Nokia business model. The Nokia Business Model and Company Objectives Essay Example 2022-10-08
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Nokia is a Finnish multinational telecommunications, information technology, and consumer electronics company that was founded in 1865. It is headquartered in Espoo, Finland, and has a long history of developing and producing innovative products and services for the telecommunications industry.
Nokia's business model has evolved over time to meet the changing needs and demands of the telecommunications market. Initially, Nokia focused on the production and sale of paper products, such as pulp and paper mills and tires. However, in the 1960s, the company shifted its focus to the telecommunications industry and began producing a wide range of telecommunications equipment, including analog and digital telephone exchanges, switches, and routers.
In the 1990s, Nokia began to expand its product portfolio to include mobile phones and other consumer electronics products, such as portable music players and smartwatches. This expansion allowed Nokia to diversify its revenue streams and become a major player in the consumer electronics market.
Today, Nokia operates in four main business segments: Network Infrastructure, Software, Nokia Technologies, and Nokia Enterprise. The Network Infrastructure segment includes the development, production, and sale of telecommunications equipment and services for mobile and fixed networks. The Software segment focuses on the development and sale of software solutions for the telecommunications and internet of things (IoT) markets. Nokia Technologies is responsible for the development and licensing of Nokia's patented technologies and intellectual property. Finally, Nokia Enterprise is focused on providing communications and networking solutions for businesses.
Nokia's business model is centered around innovation and the development of new technologies. The company invests heavily in research and development (R&D) in order to create and bring new products and services to market. It also partners with other companies and organizations to share knowledge and collaborate on new technologies.
In recent years, Nokia has also embraced the concept of sustainability and has made a commitment to reducing its environmental impact. It has set ambitious sustainability goals and has implemented a number of initiatives to reduce its carbon emissions, improve resource efficiency, and minimize waste.
Overall, Nokia's business model is focused on providing innovative and high-quality products and services to its customers in the telecommunications and consumer electronics markets. It is a leader in the industry and is well positioned to continue driving innovation and growth in the future.
Change process could not carry on without a change agent. In essence, there are nine components for any business model, two of which are customers and value proposals. Customer segments focuses on which section of the market a business chooses to cater for, while value propositions is defined as solving …show more content… This led to consumers being unable to identify which products best suited their needs, causing sales to fall and ultimately creating failure within the business. Nokia builds bridges between people - both when they are far apart and face-to-face - and also bridges the gap between people and the …show more content… Innovation - being the first with something new is a powerful way of being distinctive. The ambition of this innovation leader had been shown more clearly by evolving and expanding their business.
Nokia clung to its fundamental ways and did not change with market developments. Looking for academic help? First-mover advantage refers to the benefits enjoyed by the firm as a consequence of its early entry into a new market. Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Slowly but surely they are becoming a victim of their own success. From a different perspective, Key amongst those decisions was the reallocation of essential management roles and the poorly applied 2004 reorganization right into a matrix structure. Their efforts began in 1995 with the New Venture Board but this failed to gain traction as the core businesses ran their own venturing activities and executives were too absorbed with managing growth in existing areas to focus on finding new growth.
Therefore, the focus on the customer within the business model results in the capture and creation of value that is essential to an organization achieving strategic goals. The company ignored Apple completely and overestimated its brand value and customer loyalty, which cost it a profitable business segment. Some executives left Nokia and many workers lost trust in Employees became insecure regarding their jobs and started to hide facts. The iPhone had better software compared to Nokia. Table of contents Introduction: One of the most important concepts in the orbitational research which is the firm performance.
One of the advantages of this model is that it offers products and services through multiple channels: through its brick and mortar stores and online store. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. Refreezing: The last stage of Lewin change model is refreezing which is about change slowing down and new strategies becoming standard practice. A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products and details of financing. By 2010, the limitations of Symbian had become painfully obvious and it was clear Nokia had missed the shift toward apps pioneered by Apple. The results are evident. However, the real outcomes were not completely like the expectations.
Unfortunately, NORTEL failed to go the length any longer than the beginning of the 21st Century; NORTEL collapsed for reasons that are too embarrassing to speak openly abbout - or even in privacy! Conclusion Nokia was the most famous mobile device company in the work. With the launch of Android and iPhones, the demand for touch screen smartphones increased exponentially. Integrated Marketing Communication Plan for Nokia The following report presents an Integrated Marketing Plan for Nokia in the UK. So at some point such companies fall down. Nokia is a broadly held company with listings on four major exchanges.
The Strategic Decisions That Caused Nokia’s Failure
It must be hard for other businesses to copy or your competitive advantage will not last very long. But over a period of time, Nokia stick to its old traditional way when the world and competitors kept changing and creating new trends. At the same time, companies like Samsung and Motorola launched Android-based, cheap, and user-friendly phones. This could also be understood from the perspective of quality that a business can create for the consumer. The firm performance can be also viewed in the broad context.
To commence the change, Nokia and the management had to reduce the change resistance. Amazon Competitive Advantage Case Study Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. However not all online business models are equal. In the year 2010, the Guinness Word Record for being the fastest-selling consumer electronics device ever released had break by the Microsoft. This led to a situation in which clients desired to perform a wide variety of tasks with smartphones, which includes taking images, watching streaming video and performing business capabilities. Nokia is far too behind to catch up.
After a partnership with Microsoft and market struggles, its mobile phone business was eventually bought by the former, creating Microsoft Mobile as its successor in 2014. Organisation structure After the partnership agreement, Elop started restructure Nokia. Assuming they went for consulting firms, then the firms were failed to help Nokia as well? For example, when buying a car or getting a loan you need to make sure you have good credit. On the other hand, iPhone sales sky-rocketed by around 330% during the same period. Their mission and vision are therefore not clearly stated or even separable but are implied from their performance. After the sale, Nokia began to focus more extensively on its telecommunications infrastructure business and on the Internet of things, marked by the divestiture of its Here mapping division and the acquisition of Alcatel-Lucent, including its Bell Labs research organization.