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Nokia - Strategy Analysis

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by

Maha Khan

on 11 March 2013

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Transcript of Nokia - Strategy Analysis

NOKIA Connecting People NOKIA EXTERNAL ENVIRONMENT ANALYSIS INTERNAL ENVIRONMENT ANALYSIS STRATEGIES CONCLUDING ENVIRONMENTAL ANALYSIS RECOMMENDATION Current and Future
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

Competitors

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
Parham Abuhamzeh
Philipp Man
Samawal Elobeid
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

Realistic?

"Pureview" cameras

Complementary
Full transcript