Nokia Corporation

Agenda
History and background of Business strategy Supply chain strategy Order winners and order qualifiers The overall supply chain (players and complexity)

How does Nokia perform its supply chain strategy to succeed in the telecommunication market?

Brief history and background

1865 Founded by Fredrik Idestam as a paper mill 1871 Nokia is set as the company name 1982 Start of phone production
telecommunications consumer electronics rubber and cable

1992 Focus on telecommunication business

Business Strategy
Mission statement Connecting People enable billions of people everywhere to get more of lifes opportunities through mobile.

Business Strategy
Plans for a broad strategic partnership with Microsoft to jointly build a new winning mobile ecosystem. connect the next billion to the Internet in developing growth markets Focused investments in next-generation disruptive technologies clear focus on speed, results and accountability

Business Strategy
Core Competencies
Manufacturing of mobile phones and telecommunications devices

Targeted customers
Nokia serves all major market segments (with different types of products)

Competitive advantage
Manufacturing expertise, several first mover advantages, Links with other firms (Philips), Economies of scale and scope

Supply Chain Strategy

Stages of alignment with the business strategy
The operations and supply chain areas participate in the strategic debate. Mgt. recognizes that the operations and supply chain structural and infrastructural elements must be aligned with the business strategy.

Four performance dimensions quality time flexibility cost decision by firm to emphasize one performance dimension over another

Order qualifiers Order winners

Supplier perspective Order qualifiers
Set and meet technological standards Acceptable level of reliability

End consumer perspective Order qualifiers

Possible to connect with other people Good quality and design

Order winners
Quick and cheap manufacturing High flexibility

Order winners
Superior quality and design Use of innovative technologies Customization Environmental friendly

The Overall Supply Chain

The Overall Supply Chain

Plan

Direct Supply

Devices Service Nokia/Siemens Navteg Custo mer

Indirect Supply 1st Stage Source Make

2nd Stage

Deliver

The SCOR model

Plan
Plan Supplier A Manufacturing 1 Manufacturing 2 Customer

Supplier B

Intra Supply Chain Inter Supply Chain Make

Source

Deliver

Nokias Supply Chain

Conclusion

Sustainable efforts seemed promising but multiple factors have to be considered (changes in technology, demand, competition etc.)