1.0 Executive Summary
The following is the strategic analysis of Nokia Corp., which discusses the external and internal environment. The first part, external environment, presents the opportunities and threats along with the political, economic, sociocultural, and technological issues of the handset industry. It provides Porter's five forces framework for the discussion of the attractiveness of the industry. The second part of the report analyzes the main strengths behind Nokia's success and leading position as a handsets manufacturer. We proceed with the analysis of Nokia's weaknesses which may impede on its ability to utilize the growth opportunities. We also make recommendations regarding Nokia's strategy for US market, converged handsets market, and acquisitions. Owing to the complex and self-motivated environment, Nokia faces numerous strengths, weaknesses, opportunities, and threats. This report is to look for the best possible strategy of Nokia. Initially, the key strategic issues Nokia is facing today is acknowledged to be economy, technology, leading brand, scale, and number one market position based on the strategy analysis in Task A. Secondly, the imposing strategy that Nokia should take on is analyzed to be exhaustive growth strategy, and in particulars, the strategy options of Nokia today is illustrated to be cost leadership, differentiation, and focus strategy. Among which Nokia should select a combination of the cost leadership and differentiation strategy according to its brawny assets, low fixed cost, and elevated research aptitude. The paper also discusses the relationship between Nokia management style, climate and its organizational structure. Strategy can be defined as “the basic characteristics of the match an organization achieves with its environment.” Owing to the complex and go-ahead environment, Nokia faces several strengths, weaknesses, opportunities, and threats. This article is to seek the optimal strategy of Nokia. The investigation is affirmed in the following ways. Firstly, the key strategic issues of Nokia are acknowledged based on the strategy analysis in Task A. Secondly, the strategy options of Nokia are analyzed by the competitive generic strategies theory which has been promoted by Porter. Thirdly, after the illustration of the competitive generic strategies, the optimal strategies will be proposed. 2.0 Section 1 Company Background
Nokia was established in Finland in 1865. Owing to its digital insurgency starting from 1992 by introducing its first GSM model as well as the new formulation of the key essentials of its strategy by sending-off the old businesses and progressively more focus on telecommunications in 1994, it helps Nokia generate the basis for a triumphant conquer of the world telecommunication market. Till now, Nokia is by now the world leader in mobile communications, driving the growth of the broader mobility industry. Fulfilling an elementary human necessitates for social connections and contact by connecting people is the mission of Nokia. Currently, Nokia comprises four business groups that are mobile phones, multimedia, enterprise solutions and networks. Being the forge of the mobile communication market in the world enjoying about 30% share of the world's mobile phone market, Nokia is abiding to discover innovative investment opportunity. Teaming up with the Sanyo Electric Corp. Which ranked the 10th world while to shape a shared endeavor, Nokia will carry on to be outrival and advance in the world telecommunication market. 3.0 Assessment of Strategies
3.1 Business Level
Nokia's trade level strategy is based on a cost leadership. Nokia has an outsized product portfolio which would gratify consumers all over the world. It strives to keep low costs for its products throughout firm costs management and economies of scale. Nokia utilizes strategic suppliers all over the globe to attain extremely modified subassembly apparatus...