INDIVIDUAL ASSIGNMENT - NOKIA
a. Describe the industry-level strategies adopted by Nokia. More specifically: i. Which positioning strategy does the company follow?
Nokia has not been acting well. Its strategy is not well organized; it’s more like an “old-fashioned” strategy. That’s because they centralized in making esthetical mobile phones, but the problem was that the technology was not well at all. Another error is that Nokia has been making a lot of different mobile phones in a short period of time –maybe to expand their target-, but those mobiles were not so good. In consequence, Nokia has had a lot of economic losses, and in instance, Apple has gain in favor of Nokia. On the other hand, Apple has been concentrated in improving only one: it has ingenious technologies that Nokia didn’t has. As instead, Nokia had seen that Apple comes conquering with their better innovation. Now Apple cover the most part of the market, and Nokia left in second level. So, the moral thing in the story is: is better to make one thing well done than a lot of it but with less quality. ii. Which one of the adaptive strategies is more applicable to Nokia? Nokia is a mechanistic organization, because it has high job specialization, rigid departmentalization, many layers of management and narrow spans of control, centralized decision making, long chain of command and tall organizational structure. So, its size of organization is big. Nokia’s strategy is a firm overall one. b. Explain the sources of inertia (resistance to change/innovate) that are referred to throughout the article.
Nokia hadn’t changed its strategy, so it had been a lot of inertia. The solution of Nokia could be to act as its competitor, just changing some things as Apple managed to do, in order to be at the same level. It has to refresh and concentrate in specifically things to improve their products, so in this way Nokia would be more competitive. The first and important thing that it has to do is to change its...
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