL$ mo$# dataecient mo'i!e 'ro3ser

o arly re$ul#$ o' #hi$ innoa#ion can 9e 'ound in

oiaL$ la#e$# A$ha 'ea#ure phone$ hich oIera 'ullF#ouch $creen eperience a# loer price$.

9ometitive Strategy


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A$ par# o' #he$e planned chan;e$& oia illclo$ely a$$e$$ #he 'u#ure o' cer#ain nonFcorea$$e#$.

/n line i#h #hi$& oia announced plan$ #o

die$# ertu? i#$ luury mo9ile phone$9u$ine$$ #o " /& a uropean pria#e e%ui#yCrm.

&ivestment Strategy


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Reduc#ion$ i#hin cer#ain researc- and deve!omentprojec#$& re$ul#in; in #he planned clo$ure o' i#$ 'acili#ie$in Dlm& ermany and Burna9y& 7anadaO

9onso!idation o' cer#ain manu'ac#urin; opera#ion$&

re$ul#in; in #he planned clo$ure o' i#$ manu'ac#urin;'acili#y in Salo& +inland. +ocu$in; o' mare#in; and $ale$ ac#ii#ie$& includin;

rioriti1ing key marketsO S#reamlinin; o' /"& corpora#e and $uppor# 'unc#ion$O

and Reduc#ion$ rela#ed #o nonBcore assets? includin;

po$$i9le die$#men#$.

#erationa! c-anges and udated cost reductiontarget


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"o eecu#e #hi$ $#ra#e;y& oia i$ main; chan;e$#o i#$ mana;emen# #eam 9y #appin; in#o #he$#ron; leader$hip 9ench a# #he company.

Si;niCcan#ly reducin; i#$ *eice 6 Serice$

opera#in; epen$e$& $u9$#an#ially reducin; i#$headcoun# and reducin; i#$ 'ac#ory 'oo#prin#.

Strategy %0ecution


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nokia strategies

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