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A presentation on

Strategic Approach to build
Competitive Advantage by

 SHRUTHI B K [Team Leader]

What's the use of running
if you are not on the
Right Road
 German proverb
A Case Study on
Nokia’s Strategic
Approach to build
 Foot ball game - set of game plans and
regulation – reach the goal.
 Vision & Mission
 Vision Statement analysis
 A world where everyone can be connected.
 In 2015, 5 billion people always connected, and 100 fold more network traffic.
 It’s a world of experiences, shared experiences.
 Mission Statement analysis
 To guide and focus decision.
 To create a balance between competing interest of various stakeholders
 To motivate and inspire organizational members.
 Assess Nokia’s globalization strategies
 Examine and analyze the entry and
expansion strategies of Nokia in India
 Analyze Nokia’s efforts to localize its
practices in India market.
 Objective- Strategy to meet Competitive
Advantage over the opponents.
 NOKIA- connecting people…
 Nokia Corporation (Nokia),
 A global manufacturer of mobile devices.
 Headquartered in Espoo, Finland.
 Operates four business groups: Mobile Phones, Multimedia,
Enterprise Solutions and Networks.
 In 2007, Nokia sold over 111.7 million units worldwide,
marking 26% year-on-year growth.
 Nokia market in India had revenues of more than $3.5
billion in 2006.
Nokia history
 Nokia's history - 1865, southern Finland
 Engineer Fredrik Idestam successfully established a wood-pulp mill
in and started manufacturing paper.
 This attracted the Finnish Rubber Works to establish a factory in
 Nokia as their brand name. {foot ware (galoshes) tyres, rubber
bands, industrial parts and raincoats}.
 Expanding into Electronics
 After World War II, aroused a demand for power transmission and
telegraph and telephone networks.
 Finnish Rubber Works bought the majority of the Finnish Cable
Works shares.
 At this time the seeds of Nokia's global success in
telecommunications were planted.
Nokia history
The Journey into Telecommunications:

 Nokia Cable Work's Electronics department started to conduct research
into semiconductor technology in the 1960´s. This was the beginning of
Nokia’s journey into telecommunications.
 Nokia began developing the digital switch (Nokia DX 200) which
became a success.
 At the same time, new legislation allowed the Finnish
telecommunications authorities to set up a mobile network for car
phones that was connected to the public network. Nordic Mobile
Telephony (NMT) in 1981.
 New Products at 1980’s
 Digital mobile telephony was developed. GSM (Global System for
Mobile Communications)
 1991 Nokia made agreements to supply GSM networks to nine
European countries. 1997 Nokia had supplied GSM systems to 59
operators in 31 countries.
 Today, Nokia is a world leader in digital technologies, including mobile
phones, telecommunications networks, wireless data solutions and
multimedia terminals
Defining the problem
 Strategic Approaches by NOKIA to build
Competitive Advantage.

 Strategic approach?
 Scanning scenario, formulation, implementation &
controlling of strategy / plans.
 Competitive Advantage?
 Success of strategy in making Competitive actions /
moves and acknowledging its positive outcomes against
Nokia - Competitors
 Samsung
 Sony erricson
 Motorola
 LG
 Fly
 Spice
 Virgin
 Tata Indicom
 Other China Sets
Nokia in India

 Nokia's Strategy in New & Emerging Markets
 Increase mobile usage in rural areas
 Reduce the mobile phone ownership and
operating costs
 Bring the benefits of mobile telephony to people in
emerging markets
 Bring the power of the Internet to these markets
Nokia India - Tapping the
rural market
 Planning Internet-based services for the rural Indian
market [to position itself effectively in the non-urban markets].
 Services include micro-finance, distribution, agricultural
services and after sales and support services.
 Nokia's large distribution - nine language support in India
gain in the rural market. Mobile penetration stands at 6%
in 2007.
 Nokia has head start on other mobile device providers
with its programs for farmers in India - providing solutions
from information on market prices for agricultural products,
weather updates to financing options.
Nokia’s Growth
 Significant investments in research and
manufacturing facilities.
 Nokia possibly has a inventory pileup.
 Increasing sales in emerging markets, coupled with
growth in high-end phones.
 Increase its market share.
 Consumers regard phones as necessities and they
keep buying new handsets.
 moving production to lower-cost regions and to its
existing plants
Nokia - A struggling
 leader.
The macroeconomic environment deteriorated rapidly.
 Unprecedented currency volatility, credit tightness
-market slowed dramatically with huge losses.
 Can Nokia turnaround?
 Nokia -make a turnaround.

 Huge market share - lower cost per unit.

 Wide range of products - an edge over any
 The best distribution networks in the world. Nokia
can certainly capture back share in the vital high-end
devices market with new products such as it's 5800
Xpress Music (a lower priced iPhone like touchscreen
phone) and making more consumer oriented phones.
Has Nokia gained competitive

3 Assessment shows-
 Employees ability to perform routine business
processes while mobile results in improve
 Customer satisfaction, manufacturing and
 Market share, revenue growth
Learning Outcomes
 Importance of strategic approaches.
 Enhances the firm’s ability to prevent
 Emphasizes group-based decisions.
 Emphasis on productivity- reward.
relationships [company to customer].
 Importance of competitive advantage.
Summary and
 The Strategic approach by Nokia against their
competitors is very powerful in terms of R&D,
advertising, market segmentation, brand positioning,
and pricing.
 Though Nokia is a struggling market leader, it has
tapped the Indian rural market in large proportion.
 Nokia gained competitive advantage because of their
wide cost range of mobile phones and technology.
 People think Nokia is a user friendly mobile as the
phone operations are very easy.
 Nokia are still coming up with new technology to
compete in the market for upcoming generations.
4. http://management-case-
6. Module Notes on Strategic Management by Prof. G.
Thank You