Nokia's Failure

5185 WordsJul 16, 201321 Pages
Strategic Management MBAE Assignment Nafiz Mostafa, ID: 0712071085 | Executive Summary This paper seeks to analyze an underperforming company, its strategy, the reasons behind underperformance and suitable recommendations for strategic change. As case study Nokia Corporation has been chosen, which has lost its market leadership in the mobile phone industry in the past five years, although it had market leadership for decades. In carrying out analysis of Nokia, this paper has critically scrutinized the mobile phone industry, the external environment and the internal dynamics of Nokia Corporation. Initially Mobile phone Industry analysis is carried out to determine that it belongs to the matured stage of the lifecycle and also to…show more content…
(Economist, 2012) * Competitive Rivalry is intense among existing players since the number and size of competitors is high and the scope for differentiation is low. Overall the market has become saturated and is unattractive for new entrants but there is still a huge scope for existing market players like Nokia to capture market share by focusing on rapid innovations and marketability of smart-phones with the use of its pioneer brand image. * PESTEL Analysis * The Political Environment has the potential to impact the mobile phone industry predominantly – especially MNC’s like Nokia which operates globally are subject to home and host nation political and legal systems which differs substantially across regions. (Ireland, 2008) * Economical Environment- economic factors such as interest rates, growth rates, inflation rates and exchange rates have significant impact upon the mobile phone industry both in the short term and long term. For example Nokia’s growth in India has been hampered by the volatility of the Indian rupee (India Times, 2012). * Socio-cultural Environment- the mobile phone industry is subject to
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