Nokia Analysis

BUS374 E1

Organization “In the news” Analysis paper

Students: Qin Lan Zhang (301159145)

Instructor: Adam Cotterall

T.A: Joy Marlinga

Date: February 20, 2012

Article summary

The Nokia, a Finnish corporation headquartered in Keilaniemi, Espoo, is the largest mobile phone manufacturer in terms of volume in the world. According to the National Post, a 73% decrease in profit in fourth-quarter 2011 was reported (“Nokia profits”, 2012). The establishment of partnership with Microsoft does not achieve the expected outcome although it alleviated Nokia’s financial problem somewhat. Their new smartphone only sold one million since it was introduced to the market in mid-November while Apple had sales of 37 million in the December quarter. Analysts believed that the determinant of the success of the collaboration is the marketing strategies. Ben Wood, head of research at mobile consultancy CCS Insight, retains that this new windows phone can (be successful) if Nokia make use of its worldwide sales force, in particular in China and Japan. The story is newsworthy because it emphasizes the importance of quick and accurate response when the industry in which firms operate is extremely turbulent and complex. If a firm, including a large and powerful corporation, is not sensitive to the changing environment and reacts to the unstable factors correspondingly, the firm is at risk and is likely to be surpassed and eventually be replaced regardless of the successful history.

Related Organization theories in the article

* Nokia tries to distinguish its products from others by innovating new technologies and designing distinctive product features. Nokia is using the Porter’s differentiation strategy in an attempt to raise its smartphone sales and to offset the loss from previous smartphones.

* Nokia alliances with Microsoft in developing new smartphones. Nokia chooses to establish interorganizational linkage by collaborating...