Nokia’s strategic change by means of alliance networks. A case of adopting the open innovation paradigm.
With whom, why and on what does Nokia collaborate on product development? Whom…
Alliance, Competitors and Non-familiar partner
Why…
To create a market for a new product and set the standard for that particular technology.
To collaborate with a local manufacturer in order to enter the mobile phone and network technology markets in China, Brazil and Australia as the local or national authorities or government required Nokia to nationalize their production facilities abroad.
To strengthen their core capabilities, divesting and refocusing its business activities.
What…
R&D and technology exchange
Software development
Database
Experts panel research
How does Nokia use networks to explore new or exploit existing capabilities for the transformation of its business?
From database analysis and the experts panel research, it is clear that Nokia has extensively used networking strategies for the development of new products.
Nokia developed as a company by a number of mergers and acquisitions (M&As) of other firms with more or less related but different business activities.
Outsourcing production and manufacturing for product that are outside Nokia core competencies.
Nokia used it network by using joint development agreement and research as a collaboration agreement on the development of new technology or products.
To what extent does the overall business strategy of Nokia fit the open innovation paradigm?
Nokia is spinning-in technologies from competitors and suppliers.
Nokia has become a company embedded in both local and international innovation networks.
Nokia collaborate for accessing new geographical areas.