Overview
Nokia Corporation is a leading mobile communications company, which provides telecommunications hardware, software and professional services (Nokia, 2014). There are three businesses, including Devices & Services, HERE (formerly Location & Commerce) and Nokia Siemens Networks, and four operational and reportable divisions, including Smart Devices and Mobile Phones within the Devices & Services business (HERE) and Nokia Siemens Networks (Nokia Siemens Networks, 2012). Nokia’s main activities include technology research, product development, product management, sales and marketing, production of 1. Mobile devices 2. Map and location-based services 3. Infrastructure equipment and products, and strategic sourcing and partnering (Nokia Siemens Networks, 2012).
Other activity areas involve strategy that leads to sustainability for the people and the environment e.g. implementing sustainable and ethical working practices, minimising greenhouse gas emission, developing services that reduce unnecessary travel, and enhancing energy efficiency in products and technologies that use renewable energy (Nokia, 2014).
Risk Factors
As mentioned above, Nokia comprises of different businesses and activities; therefore, there are different areas in the company that are sensitive to physical, financial, and reputational risks. These risks are identified in terms of strategic, tactical, operational, and economic risks. Its overall risks, which arise from the main activities, are summarised below:
Strategic Risks (External)
Information Technology industry has a rapid changing environment e.g. rapid expansion of device functionality (Mizoguchi, 2012). Consequently, if Nokia’s top management could not adapt their business/ operations and increa...
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...s carrier-related operations have criminal and governmental issues i.e. employees of Siemens were accused of being unlawful; therefore, affecting Nokia’s reputation and operations (Nokia Siemens Networks, 2012). Lastly, Nokia brand is subject to reputational risk due to their sluggishness in operations in 2012 (Balakrishnan, 2012).
Economic Risks
Euro is Nokia’s reporting currency; therefore, the dissolution of the euro could increase the costs and volatility in Nokia’s reports of operations and financial condition (Nokia Siemens Networks, 2012). Moreover, since Nokia operates in a vast number of emerging countries, they are subject to economic, regulatory, political, and uncertainties risks, including sudden devaluation of currency, tax issues, challenges in repatriation of cash, and regulations against imports, from those countries (Nokia Siemens Networks, 2012).
There are always possible threats of new entrants in the mobile phone industry, not necessarily a threat to a new phone company but of new products from established companies. So the company might have less danger of further new entrants, but it has to be focused on the existing enemies.
Cell phones have made a big impact on the world, for example, people are using them daily, and they have influenced science, politics, and many more fields.
The level of competition continues to rise as competitors try display the highest level of innovation. Nokia must learn how to include all smartphone necessities, and offer other superior functions in order to differentiate its brand compared to competitors. Microsoft’s acquisition of Nokia will reinforce the ability to design, develop, manufacture, and market the latest smartphones using an innovative operating system platform. Nokia’s latest innovations include Bluetooth low-energy technology, e-Skin wearable sensors, and graphene technology
Tweets, texts, and the virtual world are beginning to engulf human society one message at a time. For the past ten years, the estimated phone usage per day has become three to four hours. Those precious hours add up quickly, resulting in a total of one hundred and twelve hours per month spent staring at an animated screen. Children, teens, and even adults are beginning to use their cell phones more and more, and are putting themselves at a greater risk of developing social awkwardness, little persistence, and becoming known as digital natives; all these traits driven within your hand held partner.
Cell phones have changed the way we go about life in many ways. They change the way we interact with people in our everyday life. They hinder our physical aspect of life without us even knowing. One of the biggest issues I see is the changes it creates in our classrooms from an educational standpoint. Cell phones have been negatively impacting our lives in some very important ways.
Sigurdson, J. (2004), ‘The Sony-Ericsson Endeavour: Part 1’, Institute of Innovation Research of Hitotsubashi Unniversity, Working Paper, (Tokyo: Japan).
“I’m sorry I didn’t hear you. I was responding to a text message. What were you saying?” Have you ever heard this expression or something similar; we all have. This is clear evidence of how cellphones can be a very big distraction in many social settings. Some people check their cell phone first thing in the morning. It is so easy to waste time playing on your cell phone rather than doing something productive. Cell phone use, can cause harm physically, socially, and academically, although cell phones have some good qualities, advancements in technology is causing the world to gradually become dependent on technology.
In today’s current economic state, the likelihood of a company entering into a global market is inevitable. Multinational corporations (MNCs) such as Vodafone are required to standardise their Research & Development activities throughout the world in order to penetrate the market. This is achieved by obtaining new technological opportunities, such as the most up-to-date phones, thus maintaining a competitive driver in the market.
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
From the Research that I have done I have found quite a lot of risks for mobile phones. Every phone from different countries has different Security risks. Different risks affect people differently; some are on a really small scale and some risks which can ruin people’s lives.
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
Nokia focused on building and sustaining its current competency in the early 1990s. NMP created valuable alliances across the industry and made key acquisitions to increase economies of scale, market share, and access to R&D resources. The management believed in the growing acceptance of digital technology as the uniform communication standard in the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further the development of a digital telephone and network.
Dangers of cell phones to the health and safety on any one individual can be supported not only in opinion but fact as well. Opinions and research vary greatly on the negative aspects of cell phone usage, although most would choose benefits over that negative. While most consumers may appreciate the convenience and mobility of cell phones, the human body will not.
Organizations and individuals have to strategically position themselves in order to take advantage of the growing technology and achieve business competitive advantage while at it (DeHaven 2010 pg 1). Technology has enabled globalization; where ideas, products and services have been shared. This has promoted foreign businesses thus helping different economies all across the globe. Different organizations and individuals have realized that technology will keep growing and changing and the best strategy will be to adapt it other than holding to rigid ways of doin...