A presentation on,

Strategic Approach to build Competitive Advantage by

SHRUTHI B K [Team Leader] ANUSHA SURPUR CHOWANG DOLMA BHUTIA NITHIN PRASAD R S

A QUOTE

What's the use of running if you are not on the

Right Road German proverb

A Case Study on Nokia’s Strategic Approach to build

Competitive Advantage

AIM

Foot ball game - set of game plans and regulation – reach the goal.

Vision & Mission Vision Statement analysis

A world where everyone can be connected. In 2015, 5 billion people always connected, and 100 fold more network traffic. It’s a world of experiences, shared experiences.

Mission Statement analysis To guide and focus decision. To create a balance between competing interest of various stakeholders To motivate and inspire organizational members.

OBJECTIVE

Assess Nokia’s globalization strategies Examine and analyze the entry and

expansion strategies of Nokia in India Analyze Nokia’s efforts to localize its

practices in India market. Objective- Strategy to meet Competitive

Advantage over the opponents.

INTRODUCTION

NOKIA- connecting people… Nokia Corporation (Nokia),

A global manufacturer of mobile devices. Headquartered in Espoo, Finland. Operates four business groups: Mobile Phones, Multimedia,

Enterprise Solutions and Networks. In 2007, Nokia sold over 111.7 million units worldwide,

marking 26% year-on-year growth. Nokia market in India had revenues of more than $3.5

billion in 2006.

Nokia history Nokia's history - 1865, southern Finland

Engineer Fredrik Idestam successfully established a wood-pulp mill in and started manufacturing paper.

This attracted the Finnish Rubber Works to establish a factory in Nokia.

Nokia as their brand name. {foot ware (galoshes) tyres, rubber bands, industrial parts and raincoats}.

Expanding into Electronics After World War II, aroused a demand for power transmission and

telegraph and telephone networks. Finnish Rubber Works bought the majority of the Finnish Cable

Works shares. At this time the seeds of Nokia's global success in

telecommunications were planted.

Nokia history cont…

The Journey into Telecommunications: Nokia Cable Work's Electronics department started to conduct research

into semiconductor technology in the 1960´s. This was the beginning of Nokia’s journey into telecommunications.

Nokia began developing the digital switch (Nokia DX 200) which became a success.

At the same time, new legislation allowed the Finnish telecommunications authorities to set up a mobile network for car phones that was connected to the public network. Nordic Mobile Telephony (NMT) in 1981.

New Products at 1980’s Digital mobile telephony was developed. GSM (Global System for

Mobile Communications) 1991 Nokia made agreements to supply GSM networks to nine

European countries. 1997 Nokia had supplied GSM systems to 59 operators in 31 countries.

Today, Nokia is a world leader in digital technologies, including mobile phones, telecommunications networks, wireless data solutions and multimedia terminals

Defining the problem Strategic Approaches by NOKIA to build

Competitive Advantage.

Strategic approach? Scanning scenario, formulation,

implementation & controlling of strategy / plans.

Competitive Advantage? Success of strategy in making Competitive

actions / moves and acknowledging its positive outcomes against competitor.

Nokia - Competitors

Samsung Sony erricson Motorola LG Fly Spice Virgin Tata Indicom Other China Sets

Nokia in India

Nokia's Strategy in New & Emerging Markets Increase mobile usage in rural areas Reduce the mobile phone ownership and

operating costs Bring the benefits of mobile telephony to people in

emerging markets Bring the power of the Internet to these markets

Nokia India - Tapping the rural market

Planning Internet-based services for the rural Indian market [to position itself effectively in the non-urban markets].

Services include micro-finance, distribution, agricultural services and after sales and support services.

Nokia's large distribution - nine language support in India gain in the rural market. Mobile penetration stands at 6% in 2007.

Nokia has head start on other mobile device providers with its programs for farmers in India - providing solutions from information on market prices for agricultural products, weather updates to financing options.

Nokia’s Growth Strategy Significant investments in research and

manufacturing facilities. Nokia possibly has a inventory pileup. Increasing sales in emerging markets, coupled with

growth in high-end phones. Increase its market share. Consumers regard phones as necessities and they

keep buying new handsets. moving production to lower-cost regions and to its

existing plants

Nokia - A struggling market leader. The macroeconomic environment deteriorated rapidly. Unprecedented currency volatility, credit tightness -

market slowed dramatically with huge losses. Can Nokia turnaround?

Nokia -make a turnaround. Huge market share - lower cost per unit.

Wide range of products - an edge over any competitor.

The best distribution networks in the world. Nokia can certainly capture back share in the vital high-end devices market with new products such as it's 5800 Xpress Music (a lower priced iPhone like touchscreen phone) and making more consumer oriented phones.

Has Nokia gained competitive advantage.?

3 Assessment shows- Employees ability to perform routine business

processes while mobile results in improve sales.

Customer satisfaction, manufacturing and service

Market share, revenue growth

Learning Outcomes

Importance of strategic approaches. Enhances the firm’s ability to prevent

problems. Emphasizes group-based decisions. Emphasis on productivity- reward.

relationships [company to customer].

Importance of competitive advantage.

Summary and ConclusionSummary The Strategic approach by Nokia against their

competitors is very powerful in terms of R&D, advertising, market segmentation, brand positioning, and pricing.

Though Nokia is a struggling market leader, it has tapped the Indian rural market in large proportion.

Conclusion Nokia gained competitive advantage because of their

wide cost range of mobile phones and technology. People think Nokia is a user friendly mobile as the

phone operations are very easy. Nokia are still coming up with new technology to

compete in the market for upcoming generations.

Bibliography1.http://www.casestudyinc.com/Articles/Nokia-Emerging-

Markets-Strategy.html2. http://industryweek.blogspot.com/2008/06/nokia-india-

rural-market.html3. http://www.casestudyinc.com/Articles/Nokia-Struggling-

Market-Leader-2008.html4.

http://management-case-studies.blogspot.com/2007/12/nokia-and-growth-strategy-in-china.html

5.http://www.nokia.com/NOKIA_COM_1/About_Nokia/Press/White_Papers/pdf_files/nokia_es_phasesofmobility.pdf

6. Module Notes on Strategic Management by Prof. G. Devakumar

Thank You