7/24/2019 59680541 Case Study Analysis

1/2

Case Study Analysis: Finland and Nokia: Creating the Worlds Most Competitive

Economy

Analysis:Nokias history begins in !"# as a pulp mill in the country o$ Finland% &n '"( the

modern corporation o$ Nokia )as merged )ith a telecommunications cable corporation

and electronics business and Finnish *ubber Works% +his became the telecommcompany that )e kno) today% &n Finland the Nordic Mobile +elephone ,-NM+./

net)ork )as created in '! and brought several innovative aspects to the consumers%

+he NM+ pioneered roaming technology that allo)ed $or usage across country borders%+he creation o$ the NM+ caused the Nordic region0 once a subtle region0 to become the

largest single mobile market o$ the time% +his net)ork raised the standard o$ mobile

technology and began to be incorporated in other $oreign markets% &n '(' Nokia began

$orming 1oint ventures and ac2uiring other companies0 e3panding its market and in turnbecoming the largest consumer electronic company in the Nordic region during the

'!4s% Nokia then consolidated the Finnish telecommunications system in '!(0

through mergers and ac2uisitions% &n '''0 the telecommunications sector became

Finlands leading sector0 making up 56 o$ the value added% 7y 544 Nokia )as in thetop three competitors in mobile phone manu$actures internationally0 reaching sales o$

84%97 Euros% +he company employed over "40444 people and production locations in 4countries0 *; in # countries as )ell as sales in over 84 countries%

Assessment:

Strengths: Nokias innovative presence allo)ed it to be a market leader in mobile phones%7y providing the best coverage and largest selection o$ models Nokia became the )orld

leader in digital phones )ith a market share o$ 86 in 5444% Nokia consistently searched

$or )ays to improve their product by setting up *; $acilities by leading universities and

developing centers o$ e3cellence%Nokia developed the $undamental values kno)n as the -Nokia Way.% +hese $our values

tied into the Finnish national character and consisted o$ customer satis$action0 respect $orthe individual0 achievement0 and continuous learning% +he Nokia Way proved to besuccess$ul as Nokia tapped into other countries% +he companys character )as pragmatic0

honest0 2uiet0 and serious%

Weaknesses: 7eginning in the !4s Nokia began to invest in electronics such as +ers% Also0 due to the si>e o$ the company0 Nokia )as enduring the concerns o$

nation $or being such a large role and cluster in Finlands economy%

?pportunities: 7eing a strong player in the logistics o$ mobile devices0 Nokia has theopportunity to increase their products $unctions and $urther develop their Smart phone

idea% 7ased on their )orld)ide reach the company should be able to continue )ith their

intricate supply chain and continue to market products )orld)ide% Also0 since consumersare changing to a )ireless )orld the telecomm market should still be gro)ing steadily

)ith room $or innovation and improvement%

+hreats: +he recent emergence o$ the &@phone and redesigned models o$ the 7lackberry

seem to be stealing the market in the %S% Nokia )ill need to unveil a product that is

7/24/2019 59680541 Case Study Analysis

2/2