Nokia Corporation is a Finnish multinational communications corporation. They focus on the key growth areas of wired and wireless telecommunications. Nokia is currently the world's largest manufacturer of mobile telephones, with a global device market share of 38,6% in 3Q 2007. We will focus only on this activity. Nokia develops and lays-on networks and telecommunication equipment. Nokia is one of the major world-wide suppliers of networks GSM/GPRS/EDGE, and the first in Europe. Nokia also develops solutions linked to the Internet. In June 2006, Nokia (Network Business Group) and Siemens (AG's COM division) created a joint venture (Nokia Siemens Networks). It is a telecommunication solutions supplier. This partnership was created in order to fight against the merger Alcatel-Lucent and the acquisition of Ericsson by Marconi. First, Nokia develops new multimedia equipments and invests in start-ups specialized in mobile telephones. Then, the Enterprise Solutions division offers businesses and institutions a wide range of products and solutions, including enterprize grade mobile devices, underlying security infrastructure, software and services.
[...] Despite of a fierce competition with the four other main companies, Nokia succeeds in the use of its core resources to fight their attacks. Technology and brand popularity are its main resources. They allow Nokia to stay the leader. Nevertheless, Nokia has to react and adapt its products to new segments Conclusion and recommendations Conclusion Thanks to the Nokia internal analysis, we can analyse how the company reacts to its environment. External factors Weight of the factor Rating of Weighted Nokia score Reaction of Nokia Opportunities Developing countries : huge potential market Technological convergence Nokia is implemented in China, and starts investing in India Nokia's new phones include : 3G, photo, video Nokia doesn't launch any product focused on this target New segment : Retired people Threats Quick technological evolvment, new segmentation (niche, cf Apple) Competitive market : constant change in constructor's market shares Competition : Low cost new entrants Developed countries : a mature market Environment : recycling issue and energy consume Nokia focus on but doesn't focus on niche market Nokia is the leader far from the others Nokia's range of products isn't adapted to low cost market. [...]
[...] National initiatives also come into view: we can see the creation of the Agency for Industrial Innovation and a French institute whose goal is to promote and facilitate great industrial projects The impact of Structural Funds on innovation and Lisbon objectives in general .Report 2.6 Legal The mobile firms have to respect the law regarding the competition and also the norms regarding the product. Indeed, all the mobile phones have to be designed carefully and tested rigorously in order to comply with international safety standards and government health and safety regulations. [...]
[...] Nokia and Siemens have equal ownership in the Nokia Siemens Networks http://www.linternaute.com/hightech/qmobile/terminaux/index.shtml, see all results in appendix p Human Resources, skills & abilities of individuals According to Nokia executives, there is a huge need for skilled personnel in relation with its growing activity. Nevertheless, the firm does not want to exceed 100,000 employees. Nokia's GEMS (Global Employment Management System) helps managers to find people, who has the right skills for certain work, from its database. Moreover, Nokia has also developed active relationships between over 100 universities around the world. [...]
[...] Secondly, the economic factors also play a relevant role in this industry: the mobile phone market in the developed countries is a matured one (people mainly purchase of renewal), whereas developing countries represent a potential market. It seems to us that other factors are less relevant. Nevertheless, the respect of the environment and the sustainable development represent one of the main aspects of the mobile firms' development program Technological factors Considering the fierce competition in the industry, the firms have to adapt their products and anticipate the new trends. [...]
[...] - There is a reorganization of its supply chain in using Electronic Manufacturing service which is based on serving a large number of customers in varying industries and phases of technology http://www.samsung.com/AboutSAMSUNG/ELECTRONICSGLOBAL/InvestorRelations/FinancialInformation/downloads/99_con _bs.pdf Technological resources R&D Nokia knows that in order to stay the number one, it has to own a very efficient research and development department to create new models and technologies for the future generation of phone systems. R&D is decentralized in 11 countries. In April people were working in Nokia's R&D departments. [...]
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