Adriana Patricia Gomez Arpita Gokhale Diana Carolina Almanza Mayur Amlani Michael Watts Suryo Ariyanto

CURRENT STRATEGIES
Invest strongly in products and experiences that make Lumia Smartphone's stand out and available to more consumers.

Invest in location-based services as an area of competitive differentiation for Nokia products and extend its location-based platform to new industries.
Improve the competitiveness and profitability of its feature phone business. Cost reductions

VALUE CHAIN-BENCHMARKING
PRIMARY ACTIVITIES
Inbound logistics

Operations

Outbound logistics

Marketing and sales

Service (after sales)

Partnership with Agility Logistics Integrated IT platform Demand planning driven by customers project plan IPM to control operations' status Shared assembly plant with Siemen's - NSN Nokia 100% environment packaging Inhouse manufacturing, mainly in Asia. Partnership with Carl- Zeiss to manufacture lens for camera services Partnership with Danzas, UPS, DHL, and Fed Ex as a logistics supplier Proximity to market strategy Efficient truck load Closest distance to their assembly plant Sales force as endorsers of Nokia's products Wider segmentation strategy that targeting high-end customer, middle-up, and Middle low. Social media using Facebook and Twitter Marketing by using all sales channel

24 month warranty Recycle phone options (set recycling points) Detailed and step-wise user guide available online Nokia Care App and Nokia care service centres providing free service Online diagnostics and support tool

VALUE CHAIN-BENCHMARKING
SUPPORT ACTIVITIES
Procurement Technology development HRM Infrastructure

Multi-sourcing strategy with Asian suppliers Reduce number of suppliers Nokia Supplier Requirement with eco/friendly materials emphasis Choose Fieldglass VMS that can be used for one stop solution Nokia's NAVTEQ develops many location-based technology advancement Nokia's NSN develops IT network like WIMAX, 4G, LTE (LongTerm Evaluation) Flat organizational. Bureaucratic culture Lack of focus and innovation Cost cutting through factory closing, job cutting Realignment of management team

Layoffs to cut costs- retrenchment strategy Bridge Program for building start-ups

PESTEL ANALYSIS

Social

Technological

Economical

Environmental

Political

NOKIA

Legal

PESTEL ANALYSIS
POLITICAL Government Interventions Export controls, tariffs and other fees Lack of support from Finnish Government ECONOMIC Economic and Financial Crisis National Income Rate of interest, inflation rate and Exchange rates SOCIAL Rise of information society (up to date) Low cost segments markets Population and income distribution Increasing influence of photography and social networks Adolescents represent an important demographic for cellphone makers TECHNOLOGICAL Technological Innovations Smartphones technology Less ICT infrastructure in emerging countries

ENVIRONMENTAL Climate changes, energy and resource use Human Rights and Health

LEGAL Patents, copyrights Threat of counterfeits Country specific laws

5 FORCES ANALYSIS
Power of Suppliers. MODERATE Low Bargaining Power of supplier Large number of suppliers and huge volume. Moderate impact of inputs on cost or differentiation. Impact of Microsoft as a Strategic Partner .

Barriers to Entry

Barriers to entry. HIGH Proprietary Learning curve Patent Issues Brand Identity and switching cost Battle of ecosystem High capital investment and Economies of scale.

Power of Suppliers
Rivalry between Competitors. HIGH Competitive position Industry growth (smartphone) High Margin Smart phones give high return. Brand Identity

Rivalry between Competitors

Power of Buyers
Power of Buyers. HIGH Low Bargaining power Smartphone segment Increased buyer power and price sensitivity. Low Product differentiation Differentiation factors getting less Low-Medium consumers churn ratio Long contracts

Threat of Substitutes

Threat of Substitutes. LOW Mobile are essential product Hard to be replaced There are no specific substitutes to mobile device

CORPORATE LEVEL STRATEGY

Existing
Proposed Corporate level strategy

New

Existing MARKETS

Market Penetration and Consolidation

Product Development

Nokia current corporate level strategy

New

Market Development

Diversification

PRODUCTS

STRATEGY RECOMMENDATIONS

STRATEGY RECOMMENDATIONS

STRATEGY EVALUATION
FEASIBILITY Funding requirements Fit with Nokias current competencies Time to implement (When) SUITABILITY Build on Nokias known reputation Attain customers needs Increasing competitive advantage ACCEPTABILITY Impact on return Risks of strategy implementation Stakeholders reactions

FINAL OUTCOME

THANK YOU

REFERENCES
Adexa, 2012. Samsung Electronics Networking Division. [Online] Available at: http://www.adexa.com/pdf/samsung.pdf [Accessed 09 April 2013]. Apple. (2013, April 9). Supplier Responsibility at Apple. Retrieved April 9, 2013, from http://www.apple.com: http://www.apple.com/supplierresponsibility/ Bilton, R., 2013. The Blackberry Z10 gets at least one thing right: repairability. [Online] Available at: venturebeat.com/2013/03/25/blackberry-z10-isreparaible-yay/ Blackberry, 2012. Blackberry UK. [Online] Available at: http://uk.blackberry.com/content/dam/blackBerry/pdf/caseStudy/europeMiddleEastAfrica/english/avs_uk.pdf [Accessed 09 April 2013]. Blackberry. (2013, April 9). Building capacity through training. Retrieved April 9, 2013, from http://us.blackberry.com: http://us.blackberry.com/company/about-us/corporate-responsibility/supply-chain.html

Boselie, P. (2010). Strategic Human Resource Management : A Balanced Approach. [Online] Available at: http://highered.mcgrawhill.com/sites/0077119983/information_center_view0/table_of_contents.html [Accessed 14 April 2013]
Brumer, L. (2012, January 12). Apple: why Tim Cooks Procurement mattered as much as Steve Jobs Marketing. Retrieved April 9, 2013 , from http://www.procurement-iu.com: http://www.procurementiu.com/blog/2012/1/apple_why_tim_cook_s_procurement_mattered_as_much_as_steve_jobs_marketing Carr, J. (2011, January 13). Do You Know Who Manufactured Your Blackberry? Retrieved April 9, 2013, from http://www.forbes.com: http://www.forbes.com/sites/jeffreycarr/2011/01/13/do-you-know-who-manufactured-your-blackberry/ EFT, 2011. Eye for Transport. [Online] Available at: http://www.eft.com/3pllogistics/brightpoint-distribute-blackberry-products-bosnia-albaniamacedonia-and-serbia [Accessed 10 April 2013]. Inbound Logistics, 2008. Global Logistics. [Online] Available at: http://www.inboundlogistics.com/cms/article/whats-leadership-worth/ [Accessed 09 April 2013].

Jain, A., 2012. RIM Spends More ON R&D Than Apple. Value Walk, [online] 8 October, Available at: <http://www.valuewalk.com/2012/10/researchmotion-spends-more-on-rd-than-apple-inc-aapl/> [Accessed on 9 April, 2013].
Joseph, 2012. Apple (Online). Available at: http://www.marketingweek.co.uk/brands/apple/ [Accessed 10 April 2013]. Kelion, L., 2013. BBC News Technology. [Online] Available at: http://www.bbc.co.uk/news/technology-21242606 [Accessed 09 April 2013]. Key Note. (2011). Telecommunication Industry Report 2011. Business Ratio Report. Korea Associates Business Consultancy. (2012). Global Value Chain Analysis on Samsung Electronics. Korea Associates Business Consultancy. The Commercial Section of the Canadian Embassy in the Republic of Korea. Ludwig, S., 2013. Venture Beat. [Online] Available at: venturebeat.com/2013/04/03/blackberry-10-demo-on-iphone-android/ [Accessed 09 April 2013].

REFERENCES
Mah, P., 2012. Development Options for BlackBerry 10 Platform. Tech Republic, [online] 9 July, Available at: <http://www.techrepublic.com/blog/asian-technology/development-options-for-the-blackberry-10-platform/267> [Accessed on 9April, 2013]. Male, B., 2010. 8 management lessons I learned at Apple. Business Insider. [online] 2 August Available at: <http://www.businessinsider.com/management-lessons-i-learned-working-at-apple-2010-7?op=1> MarketLine. (2012, September 01). MarketLine Industry Profile. Mobile Phones in he United Kingdom. Miller, H. (2009, April 13). RIM Squeezes BlackBerry Suppliers as Economy Stalls (Update3). Retrieved April 9, 2013, from http://www.bloomberg.com: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIE3csA.zMkc&refer=technology Moorman, 2012. Why Apple is a great marketer (Online). Available at: http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-agreat-marketer/ [Accessed 10 April 2013]. Nokia, 2013. Green and Ethical Operations. [Online] Available at: http://www.nokia.com/global/about-nokia/people-andplanet/operations/operations/ [Accessed 10 April 2013]. Nokia. (2013). Nokia Annual Report 2012. Espoo: Nokia Corporation. Ofcom. (2012, July 18). Communications Market Report 2012. Communications Market. Oliver, C., and Jung-a, S. 2010. Samsungs Corporate Culture in Focus. Financial Times, [online] 24 March, Available at: <http://www.ft.com/cms/s/0/1f35cd3e-3782-11df-88c6-00144feabdc0.html#axzz2Q0GmV1f5> PDF, 2012 http://albertacanada.com/korea/images/GlobalValueChainAnalysisSamsungElectronics.pdf Rushton, K., 2011. Nokia cheif Stephen Elop wants the cool factor. Telegraph [online] 26 Oct Available at <http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/8851658/Nokia-chief-Stephen-Elop-wants-the-coolfactor.html> Samsung Electronics. (2012). Mutual Growth. Samsung, Electronics. Samsung. Samsung, 2012. Samsung environment performance. [Online] Available at: http://www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/environmentsocialreport_Transportation.html [Accessed 10 April 2013]. Shaughnessy, H., 2013. What Makes Samsung Such an Innovative Company? Forbes [online] 7 March, Available at: <http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/why-is-samsung-such-an-innovative-company/2/> Staff, S. E. (2007, August 15). Procurement News: Nokia Decides Dual Sourcing is the Right Strategy. Retrieved April 05, 2013, from scdigest.com: http://www.scdigest.com/assets/newsViews/07-08-15-1.php?cid=1178 Tung, L., 2012. Inside Nokia Bridge: How Nokia funds ex-employees' new start-ups. ZDNet [online] 18 July, Available at: http://www.zdnet.com/inside-nokia-bridge-how-nokia-funds-ex-employees-new-start-ups-7000000863/ Worstall, T., 2012. Apple v Samsung: Corporate Cultures and Design. Forbes, [online] 3 September, Available at: <http://www.forbes.com/sites/timworstall/2012/09/03/apple-v-samsung-corporate-cultures-and-design/> [Accessed 9 April, 2013].

APPENDICES

CURRENT STRATEGIES

VALUE CHAIN-BENCHMARKING

VALUE CHAIN-BENCHMARKING

PESTEL
Political Key Issues Government intervention in terms of labour laws can directly affect Nokia New laws implemented by UK government Export controls, tariffs and other fees Government regulations Effects As an illustration, Nokias Indian factory experienced strike action at the end of 2010 that forced the factory to shut down for two weeks. (Major Production units to China and India ) Economic Key Issues Economic and Financial Crisis Rising competition Effects The recent economic downturn has clearly affected all players in the industry and several have been forced to exit . For example, Motorola sold its mobile phone activity to Google in 2011 and LG is considering stopping their mobile activity in the next few years. In all developed regions the penetration rate of mobile phones is very high, customers will replace their phone only if value for money is optimum; this will therefore increase the competition between main players such as Google, Apple and Samsung. The financial stability of business and stock market like in which business the traders want to invest their money largely affect Nokia

To maintain strict standards with the quality of materials, the environment and health and hygiene. Nokia will have to strictly follow these laws to ensure sustainability. In the telecommunications sector the Council of Ministers of the European Union has adopted a set of rules aims to encourage competition in the internal electronic communications markets. US government regulation of product certification, standards, spectrum management, access networks and competition can adversely affect Nokia (Nokia Corporation 2010)

Rate of interest, National Income and inflation rate and Exchange rates Nokia the One-firm economy of Finland

Even though NOKIA contributed a quarter of Finnish growth from 1998 to 2007, the Finnish government declined to buy shares of the company to help support the plunging stock

PESTEL
Social Key Issues Effects Rise of information Telecommunications increasingly more important to consumers, both in terms of leisure and work. and hence to maintain public image society (up to date) people tend to buy the updated technology. Nokia will have to understand these society impacts which influence people's decision. Growing Asian, the In these countries an important number of people do not own a Middle African East and mobile phone because it is currently beyond their means. However, cost leader manufacturers such as Nokia are always able to reduce their price in order to make their products more affordable. Technological Key Issues Effects

Increase in technological innovations

Pushed the main players to renew and launch their new products Nokia Siemens Networks division can provide these networks and should be able to increase their sales significantly

Example: Chinas telecommunications confirms that Nokia has a

current market share of 30%,

Population, income distribution and behaviour of people to their work. The government to increase the disposable income at the hands of individuals in the Union Budget 2013. This move will prompt them to spend more on discretionary consumer products and Nokia should take advantage of it. Increasing impact of social networks, photography Adolescents, kids and business people represent an important demographic for cell phone makers and mobile operators as cell phones

Software developments

Nokia was good with hardware but lacked the modernisation of softwares. This took away most of their market share.

A strategy of Nokia CEO and Microsoft's Steve Ballmer!

Nokia will ditch its Symbian and Meego operating systems for Microsoft Windows Phone 7. Going forward Windows Phone 7 will be the predominate operating system for Nokia Smartphone. The strategy is a bold one meant to combat the growing momentum by mobile competitors Google Android and Apple and invade the technology paced market.

PESTEL
Environmental Key Issues Climate changes, energy and resource use Effects Legal Key Issues Effects Increased pressure on Nokia to exercise CSR activities. A move to recycled and recyclable materials for phone manufacture including bio-paints (an industry first), device takeback in over 100 countries and a significant reduction in packaging volume. Patents, copyrights Product differentiation if difficult in the mobile phone industry and hence it is vital to protect the rights to it through patents, copyright, trademarks or design to ensure they are not stolen by their competitors

Human Rights and Health

The democratizing effect of mobile technology is power to the telecoms companies, but they need to do more than sell mobile phones to claim that they are advancing human rights. To Nokia's credit Bans conflict metals, Supports support the GSM Associations mWomen program Human Rights Summit in 2010. Helping customers reduce their carbon footprint and enjoy sustainable lifestyles Nokia adds alerts into mobile phones to remind users to unplug chargers while reducing the no-load charging effect

Threat of counterfeits

Nokia must ensure they do not fall victim to counterfeiters who claim to be a Nokia products but are cheap knock-off

Country specific laws

With manufacturing plants in a various countries it is extremely important for Nokia to abide by their laws and regulations Example: Employments laws, Health and Safety or even trade restrictions.

FEASIBILITY

SUITABILIY

ACCEPTABILITY

FSA KEY ACTION PLAN