TD 1 NOKIA

Case study: “NOKIA”

II – Introduce Nokia. Nokia tries to enable ppl all over the world to communicate. To become the main player of the market

Values: voir page 2

The strategy of Nokia: developing globalization, focusing on innovation by investing on R&D and internationalization

III-

1. The main reasons why Nokia has been transformed to become a major global force in telecommunication in a relatively short period of time are that, according to the estimation mentioned in the text, the liberation of the world telecommunications market will lead to international phone charges falling by 80%. In addition, customers’ lifestyles will be evolving, Nokia has to adapt itself, they must think beyond their domestic market.

Anticipation of the new market tendency (telecommunication)

1. In order to become the leader of telecommunication. Investing a lot in R&D might be dangerous as it might be efficient.
2. It’s important to stress valuing diversity to remain competitive in all points. Diversity offers new sources of income
3. .
4. We think these choice makes sense. We must bear in mind that Nokia’s main mission is to enable ppl to communicate all over the world. Thus, Nokia 9000 comes perfectly in handy regarding its features
5. Nokia failed. It lost its competitive advantage because they didn’t evolve as fast as their consumer’s needs

III-

1. R&D (innovative, had higher quality) and internationalization are the inside factors. High increase in telecommunication services, accessibility of Nokia around the global (Nokia was present around every country). In terms of challenges, differentiation in the future. Nokia has focuses on the hardware part, because Nokia was the producer, it focused too much on the hardware and not the software, that’s why after the end of 2000, Nokia was dead.
2. Invest in R&D: Make competitive advantage. The company needs to adapt the change of the new environment, find out new trends (reach innovation). R&D must focus on consumers’ needs, most project coming from there isn’t focused on that
3. Reach adaptability, understand all needs => mirror it in your product. The values create culture of the company, can help to achieve competitive advantage. Nokia focuses on these values to gain new cultures to reach CA towards competitors
4. Enabling to connect ppl around the world (must reach a wider range of consumer) so they need to internationalize. That’s why Nokia globalize.
5. Maybe yes (because it answers its mission, Nokia reaches wider range of consumer all over the world, they understand their customer’s needs, it produces mobile phones, with different prices, qualities, to answer all the consumer groups) and maybe no they couldn’t create a sustainable CA.
6.  After decades, companies attacked Nokia, it lost its marker chair. Nokia couldn’t create a sustainable competitive advantage. Over time, it lost advantage. All the outcome of the R&D are not good consumer’s, they need something more different that’s why Nokia has lost its CA. Apple and Android answers the right reponds to the need of the consumer’s (which Nokia couldn’t)

...