Your SlideShare is downloading. ×
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Nokia Competitive Intelligence, Strategy and Marketing analysis
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Nokia Competitive Intelligence, Strategy and Marketing analysis

29,103

Published on

Competitive Intelligence, Strategy, Marketing analysis, nokia, sylvain revuz

Competitive Intelligence, Strategy, Marketing analysis, nokia, sylvain revuz

Published in: Business, Technology
0 Comments
8 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
29,103
On Slideshare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
1,287
Comments
0
Likes
8
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Nokia CI report 2011 Sylvain REVUZ Nokia’s share price decreased by more than 50% after the CEO Stephen Elop announced in February 2011 that Nokia will enter into partnership Sylvain.revuz@free.fr with Microsoft, adopting the Windows Phone as its primary smartphone Competitive Intelligence platform. -What is the current and future competitive environment of Nokia? This will take into account factors such as: customers and competitors, markets and suppliers, production and product technologies, politics and the environment, and the industry’s structure (including changes and trends). -What plans and actions must Nokia and Microsoft take to maintain their competitiveness vis-à-vis key competitors? I|P a g e Sylvain REVUZ
  • 2. Table of Contents1. Executive summary ....................................................................................................................................... III2. Introduction ................................................................................................................................................... 1 2.1. The problem and KIQs ........................................................................................................................... 1 2.2. The process ........................................................................................................................................... 1 2.3. Case background ................................................................................................................................... 23. External analysis ............................................................................................................................................ 3 3.1. PEST analysis ......................................................................................................................................... 3 3.2. Porter’s 5 Forces ................................................................................................................................... 5 3.3. Competitors .......................................................................................................................................... 7 3.3.1. Hardware: ..................................................................................................................................... 7 3.3.2. Software: The OS .......................................................................................................................... 9 3.3.3. Mobile applications: ................................................................................................................... 10 3.4. Industry drivers ................................................................................................................................... 11 3.5. Key competitive issues highlighted by the external analysis .............................................................. 124. Internal analysis ........................................................................................................................................... 13 4.1. Internal capabilities ............................................................................................................................. 13 4.1.1. Financial capabilities ....................................................................................................................... 13 4.1.2. Human capabilities ......................................................................................................................... 13 4.1.3. Technological capabilities (RORC ratio) .......................................................................................... 14 4.1.4. Management capabilities ............................................................................................................... 15 4.1.5. Organisational capabilities .............................................................................................................. 16 4.1.6. Brand capabilities ........................................................................................................................... 16 4.2. Core Competency ................................................................................................................................ 17 4.3. Key competitive issues highlighted by the internal analysis ............................................................... 185. Microsoft an d Nokia analysis ...................................................................................................................... 196. Recommendations ....................................................................................................................................... 20References .......................................................................................................................................................... - 1 -Appendix ............................................................................................................................................................. - 2 - Appendix 1 ..................................................................................................................................................... - 2 - Appendix 2 ..................................................................................................................................................... - 3 - Appendix 3 ..................................................................................................................................................... - 4 -II | P a g e Sylvain REVUZ
  • 3. 1. Executive summaryThe general objective of this report is to give comprehensive responses to the following key intelligentquestions:  What is the current and future competitive environment of Nokia? This will take into account factors such as: customers and competitors, markets and suppliers, production and product technologies, politics and the environment, and the industry’s structure (including changes and trends).  What plans and actions must Nokia and Microsoft take to maintain their competitiveness vis-à-vis key competitors?In order to reply to those questions, this report will follow a traditional structure by firstly analysing theexternal environment (PEST and a Porter’s 5 forces) as well as identifying the main industry drivers andcompetitors. The external environment analysis will be concluded by summarising the key competitive issueshighlighted by the external analysis in an opportunities and threats presentation framework. Secondly, thisreport will evaluate the external environment by assessing Nokias internal capabilities (G.Hamel) and corecompetencies (VIRO) and all key competitive findings will be regrouped into a strengths and weaknesses list.Thirdly, based on the interview with the Head of Finance & Control Nokia France, an analysis of thepartnership between Nokia and Microsoft will be presented. This report has been prepared by following aclear competitive intelligence process as described in the first section of the report.Finally, the following options have been recommended based on Nokia’s current internal and externalenvironments:1) Retain dominance in the developing markets by reshaping the Nokia brandCompetitive intelligence (CI) actions: Create a specific CI team in charge of constantly analysing the BRIC market and low-cost mobile phones segment. Evaluate the impact on the current market if Nokia stops to use the Nokia brand for higher-priced products and introduces a new brand (for example MicroKia).2) Utilise Nokia Siemens Networks division to exploit the growth of 4GCompetitive intelligence (CI) actions: CI team to evaluate the main countries that extend their 4G infrastructure and create several war game sessions with Nokia executives in order to anticipate competitors’ reactions. CI team to evaluate the impact of a potential sale of Nokia Siemens Networks division.3) Leverage the Nokia/Microsoft (MicroKia) partnership and offer a strong alternative to the RIM Blackberry before the end of 2012.Competitive intelligence (CI) actions: CI team to evaluate the impact and risk of failure of the Nokia/Microsoft partnership. CI team to evaluate the possible retaliation by RIM if Nokia/Microsoft enters the corporate world.III | P a g e Sylvain REVUZ
  • 4. 2. Introduction 2.1. The problem and KIQsNokia’s share price decreased by more than 50% after the CEO Stephen Elop announced in February 2011 thatNokia will enter into partnership with Microsoft, adopting the Windows Phone as its primary smartphoneplatform. In addition, in July 2011, Nokia reported an overall operating loss of EUR 487 million with unit salesdown 20% year-on-year; this represents the worse financial result in the history of the Finnish multinational.This report will focus on the two following key intelligent questions:-What is the current and future competitive environment of Nokia? This will take into account factors such as:customers and competitors, markets and suppliers, production and product technologies, politics and theenvironment, and the industry’s structure (including changes and trends).-What plans and actions must Nokia and Microsoft take to maintain their competitiveness vis-à-vis keycompetitors?By addressing these two questions, this report will be able to provide a set of recommendations that will helpNokia to return to a sustainable financial position. 2.2. The processA competitive intelligence analysis of Nokia has been conducted following the rigorous competitive 1intelligence process that can be found below. This report represents the dissemination step by reporting thefindings as well as a set of recommendations.1 J P. Herring (1999) “Key Intelligence Topics: A Process to Identify and Define Intelligence Needs" CompetitiveIntelligence Review, Vol. 10(2) 4–14 John Wiley & Sons, Inc.1|P a g e Sylvain REVUZ
  • 5. It is also important to note that only publicly available information has been used and always in a legal andethical manner. In addition, in order to evaluate the impact of the relatively new partnership betweenMicrosoft and Nokia, an interview with the Head of Finance & Control Nokia France (P Blondeau), wasconducted using Skype. 2.3. Case background Nokia Group before 2011 was the world’s largest mobile phone manufacturer and was the market leader worldwide, except in North America. In 2010, Nokia reported net sales of EUR 42.4 billion and an operating profit EUR 2.1 billion. However, in the beginning of 2011, Apple and Samsung overtook Nokia in smartphone sales and Nokia now holds 3rd place. Nokia remains the leader in Asia Pacific countries as well as in developing countries e.g. it holds a 54% volume share in India, 30% in China. The Nokia Group is composed of 132,427 employees, divided into three major divisions (Appendix1):- The Devices and Services division is the most important activity division of Nokia and represents around 60%of the total revenue from the 1.3 billion Nokia phones in use. This division has been divided into two differentunits: the Smart Devices units in charge of all Nokia smartphone products, and the Mobile Phones unit incharge of developing and managing all of the company’s basic mobile phones. Both units are responsible forthe development, manufacture, marketing and distribution of all Nokia mobile devices. In 2010, R&D serviceswere present in 16 countries and the production facilities were divided between nine countries (Appendix 2).. In Q1 2011, the division posted a 3% year-on-year increase in revenue; however, the Devices and Servicesoperating profit fell by 19%. This is largely due to intense competition that constantly erodes the margin in thebasic mobile phones market, as well as the fact that the Nokia Group struggles in the high-margin smartphonemarket.- The Nokia Siemens Networks division is responsible for manufacturing cellular communication infrastructurehardware as well as networking and telecommunications equipment (competing with Ericsson and Huawei).Every day, a quarter of the world’s population connect using Nokia Siemens Networks infrastructure andsolutions.- Navteq provides maps and location-based services for mobile devices.The following table clearly highlights the importance of each division in terms of their contribution to Nokiasales. 2Net sales by reportable segment Q2 2011 EURm % of total net salesDevices & Services 5467 59 Smart Devices 2368 26 Mobile Phones 2551 27 D&S Other 548 6NAVTEQ 245 2Nokia Siemens Networks 3642 392 http://www.nokia.com/about-nokia/financials2|P a g e Sylvain REVUZ
  • 6. Nokia Group 9275 100 3Nokia sells in over 160 countries, and based on the latest BMI estimation Nokia is selling 50 million units ofhigh-range smartphones (N9, N8) and 150 million mid-range smartphones every year with an average sellingprice of EUR 156. In addition, Nokia is also selling 280 million low-range mobiles with an average selling priceof EUR 69. BMI has also estimated that Nokia has the largest number of installed based smartphones with 4600+ million units. By analysing the major market in terms of net sale s, we can use the table below to confirmthat Nokia remains relatively strong in developing countries.3. External analysisThe previous section gave a quick snapshot of Nokia’s current situation. This report will now focus on theanalysis of the main external factors that are influencing the mobile and smartphone industries. 3.1. PEST analysisIn order to conduct the external analysis we will first utilise the PEST framework in order to understand themacro-economic factors that might affect Nokia.PoliticalBy doing business in 150 countries, Nokia is constantly subjected to a large number of different politicalinfluences. Each country has its own political systems as well as different regulations and terms of trade andthe mobile market is still highly regulated. However, as a pioneer in the mobile industry with extensiveexperience, Nokia entered the highly political Chinese market more than 10 years ago. It is also important tonote that Nokia has shifted its main manufacturing units to China and India and therefore any governmentintervention in those countries (particularly in terms of labour laws) can directly affect Nokia. As an illustration,Nokia’s Indian factory experienced strike action at the end of 2010 that forced the factory to shut down fortwo weeks.Economical3 BMI (2010) Special Report BMI Global Handset Market Key Trends and Opportunities4 http://www.nokia.com/about-nokia/financials/quarterly-and-annual-information3|P a g e Sylvain REVUZ
  • 7. The demand for smartphones is varied, thus the economy plays a crucial role in terms of profitability for thesmartphone and mobile industry. The recent economic downturn has clearly affected all players in the industryand several have been forced to exit. For example, Motorola sold its mobile phone activity to Google in 2011 5and LG is considering stopping their mobile activity in the next few years. In addition, because in all developedregions the penetration rate of mobile phones is very high, customers will replace their phone only if value formoney is optimum; this will therefore increase the competition between main players.SocietalSocietal impacts have a direct influence on the mobile phone and smartphone industries. Firstly, the rise of theso-called information society has made telecommunications increasingly more important to consumers, both 6in terms of leisure and work. Secondly, the chart below clearly demonstrates that Asia, the Middle East andAfrica offer the greatest potential for expansion. Those areas contain an important number of people that donot own a mobile phone because it is currently beyond their means. However, cost leader manufacturers suchas Nokia are always able to reduce their price in order to make their products more affordable. It is alsoimportant to note that incomes from those regions are predicted to grow rapidly. As an illustration, the latest 7data on China’s telecommunications confirms that Nokia has a current market share of 30%, a far greatershare than any other competitors have. It is also important to highlight that in 2010, the disposable income percapita in China was US$ 2025 but it is expected to reach US$ 3355 in 2014. Furthermore, the current mobilesubscription penetration in China is estimated to be 57% but is also predicted to grow to 68% in 2014.Similarly, Nokia has 54% of the market share in India and the mobile data subscription penetration is currently46% but forecasted to reach 66% in 2014. It is also expected that the current disposable income per capita thatis currently US$ 823 should exceed US$ 1423 in 2014.Asia Pacific, the Middle East and Africa are the key opportunity markets for Nokia as they represent the largestmarkets with the biggest growth. Opportunity Zone5 http://www.asymco.com/2011/08/26/is-lg-about-to-exit-the-phone-market/6 BMI (2010) Special Report BMI Global Handset Market Key Trends and Opportunities 2007-20147 BMI (2011) China Telecommunications Report Q3 20114|P a g e Sylvain REVUZ
  • 8. Technological the mobile phone industry has always relied on drastic technological changes. In addition,during the last decade, the increase in technological innovations has pushed the main players to renew andlaunch their new products at a much faster rate than they did previously. In addition, the evolution of 8networks (3G, 4G and WiMax) has an impact on the mobile phones market. As shown in the graph below , thefourth generation (4G) of wireless technology is now beginning to be deployed around the world. Most mobilenetwork operators have committed themselves to building networks that will support 4G; therefore,companies like Nokia (Nokia Siemens Networks division) can provide these networks and should be able toincrease their sales significantly. 3.2. Porter’s 5 ForcesThis report will now continue the external analysis by applying Porte’s 5 forces analysis; this will help us tounderstand the industry attractiveness of the mobile phone and smartphone industry.Threat of Entry (Medium and increasing)The threat of entry has been rated as medium and increasing because the mobile phone industry required alarge investment as well as a powerful brand; there is also heavy retaliation because of the fierce competitionand the maturity of this industry. However, it is possible for an external company to enter through mergers 9and acquisitions (M&A), as Google recently did with Motorola .The mobile industry clearly requires huge capital requirements, mainly because of its high manufacturing R&Dcosts. Product innovation is driving sales and therefore the main companies are constantly pushing innovationboundaries by investing in R&D to launch new products. All those important investments are also continuouslyincreasing the cost of leaving the market.In addition, because the fixed cost is high, it is important for leaders in the smartphone industry to benefitfrom their economies of scale in order to increase profit margins.8 BMI (2011) Global Telecommunications Report Q3 20119 Bloomberg (2011) "Google Buys Motorola for ‘Superpower’ Status" By Susan Decker and Ian King - Aug 16,20115|P a g e Sylvain REVUZ
  • 9. With the recent standard imposed by Apple in terms of product design, smartphones are becoming moreuniform in terms of functionalities, as well as design, and thus the product differentiation is reducing andsmartphones are becoming a commodity.All major brands use the same distribution channels in order to sell their products. In most countries,smartphones are sold through mobile operators and these are therefore exerting more bargaining power dueto their important role in the distribution process.In 2010, the operating margins of Nokia and Apple were both above 30% when all other direct competitors 10were below 15% . Nokia and Apple have an absolute cost advantage, mainly because they are able to achieveefficiency in operations through a learning curve, as well as economy of scale. However, Nokia lost thisadvantage in 2011 within the smartphone segment, mainly because of the incredible growth in salesexperienced by Apple and Samsung.The mobile industry is heavily regulated and governmental and legal barriers are usually low. In addition, allthe leading players are now fighting a fierce battle to gain more of a market share, so there will be heavyretaliation against any new entry. A new entrant will also be required to have strong brand recognition, asbranding is a crucial element for selling smartphones.Supplier Power (Medium and increasing)In this industry, the supplier power is clearly different depending on the item being supplied. Firstly, hardwareproviders have moderate power because their components are commodities and therefore several sources areavailable. However, due to recent breakthroughs by leading smartphone players in terms of technology, somecomponents like LCD screens or microprocessors are becoming more and more mono-sourced due to theircomplexity. Secondly, operating system (OS) providers are starting to consolidate. Nokia has relied on Symbianas its main OS for a long time, but Android (a recent open source solution) has completely redefined industrystandards, forcing Nokia to look for other software providers like Microsoft.Substitutes (Low stable)Smartphones have a wide variety of functions and therefore many specialized products can be classed assubstitutes for one of several functions. For example, products like notebooks or tablet PCs can cover almostall smartphone functionalities, except the most important call and text functions. In addition, even if the speedof 4G will enable customers to use more and more video calls instead of voice calls, users will always rely onsmall devices like mobiles and smartphones that can be transported easily in a pocket or a bag.Buyer power (High and stable)The end user bargaining power is high, mainly due to the increasing choice and very limited differentiationbetween products. It is also important to note that because mobile trends follow an elastic demand, anyeconomic slowdown will affect sales. In addition, buyers have increasingly more information that helps themto compare phones in order to find the best quality and best priced products. Mobile operators, by 11representing 60% of mobile sales , have an important power in terms of price negation and can easily switchfrom one brand to another, especially for low cost and entry range phones.Rivalry is intense among existing players (High).Competition in the global handset market is intense and is rapidly becoming even greater as consumerelectronics companies see the potential of transferring their well-known brands into the mobile space. During10 comScore (2010) Mobile Year in Review11 BMI (2011) Global Telecommunications Report Q3 20116|P a g e Sylvain REVUZ
  • 10. the last couple of years, we have seen major computing brands move into the smartphone market, either bydesigning their own phones from scratch (Apple, Lenovo) or by acquiring an existing brand and/or intellectualproperty (Google and Motorola). We also saw several players exiting this industry due to the difficulty inattracting customers (e.g. Dell, HP and Acer). The variation between product features is becoming diminishedand therefore existing players are investing heavily in applications and services in order to differentiate theirproducts.ComplementsAs we saw in the previous paragraph, complements are critical for product differentiation and are also veryuseful to lock in consumers (therefore reducing their bargaining power). The power of complementaryproducts is essentially created through applications. During the last five years, all the main players havelaunched their application stores; these enable customers to improve the functionality of their mobile phonesby automatically upgrading them with new email, maps, GPS, music and other media-related applications. 3.3. CompetitorsThe next important step in this process of assessing the external environment will be to show the current 12picture of Nokia’s competitors . 3.3.1. Hardware:For more than a decade, Nokia has been the iconic leader in the industry. However, the iPhone revolution (aswell as the growth of a fully vertically integrated and highly diverse group like Samsung) has disturbed theindustry. The latest data clearly highlighted several crucial points:Firstly, Nokia reported smartphone sales of about US$ 3.4 billion for Q2 2011, while Apple’s iPhone revenuetotalled US$ 13.3 billion; this makes Apple the leader of the industry as it shipped 20 million iPhones. It is alsoimportant to understand that the average sale price (ASP) of an iPhone is more than US$ 600, while Nokia 13reports a smartphone ASP of around US$ 200 .Secondly, Nokia was previously the market share leader, having more than one-third of the worldwidesmartphone market in Q2 2010. However, one year later, this figure has decreased to only 15.7% and Nokia isthe only brand that has lost market share, reporting a negative growth of 30%.12 http://www.comscoredatamine.com/page/2/?s=mobile13 Euromonitor (2011) International Consumer Electronics report7|P a g e Sylvain REVUZ
  • 11. 14The chart above shows the operating profits from the sale of mobile phones among the main vendors. Duringthe second quarter of 2011, Nokia, Motorola, Sony-Ericsson and LG saw losses and did not manage to generatea profit by selling phones. During the same period, RIM and Samsung saw their shares slightly decrease butApple grew substantially and this company now represents two-thirds of the industry with operating profit of66.3%. From the same graph, we can also confirm that Motorola and LG are frequently making losses; this mayexplain why Google bought Motorola last month and why LG is considering exiting the industry before the endof 2011.14 http://www.asymco.com/8|P a g e Sylvain REVUZ
  • 12. 15The chart above clearly confirms that Nokia’s problems are not recent; it shows the change in profit shareover a four-year period and we can see that Nokia has slowly lost profits and market shares to Apple. As ofSeptember 2011, Apple is currently taking 84% of the profits generated by modern smartphones; this meansthat Nokia’s main source of revenue is the low-end classic mobile phone. 3.3.2. Software: The OSThe previous section highlighted the fact that Nokia saw its market share and profits decrease over the lastfour years, and during the same period, Apple and the iPhone took 84% of the overall profits. By studying theoperating system (OS), as well as the applications that are developed by the industry, we will be able tounderstand how its new competitor, Apple, surpassed the previously successful Nokia.SymbianSymbian v9 was launched in 2005 and in December 2008, Nokia bought Symbian Ltd., the company behindSymbian OS and made it an open source system. Nokia’s Symbian platform market share increased to 47% butin 2010 it started to plateau and is now declining sharply, currently representing less than 16% of new mobile 16phone operating systems . Symbian was mostly used by the Nokia Group and other manufacturers like LG,Motorola, Samsung and Sony Ericsson. Symbian remains the most used OS due to its very large installed based(more than 500 million mobile phones). However, Google’s Android has emerged as a significant challenger tothe superiority of Symbian by providing a developer-friendly OS combined with better innovativefunctionalities, a better user interface and coming from a consumer-friendly brand (Android by Google).AndroidGoogle’s Android was launched as a free and open source operating system in 2008 and within two years, itgrew from having 0% to 21% of the market share. As of 2011, Google’s Android operating system is installed 17on 130 million devices and it is used extensively by leading smartphone manufactures like Samsung,Motorola and HTC.Windows Phone 7The Windows Phone 7 was showcased at the beginning of 2010 and represented a significant upgrade to thestruggling Windows Mobile 6 OS. Early signs were mixed but the OS was generally well received and Microsoftalso created important new features like Zune, Bing, Xbox Live and Windows Marketplace. However, theWindows Phone arrived late on the market in comparison to the Apple iOS or Android and the OS was not freeand fully open source. In August 2011, during his keynote speech at the 2011 Microsoft Worldwide PartnerConference, Microsoft CEO Steve Ballmer admitted that Microsoft simply hasnt gained any traction and that 18Microsoft has failed. Based on the latest figures from Nielsen, Windows Phone 7 sales only represent 9% ofthe market, compared to 38% for Android and 27% for the iPhone.In order to picture this incredible landscape modification in terms of the OS, both graphs below show how thetop smartphone platform has moved from Symbian to Android in fewer than 4 years.15 http://www.asymco.com/16 BMI (2010) Special Report BMI Global Handset Market Key Trends and Opportunities 2007-201417 BMI (2010) Special Report BMI Global Handset Market Key Trends and Opportunities 2007-201418 http://blog.nielsen.com/nielsenwire/?p=282379|P a g e Sylvain REVUZ
  • 13. Source: http://www.asymco.com/?s=nokia&submit=Go 3.3.3. Mobile applications:The previous sections described how the Nokia ecosystem Symbian failed to compete with Apple or Google. Inthis section, we will see how this issue also affected the developer community and therefore the applicationsavailable on Nokia’s mobile phones and smartphones. Firstly, by analysing the number of applications availablein the Nokia application store (called OVI) we can see from the graph below that OVI has only 46,000applications when Android or Apple have over 300,000 applications. However, we can also see from the same 19graph that the trend is slowly growing, confirming the idea that some developers remain interested indeveloping applications on Nokia’s Symbian platform, even though this platform is less competitive thanAndroid or Windows Phone 7.Nokia tried to retain developers by developing the number of services available on Symbian’s ecosystem by 20acquiring 10+ companies during 2007-2010 . Examples of this are the acquisitions of Trolltech, a developmentframeworks company that enables developers to improve their productivity; and Novarra Inc., a Java basedweb browser; and Motally a web app tracking software; and Navteq, a company that provides maps forgeolocation. In addition, from the results of a recent survey of 5000 application developers conducted by 21Appcelerator in September 2010 , we can clearly see the possible strengths and weaknesses of the Nokiaecosystem when compared with the competition.19 Distimo (2011) Publication-June-2011 http://www.distimo.com/20 http://www.nokia.com/about-nokia/21 http://www.appcelerator.com/assets/appcelerator-mobile-developer-survey-june-2010.pdf10 | P a g e Sylvain REVUZ
  • 14. Top reasons why developers FAVOUR these Top reasons why developers DO NOT FAVOUR theseplatforms platformsApple IOS: Apple continues to make the most popular Apple IOS: Apple has become too controlling (86%)phone (92%)Google/Android: OS shows tremendous adaptability, Google/Android: Fragmentation is a developer’sfrom Smartphone to tablets to cars... (69%) nightmare; testing and developing across the various Android platforms and devices is costly and time prohibitive (61%)Microsoft Windows Phone 7: Microsoft has a Microsoft Windows Phone 7: I do not see itsignificant market share within the business/ successfully climbing its way back in the fast movingenterprise market (59%) smartphone market (72%)Nokia: I like the global market opportunity that Nokia: Nokia’s triple-platform (Symbian, Meego andNokia uniquely offers developers (75%) Meamo) seems too muddled and risky now (52%)Based on the survey results, we can see the importance of a partnership between Nokia and Microsoft inorder to leverage both their strengths. Nokia will bring its global market and Microsoft will share a powerfuloperating system and ecosystem that are already used in the business and enterprise market. 3.4. Industry driversIn order to conclude the external analysis section, it is important to identify and understand the four maindrivers that will generate the growth of the mobile industry during the next five years.Growing Affordability of Mobile HandsetsAs highlighted by the PEST analysis, living standards in emerging markets continue to improve and the costs ofmobile handsets and wireless network connectivity are decreasing through the development of technologyand intensification of the competition. Mobile ownership is becoming increasingly affordable and a mobilephone has changed from a luxury to a mass-market consumer product.Replacement DemandIn developed countries, the smartphone market has reached maturity and therefore additional demand ismainly driven by the need for replacements. In order to boost the demand in smartphones, both brands andoperators are using short-term pricing promotions to increase the affordability of smartphones. In addition,smartphones manufacturers are also constantly improving smartphone functionalities and technologicalinnovations in order to maintain a strong demand. During economic slowdown, operators are willing tosubsidise the cost of the devices because they know that smartphones are consuming a lot of data and this willbe translated into subscriptions that are more profitable.Handsets with More Functions and Personalised FeaturesThe recent improvements in wireless communications, in particular 3G, have enabled mobile phones to evolveinto more sophisticated devices, commonly called ‘smartphones’. Today, smartphones are directly connectedto value-added services, such as TV, radio, newspapers and books and new media such as the Internet. Theresult is that smartphones are now more than just communication devices and are increasingly being used fora variety of personal, work and entertainment purposes. This convergence has made mobile phones moreuseful for consumers and youngsters are especially seeing those handsets as indispensable social tools,preferring customisable and distinctive products with multimedia functionalities (music/video players,11 | P a g e Sylvain REVUZ
  • 15. cameras, social networking capabilities etc.). The future success of the smartphone industry depends on theability of main players to offer distinctive products, services and contents that stand out from those offered bytheir competitors. Successful products are typically those with distinctive features; this is shown through thesuccess of Apple’s high-tech products. In comparison, Nokia relies more on traditional-functionality low-costmobiles.Continual Evolution of Wireless Network TechnologiesWireless network technologies have been continually evolving at a rapid pace in order to cope with theincredible amount of data that users are consuming through their handsets. Today, all mobile handsets are atleast compatible with a 2G or 2.5G (GSM/GPRS) wireless technology. In almost all countries, the 2.5Gtechnology allows data transmission speeds of up to 384 kbps. However, in order to improve data speed,several countries are deploying new wireless infrastructures as 3G networks allow a data transmission speedof 2.5 Mbps. However, relatively few countries have yet implemented fourth generation (4G) wirelesstechnology, which enables users to access more features and applications via their smartphones (such asonline mobile gaming, streaming videos and multimedia content downloads). Nokia is the only main playerthat has a division in charge of developing and installing networks and wireless technologies for operators;thus, they can be the first to exploit this opportunity in conjunction with developing smartphones that will beable to fully use the 50 Mbps speeds that these new networks provide. 3.5. Key competitive issues highlighted by the external analysisOpportunitiesEmerging Markets (BRIC + the Middle East and Africa) with a large, untapped and expanding user base.Nokia has a strong brand and also dominates all the markets that are expected to be the fastest-growingmarkets over the next five years (India, China, the Middle East and Africa). By consolidating and protecting itsposition, Nokia should be able to benefit from this growth, particularly the unit in charge of the company’sbasic mobile phone.Nokia and Windows 7 Mobile partnership + Apple has become too controllingBy studying the current OS landscape, we saw that a partnership between Nokia and Microsoft will be able tocombine Nokia’s global market with Microsoft’s powerful operating system and ecosystem that are alreadyused in the business and enterprise. In addition, it was also indicated that a majority of developers are startingto see Apple as too controlling; by providing smartphones that are dedicated to enterprise as well as a well-graphed platform, Nokia will be able to attract a large number of developers.Expected launch of 4G and 5G networks.The Nokia Siemens Networks division should be able to sell more infrastructures around the globe supporting4G due to the increasing need for speed and better networks; this will result in stronger financial results forNokia.ThreatsNew entrant to smartphone market – Google MotorolaGoogle’s $12.5 billion purchase of Motorola Mobility has clearly confirmed that the market has started toconsolidate. This new competitor has a very strong brand and financial position and will quickly be able tocompete with Nokia and Apple.12 | P a g e Sylvain REVUZ
  • 16. Growing loyalty for a competing OSAndroid, the leading mobile operating system, has clearly penetrated the market and developers are becomingmore loyal to this ecosystem; this makes the market ever harder for systems that have fallen behind (likeSymbian and Web OS).Price erosionAn inability to compete in the high-end device market makes Nokia dependent on its low- and mid-pricedranges, where strong price erosion is expected to continue driving down profitability.4. Internal analysis 4.1. Internal capabilitiesNokia’s internal capabilities will be analysed through the framework presented below, which is based on the 22work of Gary Hamel and C.K. Prahalad in their book entitled “Competing for the Future”. Internal capabilities of Nokia Tangible Resources Intangible Resources Financial capabilities Management capabilities Human capabilities Organisational capabilities Technological capabilities Brand capabilities capabilities 4.1.1. Financial capabilitiesHistorically, Nokia has been a profitable company, but it has explained its recent decline in market share aswell the impact of its loss of competitively in the smartphone segment on its financial performance. As wesaw, Nokia announced the financial results for Q2 2011 with a whopping $693 million operating loss and amassive decline of 20% in net sales. In addition, several analysts (Goldman Sachs & Co., Credit Suisse, andBarclays Capital) have forecasted that Nokia will be substantially below its annual target for 2011. It isexpected that Nokia will experience major financial difficulties and this is why analysts have upgraded theNokia share from a buy recommendation to a neutral recommendation and investors in 2011 are losingconfidence, which is resulting in Nokias share decline. 4.1.2. Human capabilitiesToday, the Nokia group has 138,634 employees and the split between business units can be found in the table 23below . By studying the repartition of those employees per country, we can see from the table that China,India, and Finland are the most important units in term of employees. This information confirms that Nokia isinvesting in more human capital in India and China (R&D, manufacturing plants and sales offices) than in its22 Hamel, G., & Prahalad, C. K. (1994) ”Competing for the future” Harvard Business Review, 72(4), 12223 http://investors.nokia.com/phoenix.zhtml?c=107224&p=irol-irhome13 | P a g e Sylvain REVUZ
  • 17. Headquarters and manufacturing plants in Finland. Nokia has also started to significantly cut jobs as ittransitions to a new strategy involving a partnership with the software giant Microsoft. In 2011, the companyhad announced 7,000 job cuts (12 per cent of its phone unit workforce) and Nokia will also outsource itsSymbian software development unit to Accenture. This move of laying off 4,000 staff and transferring another3,000 to the services firm Accenture is expected to save one billion euros. However, this staffs are engineerswho are extremely highly-trained, which makes them highly-desirable recruits for Nokia’s competitors. As anillustration, the day after Nokia announced the job cuts, Google posted a message on twitter stating, "AnyNokia software engineers need a job? Were hiring: www.google.com/jobs," recruiter Aidan Biggins EMEA(Europe, the Middle East and Africa)”. Personnel by reportable segment June 30, 2011Devices & Services 57 722Nokia Siemens Networks 74 887NAVTEQ 5 710Group Common Functions 315Nokia Group 138 634 4.1.3. Technological capabilities (RORC ratio)We have seen that Nokia has lost is competitive edge in the smartphone industry. However, even if Nokiaremains one of the most innovative companies in the world by filing between 1,300 and 1,500 patentsapplications a year, this innovation seems not to be transformed into gross profit. By comparing Apple andNokia’s RORC ratio, we can conclude that Nokia’s innovation is not efficient compared to that of Apple. As an 24illustration, in 2010, Apple’s gross margin was $13.14 billion and Apple spent 1.109 billion on R&D in 2009 .Thus by applying the RORC ratio, we can conclude that for every dollar that Apple spent on R&D in 2009, itgenerated $11.84 in 2010 gross profit. By applying the same methodology to Nokia, the numbers show that 25Nokia produced $3 in gross profit for every dollar that it spent on R&D . In addition, According to the J.D. 26Power and Associates 2011 U.S. Wireless Smartphone Customer Satisfaction Study , Apple ranks highestamong the manufacturers of smartphones for customer satisfaction with a score of 795 whereas Nokia rankedunder the industry average with 734.24 http://investor.apple.com/results.cfm25 http://investors.nokia.com/26 http://www.jdpower.com/news/pressRelease.aspx?ID=201114614 | P a g e Sylvain REVUZ
  • 18. 4.1.4. Management capabilitiesBefore starting at Nokia, Stephen Elop worked for Microsoft from 2008 to 2010 as the head of the BusinessDivision responsible for the Microsoft Office line of products. Stephen Elop was named CEO of Nokia inSeptember 21, 2010 when he replaced Olli-Pekka Kallasvuo. At the beginning of 2011, Elop announced 27Nokia’s new strategy for 2011, which is based on three Pillars : Smartphones, The next billion and Futuredisruptions .SmartphonesBeginning in 2011, Nokia will use Microsoft’s Windows Phone as its main smartphone operating system. Thereason for this is that the smartphone battle is now a war of ecosystems rather than just devices.The next billionAround 3.2 billion people do not currently own a mobile phone. Nokia’s reach, extensive product portfolio,and market presence worldwide make it the best-placed manufacturer to supply the next billion mobilephone.Future disruptionsInnovation in the field of mobile devices is far from over and Nokia will continue its support for revolutionaryresearch and development work through Nokia’s worldwide research laboratories.By analysing Stephen Elop‘s new strategy, two main problems can be highlighted:Firstly, by applying this strategy, Nokia will continue to focus its corporate activity in two different sectors thatare diametrically opposed. By developing a high-end smartphone (differentiation strategy) and low-end mobilephone (cost focus) under the same Nokia’s brand, the company will continue to confuse customers. By27 http://conversations.nokia.com/nokia-strategy-2011/15 | P a g e Sylvain REVUZ
  • 19. 28referring to Porters Generic Strategies as presented below, we can state that Nokia will have a high risk ofbeing "stuck in the middle" and will be not be able to achieve any competitive advantage by following morethan one single generic strategy and by using the same brand name as well as the same culture andorganisation.Secondly, Stephen Elop has recently made two important mistakes in term of communication that have clearly 29impacted Nokia sales. Firstly, he wrote an email called the “Burning Platforms memo” that was reported bythe media worldwide. In this memo, Elop made the same mistake as Gerald Ratner by publicly denigratingNokias products and organisation. Secondly, during the presentation of Nokia’s and Microsoft partnership,Elop made another mistake called the Osborne effect by announcing a future product (Windows Nokia phone)ahead of its availability and this has impacted the sales of the current product. 4.1.5. Organisational capabilitiesNokia’s organisation has already been introduced in the first section of this document. However, it isimportant to notice that based on the new strategy, Nokia should match its new company’s ideology bymodifying its structure (Structure follows Strategy). Moreover, if Nokia would like to regain a competitive edgein the high-end market, it is important to implement a flexible and more entrepreneurial structure that will beable to cope with rapid changes rather than the heavy bureaucracy and complicate structure that characterisethe Nokia group of today. 4.1.6. Brand capabilities 30According to Interbrand, in 2010 , the Nokia brand was worth 29,495 ($m) (Appendix 3). It is the 8th largestbrand in the world, and the first in the sector of consumer electronics. However, Nokia’s brand value isdecreasing by 15% year on year due to Apple and Samsung that have clearly outperformed Nokia’ssmartphone sales. The second ranking mobile phone manufacturer is Apple, which is 17th, with an estimated28 Porter, M. (2006 Nov). “Strategy and Society: The link between competitive advantage and corporate socialresponsibility”. Harvard Business Review , 78-92.29 http://www.guardian.co.uk/technology/blog/2011/feb/09/nokia-burning-platform-memo-elop30 http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx16 | P a g e Sylvain REVUZ
  • 20. thbrand value of $21,143 billion, and a growth y-o-y of 37%. This is followed by Samsung, which ranked 19 witha growth of 11%. 4.2. Core CompetencyApplying G. Hamel’s view that success results from leveraging an organisation’s capabilities in a manner that 31delivers value to customers , this section will assess Nokia’s current core competencies and competitiveadvantages: Expertise in network and broadband technologies: In size, the Nokia Siemens Networks unit is the third biggest telecoms infrastructure provider after Swedens Ericsson and Chinas Huawei. Nokias has a huge global telecoms networks customer base, an extensive patents portfolio in this area, a very deep engineering competence, and factories producing very complex and expensive telecoms networking gear. Production capability: Nokia is vertically integrated and has its own production facilities divided between nine countries. As an illustration, the Beijing facility is the worlds biggest handset factory. In addition, its premium manufacturing ability remains in Finland, where for example Nokia produces its N9. Economy of Scale and Cost leadership on low cost mobiles: Nokia remains the brand that produces the highest quantity low cost mobiles in the world. Brand value: As we saw before, Nokia remained the number one brand in the sector of consumer electronics (ranking 8th in the world) in 2010. 32 Worldwide distribution network: In 2011, Nokia has 650,000 retail touch points worldwide; far more than any of its competitors. World-leading carrier relationships: Over the last decade, Nokia has developed important relationships with all the world-leading carriers. Nokia is one of the few brands that is known in every country on the planet and thus can access all sales channels due to these long relationships with the worldwide carriers. Patents portfolio: One of the biggest values of Nokia is its important patents portfolio. Nokia has continually protected its innovations in the mobile space by systematically protecting its intellectual 33 property. A rumour has suggested that Apple pays 11.50 $US per iPhone to Nokia . Nokia dominates the biggest markets: By being the leading brand in market share in China and India as well as Africa, Nokia can protect those markets from competitors and benefit from the rapid growth of those countries.The VRIO framework will help us to assess to what extend Nokia’s competitive advantages are sustainable:31 Prahalad, C. K., & Hamel, G. (1990). “The core competence of corporation” Harvard Business Review , 68(3), 79-91.32 http://www.nokia.com/about-nokia/corporate-governance33 http://www.zdnet.com/blog/hardware/were-in-the-money-nokia-rumoured-to-be-getting-1150-per-iphone-sold/1329817 | P a g e Sylvain REVUZ
  • 21. Resource Valuable (Adds value as Rare Hard to imitate Supported by Implications perceived by customers) OrganizationExpertise in network and Yes Yes Yes Yes Sustainedbroadband technologies competitive Advantage Production capability No Yes Yes Yes Temporary (No direct value for customers Competitive but it has an important impact advantage on Nokia’s cost performances) Economy of Scale and Yes Yes Yes Yes Sustained Cost leadership on low competitive cost mobile Advantage Brand value Yes Yes Yes Yes Sustained competitive Advantage Worldwide distribution Yes Yes Yes Yes Sustained network competitive Advantage World-leading carrier No Yes Yes Yes Temporary relationships (No direct value for customers) Competitive advantage Patents portfolio No Yes Yes Yes Temporary (No direct value for customers Competitive because Nokia is licensing its advantage technology to competitors) Nokia dominates the No Yes Yes Yes Temporary biggest markets (No direct value for customers) Competitive advantageBased on the VIRO analysis below, we can conclude that even if Nokia is no longer the leader in the industry, itstill has several interesting competitive advantages as well as at least four sustainable competitive advantages. 4.3. Key competitive issues highlighted by the internal analysisAll of the important findings that the internal analysis has stressed will be now summarised and classified intoweaknesses and strengths.Strengths Well established brand with a long history of quality and innovation in the industry. Global Presence Wide Distribution Network – sales in 150 countries and good relationships with all leading world carriers. The NokiaSiemens Networks Unit is the third biggest telecoms infrastructure provider, thus this unit could be an autonomous company like Ericsson or Huawei. Strong presence in developing markets: The brand is dominant in markets such as India, China, the Middle East, and Africa, which are expected to be the fastest-growing markets over the next five years. Cost leadership on low cost mobiles: Much of Nokia’s dominance is due to a wide array of devices in the low- to mid-priced ranges, where the company’s reputation for quality has helped to stave off competition from other low-cost brands.Weaknesses The management team is trying to pursue two competitive advantages with the same brand and the same corporate culture: differentiation with high-end products (smartphone) and cost focus with cheap, low-end, no frills mobiles. This may confuse the end user and Nokia will be “stuck in the middle” without any competitive advantage. Perceived loss of innovative edge: Nokia was once the innovator but is now perceived to be a follower. Falling profits and market share.18 | P a g e Sylvain REVUZ
  • 22. Perceived as a failing company with low technology and an obsolete operating system. Google have developed an OS that is preferred by high-end users as well as developers. Low competitiveness in smartphones: Nokia’s high-end -series N7 or N9 are largely outperformed by Apple.5. Microsoft an d Nokia analysisOn 11 February 2011, Nokias CEO unveiled a new strategic alliance with Microsoft, and announced it wouldreplace Symbian and MeeGo with the Windows Phone 7. In addition, Nokia also explained that it willretain Symbian as its main operating system on its mid-to-low-end devices. In order to evaluate the potentialimpact of this alliance, an interview was conducted with the Head of Finance & Control, Nokia France throughSkype. Based on the information collected during the interview, four strategic advantages will results from thisalliance.Strong alternative to RIM BlackberryNokia has never been very successful at capturing the enterprise market. However, the RIM Blackberry iscurrently the leading platform for mobile enterprise solutions. Microsoft with Windows for PC is the leadingplatform for the enterprise market. In addition, Microsoft is a leading provider of unified communicationsplatforms, for example, the Office Communications Server 2007 and also has a monopoly with the MicrosoftOffice suite.By natively integrating all Microsoft solutions with Nokia smartphones (Office Communications Server,Microsoft Office applications, Microsoft SharePoint and other Microsoft backend servers and applications), theMicrosoft /Nokia solution will offer a powerful alternative to the RIM Blackberry.Financial support and synergy in R&DMicrosoft has also pledged to invest billions of dollars in engineering in order to help Nokia reduce its R&Dspending and therefore improve its financial position without compromising the development of newinnovative Nokia/Microsoft devices that will be launched in Q2 2012.More services for end usersNokias NAVTEQ unit will bring to Microsoft expertise in imaging, mapping, and location services. This shouldresult in a competitive edge because currently RIM Blackberry, Apple, and Samsung do not have any mappingsolutions, and only Google does. In addition, Microsoft offers several services that can attract the youngergeneration, for example, the famous MSN/Hotmail real time messenger as well as the Bing search engine orthe Xbox Live system and several Xbox games licences that can be decline into mobile phone games.Only one platform for the developer and only one application storeMicrosoft and Nokia will also merge their application stores (Ovi, Store, and Windows Marketplace), thus thenumber of applications available will increase significantly. In addition, Microsoft and Nokia will introduce aplatform for developers that will enable any application that is already compatible with Windows to be ported19 | P a g e Sylvain REVUZ
  • 23. to the new Nokia/Microsoft smartphone in a very simple and efficient way. This global platform should attractmore developers, and in particular, developers that will be a priority focus for corporate applications. It isimportant to notice that Apple and Android currently have around 300,000 applications but less than 5% are 34dedicated to enterprises.6. Recommendations After a scan of the internal and external environment we can clearly understand the current and futurecompetitive environment of Nokia. in addition, the following recommendations may help Nokia and Microsoftto maintain their competitiveness vis-à-vis key competitors. 1) Retain dominance in developing markets by reshaping the Nokia BrandAs previously mentioned, Asia Pacific, the Middle East, and Africa are the key opportunity markets for Nokia asthey represent the largest markets for low-cost mobile phones. Nokia is currently the leader in terms ofmarket shares in those countries, thus it can utilise its wide distribution network to further expand intodeveloping markets, particularly the BRIC countries. Nokia should optimise its organizational structure bytransferring the entire Mobile Phones Unit in charge of this segment into Asia. This would help ensure thatNokia can conserve its economy of scale as well as cost leadership even if local players are trying to enter thissegment. In addition, to lower costs, all internal processes must be optimised by deploying Leanmanufacturing on all activities (Sales, Marketing, Finance...). As the image of the umbrella brand becameassociated with low-cost models, Nokia launched its N-series and E-series sub-brands in 2005 as its higher-priced models and today the N9 is Nokia’s flagship. However, Nokia is trying to reinvent its business modelwith the strategic alliance between them and Microsoft may therefore be a good opportunity to reshape thecompany’s brand image in the highest price range by creating a dedicated new brand (for example MicroKia).Competitive intelligence (CI) actions: Create a specific CI team in charge of constantly analysing the BRIC market and low-cost mobile phones segment. Evaluate the impact on the current market if Nokia stops to use the Nokia brand for higher-priced products and introduces a new brand (for example MicroKia). 2) Nokia Siemens Networks division to exploit the growth of 4GWith the acquisition of Motorola Solutions, the Nokia Siemens Networks division is in a much better positionto exploit the growth of 4G and sell more communication infrastructure hardware as well astelecommunications equipment to mobile network operators. In addition, the Nokia Siemens Networksdivision represents roughly one third of total Nokia revenues, about half of Nokias total number of employees,and has made revenues of about 12 Billion Euros, but a very little profit. It may be important to list this divisionseparately as an independent company because it is big enough to be a Global Fortune 500 corporation and itis a non-core business for Nokia. In addition, the Nokia Siemens Networks has a deep patents portfolio andfactories that produce very complex and expensive telecoms networking gear that could be sold in the futureto Cisco, Huawei or Alcatel-Lucent in order to reinvest heavily in Nokia’s core business.Competitive intelligence (CI) actions:34 http://www.distimo.com/publications/20 | P a g e Sylvain REVUZ
  • 24. CI team to evaluate the main countries that extend their 4G infrastructure and create several war game sessions with Nokia executives in order to anticipate their competitors’ reactions. CI team to evaluate the impact of a potential sale of the Nokia Siemens Networks division. 3) Leverage Nokia/Microsoft (MicroKia) partnership and offer a strong alternative to RIM Blackberry before the end of 2012.Create the perfect mobile solution for the corporate world by leveraging Microsoft Enterprise solutions as wellas solid finance. Research in Motion is a simple target for the two giants, Microsoft and Nokia, and thissegment is highly profitable. Apple and Samsung have no specific interest or strength to react to this “niche”attack. By entering the corporate world, Nokia/Microsoft will be able to attract developers that are interestedin selling high value applications to organisations.Competitive intelligence (CI) actions: CI team to evaluate the impact and risk of failure of the Nokia/Microsoft partnership. CI team to evaluate the possible retaliation by RIM if Nokia/Microsoft enters the corporate world.21 | P a g e Sylvain REVUZ
  • 25. ReferencesBooksHamel, G., & Prahalad, C. K. (1994). ”Competing for the future” Harvard Business Review, 72(4), 122J P. Herring (1999) “Key Intelligence Topics: A Process to Identify and Define Intelligence Needs" CompetitiveIntelligence Review, Vol. 10(2) 4–14 John Wiley & Sons, Inc.Porter, M. (2006 Nov). “Strategy and Society: The link between competitive advantage and corporate socialresponsibility”. Harvard Business Review , 78-92.Prahalad, C. K., & Hamel, G. (1990). “The core competence of corporation” Harvard Business Review , 68 (3),79-91.ReportsBMI (2010) Special Report BMI Global Handset Market Key Trends and Opportunities 2007-2014BMI (2011) China Telecommunications Report Q3 2011ComScore (2010) Mobile Year in ReviewEuromonitor (2011) International Consumer Electronics reportWebsites http://www.asymco.com/ , accessed on: 21/08/2011 http://blog.nielsen.com/nielsenwire/?p=28237, accessed on: 21/08/2011 http://www.comscoredatamine.com/page/2/?s=mobile, accessed on: 21/08/2011 http://www.distimo.com/ , accessed on: 21/08/2011 http://www.nokia.com/about-nokia/, accessed on: 21/08/2011 http://www.appcelerator.com/assets/appcelerator-mobile-developer-survey-june-2010.pdf, accessed on:21/08/2011 http://investor.apple.com/results.cfm, accessed on: 21/08/2011 http://investors.nokia.com/ , accessed on: 21/08/2011 http://www.jdpower.com/news/pressRelease.aspx?ID=2011146, accessed on: 21/08/2011 http://conversations.nokia.com/nokia-strategy-2011/ , accessed on: 21/08/2011 http://www.guardian.co.uk/technology/blog/2011/feb/09/nokia-burning-platform-memo-elop , accessed on:21/08/2011 http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx , accessed on: 21/08/2011 http://www.zdnet.com/blog/hardware/were-in-the-money-nokia-rumoured-to-be-getting-1150-per-iphone-sold/13298 , accessed on: 21/08/2011-1-|P a g e Sylvain REVUZ
  • 26. Appendix Appendix 1 Nokia Group Nokia Siemens Networks Mobile Mobile Phones Markets Navteq Solutions Development Development and and Maps and management management Marketing, dist location-based of the of the ribution and services for company’s company’s logistics mobile devices smartphone basic mobile portfolio phone range-2-|P a g e Sylvain REVUZ
  • 27. Appendix 2Source: http://www.nokia.com/about-nokia/-3-|P a g e Sylvain REVUZ
  • 28. Appendix 3Source: http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx-4-|P a g e Sylvain REVUZ

×