NOKIA lost in GLOBALIZATION

IBM Final Presentation

-Dragon Clan-

OPENING THOUGHT Globalization is either a friend or an enemy for everyone; depending on how you treat it.

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

LOST IN GLOBALIZATION

Negative impact of globalization

NOKIAS REBORN

THE BOUNCE BACK

6 Thinking Hats Delta matrix

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

LOST IN GLOBALIZATION

Negative impact of globalization

NOKIAS REBORN

THE BOUNCE BACK PERIOD

6 Thinking Hats Delta matrix

NOKIA HISTORY

1865
Fedrik Idestam set up First wood pulp mill (Nokia Ab)

NOKIA HISTORY Nokia History

1912
Arvid Wickstrom sets up Finnish Cable Works

NOKIA HISTORY

1963
Nokia became the third largest TV manufacturer in Europe

NOKIA HISTORY

1967
Nokia Ab, Finish Cable Works and Finnish Wubber Works officially merge as Nokia Corporation

NOKIA HISTORY

1979
Mobile era begins to create radio telephone

NOKIA HISTORY

1980
Nokia well known around the world

NOKIA HISTORY

1981
First International Cellular network and the first to allow international roaming

NOKIA HISTORY

1982
Nokia introduce the first car phones

NOKIA HISTORY

1998
Nokia is the world leader in mobile phones

GLOBAL BRAND MANAGEMENT NOKIA BRAND POSITIONING

Connecting People

GLOBAL BRAND MANAGEMENT NOKIAs OBJECTIVE

Connecting people by offering great and affordable

mobile products that enable billions of people worldwide to enjoy more of what life has to offer.

THE GOLDEN PERIOD

Strong Brand Image

The Largest Mobile Phone Manufacturer

1998 - 2007

Globally Largest Network of Selling and Distribution

Nokia Care

1998 HIGHLIGHTS

1. Net Sales grew by 51% 2. Operating Profit by 75% 3. Share price by over 220% 4. Sold 40.8 million handsets 5. Market Capitalization grew to 356 billion 6. Dividends have grown by 360%

PREVIOUS INFLUENCE LEADER

Jorma Olila

PREVIOUS INFLUENCE LEADER STRATEGY

International Company Through Acquisition

Full Concentrate on Telecommunication

PREVIOUS INFLUENCE LEADER PEOPLE

Strengthen Human
Capital by Education

Build Learning Centre

Opinion Survey to Give Feedback

PREVIOUS INFLUENCE LEADER PROCESS

Competitive Advantage

Innovation

PREVIOUS INFLUENCE LEADER TOOLS

Build IT Group

Technology

Investment

RECENT INFLUENCE LEADER

Stephen Elop CEO of NOKIA

RECENT INFLUENCE LEADER STRATEGY

Build ECOSYSTEM

RECENT INFLUENCE LEADER PEOPLE

Engaging and Empowering People

RECENT INFLUENCE LEADER PROCESS

NOKIA join forces with Microsoft

RECENT INFLUENCE LEADER TOOLS

Investment Technology

NOKIA HISTORY

2007
Nokia recognized as 5th most valued brand in the world

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

NOKIAS REBORN

LOST IN GLOBALIZATION

Negative impact of globalization

THE BOUNCE BACK PERIOD

6 Thinking Hats Delta matrix

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

NOKIAS REBORN

LOST IN GLOBALIZATION

Negative impact of globalization

THE BOUNCE BACK PERIOD

6 Thinking Hats Delta matrix

NOKIA PERFORMANCE
Net Sales Market Share Profit Sharing
Total Phones Shipped Brand Value

NOKIA PERFORMANCE
Net Sales Market Share Profit Sharing
Total Phones Shipped Brand Value

NOKIA PERFORMANCE
Net Sales Market Share Profit Sharing
Total Phones Shipped Brand Value

NOKIA PERFORMANCE
Net Sales Market Share Profit Sharing
Total Phones Shipped Brand Value

NOKIA PERFORMANCE
Net Sales Market Share Profit Sharing
Total Phones Shipped Brand Value

WHY???

GLOBALIZATION

LOST IN GLOBALIZATION
QUALITY VARIETY

7 forces of Globalization

LOWER COST CUSTOMIZATION DILEMMA & PARADOX SPEED

CONVINIENCE

LOST IN GLOBALIZATION

Globalization Forces

Low Price

High Quality

High Variety

Convenienc e

LOST IN GLOBALIZATION
QUALITY VARIETY LOWER COST CUSTOMIZATION DILEMMA & PARADOX SPEED

s 21 century t

13 forces of

Globalization

CONVINIENCE

LOST IN GLOBALIZATION
QUALITY VARIETY LOWER COST CUSTOMIZATION DILEMMA & PARADOX SPEED

INFRASTRUCTURE

s 21 century t

FREE TRADE AGREEMENT TECHNOLOGY

GOV SUPPORT FOR GREEN ENVIRONMENT

GLOBAL FINANCIAL INTEGRATION CRUDE OIL SCARCITY

CONVINIENCE

s 21 century t
GLOBALIZATION

LOST IN GLOBALIZATION

13 forces of Globalization

F r e e Tr a d e

Technology

Global Financial Integration

Infrastructure

s 21 century t
GLOBALIZATION

LOST IN GLOBALIZATION

Global Collaboration

Global Competition

LOST IN GLOBALIZATION

Nokia has blue ocean

Competitor senses the opportunity

Different strategy to compete

Red Ocean

LOST IN GLOBALIZATION

Cannot Keep Up To Date With Technology and Consumer Trend

2007 - 2012
Emergence of competitive rivalries Negative Brand Image

NOKIA HISTORY

2011
Join forces with Microsoft

WHITE HAT

NOKIA HISTORY
NOKIA join forces with Microsoft ECOSYSTEM

NOKIA HISTORY

V S

BURNING PLATFORM
Nokia is on a burning platform! The products were failures! Let us jump to Microsofts ship now!

Stephen Elop, CEO of NOKIA

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

LOST IN GLOBALIZATION

Negative impact of globalization

NOKIAS REBORN

THE BOUNCE BACK PERIOD

6 Thinking Hats Delta matrix

ACTION LEARNING JOURNAL

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

LOST IN GLOBALIZATION

Negative impact of globalization

NOKIAS REBORN

THE BOUNCE BACK PERIOD

6 Thinking Hats Delta matrix

BOUNCE BACK PERIOD

WILL NOKIA STILL SURVIVE???

WHAT WENT RIGHT ?

Low Price Infrastructure

High Quality Convenience

WHITE HAT (PREVIEW)

Net Sales

Market Share

Join Microsoft

Profit Sharing

Brand Value

BLACK HAT

Lack of Transformation

Inefficient Marketing & Promotion Activities

Bad Brand Image

No Solid Strategy

Lack of Vision Alignment

GREEN HAT

Brand Repositioning

Increase Brand Awareness

GREEN HAT
Transformation and Innovation

Align Vision with Partner

Create Solid Strategy

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go

Find your Blue Ocean Understand The Market

Brand Positioning

Building Brand Strategy

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go Brand Leadership

Find your Blue Ocean Understand The Market

x

Building Brand Strategy

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go

Find your Blue Ocean Understand The Market

Building Brand Strategy

Brand Awareness With Co-Promotion

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go

Understand The Market Find your Blue Ocean

Customer Needs

Building Brand Strategy

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go

Understand The Market Find your Blue Ocean

Seek the Opportunity Seek the Market

Building Brand Strategy

YELLOW HAT
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and where you want to go

Find your Blue Ocean Understand The Market

Building Brand Strategy

YELLOW HAT

COMMITMENT

BUILD UNITY

YELLOW HAT
INTERNATIONAL HUMAN CAPITAL MANAGEMENT
Increase Leadership Brand
Develop Skill & Competence

Remove Elop Effect Rearrange strategy, vision, mission

Increase Human Capital

Continuous Learning

YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT

Foreign Direct Investment

YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Capital Transfer of Technology

Infrastructure
Transfer of Knowledge

YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Capital Transfer of Technology

Infrastructure
Transfer of Knowledge

YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Capital Transfer of Technology

Infrastructure
Transfer of Knowledge

YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Capital Transfer of Technology

Infrastructure
Transfer of Knowledge

YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT

Technology Improvement Total Quality Control Management

Least Cost Country to Produce

YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT

Technology Improvement Total Quality Control Management

Least Cost Country to Produce

YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT

Technology Improvement Total Quality Control Management

Least Cost Country to Produce

RED HAT
See Smell

Touch
Taste

See Telecommunication Growing

Hear

RED HAT
See Smell

The Most Trusted Brand

Touch
Taste Hear

Source: The Economic Times India

RED HAT
See Smell

Touch
Taste Hear

RED HAT
See Smell

Touch
Taste Hear

Offering Different Experience

RED HAT
See Smell What Customer Needs and Wants

Touch
Taste
Elegant and Simple

Hear

RED HAT
See

Positive Comment about Nokia

Smell

Touch
Taste
Durability and Simple

Hear

BLUE HAT
In conclusion,

NOKIA is the VICTIM of Globalization

however,
NOKIA still has a potential to REBORN to be the BRAND LEADERSHIP

ACCELERATE LEARNING

Action Learning: 1. Integrate 2. Innovate 3. Implement

DELTA MATRIX - THINKING

Holistic Thinking

Purpose

People

Process

System Thinking

Scope

Support

Schedule

Critical Thinking

Strategy

Structure

System

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

PURPOS E

Enable Nokia to become the top brand in mobile phone industry again

PEOPLE
Purpose Scope Strategy People Support Structur e Process Schedul e System

The leader should has ability to sense the market condition

Educate and increase awareness toward NOKIA brand perception

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

PROCES S

Effective Marketing

Not only innovate but also transform

INTERNAL SYNERGY

Align the vision

Change people perception

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

SCOP E

GLOBAL MOBILE PHONE

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

SUPPOR T

Partnership with Microsoft

Foreign Direct Investment

SCHEDULE
Purpose Scope Strategy People Support Structur e Process Schedul e System

SHORT-TERM

MEDIUM-TERM
Find new market Sustain the sales

LONG-TERM

SCHEDULE
Purpose Scope Strategy People Support Structur e Process Schedul e System

SHORT-TERM

MEDIUM-TERM

LONG-TERM

Increase Popularity

SCHEDULE
Purpose Scope Strategy People Support Structur e Process Schedul e System

SHORT-TERM

MEDIUM-TERM

LONG-TERM

Top Brand

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y

Marketing

Branding

Vision Aligning

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y

Marketing

Branding

Vision Aligning

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y
Product Repositioning
Reanalyze and Correct STP

Marketing

Co-Promotion

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y

Marketing

Branding

Vision Aligning

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y
Increase Brand Awareness
Increase Brand Equity

Branding

Increase Brand Image

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y

Marketing

Branding

Vision Aligning

Purpose Scope Strategy

People Support Structur e

Process Schedul e System

STRATEG Y

Share Common Goals

Aligning Vision

STRUCTURE
Purpose Scope Strategy People Support Structur e Process Schedul e System

STRUCTURE
Purpose Scope Strategy People Support Structur e Process Schedul e System

STRUCTURE
Purpose Scope Strategy People Support Structur e Process Schedul e System

SYSTEM
Purpose Scope Strategy People Support Structur e Process Schedul e System

PROCESS

INPUT

OUTPUT

VICTIM OF GLOBALIZATION TOP GLOBAL BRAND Feedback, do Research, Kaizen

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

DELTA MATRIX - THINKING

Enable Nokia to be the top brand in Phone industry again The leader should has ability to sense the market condition Educate and increase awareness toward NOKIA brand perception

Partnership with Microsoft

Foreign Direct Investment

PROCESS INPUT

OUTPUT

VICTIM OF GLOBALIZATION Feedback Must do Research Kaizen

TOP GLOBAL BRAND

AGENDA
THE GOLDEN PERIOD
Global brand management Globalization Strategy People, process, tools

LOST IN GLOBALIZATION

Negative impact of globalization

THE BOUNCE BACK

6 Thinking Hats Delta matrix

NOKIAS REBORN

CLOSING THOUGHT CHANGE is the only CONSTANT, and SUCCESS is a JOURNEY not a DESTINATION.

Good Night and Sweet Dream