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Nokia - Strategy Analysis
Transcript of Nokia - Strategy Analysis
Business-Level Strategy Assessment
Slumping market share in profits – due to lack of focus
”Connecting People” – too ambiguous? Changing product market – from mobile phones to information providing smartphones
Increasing consumer demand for cheap internet access
Global urbanization & development
Leverage global reach and face opportunities 1. Price-Leadership
2. Differentiation Focus IMPLEMENTATION ISSUES Macroenvironment Economy - stabilizing?
Social - icon vs usage
Technological - heavy R&D investment MICROENVIRONMENT Growing industry
Consumer behaviour Nokia's Proposed Smartphone Line-Up We recommend a focus on two market segments: 1. The high end of the smartphone sector
2. Low cost products for emerging markets
For each segment Nokia should create only one device Low cost
Outstanding Value On par with market leaders (iPhone and Galaxy S)
Go-to device for Windows Phone ecosystem Reasons 1. Smartphones will shift to mainly serve as a way to access "ecosystems". Thus devices need to be standardised (e.g. iPhone)
2. Focus on two models only allows developing far better products
3. Higher volumes of fewer models allow decreasing production cost Ludwig Wurlitzer
Maha Khan Future? Focused core smartphone business model
Further focus on emerging growth markets and new internet consumer
Intensifying Microsoft Windows partnership to extract synergy Inability to catch up with Apple iPhone and Samsung Galaxy S
Choosing the right marketing
Difficulty of adapting company structure to radical strategy Lumia versus Galaxy S/BB10/ iPhone
"The next big thing" Price Leadership Differentiation High differentiation -premium pricing