International Business- How Nokia Seeks Global Business Advantage Through Spulber’s, (2007) ‘Star Analysis’ and Any Other Relevant Theory.

1574 Words Jan 1st, 2013 7 Pages
International Business- How Nokia seeks Global business advantage through Spulber’s, (2007) ‘Star Analysis’ and any other relevant theory.
Mobile phone giant Nokia, a multinational corporation based in Espoo, Finland and is currently the world’s largest manufacturer boasting a market share of 31% worldwide (, 2011). Despite Nokia being regarded amongst the most successful and economically dependent brand within Finland, it was the corporation’s Global strategy that would lead to it becoming a market leader and rapidly gaining worldwide acclaim for its excellence. This essay will include in depth detailing of how Nokia represents Spulber’s (2007) ‘Star analysis’ in their global strategy using newspapers, databases,
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Nokia however benefits from advanced factors of endowment with the countries headquarters ranked third in the global innovation index (Findfacts, 2009).

Nokia considers supplier diversity as an imperative factor in global success. This is a valuable ethos greater and more diverse suppliers means lower shipping and packaging costs and a greater availability of products.
Nokia has used ownership of facilities in supplier countries in order to secure political co-operation, by boosting the local economy, paying tax, creating jobs and sharing technology. This also reduces the risk associated with foreign investment. Vertical integration has allowed Nokia greater control, ensuring a rapid response to change leading to first mover advantage in the telecommunications industry.
A further way in which Nokia has looked to gain competitive advantage internationally is via outsourcing. Their outsourcing agreement with Hewlett-Packard will allow the American company to manage the IT infrastructure and operations for Nokia's network’, (D.C.Charma, 2004). Furthermore Capgemini have been made responsible for order management services. Outsourcing is vital to Nokia’s success as it allows the company to concentrate on vital factors such as R&D, turning to selected suppliers for their special skills. The global business co-ordinates activity’s in supplier countries carefully in order to achieve their objectives.
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