Do you think Nokia's strategy to enter the content area is more successful than the mobile operator Vodaphone's $38 billion attempt to enter the content area? Why or why not. Explain using information from the case or your own research.
Nokia will be more successful than Vodaphone because its senior management realizes that for any content management strategy to be effective there must be an open architecture and revenue sharing with services partners to be effective. One of the key concepts of the Ovi service is to create and support an open architecture that allows services providers to customize the experience and share in revenues (Economist, 2008). As a result, Nokia has been successful in attracting British-based telecom services provider Orange to use the Ovi portal as part of a revenue-sharing arrangement. Nokia apparently has seen that the "walled garden" strategy does not work and has gone to a more open…...
mlaReferences
Economist.com, 2008. Business: Ovi go again; Nokia. (2008, December). The Economist, 389(8609), 84-8/5.
Jack Ewing. (2008, November). Nokia Brings the Web to Emerging Markets. Business Week (Online). Accessed from the Internet on June 8, 2009: http://www.businessweek.com/globalbiz/content/nov2008/gb2008114_268373.htm?chan=globalbiz_europe+index+page_top+stories
Anssi Vanjoki. (2005, November). Nokia Shifts Focus to Music, Photos and TV. America's Network, 109(11), 28-29.
Wireless News, 2007. Nokia Ramps Up with New Content Partners for Video Center. (2007, October). Wireless News,1.
Nokia: Overview
Current data on brand performance of Nokia
The Finnish mobile phone company Nokia once dominated its industry, but its market share has recently been experiencing a precipitous decline. "The year Apple launched the iPhone, 2007, was Nokia's best-ever year: it sold 436 million handsets -- nearly 40 per cent of the total purchased worldwide. (Its nearest competitor, Motorola, sold 164 million.) That year, Nokia made £6.7 billion in profit. Five years later, Nokia's share of the global handset market has almost halved, to just 23.8 per cent. Last year, Samsung sold more smartphones. So did Apple. In 2011 Nokia made a pre-tax loss of £1 billion. The company currently holds cash and liquid assets of just £4.7 billion" (Kirwan 2012). Thus, within the span of less than five years, Nokia has gone from industry leader to a company whose future existence is in doubt. Nokia is no longer Finland's most…...
mlaReferences
Kirwan, Peter. (2012). Nokia's last stand. Wired. Retrieved:
http://www.wired.co.uk/magazine/archive/2012/06/features/nokias-last-stand?page=all
Mangan, Steven. (2012). Nokia looks to revamp marketing strategy. Reuters.
Retrieved: http://www.reuters.com/article/2012/07/23/net-us-nokia-idUSBRE86I0F620120723
Much of Finland is cold and desolate, and a lot of people do not want to remain there for the rest of their lives. They get their top-quality education and then they go to another country to work, and Nokia loses out because the talented and qualified people are going somewhere else (Maney, 2004). It is unfortunate, but it is not surprising, and most of them are trained to work at a company like Nokia. When these people do move somewhere else all that they often know how to do is work with technology, and it can make it difficult for them to get any other kind of job in another country (Lewis, 2004).
Another disadvantage is that Nokia is growing so large that there are not many companies that can keep up with it. For people who want to work at some of the other companies, there are not…...
mlaBibliography
Lewis, R.D. (2004). Finland, cultural lone wolf. Intercultural Press.
This book on Finland addresses the seriousness of education there and how important Nokia is to that education, both from the standpoint of helping the economy and from the standpoint of encouraging people to do well in school so that they can work for a large, high-quality company.
Maney, K. (2004). Unlike some celebrity marriages, Nokia-Finland union won't end soon. http://www.usatoday.com/money/industries/technology/maney/2004-06-30-maney_x.htm
This article addresses what Nokia is doing for the country of Finland overall, but also what the company is dealing with in terms of not enough qualified people to employ and some other expansion troubles that may force them out of Finland to some degree in the future.
Nokia
Strategic Issues for Nokia
Nokia has been particularly successful in its ventures in the developing world. In its development, the developing world has 'leapfrogged' over the creation of landlines, going straight from inefficient communication systems to modern wireless providers. Nokia quickly adapted to these markets, shifting to a pre-paid card model and emphasizing services like text messages, which were cheaper than phone calls for many residents. Nokia notes that while Apple has been successful in the high-end market, suiting the customized needs of American consumers, it has been successful at democratizing the Smartphone. Nokia does not offer inferior technology; rather it offers the best technology consumers can afford.
Nokia's challenge is to be a competitive business in a competitive mobile phone market while selling to the poor. It must keep its costs low, but also keep its product quality high. This has been difficult, given that many of its component manufacturers have…...
Marketing Problem Nokia
Marketing problem: Lack of product innovation
Current marketing environment of Nokia
Marketing Problem Nokia
Nokia Corporation is a Finnish company that manufactures mobile phones, mobile computers, and networks. The company also provides services such as maps and navigation, music, media and software solutions for mobile phones. From late 1990s to late 2000s, Nokia remained the highest mobile selling company of the world. This however has changed recently and many other companies have effectively reduced the market share of Nokia. There are many causes of this decrease in global mobile sales share of Nokia however; one marketing issue has caused this downward journey more than others. The company reported having negative € 2.3 billion of operating income in FY 2012 whereas net income of the company was also reduced to -€ 3.1 billion in 2012 (Nokia Annual eport, 2012). Although Nokia was the first company to have launched Smartphone Nokia 7710, the…...
mlaReferences
Ewing, A., Moritz, S. & McMahon, M. (2013). Nokia Unveils Lumia Phone with Camera to Revive Demand. Bloomberg Businessweek. Retrieved from: [ http://www.businessweek.com/news/2013-07-11/nokia-to-sell-phone-with-high-resolution-camera-to-revive-demand ]
Gassee, J.L. (2012, April). Nokia: Three Problems for deposed king of Mobile Phones. The Guardian. Retrieved from: [ http://www.guardian.co.uk/technology/2012/apr/23/monday-note-nokia ]
Nokia Annual Report. (2012). Enabling a Mobile World. Nokia Siemens Networks. Retrieved from: [http://i.nokia.com/blob/view/-/2268488/data/3/-/NSN-form-2013.pdf]
The market is likely to grow exponentially in the coming years and hence all competitors in cellular industry have their eyes on the developing markets such as Latin America, India and China. This is where Nokia is not as far ahead of its close competitors as it is in some developed countries. Secondly in these countries local cell phone manufacturers have also posed a serious threat to the dominance of Nokia. For example in China, Nokia's sales went down in past few years because of the presence of local manufacturers.
Nokia needs to decide what it will do to improve its market share and maintain its dominance in the cellular industry. The one important thing is to find new economies of scale. Since the company began focusing on cell phones as its main business in 1980s, Nokia has managed to stay at the top due to economies of scale. With…...
mlaReference
Case Study: The Future of Nokia.
Toyota Nokia
GRI at Toyota and Nokia
The Global Reporting Initiative (GRI) guidelines provide a framework to Companies on how to prepare sustainability reports.
Briefly discuss these guidelines.
The Global Reporting Initiative (GRI) has successfully become established as the foremost global framework for voluntary corporate environmental and social reporting (Levy, et al., 2010). The GRI reporting process is determined to become a ubiquitous measure of an organizations performance that includes both social and environmental factors in conjunction with the traditional financial reporting metrics (illis, 2003). The reporting framework has gone through several revisions and in 2006 the third generation (G3) was launched followed by another revision in 2011 (G3.1) (GRI, 2012). There is also a fourth generation already in the works which is scheduled to be released next year.
b. If your companies use these guidelines, the critically examine which parts they follow and which they do not follow. Suggest reasons as to why they…...
mlaWorks Cited
GRI, 2012. Latest Guidelines. [Online]
Available at: [Accessed 9 May 2012].https://www.globalreporting.org/reporting/latest-guidelines/Pages/default.aspx
Levy, D., Szejwald, B. & Martin, D., 2010. The Contested Politics of Corporate Governance: The Case of the Global Reporting Initiative.. Business & Society, 49(1), pp. 88-115.
Nokia Siemens Networks, 2011. Nokia Siemens Networks GRI Index 2010. [Online]
Education
Finland's commitment to investing in education has consistently placed it in the leadership position of OECD nations with regard to the total government budget allocated to higher educational institutions and research. One-fifth or 20 per cent of the monies from the additional government funds went directly to universities, which also saw an increase in external funding. This level of financial commitment to the Finland educational system is critical as the mix of colleges and universities are predominantly public with the minority being private yet very expensive. Finland's government and national priority is to lead all OECD nations in educational investment, an accomplishment the country has consistently attained (Westerholm, 2009). Engineering is the most dominant academic discipline that Finland's students get advanced degrees in, with medicine, engineering and social sciences dominating the majority of PhDs in the country (Koulutus 1999-2004). The government spends an inordinately high level of their budget on…...
mlaReferences
Blau, J.. (2008). Finland to Implement New Innovation Strategy. Research Technology Management, 51(6), 2-3.
Yves Doz, & Mikko Kosonen. (2008). The Dynamics of Strategic Agility: Nokia's Rollercoaster Experience. California Management Review, 50(3)
Petrus Kautto. (2007). Industry-government interaction in the preparation of a new directive: Nokia, industry associations and EuP. European Environment, 17(2), 79.
Koulutus ja tutkimus vuosina 1999-2004. Kehittamissuunnitelma 29.12.1999. Opetusministerio, Helsinki.
Nokias Design and Governance IssuesIntroductionThe challenge for Nokia is that the growth of the telecommunications industry and the stiff competition from its rivals has led to Nokia falling behind as an industry leader. Nokia is particularly behind in the area of 5G rollout, as the company is has lost key contracts in China to rivals like Ericsson (Amine, 2021). Price erosion and loss of market share have also presented problems for Nokia in recent years. Additionally, its organizational structure is in need of overhaul. However, the main issue for Nokia is that it lacked leadership to provide a centralizing force for the loose structure. This paper looks at the firms design and structure to help show why in spite of an innovative culture, Nokia needs leaders to help harness the firms energy and human resources to create new products.Organizational DesignThe specific organizational design at Nokia is horizontal and multidivisional so…...
mlaReferences
Amine, Y.E. (2021). Nokia warns of challenges in 2021 as it lags behind rivals. Retrieved May 16, 2022, from https://www.insidetelecom.com/telecoms/nokia-warns-of-challenges-in-2021-as-it-lags-behind-rivals
Lamberg, J. A., Lubinait?, S., Ojala, J., & Tikkanen, H. (2021). The curse of agility: The Nokia Corporation and the loss of market dominance in mobile phones, 2003–2013. Business History, 63(4), 574-605.
Leadership and Governance. (2022). Retrieved from https://www.nokia.com/about-us/company/leadership-and-governance/#:~:text=Nokia\\\\\\'s%20corporate%20governance%20practices%20comply,Exchange%20(%E2%80%9CNYSE%E2%80%9D).
This plan is focused on financial stability and profitability, through the reduction of operational costs. In this business strategy, outsourcing plays a crucial role.
eferences:
Dunai, M., 2012, Hungarian town suffers as Nokia announces big layoffs, euters, http://www.reuters.com/article/2012/02/08/us-hungary-nokia-idUSTE8171OU20120208 last accessed on March 21, 2012
Haikio, M., 2002, Nokia: the inside story, Pearson Education, ISBN 0273659839
Layard, ., Nickell, S., Eichorst, W., Zimmermann, K.F., 2011, Combating unemployment, Oxford University Press, ISBN 0199609780
Louis, P.J., Nokia restructuring and issues with outsourcing strategy, Venture Outsource, http://www.ventureoutsource.com/contract-manufacturing/product-market-segments/cell-phones-handsets/nokia-restructuring-and-issues-with-outsourcing-strategy last accessed on March 21, 2012
aby, M., 2012, Nokia announces more major layoffs, TG Daily, http://www.tgdaily.com/mobility-brief/61315-nokia-announces-more-major-layoffs last accessed on March 21, 2012
ugman, a.M., 2007, Multinational enterprises from engineering markets, Berlin oundtable
ugman, a.M., 2009, the Oxford handbook of international business, 2nd edition, Oxford Handbooks Online, ISBN 0199234256
2011, Foreign minister lobbying in Helsinki to keep Nokia in Hungary, Budapest Business Journal, http://www.bbj.hu/politics/foreign-minister-lobbying-in-helsinki-to-keep-nokia-in-hungary-nepszabadsag_61055 last accessed on March 21, 2012
2012, Nokia Corporation, Hoovers, http://www.hoovers.com/company/Nokia_Corporation/crxtif-1-1njht4-1njfaq.html last…...
mlaReferences:
Dunai, M., 2012, Hungarian town suffers as Nokia announces big layoffs, Reuters, last accessed on March 21, 2012http://www.reuters.com/article/2012/02/08/us-hungary-nokia-idUSTRE8171OU20120208
Haikio, M., 2002, Nokia: the inside story, Pearson Education, ISBN 0273659839
Layard, R., Nickell, S., Eichorst, W., Zimmermann, K.F., 2011, Combating unemployment, Oxford University Press, ISBN 0199609780
Louis, P.J., Nokia restructuring and issues with outsourcing strategy, Venture Outsource, last accessed on March 21, 2012http://www.ventureoutsource.com/contract-manufacturing/product-market-segments/cell-phones-handsets/nokia-restructuring-and-issues-with-outsourcing-strategy
The company emerged atop the buzz trouncing Samsung's Galaxy and Apple's iPhone (Siren).
Overall, Nokia's global outreach is especially impressive; they have traversed the digital revolution through subtle online marketing strategies geared towards creating a formidable marketing framework to enable the company reclaim its rightful place in the global market. Commentators and researchers alike have commended Nokia's aggressive marketing strategies noting that other mobile manufacturers should emulate it. There is still some room for improvement for the company. For instance, they should put on ad campaigns for online sweepstakes, quizzes and competitions. They should also liaise with mobile service providers such as Sprint and Verizon to bring up special offers (Niccolai).
Conclusion
As the world transforms into a small digital ICT village, marketers have expressed the need to alter the traditional mode of reaching out to consumers. This has called for a paradigm shift in marketing and advertising strategies for major multinational…...
mlaWorks Cited
Bold, Ben "Nokia Recruits City Analysts to 'Understand Opportunity' of Social Media" Marketing 12 February 2013
Khoury, Rita El "Graphing the Winners and Losers across the Mobile Industry" The Wall Street Journal October 17, 2010
Niccolai, James "Nokia buys mapping service for $8.1 billion." IDG News Service (InfoWorld) 1 October 2007.
Niccolai, James "Nokia Lays Plan for More Internet Services." IDG News Service (New York Times) 4 December 2007.
Business users will be charged $45 a month for data. By giving back the revenue to the carriers, which they may use for subsidies, Apple is hoping to dramatically increase its volume, as well as sell more Macintosh computers to iPhone users" (Markoff 2008).
This tradeoff illustrates an important aspect of marketing any new technology -- not only must the product be affordable, but so must the service itself. Apple is striving to convince consumers that using as well as buying the iPhone is financially feasible and also hopes its attractive pricing strategy for the iPhone will convert more consumers to the use of its other product, like Macs, because of the satisfaction they derive from the iPhone. Additionally, while business users are charged more per month because they use more data services, Apple also has tried to still make the iPhones attractive to businesses, by selling them the phone…...
mlaWorks Cited
Apple iPhone." (2008). CNET. Retrieved 6 Aug 2008 at http://reviews.cnet.com/smartphones/apple-iPhone-8gb-at/4505-6452_7-32309245.html
Balan, Elena. (30 Jul 2007). Nokia to make iPhone competition with new music download service." So ftpedia.com.Retrieved 6 Aug 2008 at http://news.softpedia.com/news/Nokia-to-Make-iPhone-Competition-with-New-Music-Download-Service-61324.shtml
Holson, Laura M, (2008)."AT&T targets business customers with iPhone." The New York Times. Retrieved 6 Aug 2008 at http://bits.blogs.nytimes.com/2008/06/09/att-targets-business-customers-with-iPhone/index.html?ref=technology
Markoff, John. (10 Jun 2008). "Apple aims for the masses with a cheaper iPhone." The New York
The U.S. government, for example, could back the CDMA technology by promising China that it would support its candidature for the WTO, where eventually China acceded.
3. To what extent do economic factors?
The economic factors are essential in explaining the global leadership of GSM, mainly because of the economies of scale that can be made when dealing with the GSM technology. The economies of scale are evident in terms of the equipment, going as far as the handsets, for example. This means that despite a cost advantage for the CMDA, the economies of scale obtained from the GSM technology can virtually nullify this and make GSM more profitable.
On the Chinese market, economic considerations also played an important role in the competition between GSM and CMDA. First of all, China Unicom had already invested significant sums of money in the development of a wireless network based on GSM, so it wasn't…...
Apple (the computer company) with relation to China. The paper will need to focus on the company's product development and supplier relations within the Chinese market.
Apple
"Apple Inc. (NASDAQ: AAPL; formerly Apple Computer, Inc.) is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the OS X and iOS operating system; the iTunes media browser; and the iLife and iork creativity and production suites. Apple is the world's third-largest mobile phone maker after Samsung and Nokia. Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977… Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012" (ikipedia: Apple Inc.)
The following essay describes Apple's relationship with China focusing specifically…...
mlaWikipedia. Apple Inc.
http://en.wikipedia.org/wiki/Apple_Inc .
Rathee, J. (2012) Could Apple's China Love Affair Be Over? http://wallstcheatsheet.com/stocks/could-apples-china-love-affair-be-over.html/
6. When would you suggest using negative match for keywords? Please give a specific example of a keyword and a related negative match.
The intent of using negative keywords is to trim back the number of items returned in a search, making the results delivered more relevant. The example shown below illustrates how a search of the New York Yankees could be made more relevant by removing the local New York football teams.
Negative keywords: New York Giants, New York Jets
7. Using the information provided in the attached Excel spreadsheet, please answer the following questions:
a. What is the clickthrough rate (CTR) for the keyword, Rock Band 2? Please illustrate the formula used to derive your answer.
CTR = (Clicks/Impressions) x 100
.15 = (16,797/110547) x 100
b. What is the CTR for the overall campaign?
.046 = (575,082/12,282,679) x 100
c. What is the CPC for the keyword, Xbox 360? Please illustrate the formula used to derive…...
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