Nokia case study
Strategic Management:
Principles and Practice
Case study A: the Rise and Fall of Nokia
Nokia appears to be the world’s leading mobile handset manufacturer from 1998 to 2011. For acquiring and keeping this position it has had many successful ideas.
1- What did Nokia do right?
Innovation :
Concerning R&D, Nokia took advantage of the efficiency of global manufacturing and produced worldwide volume to reduce high costs. In the 1970s, The company maintained research and development (R&D) investments of close to 4% of net sales through most of the decade, it even reached 7% of its net sales from the electronic sector (€210 million) in the
1980's. Nokia also had very smart R&D investments : channelled into a number of key areas where Nokia knew it could create a competitive edge. For example in 1992, Nokia launched the first mass-produced digital phone, Nokia 1011, for GSM.
Nokia was a visionary company. They were the first to understand that design was essential in this business and to segment their product line.
In the 1990s, Nokia’s competitors began to outsource manufacturing, while Nokia continued to produce its handsets internally. Nokia protected its technological developments and handset features by continuing to aggressively file patents.
Focusing on customer requirements is also one of the key points that allowed Nokia to maintain its competitive edge ( Nokia 9000 Communicator in 1996 : a GSM phone with fax, e-mail, short message service, address-book, calendar and Internet connections. It created an entirely new category of digital all-in-one communications device)
HR :
In 1997, Nokia employed more than 36,000 people from all nationalities, ethnic groups, ages, sexes and backgrounds. Nokia continues to cherish this diversity and views it as a core strength in helping to generate a variety of local and global solutions.
Nokia managed to create a shared vision of how the organisation can become the global leader in
Principles and Practice
Case study A: the Rise and Fall of Nokia
Nokia appears to be the world’s leading mobile handset manufacturer from 1998 to 2011. For acquiring and keeping this position it has had many successful ideas.
1- What did Nokia do right?
Innovation :
Concerning R&D, Nokia took advantage of the efficiency of global manufacturing and produced worldwide volume to reduce high costs. In the 1970s, The company maintained research and development (R&D) investments of close to 4% of net sales through most of the decade, it even reached 7% of its net sales from the electronic sector (€210 million) in the
1980's. Nokia also had very smart R&D investments : channelled into a number of key areas where Nokia knew it could create a competitive edge. For example in 1992, Nokia launched the first mass-produced digital phone, Nokia 1011, for GSM.
Nokia was a visionary company. They were the first to understand that design was essential in this business and to segment their product line.
In the 1990s, Nokia’s competitors began to outsource manufacturing, while Nokia continued to produce its handsets internally. Nokia protected its technological developments and handset features by continuing to aggressively file patents.
Focusing on customer requirements is also one of the key points that allowed Nokia to maintain its competitive edge ( Nokia 9000 Communicator in 1996 : a GSM phone with fax, e-mail, short message service, address-book, calendar and Internet connections. It created an entirely new category of digital all-in-one communications device)
HR :
In 1997, Nokia employed more than 36,000 people from all nationalities, ethnic groups, ages, sexes and backgrounds. Nokia continues to cherish this diversity and views it as a core strength in helping to generate a variety of local and global solutions.
Nokia managed to create a shared vision of how the organisation can become the global leader in