Nokia Change Management

JAAFAR Zakaria
Majeure IAI | Ingénieur d'affaires internationales
TAOUAF Hichem
 Our process is easy

The company Environment Perception

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 1.
The company : Nokia
“We didn't do anything wrong, but somehow, we lost.“
- Stephan Elop, ex-CEO of Nokia

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 Presentation

Nokia is a Finnish telecommunications giant

By 1998, Nokia had become the best-selling mobile

phone brand in the world

In 2007, Nokia experienced a turning point

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Key business units

Mobile Networks

Network Infrastructure
Nokia operates in more than 100 countries
worldwide Cloud and Network Services

Nokia Technologies

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Key resources and capabilities

Brand name recognized worldwide

for its reliability, durability, and
innovation

Nokia's R&D facilities are among the

best in the industry

Nokia's capabilities are the skills,

expertise, and competencies that the
company has developed over the
years

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A competitive advantage

The mobile phone industry is highly competitive …

…charge premium prices for its products and protect its intellectual property

Nokia invested heavily in R&D to develop new products and technologies

Nokia's manufacturing infrastructure = produce phones efficiently and cost-effectively

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Company's international activity

Focus on expanding its presence in emerging markets

Over the past five Maintaining its position in developed markets
or ten years …
Diversifying its product portfolio

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 International expansion strategies & effectiveness

Local knowledge and expertise

Research and development centers have helped it better

understand local consumer needs and preferences

Faced stiff competition from rivals such as Apple and

Samsung

Political and economic instability

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 Global footprint

41% of net sales 28% of net sales

Diversify its revenue streams and reduce its reliance on any one market

The company has faced challenges related to :

Access a wider pool of talent and resources Currency fluctuations, political instability, and economic downturns in some
markets
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 2.
Environment
Market analysis

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Market analysis - PESTEL

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 Key players Telecommunication Industry

Strengths: Strong customer relationships, global reach, and technological

expertise. Significant investments in 5G research and development.
Weaknesses: Intense competition requiring continuous innovation to maintain
market position.

Strengths: Vertical integration with hardware and software development

capabilities. Extensive product portfolio and strong brand recognition.
Weaknesses: Challenges in penetrating markets with established players
having a stronger presence.

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 Internal environment 1/2

Organizational Culture
Values innovation, collaboration, and customer-centricity.
Fosters a culture of continuous learning and ownership.
Emphasizes agility to respond to market changes.

Organizational Structure
Evolved structure to align with strategic focus.
Operates through multiple business units for product lines and regions.
Enables decentralized decision-making and a customer-centric approach.

Processes and Operations

Focuses on operational excellence and efficient production.
Robust R&D processes for new product development.
Emphasizes continuous improvement through agile methodologies.
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 Internal environment 2/2

Human Resources
Invests in talent acquisition, development, and retention.
Encourages diversity and inclusivity within the workforce.
Offers training programs to enhance employee skills

Strengths
Strong reputation for technological expertise and innovation.
Extensive intellectual property, R&D capabilities, and patent portfolio.
Global reach and established customer relationships.

Weaknesses
Challenges in adapting to market changes
Restructuring efforts underway to address weaknesses

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 Nokia's Strengths and Weaknesses Assessment
Strengths
• Technological expertise in 5G and cloud
services.
• Extensive patents for competitive
advantage and licensing revenue.
• Strong global presence with established
customer relationships.
• Robust R&D capabilities for continuous
innovation.
Weaknesses
• Past challenges in mobile phone
business affected brand reputation
and market share.
• Fluctuating market share and strong
competition in networking
equipment.
• Limited adaptability to market
changes and industry trends.
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 External environmental analysis

Economic : GDP, consumer spending, and currency exchange rates impact demand for telecom
equipment.

Political : Regulations, policies, and trade agreements affect Nokia's operations and market access.

Social : Mobile adoption, digital lifestyles, and attitudes toward technology impact Nokia.

Technological : Advancements in 5G, IoT, AI, and cloud computing present opportunities and
challenges.

Environmental : Sustainability and regulations shape market expectations for Nokia.

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 Opportunities/Threats
Opportunities
• 5G Network Deployments: Expand in
global 5G market.
• Digital Transformation Initiatives:
Support industries' digitalization efforts.
• Emerging Market Expansion: Explore
growing markets in Asia, Africa, and Latin
America.
• Partnerships and Alliances: Collaborate
with technology companies.
Threats
• Intense Competition: Competitors
challenge market share.
• Geopolitical Factors: Political
decisions impact operations.
• Technological Disruption: Adapt to
industry changes.
• Changing Customer Preferences
and Industry Dynamics: Respond to
evolving needs and trends.
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 3.
Perception
Market entry strategies & Future perspectives

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 Nokia’s market entry strategy

Direct Investment: Establish local presence for tailored operations.

Strategic Partnerships and Alliances: Collaborate to enhance market presence.

Licensing and Technology Transfer: Leverage local partners for quick market entry.

Joint Ventures and Collaborative Projects: Pool resources for market diversification.

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Company's international activity

Continue to focus on expanding its presence in emerging markets

Nokia's future
Continue to invest in research and development to drive
success will innovation and differentiate itself from competitors
depend on its
Focus on partnerships and collaborations to expand its reach and
ability to… capabilities

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 Conclusion

Once a leader in the mobile phone

industry

Failure to adapt to changing market

trends and competition

Nokia has the resources and capabilities

to regain its position as a leader in the
mobile phone industry

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Final recommendations for the company's international
strategy
1. Focus on innovation and product development to meet changing consumer needs and
stay competitive in the market.

2. Strengthen Nokia's presence in emerging markets, where there is high demand for mobile
phones and communication services.

3. Consider restructuring the organization to improve communication and decision-making,

which can help Nokia adapt to changing market trends more effectively.

4. Strengthen partnerships with other companies to improve Nokia's market position and
increase its market share.

5. Use methods such as participation, facilitation, and negotiation in the change management
plan instead of manipulation and coercion to improve the effectiveness of the plan.
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