From In-house to Joint R&D: The Way forward for Nokia Denmark Harvard Case Solution & Analysis

Nokia Denmark was set up in 1996 as a subsidiary company of the Nokia Corporation and contained the largest Nokia R&D unit, concentrating. In 2007, Nokia Denmark received directions from corporate headquarters to dramatically raise the number of mobile phones. Inspired by the need to release pressure on its in house capacity, Nokia Denmark decided to outsource particular product development jobs to the Taiwanese business Foxconn in a joint R&D (JRD) setup. Foxconn, one of the biggest electronic component producers in the world, which was also developing products for a lot of Nokia's opponents, was granted the responsibility of testing and creating selected standardized and complex mobile phones, while more complicated and advanced technology projects were kept in house.

Nonetheless, with responsibility for increasingly sophisticated projects, Foxconn had become a principal figure in the product development procedure in Nokia Denmark by 2010. Given the increasing value of Foxconn the growing pressure on prices and products from the competitive market environment and the corporate headquarters, for Nokia Denmark, Nokia Demark therefore confronted a central question on the best way to continue with the JRD. Three alternatives were summarized with Foxconn for the future of Nokia Denmark's JRD: the management could determine on scaling up, phasing out or continuing the status quo.

PUBLICATION DATE: December 20, 2011 PRODUCT #: W11594-PDF-ENG

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