Nokia Dialling Up

Table of Contents

1. Strategic Management 2

1.1. Strategy Analysis 2

1.1.1. Analysing the environment 3

1.1.2. Analysing resources and capabilities of the organisation 4

1.2. Resource based approach 5

2. Strategic Options 5

2.1. Corporate Level 5

2.2. Business level strategy 6

2.2.1. Low-cost leadership 6

2.2.2. The Focus strategy 7

3. Recommendations 7

3.1. Market pull and technology push 7

3.2. Planned and emergent strategies 7

3.3. Strategy dynamics 8

1. Strategic Management

Given the financial loss on its major business activities Nokia had to revisit their strategy. Before developing their new strategy Nokia carefully considered the three core areas of strategic management identified by Lynch (2009) as strategy analysis, development and implementation thereof.

In developing their strategy Nokia clearly distinguished between three elements of strategic management process. These elements were identified by Lynch (2009) as context, content and process

Nokia is in an industry that is characterised by rapid technological development and advancement. This is the context in which Nokia operates. The passage below adapted from http://voip.about.com/od/mobilevoip/g/GSMGlossary.htm summarises major technological advancement in the mobile communications industry

In 1991 GSM (Global System for Mobile Communication) was launched to replace the first generation analog cellular networks. In 1995, fax, data and SMS messaging services over mobile devices were launched. In 2000, the first commercial GPRS services were launched and the first GPRS compatible handsets became available. EDGE services first became operational in a network in 2003. In 2005, the first HSDPA capable network also became operational. The first HSUPA network was launched in 2007.

With every major advancement in mobile infrastructure technology there came improvements of the mobile devices. These improvements, to a larger extent, are determined by the strategy.

2.1....