Introduction Nokia is a firm company in mobile phone industry with long history. As a leader in mobile phone industry, Nokia have to face with changing of business world all the time (Nokia1, 2012). However, in globalized circumstances, Nokia is challenged by new technology, short life cycle product, and new competitors, who would like to replace leader position as Nokia used to be. Ali-Yrkkö et al. (2011) mentioned that Nokia is using supply chain management to co-operate with suppliers and customer to survive in globalized situations. In order to establish supply chain management, Nokia have to pay attention on quality of products and services, increasing new technology, and looking for sustainable with customers and suppliers.
1. Quality management
1.1 Objective Quality
In terms of objective’s quality, Boyer and Verma (2010, pp 33-35) mentioned that the objective’s quality is divided in to 2 groups. Firstly, product quality included with performance, features, reliability, conformance, brand equity, service, aesthetics, and durability. Another is service quality, which included with reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding of customer and tangibles. Particularly, in cases of aesthetics and understanding of customers, Das (2008) cited that the Nokia designers travel to every corner of the world to talk with their customers in order to design mobile phone, which their customer really want to have. Moreover, in cases of features, brand equity and serviceability, Veverka (2005) reported that Nokia would like to maintain their leader position by adding new features of new mobile phones of Nokia. For example high quality digital cameras, e-mail, web-surfing and increasing the size of mobile phone in order to easy to see the text in mobile phone. As a result, Nokia could have potential to keep their position to be leader in mobile phone industry.
1.2 Customer Expectations
Typically, the most customers would like to receive high quality of products or services with paying a few money, However, there are many factors, which may contribute customers to purchase the products by ignoring about prices. Boyer and Verma (2010, p35) referred to the 3 factors, which are expected by customers. Those factors included with personal needs, word of mount and past experience. In terms of personal needs, PR Newswire (2005) cited that Nokia N-series increased game features, such as, 3D graphics and ability to play in multiplayer in their mobile phones in order to increase customers, who are game lover, to use their mobile phones. Moreover, Harwood (2007) mentioned that word of mouth is another way, which deals with customer expectations because customers will receive information about product by passing reliable and creditable resources of information, that those are trust. In addition, past experiences of customer, who used to Nokia mobile phones, can lead to new purchasing of new model of Nokia’s mobile phones. As it can be seen from customer’s recommendation, Yogendra (2009) referred to the good experiences of Nokia mobile phone, which it conducts him/her to be a royalty customer, to choose Nokia brand as a first choice of new purchasing.
1.3 Perceived Quality
Perceived quality may contribute customers to realize about their expectations of products or services, which relate to objective quality of products or services. It would be said that if Nokia lose their concentrate on expectations of customers or their quality of products and services, Nokia will lose their customers. For example, dhcmega (2010) said that the past experience of Nokia 6600 and N 95 were excellent, thus the new model of N97 and N900 were bought by referring to proper experiences in the past. However, N97 and N900 did not bring proper experiences to user.
2. New product development
2.1 Why it is important for organization to continue innovating products Innovation is play a vital role to keep organization able to compete with competitors. Innovation could keep organization on the track, which will come along with profits and dominates above competitors or it could make the business bankrupt. For instance, Barnes (2011) reported that Nokia was lost their share market because Nokia had problems with smart phone technology, which cannot beat technology of competitors in market. Besides, slowly to launch new smart phones model could bring to losing of profits, and customers, who do not want to use and to wait the new mobile phones of Nokia anymore.
2.2 How this innovation impacts the supply chain
For developing products or services to achieve customer satisfactions, organization would like to integrate information of customers, performance of suppliers and performance of its organization in a same way. Supply chain is a key role of business in order to link suppliers, customers and its organizations to be a team in present. Dedrick et al. (2011) mentioned that mobile phone companies apply supply chains to make flowing of information from customers to suppliers and suppliers to customers for creating innovation, which can add value to all organizations in that supply chain.
2.3 The types of product innovation categories
As Boyer and Verma (2010 pp 78-79) cited that the ways to innovate new products or new services are included with radical, continuous, and disruptive. Following by smart phones innovation, Chang et al (2008) mentioned that abilities of mobile phones are increased efficiency of mobile phone closely abilities of computer by innovations. 2.3.1 Continuous innovation
Chang et al (2008, pp. 741-742) cited that smart phone have many features in its mobile phone. For example multi-tasking operation system, wifi, games, video/audio streaming, camera, internet accessing and music/video player. These can add value to mobile phones and keeping customer to pay attention on these mobile phones.
2.3.2 Radical innovation Chang et al (2008, pp. 743-744) also reported that many mobile phone companies attempted to create unique products for outstanding over competitors in market. For example Nokia 9300 provided full QWERTY keyboard feature, Motorola Q provided design, which thinnest and lightest to their mobile, and Samsung provided built- in wifi on their mobile phones.
2.3.3 Disruption Innovation
Chang et al (2008, pp. 744-745) mentioned that even though smart phones contained with the features, which useful for users, those may have limitation of battery and size. For providing more features in its mobile phone, these mobile phones will use high energy, which required large size of battery, thus the size of smart phones have to increase as well.
3. Internal and external in Supply chain
Following figure1, internal and external organization structure from Nokia, which include with logistic companies, and component suppliers (Nokia2 2012). Ran (2009, p 48) referred that Nokia used many companies to involve with transportation. For example DHL, DANZAS, EXEL, PANALPINA, and UPS. In terms of suppliers, Lawton (2011) referred the name of component suppliers of Nokia, for instance, STMicroelectronics at Geneva, and Texas Instruments at USA.
Figure1. Suppling and sustainability of each department in Nokia
4. Sustainability
Sustainability is a method, which have to think about environment, people and social around organization. Johnson (2012) cited that assessment sustainability is not easy to do. However it have a few tips,such as, really understand its business, classify supply partners, and to be honest when evaluate organization. As can be seen in figure1, substanabilities of Nokia organization are expressed on right side of table. Most of substanability actions within Nokia will focus on maintanance starndards of working and quality of working, while external organizations are concerned about environtment, such as , planning schedule of delivery products for saving fuels and environment. 5. Process map of Nokia organization
Figure 2A. process map of Nokia organization Figure 2B. process map of Nokia organization
Conclusion
It could be said evaluation of sustainability in supply chains in organization included with qualtity management, innovation to develop product, and thinking about the method to maintain environment around organization.That may contribute its organization, suppliers and customer growth together.
References List
Ali-Yrkkö, J, Rouvinen, P, Seppälä, T & Ylä-Anttila, P 2011, ‘Who Captures Value in
Global Supply Chains? Case Nokia N95 Smartphone’, Journal of Industry
Competition and Trade, vol.11, no.3, pp263-278, accessed 28/05/2012, Academic
OneFile.
Barnes, R 2011, ‘Nokia’, Marketing, 15 June,p21, accessed 30/05/2012, ProQuest Central.
Boyer, K & Verma, R 2010, Operations & Supply Chain Management for the 21st Century, South-Western Cengage Learning, Mason, USA, pp33-35 and 78-79. Chang, Y, Chen, C.S & Zhou, H 2008, ‘Smart phone for mobile commerce’, Computer Standards & Interfaces, vol.31, iss.4, pp740-747.
Das, A 2008, ‘Nokia's Product Innovations/INNOVATIONS DES PRODUITS DE NOKIA’, Canadian Social Science, vol.4, no.3, pp55-58, accessed 29/05/2012, ProQuest Central.
Dedrick, J, Kraemer, K & Linden, G 2011, ‘The distribution of value in the mobile phone supply chain’, Telecommunications Policy, vol.35, iss.6, pp505-521.
Dhcmega 2010, ‘After years of great experiences with Nokia, I got an N97 and a N900. Sadly.’, weblog post, accessed 30/05/2012, http://talk.maemo.org/archive/index.php/t-44255.html
Harwood 2007, ‘Nseries leads Nokia brand revival’, Revolution, January, p3, accessed 29/05/2012, ProQuest Central.
Johnson, L 2012, ‘Sustainability and the supply chain’, National Provisioner, vol.226, iss.3, p24-26, accessed 01/06/2012, ProQuest Central.
Lawton, C 2011, ‘Business Technology: Nokia's Troubles Hit Suppliers --- Ripple Effects Could Reshape Global Chain That Provides Phone Components’, Wall Street Journal, 27 September, pB.8, accessed 01/06/2012, ProQuest Central.
Nokia1 2012, The Nokia Story, accessed 28/05/2012, http://www.nokia.com/global/about-nokia/about-us/story/the-nokia-story/
Nokia2 2012, The Nokia Story, accessed 28/05/2012, http://www.nokia.com/global/about-nokia/about-us/structure/our-structure/
PR newswire 2005, ‘Nokia Expands N-Gage Quality Gaming Across Smartphone Portfolio’, PR newswire, 18 May, p1, accessed 29/05/2012, ProQuest Central.
Ran, T 2009, ‘Internal logistics as a part of supply chain,Case:Nokia-China, Dongguang Branch’, Bachalor’s thesis, Lahti University of Applied Sciences, Finland, accessed 01/06/2012, http://publications.theseus.fi/handle/10024/3577
Veverka, M 2005, ‘Nokia Strikes Back’, Barron’s, vol.85, iss.46, pp26-27, accessed 29/05/2012, ProQuest Central.
Yogendra, S 2009, ’Shefaly Yogendra’, weblog post, Who’s shaping your customer’s expectations?, accessed 30/05/2012,
http://shefaly-yogendra.com/blog/2009/08/03/whos-shaping-your-customers-expectations/
You May Also Find These Documents Helpful
-
This course is a study of supply chain management from the consumer back to raw materials. The entire process is studied from the standpoint of the leading theory and practice of cutting edge organizations.…
- 1749 Words
- 10 Pages
Good Essays -
The supply chain is the relationship between retailers, distributors, transporters and suppliers. A supply chain as the network supplies a specific material to the customer (Borgström, 2012). All these components help the production, delivery and the sale of a products and services that are available to the consumers. There are three key components that make up the supply chain. They are supply, manufacturing and distribution (Wise Geeks, 2012). Supply main focuses are on the raw materials that are supplied to the manufacturing which include when, how and from which destination the materials are traveling from. During the manufacturing steps this is when the raw materials are converted into the final outputs and the distribution make sure the finish products arrive to the organization’s shelves for the consumers.…
- 1311 Words
- 6 Pages
Better Essays -
In order to remain competitive, a company must offer superior quality goods or services at the lowest prices possible. Supply chain enables a company to reduce the cost while increasing the efficiency. However, there are risks that are associated with such benefits. These issues should be properly addressed when a company is trying to rely heavily on supply chain management in order to stay competitive within its industry.…
- 466 Words
- 2 Pages
Satisfactory Essays -
The History of EMS PARM 102 Prof. Rita Elliott Ivy Tech Community College Feb. 3, 2009 The beginnings of EMS were nothing like the EMS that we know today. The first emergency medical teams started in first half of the 20thcentury and operated out of funeral homes. They would transport the sick and injured to hospitals as well as take the deceased to the funeral home. The funeral home employees had little knowledge of first aid and were in the business only because the hearses were large enough to transport the stretchers. After World War IIthe first real ambulance services began to appear. Although it was a step in a good direction away from the funeral home service, the new ambulance crews were still untrained and poorly equipped. There were no minimum training requirements for employees, so in most cases basic first aid was the only knowledge they had. It was still better than nothing at all. In the late 60’s a national standard of training for pre-hospital care personnel was established. It involved a series of presentations, manuals, and slides. It was the first attempt at basic training requirements for EMS. 9-1-1 had its beginnings in the late 60’s also. The number was beginning to be recognized and set aside as the number for emergencies. Although the EMS system was beginning to improve in the 60’s, there was still a lack of consistency. Few states had written a standard of training yet. The ambulances and the equipment carried on them was poor quality also. The aid bags could weigh as much as 100 pounds and was very inconvenient to carry in emergencies. Radio communication in the 60’s was also unreliable. An estimated five percent of ambulances had any communication with hospitals. Also, many ambulances would only transport patients to their own hospital, regardless of how close another hospital was, or how much better equipped another hospital was for the situation. In 1970the national registry of Emergency Medical Technicians was established. The…
- 495 Words
- 2 Pages
Satisfactory Essays -
There is no use denying the fact that the modern age could be characterized by the blistering development of small and large businesses. Having realized the advantages and possibilities of the market driven economy, great number of people decided to start their own business in order to develop their company and becomes successful. It is obvious, that the process of management of a certain business is a very complicated job which demands a great number of various skills from the owner. Thus, one of the first and most important tasks which a manager should accomplish is to align the efficient supply chain in order to provide good products. Besides, one should also remember the fact that "effective supply chain management has become a potential…
- 580 Words
- 3 Pages
Good Essays -
Supply chain management is the coordination of the processes and functions within a business, adopted by most companies in the UK in the late 1990’s. It deals with the internal and external factors that, when dealt with correctly and systematically, can determine a businesses success or failure. A supply chain is the network of activities that delivers a finished product service to the customer. By definition, supply chain management (SCM) is “the management of the flows of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to the customers” (Reid & Sanders). SCM entails the co-ordination of the movement of good through the supply chain from suppliers to manufacturers to distributors to the final customer. The main aim of SCM is to maximise the efficiency of any given process being carried out by a company; by doing this it is allowing them to try to cut their costs and hopefully keep satisfying their customers’ needs, while at the same time maintaining their competitive position within their market. Supply chain management is seen as more of an “open system” in contrast to the traditional system used by the majority of companies just 20 years ago. The new “open system” allows room for change which is greatly needed with the current financial instability of the economy.…
- 2215 Words
- 9 Pages
Powerful Essays -
Supply chain is the beginning of a business production. A business must have a supply chain in order to be able to receive products and to distribute them. The definition of supply chain is described as a certain network of other companies that works together to both serve the customer, and the consumer (Supply Chain, 2015). A supply chain is the main link between a business and its consumers. When a consumer purchases a product from a business it comes from a line of other companies. The product might come from one store that manufactures the product, then is sold to another store for a goods price, next it is sold to the customer at the price they are willing to pay. Supply chains are not always used to their full extent. Many companies are unaware of what really goes on within their supply chain. There are businesses that do not know the information flow of the supply chain, and only really focus on the visible aspect. This results in the miscommunication and the potential to use the supply chain to its maximum potential (Handfield, 2011).…
- 811 Words
- 3 Pages
Good Essays -
In Chapter 15, the supply chain concept exists as a means to enhance the ability of a firm to develop and maintain strategic advantages in a competitive marketplace. The benefits of supply chains extend beyond the operational dimensions of lead time, quality, and flexibility to the strategic and financial areas. Supply chains, if properly structured, can effectively combine the core competencies of a given firm with the skills and capabilities of its suppliers. However, to be strategic, supply chains must be driven by marketing strategies, targeting of customers, and the creation of value propositions that are highly attractive to these customers. Thus, our treatment of the supply chain will identify strategy and customers as the beginning points for all planning and decision-making activities.…
- 862 Words
- 4 Pages
Good Essays -
The goal of this course is to cover high-level supply chain strategies and concepts while introducing the analytical tools necessary to solve supply chain problems. As the function of supply chain management is to design and manage the processes, assets, and flows of material and information required to satisfy customers’ demands. Supply logistics related costs account for 20-25% of a typical firm’s total cost. On the revenue side the supply chain decisions have a direct impact on the market penetration and customer service. Globalization of economy and electronic commerce has heightened the strategic importance and of supply chain management and created new opportunities for using supply chain strategy and planning as a competitive tool. Electronic commerce has not only created new distribution channels for consumers but also revolutionized the industrial marketplace by facilitating inter-firm communication and by creating efficient markets through trading communities. Moreover combination of enterprise information infrastructure and the Internet has paved the way for a variety of supply chain optimization technologies.…
- 1561 Words
- 8 Pages
Powerful Essays -
Meeting customers ' expectations and appealing to their needs and wants is the highest organizational objective for an ideal company. Where the aim is maximizing profits, management of supply is integral. Companies that maintain a robust supply configuration with minimal increase of cost to the customers are bound to be the most successful. In researching for this paper I found one company whose supply chain management struck me as being the most comprehensive and most efficient; that company is Dell Computer. Although its supply chain management is impressive, still there is room for improvement. This paper will present the situation analysis of Dell and will discuss the major issues and problems that Dell has been able to tackle or is yet to conquer in order to achieve its objectives. Where appropriate solutions for the major challenges…
- 3431 Words
- 14 Pages
Powerful Essays -
organizations connected to each other and interacting to create value. The various components of a…
- 936 Words
- 4 Pages
Good Essays -
The course covers business process concepts of Supply Chain Management including its strategic importance in improving effectiveness of the organization in facing competitive global market. It will provide systematic guideline on supply chain structure and planning operations steps, inventory, flow of materials, and information in each step for improving business performance.…
- 1050 Words
- 5 Pages
Satisfactory Essays -
The definition of quality in this question is the standard of smartphone as measured against other smartphone of a similar kind and the degree of excellence of smartphone (Quality, 2012)…
- 3531 Words
- 15 Pages
Best Essays -
SUPPLY CHAIN MANAGEMENT: IMPORTANCE IN COMPANIES . . . . . . . . . . . . . . . . . . . . . . . 3…
- 4981 Words
- 20 Pages
Powerful Essays -
The purpose of this essay is to discuss different supply chain management approaches taken by H&M, Benetton and Zara. It is first necessary to explain what a supply chain management means. Supply chain management involves planning, design, maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer's requirements (Schroeder, 2000). Such an approach, of looking at the entire supply network helps organisations identify their competitive advantages and parts of their processes that contribute the most to the performance objectives that are of the greatest importance to the customers (Slack et al., 2007). It also helps to develop long-term strategies for the company based on the identified advantages.…
- 2712 Words
- 9 Pages
Powerful Essays