Robotic Surgery
1. Problem Statement
In the early 2000’s the handset industry was in a rapidly changing and competitively challenging environment. Nokia was being squeezed by two fronts; its handset business was being challenged by low cost producers and by big players in the smartphone innovative world. Nokia’s 2009 financials and book value took a plunge.
Two problems are identified:
A. Despite being market leader, strong competition on the product innovation side drove Nokia to lose its market share in the developed markets (DMs), mainly in US, where competitors such as Apple took advantage of the high ASP and enjoyed riding the profit wave. Nokia missed that ship; Nokia’s marketing and R&D were behind Nokia’s competitors and did not anticipate nor develop a product that could meet the needs of the DMs’ consumers - Nokia’s capabilities and core competencies lacked on supporting globally Nokia’s integrated business strategy.
B. At the same time, the handset industry became so competitive that the product became highly commoditized. In this setting, Nokia could no longer sustain its profits in that business. The combination of product commoditization, lack of innovation at the right time in the right market and Nokia’s corporate strategy of low level of diversification only predicted Nokia’s further erosion.
Nokia had to rethink its strategies and the markets it should pursue.
2. External Analysis
A. General Environment
Technological Segment; 2G/3G technologies allowed picture sharing and SMS texting. Internet was a revolutionary invention driving the type of applications and devices introduced, driving competitors outside of the handset industry to enter the market. GPS was incorporated into existing devices. Software development and various OS’s platforms improved usability, accessibility and enhanced entertainment.
Sociocultural Segment; A trend developed worldwide; handsets became extensions of individual’s identities mobiles were no longer a
In the early 2000’s the handset industry was in a rapidly changing and competitively challenging environment. Nokia was being squeezed by two fronts; its handset business was being challenged by low cost producers and by big players in the smartphone innovative world. Nokia’s 2009 financials and book value took a plunge.
Two problems are identified:
A. Despite being market leader, strong competition on the product innovation side drove Nokia to lose its market share in the developed markets (DMs), mainly in US, where competitors such as Apple took advantage of the high ASP and enjoyed riding the profit wave. Nokia missed that ship; Nokia’s marketing and R&D were behind Nokia’s competitors and did not anticipate nor develop a product that could meet the needs of the DMs’ consumers - Nokia’s capabilities and core competencies lacked on supporting globally Nokia’s integrated business strategy.
B. At the same time, the handset industry became so competitive that the product became highly commoditized. In this setting, Nokia could no longer sustain its profits in that business. The combination of product commoditization, lack of innovation at the right time in the right market and Nokia’s corporate strategy of low level of diversification only predicted Nokia’s further erosion.
Nokia had to rethink its strategies and the markets it should pursue.
2. External Analysis
A. General Environment
Technological Segment; 2G/3G technologies allowed picture sharing and SMS texting. Internet was a revolutionary invention driving the type of applications and devices introduced, driving competitors outside of the handset industry to enter the market. GPS was incorporated into existing devices. Software development and various OS’s platforms improved usability, accessibility and enhanced entertainment.
Sociocultural Segment; A trend developed worldwide; handsets became extensions of individual’s identities mobiles were no longer a