IntroductionNokia share of computer sales in Finland.

                                                                                                                     IntroductionNokia AB was founded in 1865 as a timber company near the town of Nokia. Company grew into a significant pulp and paper concern. In late 1960s it had merged with several Finnish concerns to form Nokia Corporation. Newly merged entity had five core businesses: rubber, cable, forestry, electronics and power generation. In 1970s Nokia began developing its own computer and released mikro mikko   office computer. Nokia soon had an 80 % market share of computer sales in Finland. Nokia had also dominance in nascent market and produced first wireless phone in Scandinavia for government services. Company further supplied networking infrastructure including base stations and links to salora Top radio and television producer, to produce car telephones and network support structure. 50/50 joint venture with a state owned telecom networking company to develop and market network equipment for wireless network.   External AnalysisPolitical factorsThe political factors are the factors which the government can impact on the operation of the Nokia in the countries.Nokia is bound to follow rules and regulation of the local government of Finland as well as foreign government.Economic factorsNokia used to play pivotal role to the economy in Finland by holding major portion of market on the Helsinki stock exchange but the stock value has declined considerably during since last year. Communities also benefits by enhancing a nation’s economy by creating jobs, paying taxes, leasing building for office space, establishing factories etcSocial factorsMobile communications have an impact on day to day life of people. In addition, latest smart phone transitioning as key fashion icon and status symbol as well. Mobile networks enable emergency services to faster response and help people more effectively.Nokia presences have positive impact on the local community from providing rewarding employment opportunities to supporting worthy causes, such as school and hospitals.Technological factors:Nokia still is focusing on heavily innovation by investing in technical advancement and still filling large no of patents. It is believed that Nokia current value is mainly because of its intellectual property rights. Partnership with Microsoft brings key technological advantages.Environmental factors:The company should take care while disposing phones, accessories and lithium batteries in order to ensure safety and protection of the atmosphere. Globally the rules and the regulations about environmental consciousness has become more strict.Legal factorsNokia should protect its products and new technologies with patent applications. Avoidance of copying ideals of feature of other companies. Nokia should give proper attention to the privacy of its customers.Ø  Industry analysis·       Threat of new entrantThe mobile phone industry is already a well-established market and the threat of a new entrant is quite low. New entrant want to take market share from the larger organizations but nokia hold 29% of the market share in the industry, the highest market share in the industry.  ·       Power of suppliersAlthough nokia rely on its suppliers to supply equipment for their advanced mobile phones there are actually a number of large equipment makers, which Nokia could switch to. There is moderate threat from the powers of supplier because although the hardware suppliers have a very low power·       Power of buyersThe power that customers have is rising because of the increasing number of choices in the mobile telecommunication industry. In conclusion, the buyers have a high amount of power because of the other handset they can purchase instead of Nokia.·       Threats of substitute’s productMobile phones are an everyday essential in people’s lives today and people would find it hard to replace. In conclusion the threat of a substitute product is very low due to the fact a mobile phone is no longer just  for making calls for all the other function as well are expected on all mobile                                                          ·       Competitive rivalryNokia rivals have moved to smart phones and androids while Nokia have only just recently released their first smart phones leaving them trailing their rivals such as apple and HTC.While concluding, it has been seen that the company is lucrative as it follows the footsteps of niche marketing. Mover, Nokia isn’t much affected by above threats so the industry is profitable.Ø  Threats  Ø  Currency CrisesØ  Increased CompetitionØ  Multiple businessesØ  Change in Official LanguageØ  OpportunitiesØ  DeregulationØ  Motorola Semiconductor MarketØ  Globalization    Internal Analysis:Ø  StrengthNokia’s early patent strategy focused on acquiring new intellectual property rights to defend the growing businesses and allowed it to enjoy first mover advantage.Ø  Company invested heavily in advertising in local markets.Ø  Nokia was the first to opt vertical integration when others focused on outsourcing which reduced its costsØ  Offers high quality and long lasting product with low prices.Ø  Weakness                 Nokia’s competitor began to outsource manufacturing. Nokia instead continue to produce its handset internally and protected its technological developments and handsets features by aggressively filling patents.Ø              Dynamic Environment·       Resources and competences of nokia                                                                                 Nokia identify resources which could help them accessed their strength and weakness to overcome them. Value adding activities of an organization which includes the following bullet points.·       Inbound logistics·       Production·       Outbound logistics·       Sales and marketing·       Human resources·       Technology                                      Primary activities are the support performances that are also adding to the value of the organization. These function could be; administrative transportation management, human resource management, R&D and procurement. Nokia has product ranging from equipment, solutions and services that also provide to network operators and corporations.   Technology                                           Improvement is a requirement in the mobile industry’s growth. It is important then to distinguish and add value to products and services at the same time it’s important to maintain end to end interoperability. Sustained innovation in services and products such as additional mobile features, new applications and handset is required for Nokia’s growth in the mobile industry.                       HR Development                                             In a company it is not possible to oversee all processes. Managers can only manage a narrow section of a process. It is also not possible to inflict process design and make it work without assistance.                      Risk management (operations):                                                                          Business grows so do the risk involved. Nokia must anticipated and address these risks effectively.                      Changes in waste reduction method:                                                                                   Most production operations only a small part of the total time and effort can actually add value to the end of the customer. “Value” for a specific product or services using the end customer’s perspective and all the non-value activities or waste can be targeted for removal step by step.  ResourcesCompetencesThreshold capabilitiesThreshold resources1.Physical resources ·       Infrastructure·        Establish network 2.Financial resources 3.Experienced staffThreshold competences1.Ability to produce customized product and mobile phones at  low prices  2.Ability to market 3.Ability to be innovative R&D4. Ability to finance5.Aility to recruit  retain and develop correct talents6. Ability to offer good customer serviceCapabilities for competitive advantageUnique resources 1.Intellectual property right2.brand reputation3.dependent customer baseCore competences Ability to Absorb and innovative competitive technologies to market mobile                     Distinction between threshold and distinctive resources and competencies                                                                                             Vrio framework  Resources and competencesValuableRareDifficult to Imitate?Exploitable by the organization?Competitive ImplicationsPriceyesyesnoyesTemporary competitive advantageProduct leadershipyesyesyesyesSustained comp. advantageStrong brand imageyesyesyesyesSustained comp. advantageConsumer loyaltyyesyesyesyesSustained comp. advantage Current and corporate strategy of Nokia:As the corporate strategy of this multinational company is to concern with comprehensive and long term hurdles and issues. The company is competing as a leader of handsets and now with the incubation of smart phones, the company is all set to procure new businesses, adding more business entities (fixed assets. Innovation and increased product lines) and to partake in joint-ventures with other businesses (Nokia Siemens Networks which would be a joint venture between Nokia and Siemens AG).Generic Strategies:                         Cost leadership strategy:                                             The cost leadership strategy is possible to follow and the switching costs for customers of mobile telecommunication industry is very low, almost zero.Focus strategy:                                               It often applies to medium and small enterprises which are not able to achieve cost leader and differentiation in the whole industry. As for a leading company of mobile telecommunication industry, the focus industry is not appropriate for Nokia. Differentiation                                                The market place is shifting all the time and the conventional mobile device industry is implicated with internet services, therefore the products and services. Nokia offer should be totally change. This is an important strategy to be followed because in following this, there are higher chances that people will attract towards you.                                                                                                       Nokia’s main issues and challengesNokia acknowledges a tough time for telecommunication industry in 2009 symbolized by an anticipation of a mobile device volume turn down 5% or more from 2008 levels which exposed the immense concern of recession. In short the mobile device market has declined. From the market prediction it will constantly decrease. Such state of affairs is caused by consumers’ pull back in spending, legal tender unpredictability, and decreased ease of use of credit from the slowdown of global economy. Especially, nokia believes the incremental collision affects the emerging market more other developed market. Technology is the soul of telecommunication industry which is the reason why the R&D investment of nokia in the year passed is 5.6 billion euro which is considered to be the very high spending. It should cut down its cost to minimum to get the desired outcomes.The SFA Framework:Strategic options:Success criteria of evaluation of strategic option:The strategy evaluation of Ansoff’s matrix helps nokia to realize that if it remains in the existing market with existing products or try to grow in it it’s possible to e a wrong strategic decision. By following diversification strategy Nokia will create added value. Therefore Ansoff’s matrix does not work for nokia’s example. The risk will be contained in diversification model.Alternative strategyInsurance plan strategy As the average age in all continents is increasing. We need to have more facilities for the older people. At the same time the health of these older people must be under monitoring and these people have to be active part of society. In order to have good results in health care system, the premium must be under regulation because of its structure. The premiums are not representative of cost of health services. With this project the company is about to edit all the necessary data to be an insurance contributor for every individual citizen. Using digital health nokia could create a huge data center with statistics and results for the users of digital health accessories. These data will be analyzed with the with the services package of ultra-broad band (5g) cloud services, Ip interconnectivity and internet of things.Ultra-broadband 5g as a data transport system: 5g broadband give more choices to user of any hardware system. For example wearing a withings watch, you can have real time data as blood pressure, or using the thermometer, temperature saved automatically in data center.Cloud services as a data center:Cloud services are unlimited “hardware” storage system and help to save data almost free on the web. By using wearables all the data would be collected to the “data center” which is the cloud.IP interconnectivity as a secure provider:All data concerning health are highly secured. They must be transferred without human interruption. Furthermore interconnectivity will help the applications to be more efficient. Finally using the interconnectivity, the important platform will be created in order to analyze all the data securely with the help of Nakana system.IoT as a self driving systemIoT is the future of mobile devices. By the help of witlings, Nokia will have all the necessary real time data of any citizen. It can also predict a diseases problem like heart attack, saving that way the citizen’s life and at the same time helping insurance contributor from spending operator costs. Finally IoT do all the procedures automatically.Conclusion:It has been seen that Nokia has a lot of loop hole to be filled. Companies like Q-mobile, Vivo and other such brands are cost effective with value added aspects, whereas Nokia mobile follows the tendency of price skimming. Such complements hampers the sales of Nokia. Now a days customers use to acquire such products which have low cost and much features. Nokia lacks in delivering tailor made products to its customers like unavailability of space for a single photo in Nokia-102. According to the need of hour, Nokia must differentiate itself from its competitors. Nokia should develop distinctive advantages in order to sustain its presence in mobile market. Spun-off may be adopted by Nokia for making its own independent identity in market. Merger with Microsoft has already caused much loss and being indulge in android market is the best option which Nokia has started to follow by introducing Nokia3, 5, 6 and now 8. It’s usually said that, sky is the limit so Nokia can go as much ahead as it could. It only depends upon taking right decision at right time.  References                      Chakidan.blogspot.com/2011/04/strategy analysis of Microsoft”Nokia’s Turnaround: The Giant in the Palm of your Hand,” The Economist                        Dave lee .September 2003. Nokia: The rise and fall of a mobile giant. Online. Available from: http://www.bbc.com/news/technology-23947212UK Essays. November 2013. Corporate and Business Strategy Of Nokia And Lg Marketing Essay. online. Available from: https://www.ukessays.com/essays/marketing/corporate-and-business-strategy-of-nokia-and-lg-marketing-essay.php?cref=1 Accessed 14 December 2017. UK Essays. November 2013. Internal And External Market Analysis Of Nokia Marketing Essay. online. Available from: https://www.ukessays.com/essays/marketing/internal-and-external-market-analysis-of-nokia-marketing-essay.php?cref=1 Accessed 14 December 2017. “Nokia Predicts Dynamic Growth for Cellular Phones,” Bangkok Post, May 26, 1993, via Factiva, accessed November 2013                       UK Essays. November 2013. Strategic Analysis Of Nokia Corp. online. Available from: https://www.ukessays.com/essays/business/strategic-analysis-of-nokia-corp.php?cref=1                        Accessed 14 December 2017.            www.slideshare.net/loannispertsinis/a-strategic-analysis-of-nokia-corpDarcy Travlos, “The Significance of Ericsson’s Departure from Handsets,” Forbes, October 31, 2011, http://www.forbes.com/sites/darcytravlos/2011/10/31/the-significance-of-ericcsons-departure-from-handsets/, accessed December 2013