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					Strategic Analysis
   Nokia description
   Vision/Mission Statement
   Porter’s five forces of the industry
   SWOT
   Financial Position/Performance
   Core competencies
   Areas of value creation through Value Chain Analysis
   Governance/Stakeholder Mapping
   Strategy Clock
   Analysis of strategies- TOWS using SWOT matrix
   Recommendations
    Nokia life…
   World’s leading mobile devices manufacturer
   Established in 1865-started as a riverside paper mill, rubber and cables by
    Fredrik Idestam.
   Today-Head office in Finland and business units all over the world
   Nokia Group – Devices & Services
                  - Nokia Siemens Networks 2006
                  - NAVTEQ 2008
   Nokia Group Revenue in 2009 - €41 billion
   Navigation, digital mapping, innovative services-music, maps, media software
    solutions and other applications.
                          Vision & Mission…

   "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   •We help people feel close to what matters to
    is needed to help make the world a           them.
    better place for everyone.
                                                 •One of our basic needs as human beings is the
                                                 need to communicate and share.

                                                 • Our mission is to fulfill this need, to help them
                                                 feel close to what matters to them

          Political                      Economic                         Social

- acquired resources from the   - Changed operation from      - Increase in demand by the
Finish government, which        single market & overall       society for the Mobile
assisted Nokia to advance its   products -> global market &   Phones.
products                        focusing on mobile phone

       Technological                  Environmental                       Legal

- Nokia changed their           -Dedicated in following       -Severe legal laws relating to
operations from producing       environmental policies:       science-based regulation on
computers, monitors and TV      environmental design and      the adoption of emission
sets to producing mobile        recycle practises.            guidance by the International
phones.                                                       Commission on Non-Ionizing
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    Financial position/Performance…

                         Industry        2009                         2008
Net Margin                 5.38          3.95                             6.49
Asset Turnover             0.77          0.56                             0.68
ROA %                      3.89          2.14                             4.41
Leverage                                 1.77                             4.41
ROE %                      6.55          6.5                              25.5
ROIC                                     0.03                             0.14

•In 2009 sales dropped                          Net s a l es 2009
by 20%
•50% decrease in Net
income                                                              68%          Devi ces & Servi ces
•High investments in                                                             NAVTEQ
R&D                                                                              Noki a Si emens Networks

            Core competencies…
   Reputation of being a leading brand
   Advantage of Scale
   Distribution Capability
   Product Portfolio excellence
   Leading Market position in most markets
                                     Value Chain Analysis...
Firm Infastructure           Nokia- has an efficient              Planning                     Finance                      QCM
                             team of workforce in their

HRM                          Classroom training            On the job learning          Individual Coaching        Mentoring
Technology                   R&D                           Product Design

Procurement                  Gaining information from
                             management and external
                             environment =gather inputs,
                             gives better accuracy and
                             faster responses

Inbound Logistics                Operations                  Outbound Logistics             Marketing/Sales                 Service

•Includes material                                         •Involves the                •Includes sales,           •Includes activities that
handling, stock control                                    distribution of the          advertising and selling.   enhance the value of a
and transportation                                         product to the                                          product/service.
                                                           customer.                    •In Nokia –well
                             •Packaging                                                                            •Customers from round
•Nokia has a                                                                            organised amount
chronological                                                                           spend on advertising       the world can use Nokia
relationship with                                          •Selection of wireless       through TV, signboards,    services by calling them
Danzas (Logistic                                           communications               Radio, Dummies and         or by going to the
Services)                                                  solution provider            display stands.            nearest shop.
                                                           TESSCO Technologies
•Provides logistic like                                    to expand distribution       •PR- organising new
air, road, sea transport                                   channels for its Nokia       events, programmes
and also takes                                             RoofTop Wireless             and publicity to keep up
responsibility for Nokia’s                                 Routing solution, a          the dazzling image of
drop-off points and                                        wireless mesh network        the company.
logistic centres(hubs)                                     mirroring the wired
                                                           structure of the internet.
                  Stakeholder Mapping...
             Customers                                           &
                 &                                            National
             Consumers                                      Governments

   &                                                                      Suppliers

Community                                                                   Industry


                            Of                   Shareholders
                       Porter’s Generic Strategies


           Hybrid                              Focused
             Nokia                              Vertu

Low price                                                Failure

           No frills                             Failure
      Small Chinese
Services                                    •Affordable mobile devices (Nokia 1616,
                                            Nokia 1800, Nokia 220 slide & Nokia 2690)
Solutions                                   •Affordable handset optimized for music
                                            Nokia 5310 XpressMusic
            Nokia Siemens Network
                                            •Latest version of Ovi maps

•Nokia Siemens Network (NSN) &             •Ovi Stores
SoftBank, Telenor Sweden, VMS              •Ovi Mail
Mobifone in Vietnam for expanding 3G
network base                               •Nokia Booklet 3G

•NAVTEQ – took over T-Traffic in Germany   •NAVTEQ – Motorway Junction Objects
                                           •Nokia Money
                        1.New Software Market             1.PC Services in a mobile Phone
                        2.Increase market share           2. More competition
                        3.Telecomunication partnerships   3. Low price competitors-will take
                        4.Product Launch continuously     away the market share

1. High Quality           If they develop a new
2. Universal &                                                 - Introduce Pc services to
                          advanced software with               new devices
Fashionable Product       their high quality devices
3. Wide range of          they can win the whole
products                                                       -Heavy advertising
4. Product Warrantee
& Guarantee                                                    -opening Nokia stores

                          -Capture more market
1. High Price             share and attract more            -Lower prices
2. Unable to match        customers in existing             -Develop technology better
the latest technology     markets by changing               than competition’s
3. Poor performance       prices
by some models
                                                              PORTFOLIO CHART

•D&S – Maximize
investment; concentrate                                                                     3.0

effort & seek dominance

•NSN – Invest selectively in
profitable segments;                                                                        2.0

                                                                                                  Market Attractiveness
Specialize: market or
product development


•NAVTEQ – Invest
selectively in profitable
segments; Specialize:
market or product                                                                           0.0
development                    0.0         1.0          2.0             3.0     4.0   5.0

                                                       Competitive Strength
                                     D&S         NSN           NAVTEQ
•Eliminate-older outdated models, customers demands are changing.

•Reduce- unnecessary applications

•Raise- Nokia has been developing user friendly phones and uncovering
most areas where it feels the customer might be compromising as its main aim
is to guarantee customer satisfaction. Nevertheless, there is always scope
for innovation and Nokia can make value innovations which will make Nokia
one step ahead of its competitors.

•Grab the opportunities- Nokia have the potential of diversifying-as an internet
service provider, thus dominating the entire communications industry.

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