Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation Vision Statement
Dec 18, 2015
Redhawks ConsultingNokia Denmark
“Empower[ing] everyone to share and make the most of their life by
offering irresistible personal choices.”
- Nokia Corporation Vision Statement
Introduction
How can Nokia Denmark modify its R&D strategies to most effectively meet the needs of consumers?
Introduction Analysis Alternatives Recommendation Implementation
Population• 401 million cells phones shipped in the fourth quarter of
2012
Economic• Increasing middle class population• Globalizations making interconnectivity more important than
ever
Societal• Increased need for cell phones within the global society
• Increased desire for high-end products
Technology• Prevalence of smartphones in cellular industry• Constantly evolving industry
.
PESTLE
Introduction Analysis Alternatives Recommendation Implementation
Strengths
• Well-defined R&D timeline and structure
• Streamlined value chain• High creative opportunity• Knowledge base in new
technologies• Early mover and established
name in cell phone industry
.
Threats
• Decreasing market share• Comparative strength of
other firms in smartphone market
Opportunities
• Increased demand for mobile phones
• Growth of population in developing countries
Weaknesses
• Separation of development centers slightly redundant
• Reactionary corporate history• Resistance to joint R&D from
Nokia workers
S.W.O. T.
Introduction Analysis Alternatives Recommendation Implementation
New Entrants
Industry Competitors
Substitutes
Moderate-Economies of Scale in R&D-Established base of worldwide competitors-Local Markets breed regional competitors
-High-Electronic components require specialization-Prices dependent on supplier choice-High cost to switch suppliers
-Strong-Mercy of consumer preferences-Brand preferences-Market volatility-Consumers can play brands off of each other
-Few-Alternate product availability is limited-Nothing exists that provides the information power in the portability of a small component
-Very Strong-Numerous competitors-Emergence of smartphone competencies in competitors-Other firms have experienced
higher recent growth
.
Porter’s Five Forces
Buyer PowerSupplier Power
Introduction Analysis Alternatives Recommendation Implementation
•Utilization of Core Competencies• Camera Technology• Customization• Rich Innovative History
•Long Term Sustainability•Increase Market Size•Fiscal Feasibility
.
Key Success Factors
Introduction Analysis Alternatives Recommendation Implementation
Decision GateRetain same JRD concept?
Yes
NoContinue to pursue the smartphone
market?Yes
Focus on marketing Symbian to under-reached
marketsRestructure JRD to better optimize competency in
camera and other technology areas
NoRetain competency in
mobile phones & Nokia Siemens Network
Introduction Analysis Alternatives Recommendation Implementation
Alternatives
Alternative 1Marketing Initiative
Focus on marketing Symbian to under-reached markets
Alternative 2JRD Overhaul
Optimization of competences in cameras
and other technology areas
Alternative 3Exit Smartphone
Market
Retain competency in mobile phones & Nokia
Siemens Network
Introduction Analysis Alternatives Recommendation Implementation
Alternative 1: Advertising Initiative
Advantages Disadvantages
Room to increase in developing markets
Smartphone market share dropped by 25% from 2009-
2010
Under-reached developed markets Costly
Lack of currently distinguished smartphone
Poor long-term feasibility
.Introduction Analysis Alternatives Recommendation Implementation
Alternative 2: JRD Overhaul
Advantages Disadvantages
Already leader in camera technology Involves a turn around strategy
Introduce of new niche marketUncertainty of interest in
advanced camera technology and design
Protection against loss of further smartphone market
share
Other companies are not as focused on camera technology
.Introduction Analysis Alternatives Recommendation Implementation
Alternative 3: Exit Smartphone Market
Advantages Disadvantages
Competence in mid-level phone
Doesn’t address decreasing smartphone market share
Popularity in low income markets
Unpredictable future of non-smartphone market
See preference for smartphone devices in developed countries
.Introduction Analysis Alternatives Recommendation Implementation
Alternatives
1. Marketing Initiative
2. JRD Overhaul
3. Exit Smartphone
MarketKey Success Factors
Weight
Utilization of Core Competencies
.35 2 0.7 5* 1.75 4 1.40
Long Term Sustainability
.30 1 0.3 4 1.2 1 0.3
Increase Market Size .20 3 0.6 3 0.6 1 0.2
Fiscal Feasibility .15 3 0.45 3 0.45 2 0.3
Totals
Weighted Comparative Strength Analysis
.Introduction Analysis Alternatives Recommendation Implementation
Alternatives
1. Marketing Initiative
2. JRD Overhaul
3. Exit Smartphone
MarketKey Success Factors
Weight
Utilization of Core Competencies
.35 2 0.7 5* 1.75 4 1.40
Long Term Sustainability
.30 1 0.3 4 1.2 1 0.3
Increase Market Size .20 3 0.6 3 0.6 1 0.2
Fiscal Feasibility .15 3 0.45 3 0.45 2 0.3
Totals 2.05 4.00 2.20
Weighted Comparative Strength Analysis
.Introduction Analysis Alternatives Recommendation Implementation
Alternatives 3:
Joint Research and Design Overhaul
Recommendations
.Introduction Analysis Alternatives Recommendation Implementation
Joint Research and Design Overhaul
•Short Term• Relocate 5 Nokia Denmark Engineers to Foxcomm location
to oversee R&D of lower tech firms• Hire camera development expert team for Denmark
location• Conduct market research on niche technology needs
•Long Term• Begin product release of innovated camera design on
phone• Initiate an all encompassing marketing plan emphasizing
revolutionary camera concept to effectively target current markets and expand into under-utilized markets
• Begin other innovative research based on market research
Implementation
.Introduction Analysis Alternatives Recommendation Implementation
Relocate 5 Nokia Denmark Engineers to Foxcomm location to oversee R&D of lower tech firms
Hire camera development expert team for Denmark
location
Conduct market research on niche technology needs
3 months 6 months 9 months 12 months 15 months 18 months
.
Nokia: JRD OverhaulShort-term
Introduction Analysis Alternatives Recommendation Implementation
Initiate an all encompassing marketing plan
Begin product release of innovated
camera design on phone
Begin other innovative
research based on market research
3 months 6 months 9 months 12 months 15 months 18 months
.
Nokia: JRD OverhaulShort-term
Introduction Analysis Alternatives Recommendation Implementation
Contingency Plan
.Introduction Analysis Alternatives Recommendation Implementation
Risk Probability Plan
Little room for improvement in mobile camera
phone technology
Low Re-evaluate Alternative 1
Nokia smartphone
sales continue to sink
HighLook into
selling camera technology
Cell phone market sales
overall decrease
LowConsider focus
on other electronics
Redhawks ConsultingNokia Denmark
“Empower[ing] everyone to share and make the most of their life by
offering irresistible personal choices.”
- Nokia Corporation Vision Statement
Strengths
• Well-defined R&D timeline and structure
• Streamlined value chain• High creative opportunity• Knowledge base in new
technologies• Early mover and established
name in cell phone industry
Threats
• Decreasing market share• Comparative strength of other
firms in smartphone market
Opportunities
• Increased demand for mobile phones
• Growth of population in developing countries
Weaknesses
• Separation of development centers slightly redundant
• Reactionary corporate history• Resistance to joint R&D from
Nokia workers
S.W.O. T.