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Introduction:

The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. This essay will firstly assess and consider the balance of market-led and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary (Prahalad and Hamel, 1990; Mintzberg et al, 1995; Greenley and Oktemgil, 1996). Following the discussion, the essay just analyzes Nokias strategies and empirically justified the reciprocal and complementary relationship between these two approaches. On the process of Nokias development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats.

VISION AND MISSION STATEMENT

Vision of the future.


"Connecting people" is now connecting people to what matters - whatever that means for each person - giving them the power to make the most of every moment, everywhere, any time.Connecting the "we" is more powerful than just the individual. That's how Nokia is needed tohelp make the world a better place for everyone. Mission Statement. Customer To maintain customer confidence by continuing to provide quality servicespecifically designed to meet their needs. Market To be recognized as a market innovator in the m o b i l e p h o n e i n d u s t r y t o continuing to improve our business practice. B u s i n e s s To e n s u r e t h e t e a m h a s a c o mp l e t e u n d e r s t a n d i n g o f a l l M o b i l e N e t wo r k Internal Systems and Procedures and that each team member is responsible for compliancewith the Business Management System. Training To develop ongoing training strategies to empower personnel with skill levelsessential for future company success. The Team To create the best possible working environment, promotin g c a r e e r e n h a n c e me n t a n d jo b s e c u r i t y, e n c o u r a g i n g t r u s t i n t h e c o mp a n y a n d l o ya l t y t o t h e customer

External Analysis of Nokia


Threat of Entry.

Medium

Bargaining power of suppliers.

Industry Competitors rivalry among Existing Firm.

Bargaining powers of buyers.

Weak

Strong

Strong

Threat of substitute Product.

Weak

a) Threat of entry Microsoft Corp announced its decision to enter the mobile phones market, it could bring the big threat to Nokia. However, it is only an announcement. New network operators can supply the customized, operator-specific handsets. New emerging competitors from Asia So, Nokia will meet more intensive competition than before b) Threat of the substitutes There is no direct substitute in mobile phone industry, especially for Nokias advanced products

c) Bargaining power of suppliers.


Since Nokia is the market leader in the mobile phone sector, Nokia is in the strong position.

d) Bargaining power of buyers . In handsets market, end users are not directly purchasing handset from Nokia, instead they purchased from the service providers. Since the market becomes more sensitive to the price, Nokia could meet the strong bargaining power from the buyers. e) Rivalry among existing competitors There is intensive competition in mobile phone industry. The competitors include Samsung, LG, Sony Ericcson and other new emerging manufactures.

SWOT Analysis of Nokia..


Strengths. Having the advanced technology over the competitors in the mobile phone industry Decentralized company structure, innovative and creative employees and Charismatic strong leader, such as: Jorma Ollila. The market leadership in the mobile industry. Strong brand name and company image in the global market Has its own manufacture and network. Product innovation. Economy of scale. Weaknesses. Complacency and arrogance. Few customized, operator-specific handsets. Few alliances, company sticks to its standing in the market, do not want to cooperate with the operators.. Some of other SWOT factors are shown in the following diagram..

PEST Analysis of Nokia..


PEST analysis identifies the political, economic, social, technological, environmental, and legal factors that of which directly affect a company. Political Factors. Political/Legal environment are usually considered as one because they are enforced by the nations government. It is vital for Nokias operation because different nations with their respective government have different Political/Legal platforms respectively; Nokia operating on global level must abide to ground rules and regulation in different markets of host countries around the world. To its success, Nokia surveys its scope of limits in order to isolate prohibited actions, regulations and aid from the government so as to withstand the international trade. Quotas (limit to goods imported), embargoes (restrictions), tariff and tax charges, subsidies and patents over certain technology or equipment are decided by the government so Nokia works hand-to-hand with authorities to gain maximum advantage to the Nations target market. Laws of copyright and abuse of phone usage keeps Nokia ahead, it limits any space of intrusion or misuse of their products. As markets are deregulated, both operators and manufacturers are free to act independently of government intervention. In Countries like India and China where Partial regulations exist, government intervention does take place. Economic Factors Economy in tells the production and consumption of goods and services. As far as Nokia is concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products. On one hand, aspects of international trade is important for Nokia being the global supplier of mobile phones and on the other hand, the knowledge concerning the nations economic status (Type of economic system practiced, Inflation rate, level of employment and exchange rate) is equally as important to realize future plans for personal and financial safety together with enhancing entrepreneurship. With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor.

Social Factors Socio-culture focuses on how Nokia blends in with components in a society; that is culture, social class, lifestyle and demographic and psychological factors making up the society. Nokia operates in a diverse number of culture and all levels of social class simply because different models are frequently released to satisfy all individuals despite their difference in race, nationality, religion, income level or beliefs among each other. Mobile phones can easily adapt to any culture and can be used to support different aspects and existing patterns of Individuals lifestyle or behavior. The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. Users are more aware of mobile phone handset choice and advancements due to increased information availability. Technological Factors. Technology change defines how fast technology advances. Being the predominate medium by which we get things done; technology as a process, in terms of mobile phones defines the way we make contact. Not only does it helps shape culture but also changes other aspects within and/or outside the organization for example the need to upgrade Equipments to en-better the manufacturing of the end products. The success of Nokia is based on constant innovation on human technology. By enhancing communication and exploring new ways to exchange information, connecting people, Nokia allow users to get more out of life.

BCG Matrix of Nokia

Question Marks..????? Business units having low market share. Located in high growth industry. Stars. Business units having high market share. High profit. Innovative marketing strategy. Cash cows Business units having large market share in a mature. In this business units requires little investment. Requires skill of applying strategy. Dogs Having low market share. Weak growth rate. Business units facing cost advantage due to weak market share and
low growth rate.

ANSOFF matrix off Nokia

Conclusion:

Based on the above assessment of Nokias approaches to mobile phone industry, although the approaches present as contradictory and conceptually opposed, in practice, they actually present a reciprocal and complementary relationship to each other. Arguably, no single approach can facilitate the company achieve the success within such a dynamic and complex mobile phone industry. Therefore, the various approaches should be viewed as complementary. Because Nokia adopted the balanced various approaches in its previous time, it gradually achieved the market leader position. Since Nokia lost the control to make sense the market trends and concentrated on its planned strategy, the balance between the different approaches also lost. Thus the companys market share fell immediately. As Nokia adjusted its strategy, aligned its internal strengths and external opportunities and balanced the emergent and planned strategies, the company recaptured its market share again. Therefore, if Nokia wants to get the long term development in the mobile phone industry, the four approaches are all necessary

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