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Strategic Business Plan of Nokia. This strategic report examines thoroughly Nokias current position by analysing its internal and external environment. Considering different scenarios it draws a picture for the future and suggest strategic option

Extracts from this document...

Introduction

Table of Contents A. Executive Summary 2 B. Analysis 3 I. External Analysis 3 II. Industry Analysis 6 III. Internal Analysis 10 IV. Summary 13 C. Future Situation Analysis 14 I. Future Scenarios 14 II. Change of competitive environment in the predicted scenarios......................15 III. Change in Resources 16 IV. Future SWOT 16 D. Current Organisational Direction 17 E. Identifying Strategic options 18 I. TOWS matrix 19 II. Selecting & Ranking Strategic Options 21 F. Reflection and Conclusion 26 G. Bibliography 27 A. EXECUTIVE SUMMARY Nokia Corporation (Nokia) is one of the leading manufacturers of mobile phone devices, telecom equipment and mobile application and software services. The company operates across the Asia Pacific, Europe, Latin America and North America. Its headquarters are based in Finland. Nokia's main advancements span across three segments: devices and services, Nokia Siemens Networks (NSN) and NAVTEQ. Its devices and services segment is responsible for managing, developing and designing mobile products including application and content. (Nokia Corporation, 2011) Mobile phones, smartphones and mobile computers are the core products of Nokia and service technology that includes software development and Internet services. NSN has been developed to provide mobile and fixed network infrastructure, communications and networks service platforms, as well as professional services and business solutions, to operators and service providers globally. NAVTEQ includes digital map information and related location based content and services. Currently the company had drastically changed its strategy direction, priorities, organisational structure, focus and leadership in attempt to respond to the current market trends and the changing environment and keep its dominant position in mobile phones while improving its competitiveness in the smart devices market. This strategic report examines thoroughly Nokia's current position by analysing its internal and external environment. Considering different scenarios it draws a picture for the future and suggest strategic options the company may consider in order to stay competitive in the short and long-term future. ...read more.

Middle

Strong tie with component markers (4) Nokia Siemens networks - Share assembly networks Inbound logistics (1)Suppliers for 35 countries. (2) Close co-operation (3) Industry collaboration Operation (1) Production units * Mobile devices and technology * Network technology - Focus in EU and Asia (2) Manufacturing in Asia * Skilled labor with low cost (3) Siemens's relationship with Nokia * Reduces assembly costs, since two companies shared similar assembly plants that were rarely fully utilized Outbound Logistics (1) New supply chain launched Reduce transportation cost (2) Nokia telecom park Exports to more than 50 countries Marketing and Sales (1) Advertising marketing * Segmentation (most successful): According to different level of customers, Nokia developed different applications to meet their customers. * Advertising: Nokia advertised their different levels mobiles using different styles of advertising (2) Internet marketing * Nokia established its own network company in 2007. * New network service brand called OVI in August. * Opening Online music store * Internet game though mobiles (3) Create pages on major popular social networking sites such as Facebook, Twitter. * Low cost advertising * Close relationship with customers Services (1)Set recycling points in stores for old phones, battery, component and packaging. (2)Support service on Nokia Facebook page and website (3)Provide simple solutions on the Nokia.com to tackle problems that commonly met, as well as contact details. (4)Leave messages on social networking sites pages for more specific troubles, which will be replied in a short period of time. 3. Internal Resources Analysis Physical assets * Production facilities-Global infrastructure (NA/SA/EU/EU/AS) * Symbian & Linux Operating system * Large product range of both mobile phones & Smartphones (Lumia 800) * Navteq Software Financial assets * Total assets include $49 billion Q.3 201 Human resources * New Board of directors / New leadership team * Acquired Microsoft Expertise * Employ over 100,000 staff worldwide Intellectual assets * Over 48 years of experience in the telecommunications industry * Know how to manufacture mobile devices * Future R&D and technology Reputational assets * Strength ...read more.

Conclusion

The portfolio of options includes corporate and business unit level strategies possessing different level of risk. The short-term and long - term strategies were also chosen in a way that they do not contradict but rather complete each other. 1. Short-term Options Short and medium term strategies F S A Total and Rank Strategic Option 1 : Capture the US market with new products 4 3 4 11 2nd Strategic Option 2 : Explore new opportunities by collaboration to access new markets, without which local production is impossible 5 4 3 12 1st Strategic Option 3 : Open branded stores, offering a diversified portfolios of products 2 3 3 8 3rd Option 1: Capture the US market with new products Feasibility: Penetrating the US market is very feasible option since Nokia has already the needed resources to develop new products, such as smart devices and capture a significant share of the biggest market in value. However, the success of such strategy will depend on the relations it builds with distributors and retailers and the customer perception of the brand Suitability: Developing smart devices will match the industry growth stage. However, Nokia's current strategy is primarily focused on capturing their home - European Smartphone market and increasing mobile connectivity in developing countries. The US market is often seen as saturated with high customer loyalty to competitors' brands. Acceptability: Capturing a share in the biggest in value market will certainly add value to Nokia's stakeholders. As a market penetration strategy, it is a low-risk option. However, the intense competition and the possibility of market stagnation make this strategy less acceptable. Option 2: Collaboration in emerging markets Feasibility: Due to Nokia's presence and expanding resources, new production sites, such as the facility in India and its past success in building partnership and alliances, this option is considered highly feasible. Suitability: This strategy fits Nokia's current direction and objective to 'connect the next million' (Nokia 2011). Furthermore, the option will capture the growing trend for mobile connectivity in the emerging markets. ...read more.

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