INTRODUCTION

 Finland independence was in 1917

 I think Nokia was originally in the wood sector back in the 19 th century
 The Finnish government merged with the private sector
 Prior 1990, The economy of Finland was based on natural resources due to the forests
 Like wood and paper products
 Dr I think Nokia was always present in the corporate sector bes the turning point was
the merging or joint ventures I don’t know how to call it
 Telecommunication was never monopolized by the government
 Attracted foreign investors from foreign markets
 Soviet Union was an important market for the Finnish government
 Nokia was founded in Finland in 1865
 In 1967, Nokia merged with another telecommunication corporation
 NMT (Nordic Mobile Telecommunication) was created in 1981
 Nokia’s essential innovation is the roaming technology
 Allowing customers to communicate across the borders
 Raised standards of technology and started operating in other countries
 Expand the market globally
 Helped the Finnish economy to flourish and became the largest company in the country

Dr can we add the idea enno Nokia build a sort of organizational culture aw hatta a brand
image, due to their good products
The case is about strategy and competition, we should conduct external and internal analysis
with a strategic planning

PROBLEM
  In the 90s, Finland reached an economic crisis due to the collapse of the SOVIET union
(Collapse of Berlin wall)
 GDP fell, Unemployment problems, shortage of skilled labors, slowdown of
telecommunications
 The country shifted from investment driven economy to innovation driven economy
 NOKIA biggest competitors: Blackberry and Motorola
 Has to sustain success and growth

ALTERNATIVES
 Macroeconomic policies. Stabilize the increasing tax rates
 Gov. expenditures were reduced (By 10%) of the GDP in order to cover deficit of years
 Stabilize inflation (2% in 1995 I think)

IDEAS CLUSTER
 In the Research and Development sector, a cluster approach was introduced.
 All activities of the government have an impact on the national competition
 Cluster emphasized on technology and education
 Increased focus on R&D and skilled labor
 Increase higher institutions
 In 1995, Finland was member of the European Union
 Helped, to export electronics and telecommunications
 Nokia became the leading export sector
 In 1999, GDP of Finland increased to 5%, 1% was a contribution by Nokia
 CLUSTER GOAL: Improve the Finnish competitiveness
 Private public partnership
 R&D focused on technology and telecoms
SWOT ANALYSIS

Strengths
 Majority of the market share in telecommunication
 The innovative design and creativity of the product
 One of the pioneers, so strong history and brand name
 Broad product line and variety of products
 Increased demand and supply for skilled labor
Weaknesses
 Severe loss in the 80s because of wrong investments in electronics
 Improper forecasting
 Not open to licensing
 Inflation

Opportunities
 Should continue to improve the competitive advantage and constant innovation
 Should build a presence in the smartphone market
 Potentially, new markets
 Increased focus on Research and Development
 Going beyond EU (Globally)

Threats
 Big competitors (Blackberry, Motorola, Apple)
 Customers are changing their tastes and preferences (due to the popularity of brands
such as Apple or Samsung)
 Competition from other countries

NOKIA WAY
 Highly skilled work force
  Broad market (different customers and different needs)
 Focus on the R&D
 International operations
 Ahead from competitors
STRATEGY
 Focus on high potential countries such as Asia and third world countries

Porter’s Diamond: Finland/Nokia

Factor conditions:
 Sophisticated university and education programs
 Very stable society
 National competitive strategy
 Innovative Industry

Related and supportive industries

 Telecom cluster with more than 4000 firms
 Many R&D centers and highest R&D spending in Europe
 Local supply for highly customized inputs

Demand conditions
Dr, I think the turning point yalli khalla el demand to augment is the European market, not only
the finnish demand market
 Finland is a member of the European market, which will augment the demand in theory
 NMT created the world’s largest single mobile market
 Mobile phone is a “national symbol”
 Very string mobile competition

Firm Strategy
  Finnish telecom was not monopolized by the government
 Serve distinct customer needs
 Open market

Government
 Very stable
 Initiative to improve the economy

So many firms/ operators due to past depency

Long term strategies focused on technology excellence
They had the infrastructure for the cluster
Nokia took the advantage
Competitive market
Having the right human resources policies