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Nokia Strategic Review

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Nokia Strategic Review
NOKIA Strategic Review

NOKIA
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Current Situation
Vision
Mission
Corporate Organization & Governance
Objectives
Driving Forces
SWOT
Strategic Issues
Alternatives
Recommendations
Implementation
Key Learning’s from the Case Study

Nokia Overview
• Multi-national telecommunications and software company • Founded in 1865 and incorporated in 1871
• Headquartered in Espoo, Finland
• Publicly Traded LLC on Helsinki and NYSE (SYM:NOK)
• Revenue of $16.8B, Market Cap $28B, P/E 8.4 EPS 0.95
• Nokia has 59,000 Employees in 120 countries
• Key Leadership
• Risto Siilasmaa (Chairman)
• Rajeev Suri (President and CEO)

Nokia
1865-1920
1865-1920
Forestry
Forestry

1920-1980
1920-1980
Globalization
Globalization

1980-Present
1980-Present
Mobile
Mobile
Communications
Communications

• 1865 - Fredrik Idestam opened his first pulp mill in 1865 and started his company.
Nokia is named after the Nokia River in Finland
• 1865-1920 - Nokia established itself as a key competitor in a diverse range of industries from early lumber, to pulp & paper company and electrical power generator. • 1920-1980 – Nokia becomes a diversified conglomerate in forestry, rubber, cable and electronics and rapidly expands into Europe and Russia thru mergers & acquisitions building a global brand.
• 1980’s- present - Nokia restructures and divests non-strategic businesses to deal with massive debts following the fall of the USSR and recession. Nokia embraces
“connected” vision and takes bold moves to focus on mobile telephony, becoming a world leader in telecommunications and mobile phones by capitalizing on GSM and deregulation in telecom world. Their dominance didn’t last!

Leadership thru the years…
• Kari Kairamo

1977–1988

• Strong Leader started Global Expansion thru rapid acquisition/expansion
• Highly leverages Nokia, Commits Suicide

• Simo Vuorilehto 1988–1992
• Kairamo’s right hand, CFO leads Nokia to stability thru core competency
• Execution and divestitures save Nokia


References: • Angelova, K. (2013, January 4). CHART OF THE DAY: Here 's When Smartphones Will Saturate The US Market • Dolcourt, J. (2011). Elop: Why Nokia chose Windows Phone over Android. Retrieved from http://www.cnet.com/8301-17918_1-20068397-85.html • Epstein, Z. (2012). Nokia’s plan to increase market share in 2013: Live in the past. Retrieved from http://news.yahoo.com/nokia-plan-increase-market-share-2013-live-past-143029569.html • Gartner. (2013). Global Market Share Held By Nokia Smartphones From 2007 to 2012. Retrieved from Statista: http://www.statista.com/statistics/12861/market-share-of-nokia-smartphones-since-2007/ • Hiner, J. (2011). Microsoft - Nokia deal: The challenges and opportunities. Retrieved from http://www.techrepublic.com/blog/hiner/microsoft-nokia-deal-the-challenges-and-opportunities/7696 • MarketWatch. (2014, Nov 2). Nokia Corp. ADS. Retrieved from MarketWatch: http://www.marketwatch.com/investing/stock/nok • Munchbach, A. (2011). Differentiation by assimilation: Nokia plays follow the leader. Retrieved from http://bgr.com/2011/02/11/differentiation-by-assimilation-nokia-follows-the-leader/ • Nokia. (2013). Income Statement. Retrieved from Nokia http://nokia.com • Niccolai, J
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