Analysis of Nokia in Internatioal Business

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Evaluation of Nokia’s international strategy
Generic strategy analysis
In view of Porter (1985)’s generic strategy, the four types of generic strategies are cost leadership, differentiation, cost reduction focus and niche. The strategy of Nokia is not a mere cost leadership as the company aims to create ‘winning devices’, developing advanced technology and promoting ‘brand and design’ (www.nokia.com [online]). This can be interpreted that Nokia is trying to offer product differentiation on basis of the advantages in cost reduction. The company locates their manufacturing operations depended on supporting the common platform system and competitive efficiencies where most of the operations are moving into the developing countries. This is due to the local lower labour cost which leads to saving cost of product. By contrast, for the developed countries, it is likely due to high level of technology knowledge and science, while making the product develop and produce more efficient. Therefore, product differentiation appears to be prioritised in response to the differences among different market regions instead of simple cost reduction. According to Datamonitor (2006), in contrast to the company’s competitors, ‘the company has released a number of new handsets, featuring a variety of new technologies and line extensions including javascript, photo messaging and Bluetooth in recent years’. Development in product innovation takes the lead against its competitors which fully explains the nature of differentiation.

International strategy analysis - ‘Glocal Strategy’
In sight of Svensson (2001)’s research on global strategy and the proposed glocal strategy, it can be inferred that Nokia Corporation adapts glocal strategy to expand their marketplace. A glocal strategy differs from the global strategy which offers universally standardised products and offers, that its methods of implementations are fundamentally aspired by global strategy but reflects more local...
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