Nokia Marketing Strategies Marketing Essay

This essay set up to evaluate and studding the strategy position of Nokia company and also to finding out how the new technology has impact on its strategy position . I will start in this essay by giving quick background and history of this company then I will move to analysis its strategy including environmental analysis( external ,internal ) ,PESTL analysis , five forces analysis, resources analysis, the growth share matrix analysis ,culture strategy, and swot analysis after that I will move to introducing the new technology and then I will discuses the impact of this technology on the strategy position of this company and at end I will finch my report by conclusion and also by mentioned to the bibliography I used to perform this work .

Background of the company

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Nokia is the leader in mobile phone manufacturing and other communication technology in the world. It mangled to achieve increasingly growth and stability in the mobile phone industry. Nokia connects people to each other and help them to transfer their information with easy way using simple and effective technology. Also it is provide wide variety of mobile phone device to suit all people class. First type of mobile phone used by Nokia was very simple it is just using voice communication between people and sending text message from one phone to another. After that with fastest technology growth in the mobile phone industry the advanced technology are started to appear such as digital cameras for picture taking, web browse, radios, games, media player, video recorders and other features. Nokia was set up at first time in Finland and the area of work was to produce cables and other electronic material. After that it starts to shift its business to mobile phone industry. Now it is the biggest mobile phone producer around the world in addition to other communication device. Nokia now has employees in over than 130 countries around the world. The main competitors of Nokia in the phone market are Motorola, Samsung, Siemens, LG and Sony Ericsson.

Strategy analysis of Nokia Corporation

Before we start studding Nokia strategy we will explain concept of strategy. Strategy is plan for the company on along time which determined the way that the company used to deal with the sudden and expect changing in the environment, resources and market to achieve consumer expectation and satisfaction. Strategy of Nokia Corporation is built on growth on efficiency and profitability also on quality and offering lowest price in the market more over it emphasise on sustainable environmental development and customer satisfaction. The high quality of Nokia products and services enables the company to get biggest market shares among their competitors. These resources add value to Nokia products and leads to customer satisfaction and brand loyalty.

Nokia mission

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Nokia mission is connecting the people in all over the world at any time whatever the matter in effective and essay way with cheapest prices.

Nokia strategy to achieve competitive advantage in the market

Nokia work to increase their value in the market by many means which summarised in this point.

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Differentiation

Nokia always work to make sure its products are different than other competitors on market by their quality and performance. Differentiation can be done by many ways for example better sound, quality of camera image

Better radio connection, smart connectivity and long battery operation time.

Cost advantage

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Products Cost is important factor when introducing new product to the market because device cost is deciding profit margin for example with low cost the Nokia sustain higher profit margin with huge demand than other mobile company also it lead to achieve competitive cost advantages in the market.

Using latest technology

Nokia always try to ensure using the best technology for its product and service because competitive advantage can achieved by right decisions

For example what technology must be developed and what must be out.

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Environmental analyses

External Environmental analyses

1) PEST EL analysis

PEST factor is political, economic, social, technological, environmental, and legal factor.

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Political factors or legal factor

It represents the low or rules the put from the government to control and forced the company to perform their work on right way without any damage on the environment or people interest in the country where working in it. For example some companies want to make profit by any means so they may try to deception their customers in terms of prices or quality of products. Also they may try to reduce the cost by using lower quality material in their products. Also do not pay attention to standards of safety and health in workplace such as stores, factories and shops. All these things are consider illegal and have bad effects on company reputation.

Economic factor

This is factor concerned with the economic position of the company such as how many profit it achieve and the amount of many that spend on new investment .

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Legal factor

Political factor

Economic factors

Organisation

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Social factor

Environmental

Technological

Social factor

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This factor concerned with the social position of the company such as their popularity among the people and general visions of this company between other organisations. For example some practices considered illegal by the law but in people opinion cloud be unethical which also could effect company position.

Technology factor

This factor concerned with the newest technology in communication area also to keep the company up to date with new innovation.

Environmental factor

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This factor concerned with the environment and the effective could be done by the company on it during performing their business. For example some companies throw their waste in ways that could damage the environment (pollution). Nokia could effect on the environment by emitted weaves which may damage our health also by thrown mobile handset. Strategy of Nokia was to be friendly on the environment by minimizing its foot print which could be achieved from several operation starting with raw material and ending with recycling and treatment of west material.

2) Five forces

Five forces studding the five most common threats that facing the company in their competitive environment. This threat s are threat of entry, threat of rivalry, threat of substitutes, threat of suppliers and threat of buyers.

Threat of entry

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It is threat facing Nokia in terms of new company could inter to the market and compete with the Nokia on leading the market. The main competitors as we mentioned before in the market are Samsung, Motorola, Sony Ericsson and LG. but as we all know Nokia have a lot of advantages which make it the number one in the market.

Threat of rivalry

In the mobile industry Nokia does not has too many competitors also it has begets market shares among their competitor. But Nokia is recently facing risks of entering smaller type of portable computer to the market.

Threat of suppliers

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Increasing the number of suppliers in the market could be caused drooping in the products prices and that may have negative effect on profitability of the company.

Threat of substitutes

The computer manufactures are the most threat of substitutes for Nokia .As result of fastest growth of technology they become produced smaller type of (portable) witch have advantages of small size like the mobile phone with better internet services and otherfeatures.

Threat of buyers

Nokia has large number of buyers in all the world which helps the company to maintain high levels of profitability.

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Threat of new entrants

Competitive rivalry

Bargaining power of buyers

Bargaining power of suppliers

Threat of substitutes

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Internal Environmental analyses

1) Resources

Human resources

It is count of all the staff that working in the company. Nokia has highly skilled staff because natures of technology work. Also it is always provide them with training course to keep them up to date with newest technology in the market.

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Physical resources

These resources are tangible and they represented the building, land, equipment and factories around the world.

Financial resources

Such as cash, debtors, creditors and suppliers of many (shareholders, bankers)

Intangible resources

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Nokia has strong name in the market also Nokia brand always associated with well designed, high quality and advanced technology.

2) The growth share (or BCG) Matrix

Question mark when new products is launched in a market but it has low market share after that they became star and then cash cow and could be dog if products sales decline very fast .

In mobile industry technology changing very fast so star can be change to dog easily.

Market Growth

HIGH

LOW The growth share (or BCG) Matrix

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star

Question mark

Cash cow

Dogs

HIGH LOW

Market share

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3) SWOT Analysis

SWOT analysis studding organization in terms of strength, weakness, opportunity and threat.

Strength

1) Having advanced technology among their competitors in the mobile phone industry.

2) Nokia has modern structure as will good employees.

3) Nokia has Strong brand name and good image in the global market.

4) Has it own factory and network services.

5) Functional products you can use them more easily and effectively.

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6) Nokia has wide range of products suit all people classes.

7) Nokia has largest network of distribution and selling compared with other Mobil phone company.

8) The financial position of the company very strong because Nokia has many profitable businesses around the world.

9) The sells value of Nokia phones are high compared with other company product.

Weaknesses

1) Some of their products do not succeed in the market.

2) Nokia does not like to respond to quickly change.

4) Nokia sales in third world countries are very few.

Opportunity

1) Nokia is thinking of moving from mobile manufacture to personal computer manufacture.

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2) As standard of living in third world countries increased the Nokia sales are increased as will.

Threats

1) Nokia facing threats from other competitors in the market.

2) The market becomes saturated.

3) Threats of losing market share.

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Culture strategy of Nokia

Nokia is a big company and worked in different country so they give interest to the culture of their costumers and employs. Also it is trying to adapt its business to be suitable for different culture and perspective.

New technology

Nokia gives a lot of interest to technology because it is the mean contributor to the company success. Introducing the right technology in the right time brings to the company huge revenue also it is plays an important role in brand reputation. Nokia always focus on choosing right technology and investigate whether people will use the technology in their lives every day or not also technology must be easy to use from people. One of the must important new technology in Mobile phone industry internet service is considered significant innovation in mobile phone technology now days also it is bring a lot of benefit to the people lives so Nokia wants consumers to enjoy every internet service that is available on the computer on their mobile device also Nokia was the first company to introduce full internet browsing in its mobile devices. Mobile phone will lead the next internet industry by mobile email solution, WEB browser, information location and other application like Skype. These programmes are designed to make business by more effective and efficient way.First started of the internet was limited on the computer device but now after increasingly growth of technology begins use on the mobile phone too. This technology has significant impact on people around the world. We all know the important of the internet on our life as it is being used in several areas like communication, fastest resource of information, entertainment, service, media and commercial. So people now became more needed to use the internet in any where. This advantages start to be available by adapting the iterant to the mobile phone device. Nokia will take the leader ship role in implementing the best internet services on their device.

Impact of the new technology on strategy position of the company

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As we all know when any technology entered to the market leading the companies to make some changing in their structure to adapt their strategy to implement this technology in successful way. Entering the internet to mobile phone industry forced Nokia to make some changing in their strategy to can maintain their leader ship in the market. These changing are summarized in flowing point.

1) Make improvement in their device software operation to adopt it for using internet application and other features.

2) Make improvement in connectivity device.

Conclusion

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At the end of my essay we can from the above analysis and debate of the strategy position of Nokia Company recognise that to any extent the company has strength and also to any extent has weakness but from the over all view the company has more strength than weakness and in my judgment it is considered the leader ship in mobile phone industry in all over the world until now.

Referencing

1) Gerry Johnson & Kevan Scholes & Richard Whittington, 2005.Exploring Corporate Strategy .Seventh edition

2) Nokia connecting people .Vision and strategy [online] available at http://www.nokia.com/about-nokia/company/vision-and-strategy

[Accessed 25 October 2010]

3) Nokia connecting people. Environmental strategy [online] available at

http://www.nokia.co.uk/about-nokia/environment/our-responsibility/environmental-strategy

[Accessed 25 October 2010]

4) Marketing strategy for Nokia [online] available at

http://www.123helpme.com/view.asp?id=120850

[Accessed 25 October 2010]

5) Nokia [online] available at

http://www.123helpme.com/view.asp?id=148991

[Accessed 25 October 2010]

6) Nokia technology strategy [online] available at

[Accessed 25 October 2010]

7) Nokia [online] available at

http://www.docstoc.com/docs/39112362/nokia

[Accessed 25 October 2010]

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