NOKIA- The Creation of New Markets By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade. In 1990, Nokia Mobile Phones (NMP) was the smallest of the five business divisions of Nokia, with annual sales of $500 million and 3,051 employees. Jorma Olilla, the new president of NMP, in the same year led the division to become the world's second largest manufacturer of mobile telephones after Motorola in just a year and half later. Motorola and NEC, the close third competitor, were the dominant players with a combined 33 percent global market share, compared with NMP's share of 13 percent. During this period, the main customers of mobile phones were business users who could afford the high prices. The everyday consumers were not overly attracted by these high prices and limited functional phones. Despite these limitations, the cellular market was growing rapidly, which brought more Asian producers into the competition. To make the matter worse, there was much proprietary technology and equipment required for analog standards around the globe. The emergence of digital technology provided a hope for a uniform communication standard. As a result, NMP had to make a difficult decision regarding which technology to commit significant resources to. Nokia focused on building and sustaining its current competency in the early 1990s. NMP created valuable alliances across the industry and made key acquisitions to increase economies of scale, market share, and access to R&D resources. The management believed in the growing acceptance of digital technology as the uniform communication standard in the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further the development of a digital telephone and network.
Iridium, a satellite mobile system which cost $5 billion to build, began to provide commercial telephone service on November 1 1998. This paper aims to use the Iridium Project, which I have participated at Motorola before, to illustrate the incremental benefits and the pitfalls from creating competitive advantage through technology and activity system.
The Wisson company policy stated “Personal payments, bribes or kickbacks to customers or suppliers or the receipt of kickbacks, bribes or personal payments by employees are absolutely prohibited”. (p.564) Dealing with employee ethics company policy this is where I would clearly start first. I have found during the course of this case study several facts that Valerie Young was faced with. While going to make photocopies she discovered her bosses personal companies document revealing commissioning and fees totaling $35,000 per month. Valerie also struggled with revealing her discovery with corporate headquarters, while justifying her own values to protect herself and fellow colleagues. Lionel Waters’ personal greed leads to wrongful business
McCracken, H. (2011, March 20). A Brief History of the Rise and Fall of Telephone Competition in the US, 1982-2011. Retrieved from http://technologizer.com/2011/03/20/att-buys-t-mobile/
There are a large number of competitors present in Smartphone industry serving to lower income group to niche segment consumers. Life of a product in this industry has reduced to a large extent relying largely on R&D to match with the emerging trends. The price of a Smartphone is decreasing whereas the purchasing power of buyer is increasing. There is also huge competition between Ios, Windows, and Android at the OS
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
Tektronix was a business that was founded in 1946 and they specialized in electronic test equipment. They decided to expand into a manufacturing electronic tools and devices. Tektronix held a success rate of over 50 years. However, in 1993 we see that Tektronix would come into a global challenge. Tektronix wanted to compete globally and found that they were not equipped at this time. This lead Tektronix to branch into three separate divisions. The first was the measurements of the business division, second the color printing and imaging division and finally video and networking divisions. Tektronix is a leader and has a presence in over 60 countries. What Tektronix had to figure out was a new process and was hoping to achieve an enterprise
This paper will analyse Blackberry’s current strategy and the challenges facing the company and will conclude with a recommended guideline for a new Strategy. The approach will follow the path highlighted on the Strategic Management Process depicted below (Adopted from http://www.planning-strategy.com/):
In today’s current economic state, the likelihood of a company entering into a global market is inevitable. Multinational corporations (MNCs) such as Vodafone are required to standardise their Research & Development activities throughout the world in order to penetrate the market. This is achieved by obtaining new technological opportunities, such as the most up-to-date phones, thus maintaining a competitive driver in the market.
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
The following report presents an Integrated Marketing Plan for Nokia in the UK. The plan deals with media planning, segmentation, strategic and tactic planning of IMC, evaluation and such. The main aim of this plan is to expand Nokia’s consumer base, establish Nokia’s brand values and position it among the target audience, and also communicate the brand values with customers effectively, while simultaneously influencing sales to grow. This plan is created to ensure maximum effectiveness in Nokia’s marketing approach. The main aim of this plan is to assist Nokia in their IMC activities in the UK.
Nokia is a well-known company in the technology industry, their goal like most companies is to find new opportunities of growth. In the 1990s, Nokia changed the process of the company to a new direction. They wanted to involve the entire company by creating an inclusive system that focuses on strategy innovation (Dryer & Gregersen, 2009) According to ‘textbook’, “As Chris Jackson, former head of strategy development at Nokia, put it, “By engaging more people, the ability to implement strategy becomes more viable.”” (Dryer & Gregersen, 2009, pg 155). It took team work, time, and strategy for Nokia to decide what type of company they wanted to become. Nokia created an
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
Nokia is continuing to innovate new products and rebuild their brand. In present times Nokia is still in a complicated situation as Sead Fadilpašić puts it., In the article “Nokia – Phones relationship status: It’s complicated”, Fadilpašić discusses the problems Nokia may face in 2016, he states, “The Helsinki-based company said it hopes to come back to designing and providing mobile phone technology, but it needs a partner which would manufacture, market and sell the devices.”, this means that at this point no one is willing to back their ideas, therefore putting them in a difficult situation disabling them to grow their brand. Nokia is still fighting to stay alive, in the end they will have to continue to be innovative and find supporters that believe in their brand.
Nokia Corporation is a leading mobile communications company, which provides telecommunications hardware, software and professional services (Nokia, 2014). There are three businesses, including Devices & Services, HERE (formerly Location & Commerce) and Nokia Siemens Networks, and four operational and reportable divisions, including Smart Devices and Mobile Phones within the Devices & Services business (HERE) and Nokia Siemens Networks (Nokia Siemens Networks, 2012). Nokia’s main activities include technology research, product development, product management, sales and marketing, production of 1. Mobile devices 2. Map and location-based services 3. Infrastructure equipment and products, and strategic sourcing and partnering (Nokia Siemens Networks, 2012).
Without a successful business strategy put in place the company would fail and be unable to compete with competitors. There would be on way of knowing what resources are required. No planning for the future of the business. If there are no targets set out to achieve there would be no way of measuring how successful the company has been.