Case Study: Nokia Essay
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Sample Case Study: Nokia
During the late 1990’s Finland had a great success over their rivals and competitors in mobile phone industry created by Nokia Corporation. Nokia mobile phones and appliances were the top product in the market and therefore the corporation was leading in all the corresponding areas of business through the world. Currently Finland is being pondering whether it has lost its competitive inventive edge, because last May an authoritative study of global competitiveness put Finland down from the top three to #8 competitor in the industry. This happened due partially to the decrease in Nokia shares and popularity among customers. According to the research when Nokia had its boom during its growth in 1990’s, the overall strategic business situation in Finland was increasing and now when the overall digital progress is at a certain set level the overall business is as it was on its regular basis. Nokia is blamed to be the reason for that and that they may have mistakes in conducting business.
Nokia lost a lot in the value of its shares during past several years from 60 Euros in 2000 to 10.22 currently, which is a very negative estimate for the company and the finish industry overall. As the dominant player in its home economy, employing 22,000 workers in Finland and dictating the fortunes of some 6,000 companies acting as suppliers and subcontractors, Nokia stock once made up more than two-thirds of the total value of shares traded on the Helsinki stock exchange. Now, that proportion has fallen to less than 30 percent, though it remains the most traded stock, the exchange said, according to the research.
The future forecasts for the Nokia Company also look pretty poor because they do not hold their standards of being a clearly expressed leader within past several years. Economists argue that there is no chance to return to 1990’s level when the company success was booming. The technology boom that is going on in the world does not touch the overall growth of industries in Finland anymore according to the research and the future projections admit that the situation is caused mainly by inadequate business strategies of the Nokia. Recently it has become not so popular for younger people to strive to work for Nokia. But according to Ms. Suominen who is one of the executives of the corporation “Nokia is a Finnish company, but also a global company, and it is certainly more global than it was two years ago”.
Moving along the research of the case study let us try to evaluate the causes of such difficulties in conducting successful business by the Nokia Company and think of some possible solution for the situation. First of all it is necessary to mention the growth of the market of competitors for the Nokia Company. Siemens and Motorola as well as such new companies like Samsung and LG make their products and marketing strategies better and more convenient every day. This primarily makes Nokia go down and as a result the overall Finish economy. The Nokia’s rivals products are very competitive and have a lower pricing marketing strategy compared to Nokia but they still lose some originality in their products that are unique to Nokia. (Finly)
Nokia is considered to be the founder of cellular communication and thus its products are always the etalon for other manufacturers in their production process. Once you have a Nokia cell phone in use you will never switch it to some other manufacturer if, of course you have sufficient funds to afford a new model. Nokia should probably use that position in its marketing strategy in order to increase the amount of end users and thus the amount of profit. Another suggestion that is necessary to mention in this report is that Nokia should be more quickly responsive to changes in the market of cell phones. For example if some new features are presented by the rivals in their models Nokia should come up with even better ideas in order to always be on the edge of mobile phone technology. In Nokia’s words, it is the “ability to recognize and exploit the opportunities created by continuous technological and market change …” (Nokia). One way to cope with the changes in the market is to lead the directions of the trend. As John E. Calfee describes, “it [advertising] is a tool for communicating information and shaping markets” (Calfee).
So to conclude the research it is necessary to say that although the current Nokia market position is somewhat lower than it should be, there is still a great chance to return to the level of the end of the 1990’s because the uniqueness of the products itself. It is just necessary to improve marketing tools in order for the products of Nokia to become more available and on the cutting edge of technology to the customers. One of the possible ways to do it is probably to return to the roots of the mobile phone development and see what actions were successful back than that made a company so great and try to implement them, of course with adjustments necessary for the current market conditions, in their marketing process. This will return the company’s previous standing and move the Finland economy to the new stage of development.
Alan Cowell, Nokia Falters and the Finns Take Stock. September 4, 2004.
Will Finly, Major Trends and Development of Finland Industries in the New Millennium. From Eastern Economist Journal, issue April 2004.
John E. Calfee, Major Trends in Advertisement Industry. New York: Viking Press, 2000.