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Nokia marketing strategy

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Introduction

Executive Summary Owing to the complicated and dynamic environment, Nokia faces many strengths, weaknesses, opportunities, and threats. This report is to seek for the optimal strategy of Nokia. Firstly, the key strategic issues Nokia is facing today is identified to be economy, technology, leading brand, scale, and number one market position based on the strategy analysis in Task A. Secondly, the grand strategy that Nokia should adopt is analyzed to be intensive growth strategy, and in details, the strategy options of Nokia today is illustrated to be cost leadership, differentiation, and focus strategy. Among which Nokia should choose a combination of the cost leadership and differentiation strategy according to its strong assets, low fixed cost, and high research ability. Finally, I have learned a lot in this module. Leadership is very important for an organization, and a number of qualities are required to be a leader such as knowledgeable, full of creativity, having a far-sight vision, possessing many abilities, dealing with crisis situations wisely and so on. Sometimes, leaders will fail because of autarchy, and actuation. Table of contents Executive Summary 1 1. Introduction 3 2. Key Strategic Issues Face Nokia 4 3. Strategic Options 5 3.1 The Grand Strategy of Nokia 5 3.2 Competitive generic strategies 5 3.2.1 Cost leadership Strategy 5 3.2.2 Differentiation Strategy 6 3.2.3 Focus Strategy 7 3.3 Optimal Strategy 7 4. ...read more.

Middle

So it's rather easy for a customer to purchase another brand of mobile phone only for a lower price. Economics of scale means when Nokia expand its produce capacity, the unit cost of mobile phones will decrease. And with limits, Nokia can reduce its cost if it produces more. One of the risk of adopting a cost leadership strategy maybe the imitation of competitors which lead to a price campaign and lower the profitable ability for the whole market. And the change of technology can dissipate the low cost advantage. 3.2.2 Differentiation Strategy Differentiation strategy means providing different products or services from competitors to obtain competitive advantages focused on massive market. Modern telecoms market is changing change faster, grows up quicker, and compete fiercer than most other markets. So it is rather important to maintain competitive by keeping up to date and focus on innovation. The marketplace is changing all the time and the traditional mobile device industry is involved with internet services, therefore, the products and services Nokia provides should be totally change (People management, 2008). Seeing this trend, Nokia merged with Nokia Siemens Networks. Nokia is the leading brand in mobile telecommunication industry, and its quality and technology is acknowledged by consumers all over the world, thus the different product can be accepted easily. Besides, Nokia has a strong research and development capability supported by the Nokia Research Center which makes the differentiation possible. ...read more.

Conclusion

At least, I realized to be a good leader, knowledge and confidence is required. And democracy is needed in order to avoid making wrong decisions. Be nice to subordinate will inspire them to dedicate them to work. 5. Conclusion From the analysis of Nokia case above, it can be concluded that economic factor, technology, leading brand, scale and number one market position are the key strategic issues face Nokia today. The grand strategy that Nokia should adopt is intensive growth strategy. In details, among the three strategy options as cost leadership, differentiation, focus, Nokia should choose a combine of the cost leadership and differentiation strategy according to its strong assets, low fixed cost, and high research ability. I have gained a lot in the module. Not only did I realize what calls for to be a leader, but also get the idea of the importance of leadership to a company. Reference (Annual account, 2007) Available at: http://media.corporate-ir.net/media_files/irol/10/107224/reports/Nokia_in_2007.pdf (Accessed: 5 December 2008) (Exercises with stock options of Nokia Corporation, 2008) Available at: http://www.nokia.com/A4136001?newsid=1273771 (Accessed: 5 December 2008) Lynch, R. (2003), Corporate Strategy, 3rd ed., Prentice Hall Financial Times. (Nokia Capital Markets Day, 2008) Available at: http://www.nokia.com/A4136001?newsid=1275151 (Accessed: 6 December 2008) (Nokia'strategy, 2008) Available at: http://www.nokia.com/A4425426 (Accessed: 6 December 2008). Northouse, P.G (2007) Leadership Theory and Practice.Sage Publications Porter, M. E. (1980), Competitive Strategy, The Free Press, New York. Porter, M. E. (1985), Competitive Advantage, The Free Press, New York. (People management, 2008) Available at: http://wf2dnvr9.webfeat.org/u9s8L12212/url=http://content.ebscohost.com/pdf9/pdf/2008/1QM/17Apr08/32024762.pdf?T=P&P=AN&K=32024762&EbscoContent=dGJyMNHr7ESeprU4wtvhOLCmrlCepq9Sr6m4S7WWxWXSAAAA&ContentCustomer=&S=R&D=buh (Accessed: 6 December 2008). (Upcoming innovation, 2008) Available at: http://www.nokia.com/A41223293 (Accessed: 6 December 2008). ?? ?? ?? ?? 1 ...read more.

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