The focus of this thesis is to study the impact, causes and solutions for Nokia’s strategy worn-out in the hypercompetitive smartphone segment. Based on industry experts interviews, internal documentation and market reports and analyses, the reasons for Nokia’s strategic drift are regrouped around two concepts: industry platform and dynamic capabilities. Three potential solutions, benchmarked from different industries, are suggested to avoid drift situations in similar market environments. Finally, the scenario analysis of Nokia’s current strategic answers to its drift shows the non-sustainability of Windows Phone’s choice as unique smartphone platform. Corrective suggestions include essentially the leverage of Nokia’s services store, the creation of a cross-platform payment and banking solution and the coring towards vehicle and home entertainment industries.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- 1. Introduction
- 1.1. The unexpected end of the Nokia decade
- 1.2. Thesis aim and hypotheses
- 1.3. Research framework and methodology
- 1.4. Thesis structure
- 2. Weakening of Nokia's leadership in the mobile phone market
- 2.1. Historical course of Nokia
- 2.2. The rising potential of smartphones
- 2.2.1. From voice oriented handsets to super phones
- 2.2.2. Attractiveness of smartphones segment
- 2.3. Nokia's 'missed' transition
- 2.3.1. Competitive position in smartphones
- 2.3.2. Consequences on Nokia's current situation
- 3. Causes of Nokia's strategic drift
- 3.1. Concept of strategic drift
- 3.2. Inability to maintain a competitive smartphone platform
- 3.2.1. Gradual integration of Symbian
- 3.2.2. Hypercompetition in the mobile phone industry
- 3.2.3. Apple's iOS and Android platforms momentum
- 3.3. Fading of innovation as core competency
- 3.3.1. Prolonged market dominance
- 3.3.2. Entanglement in Symbian's operating system
- 3.3.3. Successive innovation failures
- 4. Potential solutions to prevent strategic wear-out
- 4.1. Building a strategic early warning system
- 4.2. Developing strategic resilience
- 4.3. Implementing organizational flexibility
- 5. Future of Nokia - Chances of recovery and alternatives
- 5.1. Evaluation of Nokia's current strategies
- 5.1.1. Platform(s) choice
- 5.1.2. Marketing strategy
- 5.2. Probable scenarios for Nokia's future
- 5.2.1. Scenario A: Come-back as services-oriented challenger
- 5.2.2. Scenario B: Acquisition by multiple predators
- 5.2.3. Wild cards
- 5.3. Recommendations for a Nokia's upcoming challenges
- 5.3.1. Develop an open mobile wallet platform
- 5.3.2. Maintain Nokia's applications and content store
- 5.3.3. Foster a second OS as beachhead to new industries
- 5.3.4. Refocus on services as Nokia's core business
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis analyzes the causes of Nokia's strategic drift in the hypercompetitive smartphone market. It aims to identify the factors contributing to Nokia's decline despite its previous market leadership and propose potential solutions to prevent similar situations in comparable market environments. The analysis is based on expert interviews, internal documents, and market reports.
- Nokia's strategic drift and its causes
- The role of industry platforms and dynamic capabilities in Nokia's decline
- Potential solutions to prevent strategic drift
- Analysis of Nokia's current strategic responses and their sustainability
- Recommendations for Nokia's future strategies
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: Introduction introduces Nokia's decline from market leader and outlines the thesis's objectives and methodology. Chapter 2 examines Nokia's historical performance and the rise of the smartphone market, highlighting Nokia's missed opportunities in the transition.
Chapter 3 delves into the causes of Nokia's strategic drift, focusing on the company's inability to maintain a competitive smartphone platform and its fading innovation capabilities. Chapter 4 explores potential solutions to prevent strategic wear-out, including building early warning systems, developing strategic resilience, and implementing organizational flexibility.
Chapter 5 evaluates Nokia's current strategies and explores probable future scenarios, including a potential comeback as a service-oriented challenger or acquisition. It also presents recommendations for addressing Nokia's challenges.
Schlüsselwörter (Keywords)
Strategic drift, hypercompetition, mobile phone market, industry platform, dynamic capabilities, innovation, smartphone, Symbian, Apple iOS, Android, services, market share.
- Quote paper
- Ramzi Dziri (Author), 2011, Avoiding strategic drifts in a hypercompetitive market, Munich, GRIN Verlag, https://www.grin.com/document/182691
