NOKIA GLOBAL PRACTICES

Nokia Global Practices



Nokia Global Practices

Introduction

Today, more people own a mobile phone than a computer and there is good a chance the phone is made by Nokia. This paper examines the critical success factors of a truly successful global brand and the driving force behind global imperative, using Nokia as a case study. the paper also discusses the Nokia's entry to market of Asia.

A company's brand or portfolio of its brands is its most valuable asset. Because of this, organizations are encouraged to make brands their central guiding principle, which guides every decision and every action. The promise of a brand provides the structure that creates and focuses the brand impressions towards an emotional connection between the brand and the targeted buyer. In this sense, a brand is more than a mark of quality. The equity of a brand has to be something a consumer finds inspirational with the result of a strong attitudinal bond with the brand. The challenge, therefore, of global firms is to maximize the potential of the brand to create this attitudinal bond with the brand across countries and cultures on a profitable basis.

Environment Analysis for the Asian Market

Porter's Five Force Model for Asian Market

Dr. Michael Porter of Harvard University had developed the Five Forces Model which serves as the structure for observing and examining the competition that exceeds the technology, industries and the management approaches. The basic principles of the competition exceed the particular ways in which the individual companies go about competing (i.e. Strengths Weaknesses-Opportunities-Threats (SWOT) analysis; the 4P's of marketing: product, price, place, promotion). The underpinning of this framework is the analysis of the five competitive forces acting upon an industry and their strategic implication.

These are some competitive strategies out of many which are very effective such as:

Industrial structure model and competitive strategy

Strategic position and Generic strategy for competitive advantage

Resource base strategy

Blue ocean strategy

Many scholars have discussed about the famous Porter model (five competitive strategy), which involves organization five forces that influence the competition of an industry. The forces include:

Barriers of new entrants.

Bargaining power of firm's suppliers

Bargaining power of firm's customers

Threat of substitutes

Threat of rivalry.

Figure 2: Porter's Five Force Model

The elements in the Porter's five force model are described, in terms of the competitive advantage in the industry below:

Barriers to Entry

These are factors that discourage or disqualify new comers from entering into an industry; the level of profitability in that industry tends to be high as a result of lesser competitors. Six main barriers to entry:

Economies of scale either in production distribution or research and development.

Product differentiation building up a new brand name may be very expensive

Switching costs buyers may have to scrap existing equipment or methods of operation to use a new product

Access to distribution channel the new comer must persuade or provide an incentive to the distributor to handle the product before he can reach the final customer

Cost advantage of established producers this may consist of established know how partly written off capital assets, or ...