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Introduction

The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. On the process of Nokia’s development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry and its strong internal resources basis. Secondly, this essay will assess Nokia’s strategies in terms of emergent and planned approaches as well. Within the dynamic and complex mobile phone industry, both approaches are necessary if Nokia is to succeed. In conclusion, all four approaches discussed collectively promote Nokia’s success.

STRENGTHS

-Is a dominant player in the smartphone market via its majority ownership of Symbian and its propritary Series 60 user interface which are projected to represent majority of the 100M smartphones sold in the next 4 years.

- 33% market share still the largest cell phone vendor by far, with double the market share of nearest competitr

- Size should enable Nokia to amortize R&D costs and to get cost advantages

- Brand position: probably one of the top 20 brands in the world

WEAKNESSES

- The Ngage is considered a flop

- Being the market leader and its increase role in Symbian is giving...