Nokia Case

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BM3399 Strategic Management Strategic Plan: Nokia|
Group F4|
905690745162235792279447892599|
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Contents
1.Introduction3
2.Internal Analysis3
2.1.Resource Analysis3
2.1.1.Hierarchy of resources4
2.1.2.Resource Portfolio4
2.1.3.Core Competencies5
2.1.4.Summary of Resource Analysis5
2.2.Strategic Business Unit (SBU) Analysis5
2.2.1.Identification of SBUs6
2.2.2.Summary of SBU Analysis6
2.3.Value Chain Analysis7
2.3.1.Summary of Value Chain Analysis8
2.4.Financial Analysis8
3.External Analysis9
3.1.PESTEL Analysis10
3.1.1.Summary of PESTEL10
3.2.Porter’s Five Forces11
3.3.Industry Life Cycle Analysis12
3.3.1.Summary of Industry Life Cycle Analysis12
3.4.Strategic Group Analysis13
3.4.1.Summary of Strategic Group Analysis14
3.5.Stakeholder Analysis14
3.5.1.Shareholder Maps15
3.5.2.Summary of Stakeholder Analysis15
4.Summary of Internal and External Analysis15
4.1.SWOT Analysis15
5.Scenario Planning16
5.1.Future External Analysis17
5.2.Future Internal Analysis17
5.3.Future SWOT17
5.4.Summary of Scenario Planning17
6.Generation of Organisation Direction and Strategic Objectives18
7.Generation of Strategy Options19
7.1.Business Level Strategy Analysis19
7.1.1.Porter’s Generic Strategies19
7.2.Corporate Level Strategy Analysis20
7.2.1.Ansoff Matrix20
7.2.2.Boston Consulting Group (BCG) Matrix21
7.3.TOWS Matrix22
8.Strategies22
8.1.Strategy 1: Renewed customer focus and brand building (short-term)22
8.2.Strategy 2: Develop a tablet product (short-term)22
8.3.Strategy 3: Develop venture capital arm of NAVTEQ23
8.4.Strategy 4: Develop 4G technology23
8.5.Strategy 5: Spinning off Nokia-Siemens Networks (short-term)23
8.6.Strategy 6: Develop flexible supply chain23
8.7.Strategy 7: Reduce product range (short-term)23
8.8.Strategy 8: Improve R&D effectiveness24
9.Choice Process24
9.1.Strategy 1: Renewed customer focus and brand building (short-term)24
9.2.Strategy 2: Develop a tablet product (short-term)24
9.3.Strategy 3: Develop venture capital arm of NAVTEQ24
9.4.Strategy 4: Develop 4G technology24
9.5.Strategy 5: Spinning off Nokia-Siemens Networks (short-term)25
9.6.Strategy 6: Develop flexible supply chain25
9.7.Strategy 7: Reduce product range (short-term)25
9.8.Strategy 8: Improve R&D effectiveness25
9.9.Evaluation of short-term strategies25
9.10.Justification for chosen strategies26
10.Reflection27
11.Bibliography28

1. Introduction
Nokia was originally founded in 1865 as a groundwood paper mill. Today however, Nokia is a huge multinational communications corporation, based out of Espoo, Finland, with global sales of over €42 billion in 2010. Operating in over 150 countries, it is the world’s largest mobile phone manufacturer, with a global device market share of 23.9% as at Q3, 2011 (Gartner, 2011). Nokia also provides digital map information and navigation services in the form of ‘NAVTEQ’ – its wholly owned subsidiary. In 2007 Nokia pursued a joint venture with Siemens to form ‘Nokia Siemens Networks’ – producing telecommunications equipment, solutions and services. Nokia’s current state of affairs however, indicates that it has been adversely affected by the global economic crisis. With a reported Q3 loss of €71m (Nokia, 2011) it has suffered a significant drop of 18.3% in its smartphone market share, between Q3 2010 and Q3 2011 (Engadget, 2011). The purpose of this report is to use a comprehensive strategic analysis to ultimately recommend future strategies that will help Nokia to improve its strategic vision and regain its previous domination within the communications industry. 2. Internal Analysis

3.1. Resource Analysis
By establishing the resources and capabilities that a...
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