In this assignment I will about Nokia as an example of strategic management, about the history of Nokia, analysis of some of its strategies and the type of tools use to analyse these strategies. Then I talk about the result of this analysis and finally the conclusion.
Example of Strategic Management Organisation
Strategic Management is an important process that a company should always take into consideration in order to be successful in the market and to survive for long term in the market. In this assignment I have chosen Nokia Mobile Phone Company as an example of strategic management organisation. Despite being the market leader of mobile phone globally before Nokia has failed to maintain its leadership position and has been overcome by Samsung Mobile Phone Company. Nokia has lost its share of market considerably and even lost its number one position in the market due to bad strategic management.
History of Nokia
The roots of Nokia go back to the year 1865 with the establishment of a forestry industry enterprise in South-Western Finland by a mining engineer called Frederick Idestam. In 1967 Nokia merged with other two companies to form Nokia Corporation. Nokia is a company that is engaged in the manufacture of mobile devices and provide mobile network device, solutions and services worldwide. The Nokia Group employs over 139000 people globally, from different types of nationalities. Nokia has its production facilities located all over the world in order maximise the global share market. Nokia has produced different type of phone like N95, Lumia 920, Asha 205, and so on. (Anon., n.d.)
Types of Strategies to Analyse
Simple a strategy is a business approach to a set of aggressive moves that are designed to generate a successful outcome in return. In an organisation a strategy is an important management game for strengthening the organisation competitive position, satisfying customers and achieving performance. Now I will analyse some of Nokia strategies like benchmark, alliance, marketing and growth, leadership, organisational structure, change and retrenchment, social strategy and environment strategy.
Ansoff Matrix of Nokia
Simply it is a growth tools that helps the company to decide their product and market growth strategy. Nokia can use this tool to identify their future direction and strategic development. It is also very useful to Nokia as it provides the company the availability choice that there is in the market and how Nokia can use its strategic capabilities. Nokia is a company that is engaged in producing many existing product and new product. We can classify Nokia in te Ansoff matrix as follow: For market penetration
Nokia can use its existing product and existing market for example for its current production of telephone equipment and chips. For Market Development
Nokia can use existing product and new market for market development such as entering new market like India, Pakistan, and USA and so on. For Product Development
Nokia can use both its existing and new market for product development by launching new mobile telephone system For Product Diversification
Finally when the market has become saturated and Nokia is making a limited profit it time for Nokia to offer a new product in a new market. The Ansoff Matrix as a useful strategic positioning technique it helps Nokia on new or existing market or whether on new market and existing products. As for product development Ansoff can help Nokia in identifying new geographical market areas where Nokia can sell its existing product. For product development Nokia can develop new competencies and modify the product based on consumer demand. Therefore Nokia can use this tool to identify its future direction. (Anon., n.d.)
SWOT Analysis of Nokia
Simply swot analysis is analytical tool which is used to show the potential of the company, the demand of the market, the...