Nokia And Finland Harvard Case Solution & Analysis

Introduction

            The paper attempts to describe the assessment of the current situation of the firm through identifying the environment of the industry along with the competitive situation. The paper also attempts to describe the various strategies of Nokia in its origin country, whereas, it also describes key issues faced by the company along with it financial results. Furthermore, the paper describes detailed alternatives suggested for the company which addresses the key issues. Moreover, the paper describes recommendations while identifying a single alternative strategy which remains feasible for the company along with the implementation plan.

Assessment of Current Situation

IndustryAnalysis

Porter’s Five Forces

Threat of New Entrants

            For entering in a telecommunication through opening up an organization, the company would need to secure a large amount of investment and capital to establish a firm. Furthermore, there has been high competitive market which makes the entrance of new organizations even more threatening.

Threat of Substitute

            The threat of the substitute is moderate as there is no real substitute for mobile. Landline phones along with computers could be considered as the closest of substitutes for the industry. Moreover, the demand for the landline phones have been decreasing while demand for mobile phones have been on the verge of increasing.

Bargaining Power of Suppliers

            The bargaining power of suppliers was also low since there was a presence of a large number of suppliers which were dependent on Nokia because it has been the best recognized mobile brand. However, companies in this sector have a long term strategy with its vendors and suppliers so as to maintain a long-term relationship.

Bargaining Power of Buyers

            The bargaining of buyers is low since these buyers do not have any other option to choose from, neither have they had the option to compare it with other companies. Moreover, the larger population of the buyers were loyal to the company’s brands as they tend to shift little. The buyers did not had the trend to buy any other mobile phone than a brand.

Competitive Rivalry

            The competitive rivalry is high due to the increase in the number of players which are both local and international. Sony Ericsson and Motorola are considered as the top most competitors in the industry which have been giving Nokia a tough time in the market.

Competitive Situation

Motorola

            The Motorola mobile company was established in the United States and have been considered as the market leader in the mobile handset devices. The company was founded by Paul Galvin under the name Motorola by introducing car radios. The company then entered in the consumer electronic business and became the largest supplier of mobile phones in the late 1980’s. The company launched the first satellite phone called Iridium.

            The competitive advantage for Motorola phones was that the phones of the company were lighter and small with respect with their competitors which tend to be large. The company launched the smallest and the lightest phone called MicroTAC in the year 1989 in the telecommunication market. The market share for Motorola in the late 1990’s was 25% around the world.Nokia And Finland Case Solution

Ericsson

            Ericsson was founded in the year 1876 by Lars Magnus Ericsson as a small telegraph repair shop. The company used to copy the products which were created by Graham Bell which were not patented at that time in Sweden. However, a fierce competition started to engulf in the industry when Bell entered the Swedish market in the year 1880. The company globalized its product in the late 19th century while it established various manufacturing units in Russia and also in Chine and Mexico.

            Along with this, the company also entered the radio which allowed the company to cater a larger market. In 1977, the company developed its first mobile phone. While in 1990’s, the company became as the world leader in technology since it used to spend a higher percentage of its total revenues upon the research and development of its product. The company have been known for innovating new products.

Financial Results

            While comparing the sales for Nokia against its main competitors which include Ericsson and Motorola, the company has attained a total sales of $28,608 which is comparatively lesser than its both competitors for the year 2000. Ericsson have managed to earn a total sales of $29,026, whereas, the leading company possesses a sales of $37,580 for the same year. .....................

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