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TABLE OF CONTENT .......................................................................................................... 1 1. BUSINESS BACKGROUND............................................................................................... 2 2. VISION AND MISSION .....................................................................................................8 3. EXTERNAL FACTOR EVALUATION...................................................................................9 4. INTERNAL FACTOR EVALUATION..................................................................................15 5. STRATEGIES IN ACTION................................................................................................20 6. STRATEGY ANALYSIS AND CHOICE...............................................................................26 7. IMPLEMENTING STRATEGIES MANAGEMENT: MANAGEMENT AND OPERATION ISSUES 29 8. STRATEGY REVIEW, EVALUATION AND CONTROL.........................................................32 9. CONCLUSION................................................................................................................ 33 REFERENCES.................................................................................................................... 34
Nokia “Connecting People”
1. BUSINESS BACKGROUND
Nokia is a communications based company, which focuses on mobile telephone technology. Nokia is a world leader in mobile telecommunications driving the growth and sustainability of the broader mobility industry, which connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for games, imaging, businesses and media. Nokia Corporation (Nokia) is a leading provider of mobile devices, telecom equipments, and mobile content services. Nokia Corporation is one of the world's largest telecommunications equipment manufacturers. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia “Connecting People”
b. Organization Structure Nokia “Connecting People”
Kai Öistämö Executive Vice President. Human Resources Dr. McDowell Executive Vice President. Corporate Relations and Responsibility Timo Ihamuotila Executive Vice President. Services. Mobile Solutions Anssi Vanjoki Executive Vice President & General Manager. Mobile Solutions Niklas Savander Executive Vice President. Mobile Solutions Juha Äkräs Executive Vice President. Markets Alberto Torres Executive Vice President. Chief Financial Officer Mary T. Mobile Phones Tero Ojanperä Executive Vice President. Chief Development Officer Board of Directors Nokia “Connecting People” 4|Page . MeeGo Computers.Group Executive Board Chairman Stephen Elop President and CEO of Nokia Corporation Esko Aho Executive Vice President.
Chairman Jorma Ollila Vice Chairman Dame Marjorie Scardino • • • • • • • Lalita D. Henning Kagermann Per Karlsson Isabel Marey-Semper Risto Siilasmaa Keijo Suila Nokia “Connecting People” 5|Page . Gupte Dr. Bengt Holmström Dr.
The newly formed Nokia Corporation is ideally positioned for a pioneering role in the early evolution of mobile communications.. As mobile phone use booms.c... Nokia sells its billionth mobile phone as the third generation of mobile technology emerges. the company is the world leader. rubber. By the turn of the century... History From roots in paper. and cables.. Nokia “Connecting People” 6|Page . Nokia makes the sector its core business. in just over 100 years Nokia becomes a powerful industrial conglomerate...
Nokia “Connecting People” 7|Page .
Mission: To do this we will become the leading provider of mobile solutions. Our solutions strategy leverages one of our greatest assets .a portfolio of outstanding devices. That's how Nokia is needed to help make the world a better place for everyone. VISION AND MISSION Vision: “Connecting people" is now connecting people to what matters . Nokia “Connecting People” 8|Page .giving them the power to make the most of every moment. We couple them with smart services. any time. integrated via an intuitive and seamless user experience. In a world where connecting people to what matters. everywhere. with unmatched scale and geographic reach. empowers them to make the most of every moment.whatever that means for each person . We differentiate these solutions offerings based on our in-depth consumer understanding.2. Our ambition is to become the leading provider of mobile solutions. Connecting the "we" is more powerful than just the individual. with a strong focus on social location (people and places).
and even candle light. light sources. Singapore on Monday (6/14/2010). Elop is believed will make a breakthrough in Nokia by developing Windows-based phones Phone 7. Still according to these data.New growth markets where Solar cell phone adoption still has room to go. 0. In fact. Nokia “Connecting People” 9|Page ." said Senor VP of Global Jo Harrlom Nokia Smartphone. 62 percent of phones that connect to the Internet are connected by connecting people. "According to data Smartphone survey. email.4Internet experienced a very rapid progress in the mobile industry world. to create windows phone 7 as the operating system. etc. while 9 percent is used to surf in cyberspace. 3.62 % phone users are already connecting people. according to data from the ITU. 0. Emigration Stephen Elop to the Nokia predicted as a first step that Nokia to cooperate with Microsoft. The reason. including India and others countries. Elop served as a senior Microsoft executive for several years.3. two thirds of the world's mobile phone is already connected to the Internet. The solar powered cell phone will enhance this convenience by allowing easier access to power that charges the phone. The ideal situation for the solar cell phone is to enable the phone to charge from direct sun light. Nokia will cooperate with Microsoft Corp. but this time mobile phone users mostly use it to communicate. The purpose of connecting people rather than referring to the tagline that is owned by Nokia. 12 percent of mobile phone used to make entertaiment such as music and video.05 2. Nokia Showcase presentation. social networking. at the Conrad Hotel. EXTERNAL FACTOR EVALUATION Opportunities: 1. Elop is a person who has the experience and good relationship with Microsoft.
Nokia plans to develop Cheaper Hp as modem for connecting internet. upgrade the camera capabilities or improve the internet connection. 7.Internet connection becomes one of consideration for mobile phone purchase decision. The advanced technology makes internet is not just only “want” but now become “need”. people would rather use GSM cell phones with numerous feature.Nokia is the market leader of hand phones. Nokia “Connecting People” 10 | P a g e .08 5. there is an opportunity in the market to develop cheaper cell phones in this case middle level of income as modem such as C-series. But it is just for the cell phones for high level of income. From the point of quantity and all of its type. 0. and then CDMA cell phones as the complement when you have had GSM cell phone. So by continuing to fulfill the market needs and wants. As we know that. such as E71 via Bluetooth or USB. 6.Nokia plans to upgrade CDMA cell phones. There is an opportunity in the market to upgrade CDMA cell phones by improving its features. It makes people can get and share information over the world. And also the price can be reached by low to up level of income.4. Nokia has the largest number of sales in the world. But the availability of CDMA cell phone cannot be underestimated. Nokia has developed cell phones as modem by connecting it with PC or Laptop. Internet is a global system of interconnected computer networks. cell phone with internet connection become priority to buy cell phone.
That’s make the competitor one step ahead from Nokia. 3. There are still a lot of Nokia’s customers who know that. with a third quarter market share of 43. Nokia also have kind of product with dual SIM card. The influence of BlackBerry Messenger trend toward consumer preference.S. Now days. there are so many cell phone companies that offer cell phone with Dual SIM card as the hallmark of their product. but it can’t switch two SIM card at a time. NOKIA also have the messenger application which called “Nokia Messenger”. in the second and third quarters of 2010. Nokia’s product is left behind. Actually. etc. even though the cell phone with the low price product such as GStar. As Blackberry Smartphone has the messenger application (Blackberry Messenger).Threats: 1. Unit sales for Android OS Smartphone ranked first among all Smartphone OS handsets sold in the U. 2. Nokia “Connecting People” 11 | P a g e . Nexian She. Dual SIM card issues.6%. Compared with the cheap cell phone that competitors offered which can switch 2 SIM card at a time. There are currently over 100. Android has a large community of developers writing application programs that extend the functionality of the devices. only one SIM card can active at a time. but getting confused of how to activate it.000 apps available for Android. The problem in here is they didn’t socialize to their customer that Nokia’s product also provides the messenger application just like Blackberry Smartphone. The emergence of Google Android as the operating system.
03 5. 6. 3 0. iPhone. But still. Consumer behavior has a tendency to prefer the product that can offer a lot of facilities with the attractive features and also with the cheap price. Nokia is enduring a very hard time since Iphone and Blackberry is taking over the Smartphone market. Blackberry and Android are surging ahead with software updates while Symbian cannot afford any delays. Nowadays.15 1 0. but they just look into what the product can offer to them. with 36%. That's third in the ranking. with 28% and the first rank belongs to BlackBerry. Even tough the product is not popular or famous.1 2 0. China’s hand phone is entering the market aggressively. Second position goes. They are offers the mobile phone that have many features with the cheap price. Nokia is struggling to battle with new rivals Apple and Blackberry maker Research in Motion (RIMM. The price of China’s mobile phone can be half of the price of Nokia’s Mobile phone product that mostly has the same features. to the Android platform.12 4. Actually. the amount of cheap product with the unpopular brand can bite that branded product. there are some people who still choose the branded product rather than unpopular product with the lower price. At the early stages. Brand Image is not that important for some kind of product (especially phone). and sees a cheaper price as its strongest weapon to hold on to market share.0. NPD Group's Smartphone survey puts total iPhone's sales for the first quarter at 21%. China continues to grow rapidly and tries to grab the market share. Nokia “Connecting People” 12 | P a g e . Nokia’s Brand image is no longer representing customer’s perception about hand phone. Sales of competitor’s Smartphone are going up.O) at the high end of the cell phone market. for the first time.
Nokia is the market leader of hand phones. 4.36 Nokia “Connecting People” 13 | P a g e . 62 % phone users are already connecting people. 2.06 0. including India and others countries. 6. 3.10 0. 5. New growth markets where Solar cell phone adoption still has room to go.18 0. Threats Weight Rating Weighted Score 0. Nokia plans to upgrade CDMA cell phones.32 0.05 0.10 0.13 0. 7.33 0.09 2 2 3 4 0.08 3 4 4 0. to create windows phone 7 as the operating system.52 0. Nokia plans to develop Cheaper Hp as modem for connecting internet. Internet connection becomes one of consideration for mobile phone purchase decision.11 0. Nokia will cooperate with Microsoft Corp.The External Factors Evaluation (EFE) Matrix for Nokia Corporation Key External Factors Opportunities 1.05 0.
36 0.28 0.12 0.07 0.1. 3.04 3. Nokia’s Brand image is no longer representing customer’s perception about hand phone. China’s hand phone is entering the market aggressively.18 0.45 Nokia “Connecting People” 14 | P a g e .00 4 4 3 4 4 1 0. Dual SIM card issues.05 0. The emergence of Google Android as the operating system. Total 0.04 1.09 0.48 0. 6.20 0. Sales of Competitior’s Smartphone are going up.06 0. 2. The influence of BlackBerry Messenger trend toward consumer preference. 4. 5.
4. and services. The Nokia Siemens Networks brand identity was subsequently launched at the 3GSM World Congress in Barcelona in February 2007. selling and consumer services in more than 150 countries. 2. Now Nokia has came up with a solar charger. middle level income.4. Largest network of distribution. EDGE. Nokia offered several types of hand phone with reasonable prices for anyone whether they in low level income. One of the 20 top brands in the world. INTERNAL FACTOR EVALUATION Strengths: 1.5 billion people connected through its networks. as well as professional services to operators and service providers. Nokia “Connecting People” 15 | P a g e . Fashionable designs and low-cost models for the developing world enabled the mobile phone maker to regain ground against competitors. low. a charger that can be used outdoors without consuming electricity. Nokia Siemens Networks (previously Nokia Networks) provides wireless and fixed network infrastructure. with over 1. Nokia named the 6th place of Best Global Brand. communications and networks service platforms. middle and high-level of income. core networks with increasing IP and multi-access capabilities. Nokia Siemens Networks focuses in GSM. called Nokia Siemens Networks. and high-level income. it has been awarded by the Environment Protection Agency in the US for Energy Star because of its energy efficiency as it exceeds the EPA standards by only using 50-70% less than the energy star requirement. Solar charger for Nokia is environment friendly. Nokia Siemens Networks serves more than 600 operator customers in more than 150 countries. 3. 2006 Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world’s largest network firms. Wide range of products for 3 levels of income. 3G/W-CDMA and WiMAX radio access networks. Nokia is the best hand phone in term of environment friendly. There are many advantages of using solar powered charger. On June 19. As of March 2009.
5. Plastics cannot be replaced totally though. The board believes this combination of experience makes him the best candidate to take Nokia forward. and cannot therefore be recycled with other plastics. bioplastics are in fact more harmful than they are useful. since an accessory should be visible and protected from dust. High Quality in term of raw materials. Their availability varies from region to region. his most previous experience has been during times of substantial transformation in large companies. Stephen worked for Adobe following its acquisition of Macromedia. More importantly. Picking someone with the right experience is crucial in helping Nokia to make that transition quickly and effectively. while bioplastics are not easily recycled. For instance by replacing some plastics with cardboard in Nokia's accessory packages the amount of plastic was decreased by 60%. Coloring and patterning help cardboard to support products' image and their message. Nokia is transitioning from a hardware manufacturer of mobile devices to a software and solutions business. mainly wood fibers in its product packages. The use of agricultural waste brings challenges related to uniform quality and seasonal availability of raw materials. New packaging materials are sought continuously. Stephen’s background in the software industry is one of his key strengths. Stephen Elop as the new CEO of Nokia Corp. He has a proven track record and is well-known and respected within the software industry. When mixed with other plastics. High quality packages can be made of several natural fibers. 6. Bioplastics should be composted. Nokia “Connecting People” 16 | P a g e . He also has experience in managing change and complex software projects. Prior to working at Microsoft and Juniper Networks. Flax packaging is already used. Nokia uses recyclable materials. Also the recycling of plastics is a challenge in general since there is no advanced recycling infrastructure in place yet. Some 35-100% of materials are also made of recycled fibers. agricultural waste as a raw material as well as bioplastics is being studied.
The two companies have merged their mobile Operating System (OS) into one entity: MeeGo. selling more mobiles than the other brands. Nokia “Connecting People” 17 | P a g e . You can expect the first mobile devices running on MeeGo later this year. The Ovi Store has seen a lot more people sign up recently and the numbers just keep going upwards every day. Apple and Microsoft. which have better features than Nokia does. The operating system will support both Intel's Atom and ARM architectures.3 million last month. Ovi-store application reaches more than 165 million users. with 90% of store visits resulting in an app download. Unlikely partners Intel and Nokia have joined forces in an attempt to fend off increasing mobile competition from Google. now has over 165 million users. the application store from Nokia. both of which are Linuxbased. Nokia is still the top mobile manufacturer in the world. Maemo is the platform that runs the Nokia N900. MeeGo is a merger of Nokia’s Maemo OS and Intel’s Moblin OS. but is intended to work on netbooks. tablets and televisions as well. It’ll be hosted by the Linux Foundation as an open-source project. Acer and others. and the number of downloads per day has risen to 3 million. It’ll be built around the Moblin core OS. And MeeGo will not just be for mobile phones either. Ovi. This is quite an encouraging statistic for Nokia. 8.7. but it will utilize Nokia’s Ovi Store for its apps. from the 2. while Moblin runs on phones such as the LG GW990 and netbooks from Foxconn. Nokia is developing new operating system. who has been struggling a bit to keep up with the Smartphone market.
reporting an operating profit of €295 million. based on the customer’s experience found that Nokia Smartphone has fewer features as compared to competitor has. Nokia was reluctant to produce a clamshell until this year. The decline of Symbian as the operating system. and the continued weakness of Nokia's high-end device sales have negatively impacted Symbian's share. A good example is clamshell phones which are preferred by many customers. Nokia Smartphone has fewer features as compared to others. Nokia's device and service division's profit was €643 million. with net sales €10. 3. such as RIM and Apple. Competitive pressure from its competitors. Nokia “Connecting People” 18 | P a g e . 4. Nokia's Smartphone performance at the high end remains poor in the face of competition from Apple. such as Blackberry and iPhone as the Nokia Smartphone competitor. Sales of Nokia Smartphone decrease. when it launched its first model.Weaknesses: 1. Nokia has released their Q2 2010 results. 2. down 16% year on year. RIM and Android powered devices. In the market. Nokia is no longer up to date.0billion (up 1% Year-on-Year).
2. Nokia is the best hand phone in term of environment friendly.18 2.44 0.88 Nokia “Connecting People” 19 | P a g e . 6.18 0.07 0.09 1. Sales of Nokia Smartphone decrease Total Weight 0.06 0. 8.11 0. selling and consumer services in more than 150 countries.18 0.21 0. Weakness 1.09 0. One of the 20 top brands in the world.05 0. 2. The decline of Symbian as the operating system. 3. 7. low.15 0. 3. middle and high level of income.18 0.09 0. 4.11 0. Wide range of products for 3 levels of income.The Internal Factors Evaluation (IFE) Matrix for Nokia Corporation Key Internal Factors Strengths 1.07 0. Stephen Elop as the new CEO of Nokia Corp. 5. Ovi-store application reaches more than 165 million users.44 0.21 0.36 0.24 0. Nokia is no longer up to date. 4.00 Rating 3 4 3 4 4 3 4 3 2 2 1 2 Weighted Score 0.11 0.06 0. Largest network of distribution.11 0. Nokia is developing new operating system. High Quality in term of raw materials.09 0. Nokia Smartphone has fewer features as compared to others.
Without long-term objectives. videos and other personal media in July 2007. a U. Backward Integration-Seeking ownership or increased control of a firm’s suppliers: • Nokia acquired Sega. Strategies represent the actions to be taken to accomplish long-term objectives. 2006. 2005. • Nokia acquired Enpocket.5. 2.-based supplier of digital mapping data in October 2007. which in the current statistic is already has more than 50% of market in the world. a provider of data and PIM synchronization software on November 16.com to develop the Nokia N-Gage device on September 22. b. • Nokia acquired Intellisync. Long-Term Objectives Long-Term Objectives represent the results expected from pursuing certain strategies. 2003. • Nokia acquired Twango. Types of Strategies that used by Nokia Corporation: 1. Clearly stated and communicated objectives are vital to success for many reasons. Forward Integration-Gaining ownership or increased control over distributors or retailers: • Nokia acquired online music distributor Loudeye Corporation on August 8. a supplier of mobile advertising technology and services in September 2007. Nokia “Connecting People” 20 | P a g e . STRATEGIES IN ACTION a.S. • Nokia bought Navteq. the comprehensive media sharing solution for organizing and sharing photos. Nokia has aimed from the beginning to become Market Leader in Telecommunications Field. an organization would drift aimlessly toward unknown ends.
2006. 2010. the specialist in geographic intelligence that is expected to boost the phone maker's push to expand the location-based services it offers to its mobile device users on April 10. the mobile web browser firm from Chicago on March 28. • In March 2007. a mobile messaging solution provider in September 2008. 2010. • Nokia acquired Novarra. 2009. Nokia Siemens Networks on June 19. 2000. Hungary on May 5. • Nokia acquired MetaCartaa. • Nokia acquired certain assets of Plum Ventures.• Nokia acquired OZ Communications. Romania to open a new plant near the city in Jucu commune. • Nokia acquired certain assets of cellity. 4. Inc which develops and operates a cloud-based social media sharing and messaging service for private groups on September 11. Horizontal Integration-Seeking ownership or increased control over competitors: • Nokia and Siemens AG merged their mobile and fixed-line phone network equipment businesses to create one of the world’s largest network firms. Market Development-Introducing present products or services into new geographic Area: • Nokia opened its new mobile phone factory in Komárom. Nokia “Connecting People” 21 | P a g e . 2009. 3. Nokia signed a memorandum with Cluj County Council. a privately owned mobile software company on July 24.
unrelated products or services: • Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads. Nokia “Connecting People” 22 | P a g e . Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry devices offering a full keyboard and cheaper prices. 7. Unrelated Diversification-Adding new. In November 2007. • On September 10. 2009. its first Nseries phone with Xenon flash. • On September 2. Work began in April 2008. Related Diversification-Adding new but related products or services: • Nokia announced in August 2009 that they will be selling a high-end Windows- based mini laptop called the Nokia Booklet 3G. 6. Nokia unveiled a new handset 7705 Twist.5. the X6 and X3. Nokia launched two new music and social networking phones. The service became commercially available in the second half of 2008. 2009. Product Development-Seeking increased sales by improving present products or services or developing a new ones: • • Nokia launched its Nokia 1100 handset in 2003. and the film premiered in October 2008. Nokia announced and released the Nokia N82. • At the Nokia World conference in December 2007. • In 2008. a phone with a sports square shape that swivels open to reveal a full QWERTY keypad.
1998 August 7. Venyon Nokia's Symbian Professional Services Nokia's security appliance business Nokia's line fit automotive business Nokia's Adaptation Software R&D entity Nokia's Identity Systems 3G chipset development Professional Mobile Radio business Nextrom Holding Part of mobile core related R&D Narrowband access products Cabling and electromechanical units Nokia Display Products' branded business Monitor manufacturing unit in Hungary SHD/DWDM business Salcomp Oy Mobile radios and printed circuit boards LK-Products Oy Autoliv Nokia AB Loudspeaker Operations Tuner Operations Television production Cable Business / NKF Holding NV Nokia unit Nokia Corporation Nokia Corporation Nokia Corporation Services Devices Nokia Corporation Services & Software Nokia Corporation Networks Nokia Corporation Nokia Networks Nokia Networks Nokia Networks Nokia Display Products Nokia Display Products Nokia Networks Nokia Communications Products Nokia Networks Nokia Mobile Phones Nokia Industrial Electronics Nokia Industrial Electronics Nokia Multimedia Network Terminals Nokia General Communications Products Nokia Communications Products Nokia “Connecting People” 23 | P a g e . 2001 March 13. 1998 March 3.8. 1996 March 18. Divestiture-Selling a division or part of an organization: Date July 12. 1999 September 9. 2009 October 16. 2005 March 18. 2008 June 02. 1996 Divestiture target MetaCarta. 1999 October 1. 2001 June 13. 2008 November 5. 2010 December 1. 2009 April 14. 2008 May 16. 2005 August 30. 2000 January 17. 1997 February 7. 2009 June 16. 2007 September 5. 1997 July 17. 1998 December 23. Inc. 2000 January 10. 2000 November 1.
Nokia Siemens Networks. The company has been developing this into an online music service in the hope of using it to generate handset sales.c. Nokia acquired Sega. Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. 2005. signed a definitive agreement for Nokia to acquire Intellisync.5 billion a year by 2010. Joint Venture-Occurs when two or more companies form a temporary partnership for the purpose of capitalizing on some opportunity: • On February 2006. Nokia completed the acquisition on October 16. About 20. Nokia and Loudeye Corp. or vice versa: • On September 22.com. • On August 8. Means for Achieving Strategies that used by Nokia Corporation: 1. Nokia also stated its decision to pull out of CDMA research and development. Nokia “Connecting People” 24 | P a g e . The service. Nokia completed the acquisition on February 10. 2006. The companies predicted annual sales of €16 billion and cost savings of €1. Finland. Merger-Occurs when two organizations of about equal size unite to form one enterprise: • On June 19. to continue CDMA business in selected markets. announced that they had signed an agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million. 2003. • On November 16. is aimed to rival iTunes. a provider of data and PIM synchronization software. 2006. Nokia and Intellisync Corporation. a branch of Sega which became the major basis to develop the Nokia N-Gage device. 3. But in June. and it is headquartered in Espoo.000 Nokia employees were transferred to this new company. 2007. Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world’s largest network firms. launched on August 29. 2006. they announced ending negotiations without agreement. 2006. Each company has a 50% stake in the infrastructure company. 2. Acquisition-Occurs when a large organization purchases a smaller firm.
-based supplier of digital mapping data. Nokia bought Navteq. 2010. 2009. Canada. • In October 2007. 2009. 2010.• In July 2007. • On April 10. Nokia announced its acquisition of MetaCarta. a privately held company which employed approximately 10 people with main offices in Boston. Nokia finalized the acquisition on July 10.S. Nokia announced that it will acquire certain assets of cellity. • On September 11. • In September. a privately owned mobile software company which employs 14 people in Hamburg. Terms of the deal were not disclosed. Nokia announced the acquisition of Novarra. Nokia “Connecting People” 25 | P a g e . pending shareholder and regulatory approval. for a price of $8. Nokia acquired OZ Communications. whose technology was planned to be used in the area of local search. 2009. the mobile web browser firm from Chicago. 2008. Inc. • In September 2007.1 billion. • On July 24. Nokia announced its intention to acquire Enpocket. Massachusetts. the comprehensive media sharing solution for organizing and sharing photos. Plum will complement Nokia’s Social Location services". Germany. a U. 2008. • On March 28. IL and provider of a mobile browser and service platform and has more than 100 employees. a privately held company with approximately 220 employees headquartered in Montreal. a supplier of mobile advertising technology and services. particularly involving location and other services. videos and other personal media. Novarra is a privately-held company based in Chicago. Nokia acquired all assets of Twango. The acquisition of cellity was completed on August 5. Nokia announced the acquisition of "certain assets of Plum Ventures.
to create windows phone 7 as the operating system. 1. Windows Phone 7) of Nokia. T1). W4). W3. 1. 7. T6. 4. 62 % phone users are already connecting people. low. to create windows phone 7 as the operating system. T7. T6). 2. Nokia is the market leader of hand Threats The influence of BlackBerry ST Strategies WT Strategies phones. T3. W3. Dual SIM card issues. Wide range of products for 3 levels of income. 1. 5. Sales of Nokia Smartphone 4. (S5. 6. Nokia will cooperate with 1. Develop Nokia C Series base on its 2. Corp. Use Windows Phone 7 as the Microsoft Corp. The emergence of Google Android Application. Nokia “Connecting People” 26 | P a g e . T2. O4. ( T1. 5. MeeGo. Sales of Competitor’s Smartphone are going up. operating system. 3. (O2. T3. O1). (S9. operating system for high level income cell phone. New growth markets where Solar cell phone adoption still has room to go. of consideration for mobile phone purchase decision. Weaknesses Nokia is no longer up to date. 7. Replace the old operating system of Operating System (Symbian. 4. W1. O2. 2. 3. (W1. system. Nokia plans to upgrade CDMA Internet connection becomes one cell phones. 3. Create Nokia Magazine to provide information about cell phones for Nokia users. and high level of income.6. W2. 2. T4. 1. 6. 3. Simplify Nokia Messenger 1. STRATEGY ANALYSIS AND CHOICE 1. T5. for middle-high level income cell phone. The Strengths-Weaknesses-OpportunitiesThreats (SWOT) Matrix for Nokia Corporation selling and consumer services in more than 150 countries. the middle to high level income cell phones type with the new operating system – MeeGo with competitive price. O6). as the operating system. 1. (S8. Develop the features inside 3 Messenger trend toward consumer preference. Nokia is the best hand phone in term of environment friendly. 3. W4). Nokia Corp. Nokia plans to develop Cheaper Hp as modem for connecting internet. High Quality in term of raw Stephen Elop as the new CEO of materials. 4. Strengths One of the 20 top brands in the Largest network of distribution. decrease. 8. China’s hand phone is entering the market aggressively. (S7. middle. features as compared to others. 2. 2. Opportunities Ovi-store application reaches more Nokia is developing new operating SO Strategies Decide to cooperate with Microsoft WO Strategies than 165 million users. including India and others countries. 5. 2. Nokia Smartphone has fewer The decline of Symbian as the world. T2. O1). W2. Use MeeGo as the operating system successful sales in the market by adding new type of Nokia C Series.
the best strategies that Nokia Corporation can implement are: 1.0 to 2.99 VII VIII IX 1.0 2.88 The EFE total weighted score : 3.6. Product Development Nokia “Connecting People” 27 | P a g e .0 to 2.0 Strong 3.0 to 1. Nokia’s Brand image is no longer representing customer’s perception about hand phone. The Internal – External (IE) Matrix for Nokia Corporation THE IFE TOTAL WEIGHTED SCORES Strong 3.0 1.Grow and Build Strategies From the result above. Market Penetration 2.99 4.0 3.99 Weak 1.0 I 3.0 to 4.0 to 4.0 II III THE EFE TOTAL WEIGHTED SCORES Average 2.0 to 1.0 Average 2.99 IV V VI 2.0 Weak 1.0 The IFE total weighted score : 2.45 Result of Intersection : Cell II .
Strategic Plans 1. 2. Windows Phone 7) of Nokia. Nokia “Connecting People” 28 | P a g e . 4. 6. Use Windows Phone 7 as the operating system for high level income cell phone. Replace the old operating system of the middle to high level income cell phones type with the new operating system – MeeGo with competitive price. 8. Simplify Nokia Messenger Application. to create windows phone 7 as the operating system. Decide to cooperate with Microsoft Corp. 3. Develop the features inside 3 Operating System (Symbian. Create Nokia Magazine to provide information about cell phones for Nokia users. MeeGo. Develop Nokia C Series base on its successful sales in the market by adding new type of Nokia C Series. Use MeeGo as the operating system for middle-high level income cell phone. 5. 7.
more than 90% of world population will experience the full power of being connected everywhere and any time. Nokia “Connecting People” 29 | P a g e . Production Annual Objective Increase Production Efficiency Marketing Annual Objective Increase the marketing effort in Price.7. Place and Promotion. Annual Objectives Nokia Corporation’s Hierarchy of Aims LONG-TERM CORPORATE OBJECTIVE By 2015. IMPLEMENTING STRATEGIES MANAGEMENT: MANAGEMENT AND OPERATION ISSUES a. Product. DIVISION II: Mobile Phones ANNUAL OBJECTIVE Provide best device in the market that can be reachable all 3 level of income with technology innovations to support the full power of being connected in 2015 DIVISION III: Markets ANNUAL OBJECTIVE Spend 10% of net income to acquire the greater marketing effort to increase brand image Nokia. DIVISION I: Mobile Solutions ANNUAL OBJECTIVE Make 5 Innovations of multimedia tools/applications this year and 7 Innovations next year. Finance Annual Objective Increase the annual income. R & D Annual Objective Develop Nokia C-Series that is successfully marketed. Personnel Annual Objective Increase employee job performance.
Cooperate with Microsoft to develop Windows Phone 7 for Nokia Smartphone. Make limited edition for one of C-Series development. Supporting Policies 1.) 2. 2. Make cooperation with network provider to promote the new cell phones in the market. Become main sponsor for upcoming movies or international great events. for oplevel of income. Nokia “Connecting People” 30 | P a g e . (This policy acquires to increase the marketing effort and brand image of Nokia in the market. Supporting Policies 1. Create Nokia Magazine to provide information about cell phones for Nokia users. Production Department Objective Develop new cell phones with the features that can be compared with the competitor’s product.b. Maintain Symbian as the operating system for low level of income’s cell phones. A Hierarchy of Policies Corporate Strategy Develop sophisticated cell phones with the greater marketing effort. 4. 3. 3. Cooperate with Intel to develop MeeGo as the new operating system for middle to high level of income’s cell phones.
Replace the old operating system of the middle to high level income cell phones type with the new operating system – MeeGo with competitive price. Resource Allocation Strategy Plan 1. 5. 8. Decide to cooperate with Microsoft Corp. Use Windows Phone 7 as the operating system for high level income cell phone. 3. MeeGo. 2. Develop Nokia C Series base on its successful sales in the market by adding new type of Nokia C Series. to create windows phone 7 as the operating system. Use MeeGo as the operating system for middle-high level income cell phone. 4. Create Nokia Magazine to provide information about cell phones for Nokia users. Windows Phone 7) of Nokia. Simplify Nokia Messenger Application. Financial Resources Human Resources Physical Resources Technology Resources Nokia “Connecting People” 31 | P a g e . 6.c. Develop the features inside 3 Operating System (Symbian. 7.
because Nokia sell products in 3 level of income. Consonance To evaluate the strategy plans and policies. Nokia tends to be self sustaining as the market leader in cell phones market. Internet trends such as the social networking. etc. Consistency Nokia as the market leader in cell phones market. By continuing the objective in connecting people. And the positional advantage. and mostly attempted in technology resources.8. and from the beginning. The external and internal factors involve the internet connection as “Need” for customer/user in using cell phones. The main competitive advantage is the technology trends that can motivate Nokia to make technology innovations in order to get customer attentions. that is why Nokia always try to increase the performance to provide best device in the market. Advantage There is a perfect competition in the cell phones market. financial and technology resources. it is needed to set the trends in the market. Nokia consistent to its objectives to connect people. 3. improve the strategy plan depends on the external and internal factors. Feasibility The strategy plan attempted the human. EVALUATION AND CONTROL Evaluating Strategies 1. Nokia need to expand and. so it is reachable by all the targeted market. because in this case the internet connection trends. 2. So the strategy plan that is developed must support the technology in terms of internet connection. Nokia “Connecting People” 32 | P a g e . for example the innovations in operating system. STRATEGY REVIEW. 4. facebook. twitter.
Nokia needs to develop a marketing effort. not only become the market leader in entire market. or become a sponsor in the upcoming movie and a big international event. Apple. Nokia is still the market leader. but the market leader in each respective class of the targeted market. product development and market penetration. On the penetration of the market. in the middle class. For example by making Nokia magazine. Nokia compete with China cell phone. Expected to focus on strategy. There are 2 core strategy of Nokia. Nokia has a lot of tough competition. CONCLUSION Basically. Nokia compete with Samsung and Sony Ericsson. RIM. As a company engaged in the technology. Nokia “Connecting People” 33 | P a g e . Nokia can be successful in the marketplace. because the brand image of Nokia has fallen. Nokia will make a full power of being connected. Nokia needs to added value in each product. So it needs a strategy management to maintain its position as market leader of the three target markets.9. Nokia is consistent with the long-term goal of the company to connecting people. and Google Android become the main competitor Nokia. In the 3 target market. Nokia has an operating system that is outdated compared with competitors in the Smartphone category. while in the upper class (Smartphone category). but now Nokia faces a big challenge. This affects the decrease in sales of Nokia phones. In the lower classes. So Nokia could develop Nokia C-Series. In product development. the image of the Nokia brand has fallen. In essence. even in 2015. Nokia also needs to develop products with prices that can be achieved by the low-middle income level with a quality that can be compared with the Smartphone. such as C3 cell phone that has been successes in the market.
com Nokia “Connecting People” 34 | P a g e .com www.kompas.com www.okezone.com www.wikipedia.scribd.REFERENCES www.com www.vivanews.com www.nokia.
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