NOKIA

Strategic Report on Nokia

Strategic Report on Nokia

Nokia is the company that I have chosen form the brands available in the industry of mobile phone manufacturers. Nokia is basically a Finnish company which was established in 1865.The reason behind choosing this company is their steep fall in the global market with them now struggling to gain market acceptance and the market share that they enjoyed before. Technological industry is characterized by highest innovation clock speed. It is this feature that positions certain companies as a leader in the industry. Technological advancement is constantly introducing changes in the market in the form of enhanced features and the competition in the market is becoming intense; resulting in the low cost offering of those attributes. It was only this reason that prompted the first CEO of Nokia, Kari Kairamo, to focus their resources on telecommunications sector and expand beyond Finland into European market. The geographical area selected for the purpose of this project is Asia, which is an emerging market and one of the most strategic areas for Nokia; being accountable for 21% of the total net sales.

The fall of Nokia started to come and took toll in the period when it was basically at a standstill. This is somewhat conflicting seeing that they have always remain active and let the market feel it through their constant introduction of newer phones at regular intervals. But yet the company was at standstill from the viewpoint of innovation and uniqueness. Competition though prompted Kari Kairamo to focus their entire resources onto the telecommunications sector for the concentration it needed, yet the employees of Nokia failed to embrace the same proactive approach. Despite the evidence that their selling point has now become commercial, they did not signify any change in track. The values on which a company is formed cannot be shunned in an instance, but they are required to be modified so as to comply with the dynamics of the environment and to ensure the profitability. This is the key that Nokia overlooked as a consequence of which it no more enjoys the same reputation it used to.

Nokia's need for innovation and design is a major issue that is required to be catered. This attribute comes on the top since customer gets attracted by the looks of the phone; the specifications are secondary and they are subjected to the style and designing of the phone. If style and designing is not approved, it is seen that customer does not advance to consider any other feature.

These loopholes are the major feature that the customer looks for while buying a mobile; and Nokia being scoring low on these features and still selling their set at much higher price than any other competitor brand explains their loss in the industry.

The strategic direction thus Nokia is required to take is to broaden their concentration on mobile phones segment, since other methods of telecommunication are fast becoming obsolete and that time in future is not far when entire communication ...