Redhawks ConsultingNokia Denmark

“Empower[ing] everyone to share and make the most of their life by

offering irresistible personal choices.”

- Nokia Corporation Vision Statement

1. Introduction2. Analysis3. Alternatives4. Recommendation5. Implementation

Table of Contents

Introduction

How can Nokia Denmark modify its R&D strategies to most effectively meet the needs of consumers?

Introduction Analysis Alternatives Recommendation Implementation

Population• 401 million cells phones shipped in the fourth quarter of

2012

Economic• Increasing middle class population• Globalizations making interconnectivity more important than

ever

Societal• Increased need for cell phones within the global society

• Increased desire for high-end products

Technology• Prevalence of smartphones in cellular industry• Constantly evolving industry

.

PESTLE

Introduction Analysis Alternatives Recommendation Implementation

Strengths

• Well-defined R&D timeline and structure

• Streamlined value chain• High creative opportunity• Knowledge base in new

technologies• Early mover and established

name in cell phone industry

.

Threats

• Decreasing market share• Comparative strength of

other firms in smartphone market

Opportunities

• Increased demand for mobile phones

• Growth of population in developing countries

Weaknesses

• Separation of development centers slightly redundant

• Reactionary corporate history• Resistance to joint R&D from

Nokia workers

S.W.O. T.

Introduction Analysis Alternatives Recommendation Implementation

New Entrants

Industry Competitors

Substitutes

Moderate-Economies of Scale in R&D-Established base of worldwide competitors-Local Markets breed regional competitors

-High-Electronic components require specialization-Prices dependent on supplier choice-High cost to switch suppliers

-Strong-Mercy of consumer preferences-Brand preferences-Market volatility-Consumers can play brands off of each other

-Few-Alternate product availability is limited-Nothing exists that provides the information power in the portability of a small component

-Very Strong-Numerous competitors-Emergence of smartphone competencies in competitors-Other firms have experienced

higher recent growth

.

Porter’s Five Forces

Buyer PowerSupplier Power

Introduction Analysis Alternatives Recommendation Implementation

•Utilization of Core Competencies• Camera Technology• Customization• Rich Innovative History

•Long Term Sustainability•Increase Market Size•Fiscal Feasibility

.

Key Success Factors

Introduction Analysis Alternatives Recommendation Implementation

Decision GateRetain same JRD concept?

Yes

NoContinue to pursue the smartphone

market?Yes

Focus on marketing Symbian to under-reached

marketsRestructure JRD to better optimize competency in

camera and other technology areas

NoRetain competency in

mobile phones & Nokia Siemens Network

Introduction Analysis Alternatives Recommendation Implementation

Alternatives

Alternative 1Marketing Initiative

Focus on marketing Symbian to under-reached markets

Alternative 2JRD Overhaul

Optimization of competences in cameras

and other technology areas

Alternative 3Exit Smartphone

Market

Retain competency in mobile phones & Nokia

Siemens Network

Introduction Analysis Alternatives Recommendation Implementation

Alternative 1: Advertising Initiative

Advantages Disadvantages

Room to increase in developing markets

Smartphone market share dropped by 25% from 2009-

2010

Under-reached developed markets Costly

Lack of currently distinguished smartphone

Poor long-term feasibility

.Introduction Analysis Alternatives Recommendation Implementation

Alternative 2: JRD Overhaul

Advantages Disadvantages

Already leader in camera technology Involves a turn around strategy

Introduce of new niche marketUncertainty of interest in

advanced camera technology and design

Protection against loss of further smartphone market

share

Other companies are not as focused on camera technology

.Introduction Analysis Alternatives Recommendation Implementation

Alternative 3: Exit Smartphone Market

Advantages Disadvantages

Competence in mid-level phone

Doesn’t address decreasing smartphone market share

Popularity in low income markets

Unpredictable future of non-smartphone market

See preference for smartphone devices in developed countries

.Introduction Analysis Alternatives Recommendation Implementation

Alternatives

1. Marketing Initiative

2. JRD Overhaul

3. Exit Smartphone

MarketKey Success Factors

Weight

Utilization of Core Competencies

.35 2 0.7 5* 1.75 4 1.40

Long Term Sustainability

.30 1 0.3 4 1.2 1 0.3

Increase Market Size .20 3 0.6 3 0.6 1 0.2

Fiscal Feasibility .15 3 0.45 3 0.45 2 0.3

Totals

Weighted Comparative Strength Analysis

.Introduction Analysis Alternatives Recommendation Implementation

Alternatives

1. Marketing Initiative

2. JRD Overhaul

3. Exit Smartphone

MarketKey Success Factors

Weight

Utilization of Core Competencies

.35 2 0.7 5* 1.75 4 1.40

Long Term Sustainability

.30 1 0.3 4 1.2 1 0.3

Increase Market Size .20 3 0.6 3 0.6 1 0.2

Fiscal Feasibility .15 3 0.45 3 0.45 2 0.3

Totals 2.05 4.00 2.20

Weighted Comparative Strength Analysis

.Introduction Analysis Alternatives Recommendation Implementation

Alternatives 3:

Joint Research and Design Overhaul

Recommendations

.Introduction Analysis Alternatives Recommendation Implementation

Joint Research and Design Overhaul

•Short Term• Relocate 5 Nokia Denmark Engineers to Foxcomm location

to oversee R&D of lower tech firms• Hire camera development expert team for Denmark

location• Conduct market research on niche technology needs

•Long Term• Begin product release of innovated camera design on

phone• Initiate an all encompassing marketing plan emphasizing

revolutionary camera concept to effectively target current markets and expand into under-utilized markets

• Begin other innovative research based on market research

Implementation

.Introduction Analysis Alternatives Recommendation Implementation

Relocate 5 Nokia Denmark Engineers to Foxcomm location to oversee R&D of lower tech firms

Hire camera development expert team for Denmark

location

Conduct market research on niche technology needs

3 months 6 months 9 months 12 months 15 months 18 months

.

Nokia: JRD OverhaulShort-term

Introduction Analysis Alternatives Recommendation Implementation

Initiate an all encompassing marketing plan

Begin product release of innovated

camera design on phone

Begin other innovative

research based on market research

3 months 6 months 9 months 12 months 15 months 18 months

.

Nokia: JRD OverhaulShort-term

Introduction Analysis Alternatives Recommendation Implementation

Contingency Plan

.Introduction Analysis Alternatives Recommendation Implementation

Risk Probability Plan

Little room for improvement in mobile camera

phone technology

Low Re-evaluate Alternative 1

Nokia smartphone

sales continue to sink

HighLook into

selling camera technology

Cell phone market sales

overall decrease

LowConsider focus

on other electronics

Redhawks ConsultingNokia Denmark

“Empower[ing] everyone to share and make the most of their life by

offering irresistible personal choices.”

- Nokia Corporation Vision Statement

Strengths

• Well-defined R&D timeline and structure

• Streamlined value chain• High creative opportunity• Knowledge base in new

technologies• Early mover and established

name in cell phone industry

Threats

• Decreasing market share• Comparative strength of other

firms in smartphone market

Opportunities

• Increased demand for mobile phones

• Growth of population in developing countries

Weaknesses

• Separation of development centers slightly redundant

• Reactionary corporate history• Resistance to joint R&D from

Nokia workers

S.W.O. T.

Redhawks ConsultingNokia Denmark

“Empower[ing] everyone to share and make the most of their life by

offering irresistible personal choices.”

- Nokia Corporation Vision Statement