Case Study NOKIA
Nokia under Kairamo 1977-1988: Era of Growth
Transformation from a paper and rubber concern to a major global electronics and telecom concern – RESTRUCTURING THE COMPANYS ORGANIZATION
1989 Nokia was influential in establishing the second generation network (2G) – allowed phones to work throughout Europe – INNOVATION / DIFFERENTIATION
Nokias mergers and acquisitions activities – boosted revenues + adding valuable patents , investments in R+D DIFFERENTIATION
Nokia under Vuorilehto: Challenging Times 1988-1992
Fewer acquisitions
Restructured the firm into 6 business divisions: Telecom (Networking), Mobile Phones, Nokia Data, Cables and Machinery, Basic Industries and Consumer Electronics
Telecom network division was thriving – demand grew (Nokia had a head start on competitors because the Finnish telecom infrastructure sector had been deregulated sooner than those in most European countries
Nokia under Ollila 1992-2006
Implemented “the Nokia Way” – highlighting Nokias core values of customer satisfaction, respect for the individual, achievement and continuous learning
Adopt a back to basic approach – series of major assets sales – centuring the company on four key business areas: mobile phones, consumer electronics, networks and cables
Telecomunications and mobile phones – focal points of Nokias strategy
1999 Nokia controlled one third of the essential patents for GSM standards – guaranteed continuous cash flows in technology licensing
Recognized opportunity in Japans 70% market growth – 1992 agreement with Japanese mobile operator IDO to design phones used on their network – first European manufacturer to make a deal in Japan COST ADVANTAGE / DIFFERENTIATION
Nokia Mobile Phones
1992: nokia launched first mass-produced digital phone COST ADVANTAGE
Nokia aggressively sought patents for its new technology developments – early patent strategy
Identified Asia as the region with the highest growth potential
Nokias product innovation, flexibility and rapid
Transformation from a paper and rubber concern to a major global electronics and telecom concern – RESTRUCTURING THE COMPANYS ORGANIZATION
1989 Nokia was influential in establishing the second generation network (2G) – allowed phones to work throughout Europe – INNOVATION / DIFFERENTIATION
Nokias mergers and acquisitions activities – boosted revenues + adding valuable patents , investments in R+D DIFFERENTIATION
Nokia under Vuorilehto: Challenging Times 1988-1992
Fewer acquisitions
Restructured the firm into 6 business divisions: Telecom (Networking), Mobile Phones, Nokia Data, Cables and Machinery, Basic Industries and Consumer Electronics
Telecom network division was thriving – demand grew (Nokia had a head start on competitors because the Finnish telecom infrastructure sector had been deregulated sooner than those in most European countries
Nokia under Ollila 1992-2006
Implemented “the Nokia Way” – highlighting Nokias core values of customer satisfaction, respect for the individual, achievement and continuous learning
Adopt a back to basic approach – series of major assets sales – centuring the company on four key business areas: mobile phones, consumer electronics, networks and cables
Telecomunications and mobile phones – focal points of Nokias strategy
1999 Nokia controlled one third of the essential patents for GSM standards – guaranteed continuous cash flows in technology licensing
Recognized opportunity in Japans 70% market growth – 1992 agreement with Japanese mobile operator IDO to design phones used on their network – first European manufacturer to make a deal in Japan COST ADVANTAGE / DIFFERENTIATION
Nokia Mobile Phones
1992: nokia launched first mass-produced digital phone COST ADVANTAGE
Nokia aggressively sought patents for its new technology developments – early patent strategy
Identified Asia as the region with the highest growth potential
Nokias product innovation, flexibility and rapid