STRATEGIC REPORT

Strategic Report



Table of Contents

Introduction3

Environmental Analysis4

BCG Matrix4

Star4

Cow4

Question Mark4

Dog5

Ansoff Matrix5

Market penetration5

Product Development6

Market Development6

Diversification6

PEST analysis7

Political factor7

Economic factor7

Social factor8

Technological Factor8

SWOT Analysis8

Strengths8

Weaknesses8

Opportunities9

Threats9

Recommendation on strategic Direction9

Short, medium and long term strategies10

Long-term strategy10

Short-term strategy10

Medium strategy10

Feasibility of Chosen Strategy11

Conclusion12

Strategic Report

Introduction

The company I have opted out of handset manufacturers is Nokia. It is because of their recent fall in the global market as they are struggling to gain market acceptance. Technological industry is considered to be the one that is characterized by highest innovation clock speed. It is this feature that prompts the players operating in the market to continuously undertake analytical processes and review their processes so as to highlight the areas of improvement and work upon them. 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. The firms that fail to suffice this pressure usually suffer from declining market acceptance and growth as depicted by Nokia. The geographical area selected for the purpose of this project is China, which is an emerging market and one of the most strategic areas for Nokia; being accountable for 21% of the total net sales, thereby following none but Europe contributing around 36% to the net sales of around US$ 14,000 million.

Environmental Analysis

BCG Matrix

According to BCG matrix, Nokia stands in the cow region, it means that Nokia's new product development can produce more profit and cash and aim to capture more share in market of china (industry) (Seb, 2011, p9).

Star

The star present in Quadrant I shows Nokia's best prospects for future growth and productivity in the long term investment to keep strengthen their position in a competitive market (PR, 2012, p55).

Cow

Divisions located in Quadrant III have a relatively large part of the market, but competing in an industry with low growth in order to compete, Nokia should generate more profits than they required. Nokia's cash cows should manage and retain their position in market as long as possible.

Question Mark

Question Mark located in Quadrant II engage a position in the market that shows a small divison, but participate in a high growth industry. Nokia need a lot of money, but generate little cash, because Nokia has to decide whether reinforced through an rigorous strategy (market penetration, market development or product development) or advertisements (PR, 2012, p55).

Dog

It combines low market share by the company, with a stagnant market or full decline. These products are in the last stage of the life cycle generally. For Nokia, it may be profitable to participate in this state

Fig 1: BCG Matrix

Ansoff Matrix

According to the Ansoff matrix, Nokia will seek to launch a new innovative product for the county of China in order to fulfill the needs of consumers. The matrix assumes that the growth potential of Nokia is determined by its situation on the existing market and by future ...