Managing Strategic Change on Nokia’s high-end Smartphone segment
Research activities planned:
The high-end Smartphone market segment has developed tremendously in the recent years. The beginning of this growth was marked by Apple introduction of its first iPhone, which has managed to change the whole industry . Since then technological companies like Samsung, LG, HTC and Nokia have strived to get a valuable market share, offering a superior value to its customers, consisting of innovation in devices, services and closer communication with the clients . In the researched period- the time from 2007 to 2011, Nokia has lost its major presence on the Smartphone market. Although being a leader on it, its market share and profitability have fallen down under the pressure of its main competitors Apple and Samsung. Nokia’s product line on the market is broad, offering Smartphones in all price ranges. According to an online business article , however, Nokia has not focused on developing in particular its high-end (premium) Smartphone segment and has not offered a leading device with innovative features. Its last Smartphones were catching up with the competitors’ devices instead of offering a unique value. This situation has led to changes on the top of the company. The new CEO Stephen Elop has been appointed to bring innovativeness and to focus on improving Nokia’s presence on the North American market, where, based on market results, the company has weak market positions. As a professional with an experience on this region, however, not in the mobile industry, Mr. Elop is a controversial figure, which takes over the company in challenging times. The high-end Smartphone market is already in its mature stage, where competitors are trying to offer unique value in products and services in order to improve their profitability. Further loss of market share and precious time for Nokia could lead to a loss of profitability for the company on the high-end Smartphone market.
Nokia’s loss of focus and innovativeness in developing its high-end Smartphone could cause a decrease of the company’s market share and profitability. Nokia’s main competitors on its market are gaining stronger positions and competitive advantage, offering cutting-edge technologies and posing threat to Nokia’s leading position. Since the major growth of the high-end Smartphone market in 2007, Nokia lacks a clear focus on its core competencies that could bring competitive advantage for the company. Objective:
Formulate a strategic change to be further implemented on Nokia’s high-end Smartphone market through an analysis of the internal and external factors that play a role in defining the core competencies the company should focus on. Research questions:
Central research question:
What core competencies should Nokia implement in its strategic change on the high-end Smartphone market in order to get a competitive advantage on it? Following research questions:
What led to Nokia’s loss of profitability and market share to its competitors on the high-end Smartphone market? What are the current competencies Nokia focuses on? •
What are the current characteristics of the market, the dynamics of changes on it as wells as the target group customers and business models used? •
Which are the Core Competencies that can contribute for the Nokia future development on the market? •
What strong qualities do the Nokia’s competitors posses that differentiate them from the finish company? What gives them a competitive advantage on the market?
Research activities planned:
Desktop research on relevant books, online databases...
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