Case
strategy case nokia questions
- Course
- Institution
nokia questions strategy premaster UVT
[Show more]
Seller
Follow
ayra1999
Reviews received
Content preview
Case Nokia – Week 10 Strategic management1. Determine the business level strategy(‘s) that Nokia has used over the years
and determine if the implementation of that strategy was optimal. Think along
the lines of structure and controls. Your answer might differ over the years.
The traditional strategy of Nokia is based on maintaining a large market share and
the economies of scale which both accompany and support such a share (pg. 9). The
business level strategy belonging to this is product differentiation. As is stated on
page 9, the company should have been focusing on higher margins (cost
leadership) earlier, as they might be losing scale advantages at the end of 2007.
Thus, the implementation of the traditional strategy lumbered somewhat in the late
2000s. Experts in the field recommended Nokia to raise prices and rebuild its brand
by relying more on external suppliers. As the scale advantages could turn into a
vulnerability for Nokia.
Nokia underwent an internal reorganization in 2003, which reorganized the company
in a functional structure, creating separate units for mass-market, business, and
multimedia phones. Nevertheless, this made the company lose focus of their
strategic objectives. In 2003 the company adjusted its portfolio and adapted to the
market by cutting prices on selected handsets to reclaim market share (which can be
attributed as a cost leadership strategy).
After this gaining of market share, Nokia bounced back and wanted to focus again on
operational excellence (or product differentiation) by exploiting its in-house
production and reacting quickly to customer demand.
Business level strategy Year Implementation
Product differentiation Throughout Quite successful in the beginning but loses
different years some of its effectiveness at the end of 2007.
Cost leadership strategy 2003 A short period in which Nokia cuts prices to
gain market share
Product differentiation After 2003 back Exploit in-house production and reacting
quickly to customer demand. Also during the
takeover, the company focused on niche
markets and operational excellence within
these markets.
CLS: two ways of looking at it
- Portfolio view (Rumelt, single product count etc.)
- Individual moves
Nokia is a serial diversifier. They reshaped their organization, but first got rid of the
old. They were the hardware phone manufacturer, but now go into 5G. You can also
name this horizontal expansion. Serial diversification was not discussed in class, but
this is the way you would call this strategy of Nokia. Nokia was very focused. The
importance of the core business of Nokia is a dominant business firm. The company
focuses on one product during its existence.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ayra1999. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.29. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now