Nokia Case Analysis

Topics: Mobile phone, Smartphone, Personal digital assistant Pages: 5 (791 words) Published: June 27, 2013
“Connecting People. Our goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Our challenge is to achieve this in an increasingly dynamic and competitive environment”

Nokia wants to create a new world; to transform a big planet to a small village. Their vision is to create, build, and encourage people from all countries to communicate with each other in order to create a world where everybody is connected.

Nokia rivals have moved to smart phones and androids while Nokia has only just recently released their first smart phones leaving them trailing their rivals such as Apple and HTC. Intense competition from large companies such as; Apple, HTC, Blackberry, Sony Ericcson and LG, ect.

The power that customers have is rising because of the increasing number of choices in the mobile telecommunication industry. With a lot of the Nokia competitors all offering similar packages (e.g. unlimited texts and calls) the industry is very price sensitive with customers seeking out the best value for their money.

Mobile phones are an everyday essential in people’s lives today and people would find it hard to replace, as customers would not be able to be in constant contact when away from the house. On the other hand, it could be said that customers would be able to contact people through others types of media such as social networking websites, email and home telephones. Although staying in constant contact would be hard in customers’ day to day life.

Although Nokia relies on its suppliers to supply equipment for their advanced mobile phones there are actually a number of large equipment makers, which Nokia could switch to. The software supplier for their Smartphones is now Microsoft, who has a very high bargaining power.

The mobile phone industry is already a well established market and the threat of a new entrant is quite low, as the technology needed to rival the devices already available is quite advanced if they want to differentiate from them The barriers to entry in the mobile phone industry is high because any new entrants will need high investments in R&D, technology and marketing in order to compete with the established organizations.

Nokia has many manufacturing and R&D around the world 30 percent of its workforce is dedicated solely to research and development with sites in at least 16 countries

Nokia is one of the biggest manufactures of mobile devices Nokia uses its fixed assets across the world to keep cost low allowing them to keep products at a low cost to its consumers

Nokia uses its R&D department to create new technologies as well innovation on how the company itself is run With a large number of diverse employees and facilities all over the world, they are able to get ideas from a different points of view as well as get their products all over the globe

Connecting People

Build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer invest in next-generation disruptive technologies; adopting Windows Phone as its primary smart phone platform

Change in sales volume; change in market share; Amount of new customers Change in sales volume/market share; increased ROA; increased ROE

Nokia’s strategy is to leverage its innovation and strength in growth markets to connect even more people to their first internet and application experience bring the next billion online in developing growth markets

build a new winning mobile ecosystem in partnership with Microsoft; increased ad campaign increase our focus on speed, results and accountability

Amount of new, affordable and highly functional devices; favorable customer/consumer response; amount of exposure of new ads Amount of time it takes for new devices to reach the market; increased sales of new devices; amount of new users of smart...
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