NokiaCaseStudy.docx[1]

NokiaCaseStudy.docx[1] - Robert Stillwagon Marketing...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Robert Stillwagon October 27, 2011 Marketing Capstone Nokia’s Comeback Strategy By Robert Stillwagon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Robert Stillwagon October 27, 2011 Marketing Capstone The cell phone industry is rapidly changing and no longer does the most profitable and prominent players in the industry focus solely on the physical hardware of a phone. The top companies in the industry like Google and Apple have become successful based on their advanced operating systems or O.S., and the frequent updates that enhance the entire user experience based around social networking and connectivity outside of basic phone calls and texting. This is not to say that our company has always been on the edge of a, “burning platform” Stephen Elop, Nokia at one point was one of the largest cell phone manufacturers in the world. With a long, almost 150 year old history in manufacturing, Nokia has a long history of ups and downs. Based out of Finland, we were one of the first corporations to capitalize on the burgeoning cellular network in the 1980’s. Even through economic crisis we were able to prevail and our mobile-phone arm as we focused more attention to this department within our company. Industry reports dedicate our financial success on the five executives who ran the cellular division after the company started centered around it. Jorma Ollila, Olli-Pekka Kallasvuo, Pekka Ala-Pietela, Matti Alahuhta, and Sari Baldauf focused on a, “team oriented, no BS approach to getting things done that came to permeate the company.” (Fox, 1) As our company and the cell phone industry began to grow, with market share hitting 27% in 1999, it became harder to communicate within departments. (Fox, Cnn) The industry began to become more competitive with the growth of Apple and eventually Google products and focusing solely on one department, specifically our quality and long lasting hardware, wasn’t enough. Shifting to present day, we currently have a 1.8% market share behind almost every major player in the industry. The key cause of this was our narrow focus on our product, which we manufactured well, for a modest price and notorious durability. As you have mentioned one of our major downfalls were Chinese manufacturers, able to make cell phones chips at ridiculously cheap prices, quickly cut into our market share and now have an almost 30% control of the market. (Ekekwe, HBR) It seems that in the past decade our core competencies have been focused on too much, and have become our greatest weakness, or atleast leading us to vulnerability by unsuccessfully diversifying. For instance our durable phones, in the current market where newer, more advanced models are constantly being pumped out, our cell phones
Background image of page 2
Robert Stillwagon October 27, 2011 Marketing Capstone which are priced relatively stable aren’t selling as well compared to companies who generally reduce the price of their models by as much as 50% when their most recent phones come out. Our previous competitive strategies could be considered a reactor strategy with weak defender
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2012 for the course N.A N./A taught by Professor N/a during the Spring '11 term at UPenn.

Page1 / 11

NokiaCaseStudy.docx[1] - Robert Stillwagon Marketing...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online