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Nokia's General Strategy
Nokia's new business
Nokia's General Strategy
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THE FALL OF A GIANT
One Core competence as defined by C.K Prahalad and Gary Hamel (May-June 1990) provides potential access to a wide variety of markets. Nokia once established itself as the world leader in mobile phones and concurred with the above definition. However from 2008 to 2010, Nokia’s global handset market share declined from 35% to 5%.It set the unenvied new world record of the fastest collapse in history of mobile phone sales over a year (-62% - Tomi Anohen Consulting Analysis January 2013). Nokia has thus seized to be “something that opened up a good number of potential markets.”
Since today, Nokia only opens up a few small, niche (emerging) markets, then success in these markets will not be enough to sustain significant growth. Nokia can be said to have lost its market core competence.
The second core competence should make a significant contribution to the perceived customer benefits of the end product. Nokia appeared to have had the initial advantage in creativity with Nokia Symbian OS smartphones including models of the E series and N series, culminating in the N95...
There are a large number of competitors present in Smartphone industry serving to lower income group to niche segment consumers. Life of a product in this industry has reduced to a large extent relying largely on R&D to match with the emerging trends. The price of a Smartphone is decreasing whereas the purchasing power of buyer is increasing. There is also huge competition between Ios, Windows, and Android at the OS
Contract Details and Management Contracts are exchange of promises or obligations between two or more organizations, which is the key aspect of any encompassing critical business functions. In this case Bharthi Airtel and IBM, both these organisations agree on aspects like terms, pricing, service level agreements, human resources management, dispute resolution procedure, acceptance strategy and procedures,Exit strategy, Non dis-closure agreements. As a procedure, Bharthi Airtel went through contract management process for finalizing contractual terms with IBM during sourcing lifecycle. Sourcing Life Cycle: IBM and Bharti Airtel Sourcing Life Cycle, explains about the process carried out during each phase. Bharti Airtel came up with a sourcing strategy of outsourcing all of its Non-core IT related systems to a single vendor.
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.
Nokia went on to build a solid reputation and a colossal goodwill over these years to be recognised as one of the most famous brand in the world; a status crucial in fulfilling its duties and responsibilities towards its employees, shareholders, investors, network operators and above all its consumers. Moreover, maintaining those levels of excellence should have guaranteed endurance and sustainability.
There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher. Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand.
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The operating system is very distinct, but is straightforward with its functionality. People who purchase the iPhone believe that they have received their money’s worth and more when owning and iPhone. The iPhone is better than Android when compared because of the beautiful design and attractive display, the operating system and its functionality, and the device’s personal worth is definitely worth the money spent to own one.
Assessment of Nokia Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and modern products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and businesses. Nokia is a broadly held company with listings on four major exchanges. In 2004, Nokia’s net sales totalled EUR 29.3 billion.
...es with android and internet surfing features. It lost market share as it was not able to keep up with technology and now with mounting losses and sellout even die hard fans of the manufacturer have lost confidence in its products. However in partnership with Microsoft the firm has brought in several interesting smart phones which are slowly helping it regain its lost status and reputation. Even while making expensive smartphones the maker knows that it is the low end durable phones with basic features are what its customers’ desire therefore makes them too and tries to add latest features to make them viable. Whether this strategy of Nokia will help it through to manage competition and stay in the competitive cell phone market remains to be seen.
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."
Nokia, the leader of mobile phone manufacturers, has a successful strategy in the emerging markets. According to the case study, Nokia has been extremely successful in the past 15 years. They had the longest and the most complex supply chain, held almost 40 percent
Nokia is continuing to innovate new products and rebuild their brand. In present times Nokia is still in a complicated situation as Sead Fadilpašić puts it., In the article “Nokia – Phones relationship status: It’s complicated”, Fadilpašić discusses the problems Nokia may face in 2016, he states, “The Helsinki-based company said it hopes to come back to designing and providing mobile phone technology, but it needs a partner which would manufacture, market and sell the devices.”, this means that at this point no one is willing to back their ideas, therefore putting them in a difficult situation disabling them to grow their brand. Nokia is still fighting to stay alive, in the end they will have to continue to be innovative and find supporters that believe in their brand.
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.
BlackBerry’s fall from market leadership and financial success is the result of a corporate structure that failed to foster individual employee creativity and company-wide innovation. The financial distress, upper-management turnover, and loss of strategic direction are symptoms of BlackBerry’s problem: a failure to innovate and remain competitive in the smartphone market.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.