Comprehensive Strategic Management: NOKIA

Abstract

Corporations involved in the production of mobile phones have started to diversify their businesses to keep up with the changing business environment characterized by digitalization and stand out in this competitive industry. Nokia has not been left out in this move as it joined the Internet and communications business recently. Nokia products are reasonably priced, and this has helped the company gain a strategic position in the market. In response to changing external business environment, Nokia is continuously improving its product features to match the market demand. One key strategy that has helped the firm gain a competitive edge is product differentiation where the company offers both products and services. To improve its business operations, Nokia should adopt cost leadership and focus strategies. This way the firm will be able to maintain a position in the highly competitive consumer electronics and information technology industry. This paper intends to discuss the strategic management analysis of Nokia Corporation. The report evaluates both external and internal environments. The external environment comprises of opportunities and threats, political, technology, and sociocultural issues that are likely to face the company. On the other hand, the internal environment consists of the firm's strengths and weaknesses. The paper also intends to review the company's strategic position.

Introduction

Nokia is a multinational corporation involved in the production of mobile phones. The firm has recently joined the internet and communication business. The company's mission statement is ‘connecting people.'  Nokia is committed to fulfilling this mission statement by producing updated to date mobile phone devices that satisfy consumer needs. Technology is the soul of the consumer electronics sector which is highly competitive (David and David 2016, p. 35). Companies should, therefore, adopt the market standing strategies to respond to market changes.

Nokia's Strategic Position

A strategy refers to a primary characteristic which matches an organization to its success about its environment. Nokia faces opportunities, strengths, weaknesses as well as threats. It is essential to understand the level of a business, its tactics, corporate level, and defensive mechanism to analyze its strategic position. First, the entity's trade level strategy is founded on leadership cost. Nokia products are generally acceptable to many consumers in the international market (Ansoff et al. 2019, p. 294). Nokia mobile phones are produced based on the current technology, and are of high quality and reliable.

The firm has an active consumer and employees' loyalty hence its high reputation. Nokia Company embraces, the principle of rationality. The management understands that consumers are rational beings who are willing to spend low income to satisfy their needs. Thus, the company tries to maintain a low cost for their commodities through the implementation of various cost management techniques (Wheelen et al. 2019, p. 55).

Second, the firm has superior defensive mechanisms. Nokia competes with other giant companies such as Apple and Samsung. When blackberry and iPhone were introduced in the market, the company produced Nokia 5800 touch screen in response. Notably, this enabled the firm to remain competitive in the international market. The company's aggressive tactic is based on its locality. The entity has set out strategies to enable it lead in market sales. For instance, Nokia has heavily invested in Europe, Asia-pacific regions, and China. Finally, at the corporate level, the firm embraces the growth strategy. The company's growth strategy is based on acquisitions. Rece

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