Nokia Case

ACKNOWLEDGEMENTS

It should be noted that this report has been created as a “snapshot‟ of Nokia as it currently stands up until 1st November 2011. The organisational direction of Nokia has been written according to new version of company’s website as of 1st December 2011. Aspects such as a level of success of a new Operating System, Microsoft 7, in Nokia’s smartphones is not yet known and it has been assumed that the new partnership with Microsoft will produce positive results for the company.

1. EXECUTIVE SUMMARY

Nokia is a well-established global provider of phone devices, telecom equipment and mobile content services. Their history reaches 1865 when Nokia was founded as a paper mill. Its presence in the mobile devices industry can be dated to 1960’s when they pioneered with various devices and solutions. Nokia established themselves a leader and for decades it dominated the mobile market.

In recent years however, new competition and technology emerged. Nokia failed to adjust and started lacking behind with their innovation, allowing Apple iPhone and Android-based devices to take over the lead in a very prosperous smartphones segment. With these dynamic changes in the industry, Nokia must re-think their approach, transform and adapt the business to be able to take up the battle in the new mobile segments.

This report analyses internal and external environment of Nokia, and based on the analysis various strategic options are developed. These options are further evaluated and 5 recommendations are offered. Recommended strategies are targeted at minimising Nokia’s reliance on basic mobile phones devices and improving their R&D, innovation and sales channels. One long-term strategy is proposed to acquire or develop a new breakthrough technology that will give the company the advantage in the industry for years to come.