Question 1. Describe Nokia’s vision and mission for its organization and how was it implemented? What suggestions can you provide (if any) that would or would have strategically positioned them in a competitive market?2
Question 2. Using the competitive forces model, what alarms should Nokia have identified in their strategic pursuits?3
Question 3. In Nokia current situation what strategy and techniques do you suggest to better position them for future growth?6
Question 4. What should Nokia have done to compete technologically?9
Question 5. What generic business level strategy should Nokia pursues today? What actions the company have to take at the functional level to support this strategy?10
Question 6. Nokia when into a strategic alliance with Microsoft, explain what possible competitive advantages could Nokia gain from this relationship. What is Nokia’s new competitive positioning?12
Nokia in 2010
Question 1. Describe Nokia’s vision and mission for its organization and how was it implemented? What suggestions can you provide (if any) that would or would have strategically positioned them in a competitive market?
There was an increasing in the global demand for Smartphone which could be considered as one of the most profitable booming segment in the global mobile market. Thus, Nokia’s mission was trying to catch up with the Smartphone segment in order to meet customer’s need and compete with the rivals. They have been putting so much effort on creating their brand on consumer’s mind and they had spent a lot for R&D in order to meet their goal. Nokia had difficulty to develop new software services, hardware design and North American distribution. It was slow in launching its Smartphone and failed to predict the boom of Smartphone that’s why Nokia had lost a significant market share in the Smartphone segment. In addition, they were facing the competition with one of the biggest competitors such as Apple and Google’s Android OS who have a powerful affect to the market. Nokia wanted to be the largest mobile marker in the future therefore Nokia’s vision was to create a new world, build and connect people from all countries to communicate with each other. In order to reach their vision, Nokia cut down the price of its device and shipped with low price in order to hold on to its global market share. As a result, it leads to a drop in profits. Besides, one of the most important reasons that made Nokia could not achieve their vision was management issues. Majority of decision at Nokia were not base on product vision. Moreover, top management was not innovative enough to bring the innovative products to market and they did not cooperate with other departments as well as made some wrong strategic decisions. Most of the potential ideas were ignored or delayed by the management. There was a huge change of CEO from the top management since Nokia’s Board of Directors replaced CEO Olli- Pekka Kalasvuo with Elop- former president of Microsoft Business Division (MBD) who has deep knowledge, experience and aggressive leader in the organization. However, the cooperation culture between Finnish and American also be a challenge for Elop to cope with. How Elop is going to turn the company around and reinvest its brand in the market are still a big challenge for Elop to handle. Nokia failed to achieve their vision as well as their mission because they have struggle with catching up with Smartphone and touch screen technology, strong competitors in the competitive market as Apple, for example. Thus, Nokia should focus on develop its technology; improve their concept in managing and launching products to market. In addition, there was no cooperation and communications among other departments since important decisions were made independently in the company. The top management did not work well together and guide their subordinate what to do to achieve organization’s goal. Therefore,...