Nokia Strategic Plan

Keywords: nokia strategy evaluation, strategic advice for nokia

In this job I have protected various topics of marketing which can be strategic planning, tactical planning process, the domestic strategic planning while the international proper planning and also the difference among them.

For more evidently understanding this theme I have also briefly talked about the case study of NOKIA. I've deeply examined Nokia's strategic planning in India that is what all methods it had taken to increase and take the Indian market. For understanding its international tactical planning and the reason for its success by properly applying its tactical planning globally. Even the Infestation, porter's five stage model and SWOT of the business also made the idea and evaluation more clear.

Table of articles (jump to)

1. Introduction:

• Definition of proper planning
• Definition Strategic Planning Process
• International/global strategy
• Difference between domestic and global strategy planning

2. Nokia Circumstance Study

• Domestic strategy
• 4 P's Marketing Mixture of Nokia
• Porter's 5 Makes Examination of Nokia
• SWOT Examination of Nokia

3. Conclusion

4. Recommendation

5. References

Introduction

Definition of Strategic Planning:

Strategic planning is the procedure where it maintain steadily its competitiveness within its work environment by determining where in fact the organization is and where it want to go, and exactly how it desire to get there. In other words evaluating what all strategies will allow the corporate or association to prosper in the future. This definition applies to the largest profit focused as well as to the nonprofit group.

Definition Strategic Planning Process:

The strategic planning process is a rational approach firms use to attain tactical competitiveness and earn above- average results. Thus it can be an essential most and foremost part of development of end result established accountability system which is "defined as the procedure of addressing the following questions:

• Where are we?
• What do we must work with?
• Where do you want to be?
• How do we get there?"

These will be the various steps mixed up in tactical planning which must be achieved or ensured one by one. The first rung on the ladder is to answer where are we? That is where the business or the organization going to market research or execute its activity. Then your next thing is making themselves clear about on what they have to work that's their product or services. Then future knowing what's their future goal, where they want to reach and last but not least planning that how they'll achieve their goals.

The Strategic Planning Process

Mission and Targets:

Mission and aim of the business describes about the companies values and values. They show what is the purpose of the business that it is working. The objective can also be in financial term as well.

Environmental Check:

This includes the internal analysis of the firm itself which is done by SWOT research of the firm. As the second is evaluation of the firms industry which is performed by porter's five forces model and third is microenvironment examination which is performed through PEST examination.

Strategy formulation:

From the above mentioned scan the organization will get to learn where it stands among the other firm. And then accordingly they have to make their power into opportunity and also reduce their weakness and danger which can give them competitive benefit. This competitive edge can be in form of low cost as well as differentiation.

Strategy implementation:

As and now the strategy is been well prepared for the firm, so now it's time to apply it. As so when it is carried out then only company can know how much successful is the strategy for the company.

Evaluation and control:

The execution of strategy must be watched and tested and whatever necessary changes required should be made. Thus this process is performed in following steps:

• Define the guidelines that is usually to be measured
• Define target prices for those parameters
• Then the performance measurement
• Compare the results from the targeted result
• Make necessary changes required in it.

International/global strategy:

An international strategy is a strategy by which the firm markets its goods and services outside its domestic market. The steps in international strategy are:

• Identify international opportunities
• Explore resources and capabilities
• Use center competences
• Strategic competitiveness final result.

The international strategy has two basic types: business level, corporate level international strategy. You will discover three commercial level strategies which are -multidomestic, global and transnational.

Global strategy: is the strategy which assumes more standardization of product across country market. Thus global strategy is centralized and controlled by the home office.

Difference between home and global strategy planning:

• Domestic strategy is actually defined when the business is been formed as the global strategy is identified when the company enters in to the new market.
• Domestic strategy are the goal or the eyesight mission through which the business was been made. As the global strategy are been chosen in line with the customers need, desire and the countries suitability.
• Domestic strategy is been set and hardly ever changes while the global strategy changes according to the need of that country.
• There are chances that the domestic strategy is similarly to global strategy although it may vary also.
• ( proper management-ireland. hoskisson. hitt)

The major problems that international professionals/marketer faces when strategic planning the global markets:-

• The greater physical dispersion across country border increases the price of coordination between device and distribution of product.
• Trade barrier of the global country also a major challenges for the managers.
• Even the ethnical diversification and other dissimilarities by country like (usage of raw material and different staff skill levels) greatly complicate the implementation of strategy planning global market.
• Differences in consumer needs, desires, and usage habits for products is also one of the major troubles for the supervisor during their strategy planning.
• Some time the religious beliefs of the particular country also affects the strategy planning of the company. This is also one the key concern for the manager to comprehend.

Nokia Case Study

Domestic strategy:

Vision for future:

The main perspective as mentioned on website and an punch line of Nokia" "Connecting people" is now connecting people to what matters - whatever which means for each person - providing them with the power to make the most of every moment, all over, any time. Hooking up the "we" is stronger than just the individual. That's how Nokia is required to help make the earth an improved place for everybody. " (http://www. nokia. com)

Strategy of company:

The Nokia website claims on its blog that "To do this we will become the leading professional of mobile solutions. Our solutions strategy leverages one in our greatest possessions - a collection of outstanding devices, with unrivaled level and geographic reach. We few them with smart services, integrated via an intuitive and seamless individual experience. We distinguish these solutions offerings predicated on our in-depth consumer understanding, with a strong focus on social location (people and places). " (http://www. nokia. com)

Now NOKIA in India:

The Indian market is huge and diverse and also undraped. As the rural India is the primary unexploited that could be captured. But these rural market segments have its problems in it. This brought Nokia to India and catches its huge market.

Nokia's online marketing strategy planning in India-

MISSION:

The objective of NOKIA in INDIA is to supply the customer with the best durable, inexpensive stylish and low cost cellphone with best feature for the common use of customers.

MARKETING OBJECTIVES

• Maintain positive, strong progress every one fourth by selling more and more no. of cell phone.
• Achieve a reliable increase in market penetration
• To maintain steadily its position of India's no. 1 cell phone producing company.
• Maintaining its reputation.

4p's of marketing blend:

1. Product:

Domestic strategy: Nokia in its domestic strategy possessed developed many model of cell which been updated time to time.

Global strategy: The merchandise Nokia brought for Indian market was more of user friendly and very durable product. As Indian market always demanded more of harsh and troublesome mobiles that could be utilized and completed by everyone. Even one of the main product features for India was that Nokia arrived with the cellphone with torch in it. Which was a good strategy to attract the Indian rural market. As following the analysis Nokia arrived to learn that 60percent of Indian populace stays on in India. And rural India is facing big issue of electricity. Thus this type of torch in mobile phones drawn the rural India. . . So Nokia came with the product that was desirable by the market.

2. Price:

Domestic strategy: The prices of cell phones are comparatively in line with the economy of the country. Therefore the call rates in Finland are also comparatively high. But as there are very less competition so price of cellular phone is high.

Global strategy: The Indian mobile market comes with an over 170million clients making it the most cost effective player in this industry worldwide. Moreover India gets the most minimum call rates and apart from this cellular phone calling from everywhere throughout the world is merely two cents each and every minute, as in front of China it is four cents. The marketplace is also aiming at tremendous growth. But so far Nokia is aiming at its Penetration-Led strategy this means having a mobile phone with every single person of the world. They are really targeting at keeping their costumser which they have referred to as replacement-Led. From a survey its been known that costumers in India tend to change their cell phones very frequently. And whenever they come to change their phone are prepared to pay a supplementary penny for a fresh improved handset. Thus in this way Nokia have were able to keep their price change according to the demand of its customers In India.

3. Advertising:

Domestic strategy: Nokia has already been a Finland company. So it is already a famous brand. Thus it generally does not require much of promotional activities to be achieved.

Global strategy: Nokia made its promotion in various ways to fully capture Indian market. Among this the primary focus was the rural market that was huge. Various film actors were been chosen to market Nokia. Even Nokia sponsored various ethnic activities and athletics and sports groups.

4. Place:

Domestic strategy: In its domestic strategy it has already been described the places it has to cover. Which include whole of the united states?

Global strategy: For Nokia it was very important to keep a solid distribution channel so that the customer gets a product at right time and at the right place. Thus because of this Nokia started its website, showrooms, marts and etc.

Main strategy:

The most main strategy for the business was to keep up the No 1 position in India among the list of cellular companies. This could be achieved if the firm continue surveying the huge rural as well as the metropolitan market. For the rural India Nokia followed low cost strategy while for urban it adopted differentiations.

Nokia external analysis | Porter's 5 Pushes Nokia

a. Risk of New Entrant:

Domestic strategy: there is low risk of new entrant. Since it is the first company of Finland with its big brand.

Global strategy: As Nokia has recently built a good brand image in the Indian market. Thus it includes a very fragile effect of new entrants if any gets into the marketplace. Because Nokia is becoming #1 1 as well as most reliable brand in the market now. So it will never be afflicted by any new players.

b. Risk of the Substitutes:

Domestic strategy: even in the domestic field there is absolutely no proper or exact replacement for Nokia cellular phone.

Global strategy: As in now there is not a direct substitute available for the cell phones and especially Nokia's advanced feature mobile phone.

c. Bargaining Electricity of Suppliers:

Domestic strategy: the bargaining electric power of swap is low.

Global strategy: Such as now Nokia is been No 1 brand thus it contains a solid position on the market. So bargaining electricity of company is very low.

d. Bargaining Ability of Potential buyers:

Domestic strategy: the bargaining electricity of consumer is average. When a new model is been created it is thrown on the market. Thus consumer has less influence onto it.

Global strategy: As with cellular phone market is very price hypersensitive. Thus if so the buyers demand and supply pattern issues a whole lot for the company. As it is been working under the assumptions of the purchasers demand. Thus they have a more robust influence.

e. Rivalry among Opponents:

Domestic strategy: you can find less competition. So rivalry among competition is also lower in this case.

Global strategy: There is a high competition in this industry. There are various rivals like: Motorola, Samsung, LG and etc. thus it can be a problem for the company in the long run.

SWOT evaluation of Nokia:

Strength:

• Nokia gets the largest offering and circulation network compare to other mobile phone companies.
• It is supported with high quality HR and IT professional as compare to others.
• The financial part is very strong as it has a lot more profitable business.
• Wide selection of product for those class.
• The re-sell value of its palm place is more compare to other company.
• People trust it more compare to others.

Weakness:

• Price provided by the business for few handsets is high.
• So products aren't user-friendly.
• Not matter about the demand of lower school people.
• Service center are incredibly less and scare.
• After sales service is bad.

Opportunity:

• It has a great opportunity in this huge.
• Opportunity to capture the rural Indian market.
• Most reputable company so people trust it more compare to others.
• India standard of living is also raises, so people are becoming more and more trend focused.

Threat:

• New players are getting into with new features to appeal to the clients.
• Previously other companies were not providing user friendly mobile however now they have started getting together with customers need.

Conclusion

Thus at the previous I wish to conclude the following points:

• The domestic strategy should always consist of future focused goals.
• They should also involve some or few global strategy also.
• When a company enters a new market, its global strategy should be such that it should suit to the customers' needs and requirement.
• Nokia research study helped to comprehend the global strategy.
• It also helped me to comprehend the many reasons and strategy Nokia used anticipated to which it become no 1 in India.

The main and the most important thing which Nokia considered while stepping into the Indian market was its culture and principles. Which any company should be mindful when it's entering into global market using its global strategy.

Recommendation:

• When firm is going to enter a fresh market it should first analyze the global market.
• Proper research of the market should be achieved.
• The belief of the customer, their faith, there values all should be studied perfectly before getting into global market and before planning global strategy.
• Thus administrator good strategy can make organization earn more profit and vice versa.