Supply Chain Analysis Nokia

Topics: Mobile phone, Nokia, Smartphone Pages: 6 (1796 words) Published: September 15, 2013
This assignment investigated knowledge of supply chain management in 3 main areas, which include quality management, innovation development and sustainability. The supply chains of mobile phone industry were studied in this assignment. It represents how to apply theories in class to real world business. The result of this assignment will be shown in the process map for proving that supply chains are not only concerned in one organization, but it was also liked to external organizations.

Nokia is a firm company in mobile phone industry with long history. As a leader in mobile phone industry, Nokia have to face with changing of business world all the time (Nokia1, 2012). However, in globalized circumstances, Nokia is challenged by new technology, short life cycle product, and new competitors, who would like to replace leader position as Nokia used to be. Ali-Yrkkö et al. (2011) mentioned that Nokia is using supply chain management to co-operate with suppliers and customer to survive in globalized situations. In order to establish supply chain management, Nokia have to pay attention on quality of products and services, increasing new technology, and looking for sustainable with customers and suppliers. 1.Quality management

1.1Objective Quality
In terms of objective’s quality, Boyer and Verma (2010, pp 33-35) mentioned that the objective’s quality is divided in to 2 groups. Firstly, product quality included with performance, features, reliability, conformance, brand equity, service, aesthetics, and durability. Another is service quality, which included with reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding of customer and tangibles. Particularly, in cases of aesthetics and understanding of customers, Das (2008) cited that the Nokia designers travel to every corner of the world to talk with their customers in order to design mobile phone, which their customer really want to have. Moreover, in cases of features, brand equity and serviceability, Veverka (2005) reported that Nokia would like to maintain their leader position by adding new features of new mobile phones of Nokia. For example high quality digital cameras, e-mail, web-surfing and increasing the size of mobile phone in order to easy to see the text in mobile phone. As a result, Nokia could have potential to keep their position to be leader in mobile phone industry.

1.2 Customer Expectations
Typically, the most customers would like to receive high quality of products or services with paying a few money, However, there are many factors, which may contribute customers to purchase the products by ignoring about prices. Boyer and Verma (2010, p35) referred to the 3 factors, which are expected by customers. Those factors included with personal needs, word of mount and past experience. In terms of personal needs, PR Newswire (2005) cited that Nokia N-series increased game features, such as, 3D graphics and ability to play in multiplayer in their mobile phones in order to increase customers, who are game lover, to use their mobile phones. Moreover, Harwood (2007) mentioned that word of mouth is another way, which deals with customer expectations because customers will receive information about product by passing reliable and creditable resources of information, that those are trust. In addition, past experiences of customer, who used to Nokia mobile phones, can lead to new purchasing of new model of Nokia’s mobile phones. As it can be seen from customer’s recommendation, Yogendra (2009) referred to the good experiences of Nokia mobile phone, which it conducts him/her to be a royalty customer, to choose Nokia brand as a first choice of new purchasing. 1.3 Perceived Quality

Perceived quality may contribute customers to realize about their expectations of products or services, which relate to objective quality of products...
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