The instance describes and discusses the organizational and tactical challenges of outsourcing research and development (R&D) activities from Denmark to China. Nokia Denmark contained the largest Nokia R&D unit, concentrating on the development of mobile telephones, outside Finland and was founded in 1996 as a subsidiary of the Nokia Corporation in 2007, Nokia Denmark received directions from corporate headquarters to drastically raise the number of mobile phones. Motivated by the need to release pressure on its in-house capacity, Nokia Denmark chose to outsource certain product development jobs to the Taiwanese company Foxconn in a joint R&D (JRD) set up. Foxconn, one of the biggest electronic component producers in the world, which was also developing products for many of Nokia's adversaries, was given the responsibility of testing and creating picked standardized and mobile phones that were complicated, while advanced and more complicated technology jobs were kept in house.
However, with responsibility for increasingly sophisticated projects, Foxconn had become a principal figure in the product development procedure in Nokia Denmark by 2010. Given the growing relevance of Foxconn the rising pressure on costs and products from the competitive market environment and the corporate headquarters, for Nokia Denmark, Nokia Demark consequently faced an essential question on how best to go with the JRD. Three options were summarized with Foxconn for the future of the JRD in Nokia Denmark: the management could decide on phasing out, scaling up or continuing the status quo.
PUBLICATION DATE: December 20, 2011 PRODUCT #: W11594-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
