The Dynamics of Strategic Ability: Nokia’s Rollercoaster Harvard Case Solution & Analysis

Overview of Situation

Nokia is a multinational firm operating across 120 countries of the world. Nokia passed through some major changes driven by the current needs of the technology and competitive environment in the last few years and it fitted well with the different phases in the Adaptive Cycle like Crisis era, Entrepreneurial era, Equilibrium era and Transition era.By going through these phases Nokia established a well-organized communication and information technology system across the worldwide network with the help of strategic agility and three major Meta capabilities which enabled Nokia to generate revenue of more than 38 billion dollars.

Problem Statement

Nokia attained significant growth and market share through its strategic agility and Meta capabilities however,the current phase is more competitive and innovative. Moreover, its strategic agility could not compete with disruptive innovations by competitors in the smartphone market. In addition,currently it is lags behind in technology and market share from other producers of smartphone like Apple, Samsung, HTC and Huawei.

In the transition phase, Nokia proactively reacted to the expected threat from the smartphone producer show ever;it failed to deliver the services that these smartphone producers are providing like Play Store and App store. It is expected that the operating system that Nokia is using is also not suitable for the touchscreen navigation while the competitors are offering operating system with more advanced technology at competitive pricing.Therefore,Nokia is losing its competitive advantage, which it was enjoying since past several years.

Nokia is currently using matrix structure across the organization, which also creates problem for the company by losing the leadership unity and it creates differences in goals of the organization and individuals.

Alternatives& Pros & Cons

Nokia is operating under Symbian OS and Windows system with its collaboration with Microsoft however, it is not able to attract the customers who are more sophisticated these days and these customers are more towards Android devices.Therefore, Nokia has option to introduce Android technology in its smartphones, which could solve the current problem but copying the competitors  could also create further problems for Nokia.

It also has the option to upgrade its operating system and introduce such features like App store and Play store to deal with this problem. However, this option could also put Nokia behind its competitors as a result they could take advantage of introducing more advanced apps.

Proposed course of action and explanation of rationale

Nokia is growing without integrated supply chain, which has resulted in more inventories and less customer satisfaction.Therefore, it should introduce integrated supply chain system in order to decrease the inventories or to increase the customer satisfaction. The current matrix structure has resulted in the loss of leadership unity. Thus, Nokia should formulate its organizational structure in a way that the goals of the individuals and organization should be aligned with each other. In the initial phase,Nokia followed more formal process to manage growth however, in the modern competitive environment it should formulate its processes according to the future and environmental needs in order to reduce the risk related to the strategy rigidity.

Recommendation

Nokia should provide such offerings which could change the demand in the operating system and should introduce drastic cultural changes because traditional ways of attaining growth in this competitive environment is not possible.Therefore, the reliance on a few major customers and creating sense that 3G is the solution of the emergence of internet is not a suitable course of plan as it requires strategic sensitivity and scenario analysis to develop business model according to the current entrepreneurial and innovative culture.The Dynamics of Strategic Ability Nokia’s Rollercoaster Case Solution

Therefore, the recommended course of action is that Nokia should establish the process offast innvation in new product development and should also emphasize on discipline and execution, which will lead the company to a constant tussle between rigidity and resource fluidity.

Conclusion

•Nokia was chasing rapid market growth but Nokia Mobile Phones faced a crisis in terms of Nokia should divide its business units into smaller markets and should spread its operations by introducing advanced and innovative products for large number of users instead of focusing on a few. Nokia should establish core common processes and goals in order to align the individual goals with the organizational goals for the purpose of leadership unity........................

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