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Internal and External Market Analysis of Nokia
Internal and External Market Analysis of Nokia
Internal and External Market Analysis of Nokia
Nokia
Every organization occasionally has to take some momentous decisions that
affect the entire destiny of the organization for years into the future. These
decisions are considered to concentrate on the major and most significant issues
f acing an organization. In 1994, Henry Mintzberg, an iconoclastic professor of
management at McGill University, took the entire strategic planning
establishment to task in his book, The Rise and Fall of Strategic Planning. In
effect, Mintzberg declared strategy did indeed have several meanings, all of
which were useful. He indicated that strategy is a plan, a pattern, a position, a
perspective and, in a footnote, he indicated that it can also be a ploy, a
maneuver intended to outwit a competitor
Strategic planning is a defined, recognizable set of activities. Techniques vary
with the particular author but the substantive issues are essentially the same
across authors.
PEST Analysis:
Political factors:
Political factor is very important f or Nokia. Because Nokia sales their product
globally. If government changes their laws in terms of export import the sales will
be affected. Any political harassment or political partys threat can be affected
market of Nokia. Political riot is a giant problem f or any company and Nokia as
well. For example in Egypt and Libya there are ongoing a political riot and in this
situation Nokia company decreased their market. The governmental bodies in
the U.K have introduced new laws into the business environment, which ensure
that none of these procedures take place; if a company is to be successful they
must follow all of these laws.
Organization
Internal Stakeholders
External Stakeholders
Shareholder
Employee
Suppliers
Customers
Government
Local Community
Media
Business
Community
Bank and Insurance
External Stakeholders
Customers: Nokia increasingly engage with customers on issues related to
sustainability. Network operators Nokias biggest customers expect to meet
high standards of corporate responsibility in their own operations and
increasingly in their supply chain. Nokia continues to receive enquiries and
assessment requests about social and environmental performance from their
operator customers. Nokia respond to those requests through our normal
customer account management interface.
Government: Nokia is operating their business in world wide. Nokia always obey
the government rules and regulation and pay tax vat as per government rules.
Nokia create a giant employment all over the world and it is a government basic
expectation from a company.
Local Community: Nokia is always promised to help all kind of local community
all around the world. Nokia sponsored f or AIDS hospital, cancer hospital, all
kinds of national game. Nokia sponsors many research collaborations with
industrial and academic partners. Nokias goal is to strengthen co-operation
between our researchers and academics.
Business Community:
Opportunity (external f actors): This is the area in which Nokia can make more
profit, or gain more market share. There are 2 ways in which Nokia can currently
do this:
1. Improve the technology that they are using to make their phones and use in
their products, for example, camera phones and advanced picture messaging,
3G supporting and very smooth touch screen.
2. Using innovation to re-invent their products, change and develop within the
market to offer something none of the competitors have.
Threat (external factors):
China Mobile made copy Nokia sets. Orange, Voda-phone, and O2 are globally
selling their own brand products. Higher import charges.
2.3
Evaluation
the
weaknesses of Nokia:
competitive
strengths
and
Focus Strategy:
Nokia that use Focus strategies concentrate on particular niche markets and, by
understanding the dynamics of that market and the unique needs of customers
within it, develop uniquely low cost or well specified products f or the market.
Nokia basically maintains the cost leadership strategy in their competitive broad
market because Nokia reduces costs at each stage of their business.
Stakeholder
Main Interest
Power
Potential
Impact
Strategies/Control Measure
Bankers
Suppliers
Government
Consumers
Bankers and other financial institutions are interested in the overall condition of
a firm. Suppliers will expect to be paid and will be interested in the future of the
business. Tax revenue, Compliance with legal regulations and Continuous
national development Consumers have high interest in the goods and services
and reasonable prices. A bank is interested in minimising the risk of interest not
being paid. Suppliers can reduce their level of service, or even switch to
supplying competitors. Government has legal power To control business.
Consumers have more option to bargaining power. Collateral security is being
strongly. Imposing new products with competitive price and reduces consumers
rivalry. Flexible rules and regulation f or business. Suppliers can analyze through
the competitors of existing market. Nokia never disrupts any bank money. Nokia
try to give them good feedback and a competitive value. Obeying all rules and
regulations. Nokia always bringing hi- technology in a competitive price.
Nokia outlined its new strategic direction, including changes in leadership and
operational structure to accelerate the company's speed of execution in a
dynamic competitive environment. Major elements of the new strategy include:
- Plans f or a broad strategic partnership with Microsoft to build a new global
mobile ecosystem; Windows Phone would serve as Nokia's primary smart phone
platform.
- A renewed approach to capture volume and value growth to connect "the next
billion" to the Internet in developing growth markets.
- Focused investments in next-generation disruptive technologies.
Risk Assessment:
Nokias overall risk management concept is based on visibility of the key risks
preventing it from reaching our business objectives. This covers all risk areas:
strategic, operational, and financial and hazard risks. Political, social, human
rights and environmental risks are considered within these categories of risk,
rather than as a separate strand. The principles set out in Nokia Risk Policy and
accepted by the Boards Audit Committee, require risk management and its
elements to be integrated into business processes.
Network Solution:
Nokia is introducing core network solutions that leverage the possibilities of IP to
expand operators service portfolios, while keeping full control over their network
usage.
Reduction of cost:
According to Nokia Siemens Networks the cost reductions should rise to EUR 500
million by the end of 2011. The company plans to review its global personnel,
and expects f or around 7-9 percent of its current number of around 64,000
employees to receive the pink slip, yet the number of layoff s will differ from a
country to another.
Resources
2012
Jan- Jun
July- Dec
Jan- Jun
July- Dec
Market Research
Outlet
Face to Face
Telephonic
Online survey
Advertisement
TV
Newspaper
Billboard
Internet
Plan Development
Advance version mobile phone
Connected with Microsof t
Using I Tune
Flexible Application download
Price
Reducing production cost
Reduction
Export duty
Call charge low
Reduction of Accessories
Total
Product:
Nokia developing products and services which not only meet customers
immediate usability needs but help them to make more sustainable choices
through the innovative use of materials, technologies and concepts.
Technology:
The mobile phone in your hand is now packed with advanced tools that let you
do so much more. A picture, music, Internet, games, radio, video, and
navigation, messaging todays Nokia phones are overf lowing with practical
ways to help you make the most of every day. Nokia gives you insights into the
technologies that make your Nokia phone alive. From 3G to WLAN, the acronyms
and terminologies are explained in detail.
Mission:
Nokia helps communications service providers build more valuable customers
relationship by providing ef f iciency and experiences. Nokia built value by
addressing ef f iciency, and continue to do that. But they also need to address
the customers need f or a better experience, because its experience that builds
relationships, and relationships that build value.
Vision:
The individual communications experience is the greatest value a
communications service provider can deliver to their customer, and so its the
greatest value we can support communications service providers in delivering.
Nokias vision guides their mission, and mission is to build more valuable
customer relationships. The individual communications experience builds more
valuable customer relationships.
Dogs:
These are products with a low share of a low growth market. These are the
canine version of 'real turkeys! They do not generate cash f or the company,
they tend to absorb it. Get rid of these products.
Cash Cows:
These are products with a high share of a slow growth market. Cash Cows
generate more than is invested in them. So keep them in your portf olio of
products f or the time being.
Stars:
These are products that are in high growth markets with a relatively high share of
that market. Stars tend to generate high amounts of income. Keep and build your
stars. Look f or some kind of balance within your portf olio. Try not to have any
Dogs. Cash Cows, Problem Children and Stars need to be kept in a kind of
equilibrium. The f unds generated by Nokia Cash Cows are used to turn problem
children into Stars, which may eventually become Cash Cows. Some of the
Problem Children will become Dogs, and this means that you will need a larger
contribution f rom the successf ul products to compensate f or the f ailures.
Question marks: (also known as problem child) are growing rapidly and thus
consumes large amounts of cash, but because they have low market shares they
do not generate much cash. The result is large net cash consumption. A question
mark has the potential to gain market share and become a star, and eventually a
cash cow when the market growth slows. If the question mark does not succeed
in becoming the market leader, then af ter perhaps years of cash consumption it
will degenerate into a dog when the market growth declines.
Market Research
Outlet
Face to Face
Telephonic
Online survey
Advertisement
TV
Newspaper
Billboard
Internet
Plan Development
Advance version mobile phone
Connected with Microsof t
Using I Tune
Flexible Application download
Reducing production cost
Labour Cost
Export duty
Call charges
Accessories
Total
Monitoring
and
evaluate
systems
implementation of Nokia strategy plan:
for
the