strategic management of nokia

8/2/2019 Strategic Management of Nokia

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Strategic Management of NokiaIt may be based in Finland but Nokia has its branches everywhere around the

world. Nokia has shiftedit production plants to India and china to cut its

production cost.

Financial resources:The Financial resources of Nokia have received a blow by today’smarket by a

huge margin which can be seen in the first quarter report of 2009 as compared

year 2008.It’s a dramatic down fall from 12 660 million EUR to 9 274 millionEUR.

[6]Intangible resources:

Nokia has many trademarks which are worth a lot.

Nokia has a verystrong name among hi s compet itor s an d loyal

customers. Nokia as a brand is the trend setter in themobile industry.

2.Boston matrix:

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Strategic Management of Nokia

“It’s a management technique developed by

Bruce Henderson forBoston ConsultingGroup in 1970 for assessing the long-term viability or

profitability of products and marketsectors. Categories include cash cows, dogs,

stars, problem child or a question mark companies.” [1]Problem Child/Question mark:

When a new product is launched in a promising market but it has a low market

share but got potential to be a Star then a Cash cow or if everything fails itcould

become a Dog. In Nokia’s case its latest product from N-series Smartphone N96is struggling toget the market share like its predecessor N95 Smartphone.

Cash Cow:

When a certain product’s market matures and its demand slows but it has alargemarket share is known as Cash Cow. Nokia has many products that reached theirmaturity anddied away in recent days its high end Smartphone N95 reached its

market demand and is slowly dyingaway because new technology is introduced

every day.Star:

It’s a new product when launched has a high market response and its sales

rise.Companies like Nokia are in a search of new products which can be turned



into stars and they investmoney in Problem Child and Dogs to turn them in to a

Star and then hope to turn them in to CashCow.Dog:

A Dog is a product new or old market shares and sales decline very

fast . In mobi le industry technology changes very drastically so even a Star with

bad strategy and marketing can beturned in to a Dog just as easy.3.

Core C ompetencies

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Competencies of a company are things that are hard to imitate like customer

loyalty etc.These Core Competencies change from time to time. In today’s marketwhere every company is in alose Nokia is thinking of new ways to get an edge on

its competitors by introducing new services and products that are harder to imitate

and trying to give most for consumers money.

SWOT Analysis:Strengths:

1.Nokia has largest network of distribution and selling as compared

to othe r mobi le phon ecompany in the world.2.The fina ncia l aspec t isvery str ong i n case of Nokia as it has many mo re profi table businesses.

3.

The product being user friendly and have all the accessories one want.4.

Nokia with wide range of products for all classes.5.The re-sell value of

Nokia phones are high compa re d to other company’s product.

Weakness:

1 .S o m e o f t h e p r o d u c t s a r e n o t u s e r f r i e n d l y .2 .S ome of t heweakness includes the price of the product offered by the

comp an y.3 .No k i a d o e s n o t l i k e t o a d o p t c h a n g e v e r y q u i c k l y .4.

The service canters in third world countries are very few.

Opportunity:1.Nokia is also thinking of moving from mobile manufacture to

personal computer manufacture.2.As the standard of living in third

world countries has i ncreased the pu rchasing power of the people has

increased as well3.Nokia has to target right customer at right time togain the most out of the situation.

Threats:

1.The threats like emerging of other mobile companies in the market.

2.The new mobile operating systems from Google and Microsoft.

3.

The biggest threat is not adopting new technology and putting in good use.9Waqas Asif ID: 36076

Strategic Management of Nokia

Conclusion:

After writing this article I came to a conclusion that in any business

successful or a newlyestablished if not managed well and cannot takeadvantage of its opportunities can come to its knees.So for a business to run

successfully have to manage its Competitors and threats that may affect

the performance of a business

strategic management of nokia

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