Mobility is not just the fastest-growing technology in the history of mankind. With potentially four billion people being connected by mobile devices by the end of 2009, and many people having their first internet experience over a mobile device rather than a PC, mobility is changing people’s lives for the better. This is a huge responsibility and test for companies in the business. But Nokia’s CEO, Olli-Pekka Kallasvuo, is claiming that his company has always been good at adapting to both change and challenges.
This work examines how well the world largest cell phone manufacturer is prepared to maintain customer’s continuous trust in their company and products; what is their strategy to continue success while changing.
The works examines in three steps Nokia’s strategy execution: the corporate strategy level, the business-level strategy, and the marketing strategy level. Finally, the analysis results are collectively examined in the SWOT-analysis before drawing the conclusion for which of the various generic competitive strategies Nokia is deploying. For most of Nokia’s 140-year history the Finish company was a sprawling conglomerate making toilet paper, rubber boots, wooden flooring, telephone cable, and a bunch of other unrelated products. The firm entered the telecommunication business in the 1960s when it started making radio transmission equipment, and it strengthened its position in that industry during the 1980s when it introduced the first fully digital telephone exchange in Europe and introduced the world’s first mobile car phone; though at 22 pounds the phone wasn’t all that mobile and was marketed mainly as a business tool.
Today Nokia is the world leader in mobility, leading the convergence of mobility and the Internet. Nokia now makes a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more.
Nokia is not only the world leader in mobile phones. They are also the world’s largest camera manufacturer and a leader in digital music with sales in more than 150 countries.
Table of Contents
1. Introduction
1.1 Nokia at a Glance
1.2 Components of a Strategy
1.3 Three Level of Strategy
1.4 Changing Environment Requires New Strategies
2. Corporate Strategy
2.1 Corporate Vision and Mission
2.2 Corporate Objectives
3. Business-Level Strategy
3.1 Generic Business-Level Competitive Strategies
3.2 Five-Forces Model of Competition
4. Marketing Strategy
4.1 Marketing Strategy and the Marketing Mix
4.2 Analysis of Nokia’s Marketing Strategy
4.3 Analysis of Nokia’s Marketing Mix
5. Analysis of Strategy Components
5.1 SWOT-Analysis
5.2 Generic Competitive Strategies
6. Conclusions
Objectives and Focus Areas
This work provides a strategic evaluation of Nokia as a leading global mobile phone manufacturer, focusing on its ability to maintain customer trust and market success amidst a changing industry environment. The analysis spans three distinct levels of strategy: corporate, business, and marketing, culminating in an overall assessment of Nokia's competitive positioning.
- Analysis of Nokia's corporate vision and strategic objectives.
- Evaluation of business-level strategies using the Five-Forces Model.
- Examination of market segmentation, target marketing, and positioning strategies.
- Review of the marketing mix (product, price, promotion, place) within the context of digital convergence.
- Comprehensive SWOT analysis to assess internal and external strategic factors.
Excerpt from the Book
3.2 Five-Forces Model of Competition
Far and away the most powerful and widely used tool for systematically diagnosing the principal competitive pressures in a market and assessing the strength and importance of each is the five-forces model of competition.
This analytical tool will be used to examine which of the business-level competitive strategies Nokia is deploying; the result of the strategy assessment is illustrated in chapter 5. Five competitive forces collectively determine an industry’s long–term attractiveness. To summarize the analysis judgement of the favourability of the five forces for the mobile phone manufacturing industry, all data is gathered in the chart below.
Rivalry among present competitors
Score: rivalry is high leading to high customer churn
Rationale:
Motorola and Samsung have made Nokia pay dearly for its rudimentary approach in marketing its phones. The aggressive marketing practices followed by Motorola had hit Nokia very hard and it has lost very crucial global market share to its American competitor.
Costs are coming down and the mid-tier handset of yesterday is the low-end handset of today. The mobile handset market is mature and more competitive and OEMs have to find innovative ways of differentiating themselves. Nokia re-structured its organization to be more customer focused and for developing multifunction ‘smart’ products as cutting-edge technology.
Summary of Chapters
1. Introduction: Provides an overview of Nokia's corporate history and defines the foundational concepts of strategy, including the hierarchical levels of strategic planning.
2. Corporate Strategy: Examines Nokia's vision, mission, and core objectives, specifically the "Access for all" initiative and the integration of internet services via Ovi.
3. Business-Level Strategy: Analyzes the company’s competitive position through the application of the Five-Forces Model of Competition, highlighting industry rivalry and supplier/buyer dynamics.
4. Marketing Strategy: Investigates Nokia’s approach to market segmentation, targeting, and positioning, alongside a detailed breakdown of its marketing mix.
5. Analysis of Strategy Components: Synthesizes previous findings into a SWOT analysis and identifies Nokia’s generic competitive strategy within the industry.
6. Conclusions: Reviews the effectiveness of Nokia's strategic implementation and its recovery from previous market challenges to regain a leading industry position.
Keywords
Nokia, Corporate Strategy, Business-Level Strategy, Marketing Mix, SWOT Analysis, Mobile Industry, Competitive Advantage, Five-Forces Model, Digital Convergence, Market Segmentation, Strategic Planning, Brand Positioning, Emerging Markets, Customer Focus, Multimedia Services.
Frequently Asked Questions
What is the fundamental focus of this document?
This work focuses on analyzing Nokia’s corporate, business, and marketing strategies to understand how the company maintains its competitive edge and market success in the evolving mobile communications industry.
What are the central thematic areas?
The core themes include strategic management, the hierarchy of organizational strategies, marketing mix analysis, and the systematic assessment of internal and external business factors.
What is the primary objective of this study?
The objective is to evaluate how effectively Nokia manages its strategic execution, specifically addressing how it balances business-level competitive strategies with the demands of a changing and highly competitive environment.
Which scientific methods are employed?
The work utilizes strategic management frameworks, primarily Porter’s Five-Forces Model, the Miles and Snow typology, and a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.
What subjects are covered in the main section?
The main section covers the analysis of corporate vision and objectives, the Five-Forces Model applied to the mobile industry, and an in-depth review of Nokia’s marketing strategy and marketing mix.
Which keywords best describe this work?
The most relevant keywords include Nokia, corporate strategy, marketing strategy, competitive advantage, Five-Forces model, SWOT analysis, and digital convergence.
How does Nokia approach the "Access for all" objective?
Nokia aims to expand its brand presence by finding ways to bring affordable mobile communications to poorer regions where the cost of ownership remains a barrier to connectivity.
What is the role of the Ovi platform in Nokia’s strategy?
Ovi serves as a key strategic component representing Nokia's vision of combining the internet and mobile mobility, functioning as a "door" to a broad range of digital services.
How does the SWOT analysis categorize Nokia's current state?
The SWOT analysis highlights Nokia’s strong brand and innovation capabilities as core strengths, while identifying market saturation and aggressive competition as significant external threats.
- Quote paper
- Arend Grünewälder (Author), 2008, Analysis of Nokia‘s Corporate, business, and marketing strategies, Munich, GRIN Verlag, https://www.grin.com/document/112926
