Nokia Presentation, Marketing

1. NOKIA´S STRATEGY
IN THE CELL PHONE
MANUFACTURING
BUSINESS
• Diego Alberto Paramio Pérez
BusinessStrategy-2014

2. + Human Resources (Tangible)STRATEGICAPABILITIES-Resources
100000
105000
110000
115000
120000
125000
130000
135000
140000
2010 2011 2012
Number of employees
Restructuration -> Saved 204 million euros
• High skilled staff
• Develop training programmes
• Long-term career bonus
2012 : 112.2562011 : 134,171

3. + Physical Resources (Tangible)STRATEGICAPABILITIES-Resources
• Headquarters in Espoo, Finland.
• Branches all over the world.
• Moved production to China and
India to lower costs
• They were on Finland, Hungary,
Germany …

4. + Financial Resources (Tangible)STRATEGICAPABILITIES-Resources
2011 2012
Net Profit -1079 -2303
Net Sales 38659 30176
-5000
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Net profits and net sales
Net Profit
Net Sales
• Loss of market share of smartphone division (Andorid / IOS)
• Aggressive pricing policies due to competitors envirnoment

5. + Financial Resources (Tangible)STRATEGICAPABILITIES-Resources
• Europe is the main market followed by rest of Asia and China.
• Try to maintain European sales and focus on the Asian market

6. + Patents (Intangible)STRATEGICAPABILITIES-Resources
• 20 years: 50 billion € in R&D = 30.000 patents
• 2009: 17,169 people working in R&D with a budget of 5.909 mill. €
• 24/04/14 : Microsoft payed 1.65 billion € for 10 year license of
Nokia´s patents.
• One of the strongest points of Nokia´s Business (Core Competency)
• Nokia Earns 600 million euros/year
• Iphone supposedly violated 46 nokia patents

7. + Reputation (Intangible)STRATEGICAPABILITIES-Resources
• One of the most recognized brands in the mobile phone sector
• Lost power vs Apple, Samsung, HTC in the past years
(Smartphones)
• High quality & durability are its main characterictics

8. + CapabilitiesSTRATEGICAPABILITIES-Capabilities
• Know how and vast experience in mobile maufacturing
• First movers advantage
• Nokia´s constantly renewing business culture
• Microsoft´s IT knowledge + Internal network

9. + RecomendationsSTRATEGICAPABILITIES-Recomendations
 Lack of adaptation to customer needs and new trends
• Extense market research (Customer needs)
• Different strategies on different locations
• Go on with windows OS but allowing IOS or Android apps
• Make a revolutionary smartphone (New Illum camera)