NOKIA STRATEGY

Paola GonzálezMarcela GómezMarisol Londoño

Iván Ponsoda

Some of the featuares that are adding value to nokia chain are mainly

setted at their strategies, in the following presentation we will present

the most importat points about their:

Product strategy Marketing strategy Customer strategy Continuous improvement strategy

Those factors combinated with a constant evaluation of its products,

process and their customer made Nokia a world wide leader.

”Product strategy begins with a strategic vision that states where a company wants to go, how it will get there, and why it will be successful.”

”Product strategy is like a roadmap, and like a roadmap it’s useful only when you know where you are and where you want to go.”

(McGrath 2001)

Nokia products are divided into five categories for five separate markets:

1. The Explore line is the technical leadership product line.  These are the N-

series phones which push the boundaries of what a phone is.

2. The Live and Classic lines are the broad appeal products.  These can be

inspirational in nature, supporting one particular feature very well, or style

oriented.

3. The Achieve line is focused on the enterprise.  These are the E-series

phones and smart phones. 

4. The Entry line is focused on low end phones and emerging markets. 

2005 Camera phones with 2 megapixels introduced.

2006 2 megapixels standard across N series product line3.2 megapixel cameras, navigation, WiFi and music introduced

2007 3.2 megapixels, music, navigation and WiFi standard across N Series product line5 megapixel cameras introduced, with 8M solid state storage

2008 3.2 megapixels, navigation and music migrate to6200 series broad appeal phones

•Nokia has introduced new features and/or new products once or twice each

year, then moved in a year to the N products.

•They are now optimizing their products around the music, the Internet, photos,

video and now shipping.

Comparing other market devices with Nokia’s. Nokia products

are characterized for being designed thinking on content

consumption and creation, while their competitors are primarily

focused on content consumption.

 

For creative people, nothing really beats Nokia. That seems to

have been their vision from the beginning and it’s just now

becoming obvious to the rest of us.

Segmentation is the key factor used by Nokia at its marketing strategy.

Actual Nokia president Olli-Pekka Kallasvuo says:

Mobile devices are increasingly in the world of convergence between various

functions; talk is just one of them. He adds "The two trends that have changed

the experience of modern life, I would say that mobility is a sentence, the

Internet is another and now we have gathered.

We are in a position to work with both."

Last year Nokia sold 320 of the 900 million mobile phones sold in the

world.

Nowadays Nokia is divided in different families; they understand that

in this moment there is any cell phone that could be the leader of the

market, because all the consumers have different tastes; there is not

a standard mobile that could be accepted for all the costumers, that

why Nokia have been working at different segmentations and after

different studies they divide the company in four divisions:

The essence of the Nokia marketing strategy is that they believe at

scientific marketing. Most of their market segmentation are based on

data bases about what customer really wants, combined with

customer experience. After different studies and as result they

decide

• To insist on their devices design

• To became massive in markets where they were not present,

with cheap equipment and smaller margin in China, India and

Latin America. Nowadays these markets have become around

70% of the company's growth.

Nokia list itself as a consumer led company.

Nokia’s strategy is to build trusted consumer relationships by offering

compelling and valued consumer solutions that combine beautiful devices

with context enriched services.

Nokia keeps in mind that:

There is a progressive and continuous increase in consumer involvement

with technology and communications globally.

People are broadening their modes of communication to include the web

and, social networks are becoming central to how people communicate.

People want to be truly connected, independent of time and place, in a

way that is very personal to them.

Nokia tries to follows what the customer wants:

Customer is the key

They are not only selling a product, they are trying to sell a service

Continuous innovation strategy

Focusing in different customers and tastes around the world

Responding to the customers with variety Decentralized R&D department

Nokia always had a focus on support excellence. At 2007 they found three

failures at its customer contact strategy that were improved with the

implementation of a service capability performance standard (SCP):

“We were measuring customer satisfaction more as a tool to know what our current status was, rather than as a method to define needed actions to improve the support product” Action: to use the SCP to establish a global and complete its roadmap that helps to define

improvement actions.

“The points we were trying to measure on the customer satisfaction surveys really didn’t result in clear actions for improvement.” Action: to use the SCP allows them to be on real data removing tendency and trying to

implement process at a regional level, and have a clear global view of performance, helping them to give a feedback to areas that need an improvement”

“We found that we weren’t focusing on the correct areas and didn’t have true measures of customer satisfaction.” Action: to use the SCP provides Nokia with a framework for ongoing improvement of the

organization and they are focusing in the right areas to improve those things

Customer contact strategy goes according to Nokia marketing segmentation.

Even though Nokia trust in data the think that data is not enough. Its employees

and developers must experience, feel and understand what's happening around

the world

Nokia sent its engineers from Finland and told them to live in places where

exciting things were happening. They sent them to spend time in nightclubs in

Tokyo, in the King's Road in London, on Venice Beach in southern California.

Their brief was to observe marginal trend-setting lifestyles and blend in, then

report back.

One of the advantages of Customer services strategy is that the service

provided to the customers is divided by regions trying to differentiate its service

by cultural background:- Europe -United States -Canada -Latin America- Brazil -Middle east and africa -Asia pacific -Greater china

- India

Globalization is a fact and is increasing day by day, there is more competition

among companies and the life product cycles is shorter, and customers have

become more demanding.

 

That is the reason why factors such as customization, cost, response time,

quality... becomes very important,

In these times we must continually improve in order to be competitive and be

able to react to the customer needs, before the others.

Points that characterize Nokia strategy are:

-Constant understanding of customer needs and aspirations.

-Product differentiation in a competitive landscape.

-Cost advantage and a favorable supply environment.

Nokia’s business is supported by five technology priority areas:

-Device technology leadership, smart connectivity;

-Leading web evolution;

-User experience leadership;

-The preferred innovation platform.

Never undertake anything in advance if we wanted to ensure the

success of our company. The leaders of the organization, as Nokia,

must implement a new culture of constant change to define the

current situation and improve it.

 

Otherwise, Nokia would not be one of the leading brands in mobile

phones, and would be starting a phase of diversification of products.

In our opinion, an open mind to change, similar to the Nokia, is the

best weapon which to combat the crisis.

•Day by day Nokia is trying to increase different features, specially product

life cycle, due to it wasn’t as profitable to keep short product life circles.

•Even though cost strategy is pretty important for Nokia they are not

focusing on low cost production, they care more about high quality

production and good production methods.

•Nokia is trying to focus at different factors as design, color and devices

•Nokia has realized that money is tat

•Fast growing of markets

•Be focus on different

•Be focus on customer needs

•Business Diversification, that is the reason why they are not focus at

the same business

•The link with the university is pretty important and works properly with

universities from Finland. University is contributing to Nokia for be one of the

market leaders

•Strategic alliances: The world goes too fast, that is why Nokia is needing

others companies help, those companies are experts on components and

different parts from their devices.

•Brand recognition: Nokia has acquire an excellent brand name, they are

trying to keep their name on the customer top of mind.

•They are trying to change customer way of thing, in the sense that they are

not selling a product they are selling a complete service.

•They have the diversity as a key of success.

Alec Saunders Squawkbox, Sunday, February 17th, 2008 at Tech and Business

Michael E. McGrath, Product Strategy for High Technolgy Companies, 21.10.2004

Internet Sources

•http://p.sponsor.com/execsummary/introduction/nokia/proposals;jsessionid=5A4892518E81F3710320EA4CDD80B23A.node01•http://www.nokia.com/corporate-responsibility•http://www.customerthink.com/forum/abandon_customer_led_strategies•http://www.servicestrategies.com/uploadedFiles/Uploaded/Files/Success_Stories/Nokia_05_07.pdf•http://www.clarin.com/suplementos/economico/2006/11/12/n-00811.htm •http://www.emprendedoresnews.com/notaR/el_marketing_de_nokia-3493-5.html•http://www.eleconomista.es/mercados-cotizaciones/noticias/842116/11/08/Nokia-apuesta-por-los-mercados-emergentes-y-recorta-empleos.html