netrashetty
Netra Shetty
C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) is a Fortune 500 third-party logistics provider which provides domestic and international freight transportation and logistics services
The subdivision of the market is essential for a company to make decision. It is required as a basic skill for a company to understand the mobile phone market and its structure, so as to the market decision. (Earl Peter, 1996). In the case of the Nokia,
In order to determine how the Nokia users will be segmented, it is important that the company should be able to set criteria and know its target market. In terms of criteria, the market segment will be divided into categories in accordance with the services offered by the institution. The market segment will include those clients or which will avail different Nokia products and brands which include N-Series, Nokia Mobile Phones, 3G phones, Xpressmusic phones, N-gage and other brands of Nokia. The target market includes adults, teenagers, businessmen and general public.
B. Target Market Strategy of Nokia
According to the correct subdivision of the Chinese mobile phone market, Nokia has delineated its different market strategies emphasized on different market demands. Through its abundant product line, strong investigative ability and sound commercial network, with the suitable marketing strategy, Nokia designs various types of products to meet the need of each target market. The target market of Nokia includes teenagers or youth, adult, businessmen and the general public. Target market also includes those who want a mobile phone which they can use as a substitute for digital cameras, mp3s or mp4s and video cameras.
6 competitive strategy of nokia
A. Theories of Competitive Strategy
There are five kinds of basic competitive strength in an industry. They determine the potentiality for profit of this industry. The potentiality here is measured in the long-term investment, and not every industry has the same potentiality. The final profit potentiality will change fundamentally with the change of the joint competitive strength. (He Zi-Lin, Lim Kwanghui, Won Pho-Kam, 2006)
The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies. Those strategies are: overall cost leadership strategy, differentiation strategy and focus strategy. (Michael porter, 1997)
B. Competitive Strategy of Nokia in China
The Chinese market of mobile phone is large and attractive for each mobile phone manufacturer. And so it is no doubt that the competition in Chinese mobile phone market is intense. Even though Nokia is in a leading position in global mobile communications industry, it always maintains a high degree of vigilance. Motorola must be its major competitor either in China or other areas. Anycall Corporation comes from Korea also wants to seize this profitable market. Meanwhile, more and more local mobile phone manufacturers appear and acquire support from some consumers. Nokia could never slacken itself.
The basic competitive strategy of Nokia is the differentiation strategy, which requires winning the competitive advantage through improving its innovative ability continuously. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. The biggest challenge for Nokia is how to meet the demands of the market (Oster Sharon M, 1994)
Nokia pays a great attention to technology innovations, and has invested a lot in developing new technologies to maintain its leadership. Till now, Nokia has 54 researches & develop centers all over the world. These centers work hard to analyze the global market and keep on providing new concept, new demands to the company. This ensures its advanced technology and leading position. In China, Nokia has 2 R&D centers which are located in Beijing and Hangzhou separately. So that the researches in China develop fast and won great reputation. Relied on these investments Nokia has enough resources to do researches, and could always keep ahead of others.
Nokia also makes great effort to innovate upon technology, produce new mobile phones continuously, create good cooperative relationship with local companies and carry out humanized management. All of these are essential for Nokia to hold its competitive advantage and leading position.
7 growth strategy of nokia
Although Nokia is a established multinational company, the management must still be able to use different strategy that would sustain Nokia’s competitive advantage and ensure market entry success in the Chinese market. The following highlights the proposed growth strategy of Nokia in China.
A. Integration of Human, Technology and Process
Nokia realises that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that Nokia is involved in an industry where companies have to deal with rapid growth rates. This means that they have to develop a means to promote business development by maximising the assets which they possess. In addition, the end-users of Nokia products are not the sole consumers of the company. Distributors, direct sellers and sales managers are also considered as a major contributor to the overall sales of Nokia. Thus, they should also be treated as customers. Development and growth is ensured provided that Nokia applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006)
Although alignment of strategic initiatives is a corporate-wide effort, considering strategy in terms of levels is a convenient way to distinguish among the various responsibilities involved in strategy formulation and implementation. A convenient way to classify levels of strategy is to view corporate-level strategy as responsible for market definition, business-level strategy as responsible for market navigation, and functional-level strategy as the foundation that supports both of these (see Table 1).
CORPORATE-LEVEL STRATEGY
Corporate-level strategies address the entire strategic scope of the enterprise. This is the "big picture" view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. For multi-business firms, the resource allocation process—how cash, staffing, equipment and other resources are distributed—is typically established at the corporate level. In addition, because market definition is the domain of corporate-level strategists, the responsibility for diversification, or the addition of new products or services to the existing product/service line-up, also falls within the realm of corporate-level strategy. Similarly, whether to compete directly with other firms or to selectively establish cooperative relationships—strategic alliances—falls within the purview corporate-level strategy, while requiring ongoing input from
Table 1
Corporate, Business, and Functional Strategy
Level of Strategy Definition Example
Corporate strategy Market definition Diversification into new product or geographic markets
Business strategy Market navigation Attempts to secure competitive advantage in existing product or geographic markets
Functional strategy Support of corporate strategy and business strategy Information systems, human resource practices, and production processes that facilitate achievement of corporate and business strategy
business-level managers. Critical questions answered by corporate-level strategists thus include:
What should be the scope of operations; i.e.; what businesses should the firm be in?
How should the firm allocate its resources among existing businesses?
What level of diversification should the firm pursue; i.e., which businesses represent the company's future? Are there additional businesses the firm should enter or are there businesses that should be targeted for termination or divestment?
How diversified should the corporation's business be? Should we pursue related diversification; i.e., similar products and service markets, or is unrelated diversification; i.e., dissimilar product and service markets, a more suitable approach given current and projected industry conditions? If we pursue related diversification, how will the firm leverage potential cross-business synergies? In other words, how will adding new product or service businesses benefit the existing product/service line-up?
How should the firm be structured? Where should the boundaries of the firm be drawn and how will these boundaries affect relationships across businesses, with suppliers, customers and other constituents? Do the organizational components such as research and development, finance, marketing, customer service, etc. fit together? Are the responsibilities or each business unit clearly identified and is accountability established?
Should the firm enter into strategic alliances—cooperative, mutually-beneficial relationships with other firms? If so, for what reasons? If not, what impact might this have on future profitability?
As the previous questions illustrate, corporate strategies represent the long-term direction for the organization. Issues addressed as part of corporate strategy include those concerning diversification, acquisition, divestment, strategic alliances, and formulation of new business ventures. Corporate strategies deal with plans for the entire organization and change as industry and specific market conditions warrant.
Top management has primary decision making responsibility in developing corporate strategies and these managers are directly responsible to shareholders. The role of the board of directors is to ensure that top managers actually represent these shareholder interests. With information from the corporation's multiple businesses and a view of the entire scope of operations and markets, corporate-level strategists have the most advantageous perspective for assessing organization-wide competitive strengths and weaknesses, although as a subsequent section notes, corporate strategists are paralyzed without accurate and up-to-date information from managers at the business-level.
The subdivision of the market is essential for a company to make decision. It is required as a basic skill for a company to understand the mobile phone market and its structure, so as to the market decision. (Earl Peter, 1996). In the case of the Nokia,
In order to determine how the Nokia users will be segmented, it is important that the company should be able to set criteria and know its target market. In terms of criteria, the market segment will be divided into categories in accordance with the services offered by the institution. The market segment will include those clients or which will avail different Nokia products and brands which include N-Series, Nokia Mobile Phones, 3G phones, Xpressmusic phones, N-gage and other brands of Nokia. The target market includes adults, teenagers, businessmen and general public.
B. Target Market Strategy of Nokia
According to the correct subdivision of the Chinese mobile phone market, Nokia has delineated its different market strategies emphasized on different market demands. Through its abundant product line, strong investigative ability and sound commercial network, with the suitable marketing strategy, Nokia designs various types of products to meet the need of each target market. The target market of Nokia includes teenagers or youth, adult, businessmen and the general public. Target market also includes those who want a mobile phone which they can use as a substitute for digital cameras, mp3s or mp4s and video cameras.
6 competitive strategy of nokia
A. Theories of Competitive Strategy
There are five kinds of basic competitive strength in an industry. They determine the potentiality for profit of this industry. The potentiality here is measured in the long-term investment, and not every industry has the same potentiality. The final profit potentiality will change fundamentally with the change of the joint competitive strength. (He Zi-Lin, Lim Kwanghui, Won Pho-Kam, 2006)
The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies. Those strategies are: overall cost leadership strategy, differentiation strategy and focus strategy. (Michael porter, 1997)
B. Competitive Strategy of Nokia in China
The Chinese market of mobile phone is large and attractive for each mobile phone manufacturer. And so it is no doubt that the competition in Chinese mobile phone market is intense. Even though Nokia is in a leading position in global mobile communications industry, it always maintains a high degree of vigilance. Motorola must be its major competitor either in China or other areas. Anycall Corporation comes from Korea also wants to seize this profitable market. Meanwhile, more and more local mobile phone manufacturers appear and acquire support from some consumers. Nokia could never slacken itself.
The basic competitive strategy of Nokia is the differentiation strategy, which requires winning the competitive advantage through improving its innovative ability continuously. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. The biggest challenge for Nokia is how to meet the demands of the market (Oster Sharon M, 1994)
Nokia pays a great attention to technology innovations, and has invested a lot in developing new technologies to maintain its leadership. Till now, Nokia has 54 researches & develop centers all over the world. These centers work hard to analyze the global market and keep on providing new concept, new demands to the company. This ensures its advanced technology and leading position. In China, Nokia has 2 R&D centers which are located in Beijing and Hangzhou separately. So that the researches in China develop fast and won great reputation. Relied on these investments Nokia has enough resources to do researches, and could always keep ahead of others.
Nokia also makes great effort to innovate upon technology, produce new mobile phones continuously, create good cooperative relationship with local companies and carry out humanized management. All of these are essential for Nokia to hold its competitive advantage and leading position.
7 growth strategy of nokia
Although Nokia is a established multinational company, the management must still be able to use different strategy that would sustain Nokia’s competitive advantage and ensure market entry success in the Chinese market. The following highlights the proposed growth strategy of Nokia in China.
A. Integration of Human, Technology and Process
Nokia realises that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that Nokia is involved in an industry where companies have to deal with rapid growth rates. This means that they have to develop a means to promote business development by maximising the assets which they possess. In addition, the end-users of Nokia products are not the sole consumers of the company. Distributors, direct sellers and sales managers are also considered as a major contributor to the overall sales of Nokia. Thus, they should also be treated as customers. Development and growth is ensured provided that Nokia applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006)
Although alignment of strategic initiatives is a corporate-wide effort, considering strategy in terms of levels is a convenient way to distinguish among the various responsibilities involved in strategy formulation and implementation. A convenient way to classify levels of strategy is to view corporate-level strategy as responsible for market definition, business-level strategy as responsible for market navigation, and functional-level strategy as the foundation that supports both of these (see Table 1).
CORPORATE-LEVEL STRATEGY
Corporate-level strategies address the entire strategic scope of the enterprise. This is the "big picture" view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. For multi-business firms, the resource allocation process—how cash, staffing, equipment and other resources are distributed—is typically established at the corporate level. In addition, because market definition is the domain of corporate-level strategists, the responsibility for diversification, or the addition of new products or services to the existing product/service line-up, also falls within the realm of corporate-level strategy. Similarly, whether to compete directly with other firms or to selectively establish cooperative relationships—strategic alliances—falls within the purview corporate-level strategy, while requiring ongoing input from
Table 1
Corporate, Business, and Functional Strategy
Level of Strategy Definition Example
Corporate strategy Market definition Diversification into new product or geographic markets
Business strategy Market navigation Attempts to secure competitive advantage in existing product or geographic markets
Functional strategy Support of corporate strategy and business strategy Information systems, human resource practices, and production processes that facilitate achievement of corporate and business strategy
business-level managers. Critical questions answered by corporate-level strategists thus include:
What should be the scope of operations; i.e.; what businesses should the firm be in?
How should the firm allocate its resources among existing businesses?
What level of diversification should the firm pursue; i.e., which businesses represent the company's future? Are there additional businesses the firm should enter or are there businesses that should be targeted for termination or divestment?
How diversified should the corporation's business be? Should we pursue related diversification; i.e., similar products and service markets, or is unrelated diversification; i.e., dissimilar product and service markets, a more suitable approach given current and projected industry conditions? If we pursue related diversification, how will the firm leverage potential cross-business synergies? In other words, how will adding new product or service businesses benefit the existing product/service line-up?
How should the firm be structured? Where should the boundaries of the firm be drawn and how will these boundaries affect relationships across businesses, with suppliers, customers and other constituents? Do the organizational components such as research and development, finance, marketing, customer service, etc. fit together? Are the responsibilities or each business unit clearly identified and is accountability established?
Should the firm enter into strategic alliances—cooperative, mutually-beneficial relationships with other firms? If so, for what reasons? If not, what impact might this have on future profitability?
As the previous questions illustrate, corporate strategies represent the long-term direction for the organization. Issues addressed as part of corporate strategy include those concerning diversification, acquisition, divestment, strategic alliances, and formulation of new business ventures. Corporate strategies deal with plans for the entire organization and change as industry and specific market conditions warrant.
Top management has primary decision making responsibility in developing corporate strategies and these managers are directly responsible to shareholders. The role of the board of directors is to ensure that top managers actually represent these shareholder interests. With information from the corporation's multiple businesses and a view of the entire scope of operations and markets, corporate-level strategists have the most advantageous perspective for assessing organization-wide competitive strengths and weaknesses, although as a subsequent section notes, corporate strategists are paralyzed without accurate and up-to-date information from managers at the business-level.