Diapositiva 1

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NOKIA STRATEGY
Paola González Marcela Gómez Marisol Londoño Iván
Ponsoda
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INTRODUCTION

• Some of the featuares that are adding value to
  nokia chain are mainly setted at their
  strategies, in the following presentation we will
  present the most importat points about their
• Product strategy
• Marketing strategy
• Customer strategy
• Continuous improvement strategy
• Those factors combinated with a constant
  evaluation of its products, process and their
  customer made Nokia a world wide leader.

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PRODUCT STRATEGY

• Product strategy begins with a strategic vision
  that states where a company wants to go, how it
  will get there, and why it will be successful.
• Product strategy is like a roadmap, and like a
  roadmap its useful only when you know where you
  are and where you want to go.
• (McGrath 2001)

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PRODUCT STRATEGY

• Nokia products are divided into five categories
  for five separate markets
• The Explore line is the technical leadership
  product line.  These are the N-series phones
  which push the boundaries of what a phone is.
• The Live and Classic lines are the broad appeal
  products.  These can be inspirational in nature,
  supporting one particular feature very well, or
  style oriented.
• The Achieve line is focused on the enterprise. 
  These are the E-series phones and smart phones. 
• The Entry line is focused on low end phones and
  emerging markets. 

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PRODUCT STRATEGY

• Nokia has introduced new features and/or new
  products once or twice each year, then moved in a
  year to the N products.
• They are now optimizing their products around the
  music, the Internet, photos, video and now
  shipping.

2005 Camera phones with 2 megapixels introduced.
2006 2 megapixels standard across N series product line 3.2 megapixel cameras, navigation, WiFi and music introduced
2007 3.2 megapixels, music, navigation and WiFi standard across N Series product line 5 megapixel cameras introduced, with 8M solid state storage
2008 3.2 megapixels, navigation and music migrate to 6200 series broad appeal phones
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PRODUCT STRATEGY
Comparing other market devices with Nokias.
Nokia products are characterized for being
designed thinking on content consumption and
creation, while their competitors are primarily
focused on content consumption.   For creative
people, nothing really beats Nokia. That seems to
have been their vision from the beginning and
its just now becoming obvious to the rest of us.

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MARKETING STRATEGY
Segmentation is the key factor used by Nokia at
its marketing strategy. Actual Nokia president
Olli-Pekka Kallasvuo says Mobile devices are
increasingly in the world of convergence between
various functions talk is just one of them. He
adds "The two trends that have changed the
experience of modern life, I would say that
mobility is a sentence, the Internet is another
and now we have gathered. We are in a position
to work with both."
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MARKETING STRATEGY
Last year Nokia sold 320 of the 900 million
mobile phones sold in the world. Nowadays Nokia
is divided in different families they understand
that in this moment there is any cell phone that
could be the leader of the market, because all
the consumers have different tastes there is not
a standard mobile that could be accepted for all
the costumers, that why Nokia have been working
at different segmentations and after different
studies they divide the company in four
divisions
Cell phones Fashion cell phones
Technology Services
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MARKETING STRATEGY

• The essence of the Nokia marketing strategy is
  that they believe at scientific marketing. Most
  of their market segmentation are based on data
  bases about what customer really wants, combined
  with customer experience. After different studies
  and as result they decide
• To insist on their devices design
• To became massive in markets where they were not
  present, with cheap equipment and smaller margin
  in China, India and Latin America. Nowadays these
  markets have become around 70 of the company's
  growth.

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CUSTOMER CONTACT STRATEGY

• Nokia list itself as a consumer led company.
• Nokias strategy is to build trusted consumer
  relationships by offering compelling and valued
  consumer solutions that combine beautiful devices
  with context enriched services.
• Nokia keeps in mind that
• There is a progressive and continuous increase in
  consumer involvement with technology and
  communications globally.
• People are broadening their modes of
  communication to include the web and, social
  networks are becoming central to how people
  communicate.
• People want to be truly connected, independent of
  time and place, in a way that is very personal to
  them.

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CUSTOMER CONTACT STRATEGY

• Nokia tries to follows what the customer wants
• Customer is the key
• They are not only selling a product, they are
  trying to sell a service
• Continuous innovation strategy
• Focusing in different customers and tastes around
  the world
• Responding to the customers with variety
• Decentralized RD department

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CUSTOMER CONTACT STRATEGY

• Nokia always had a focus on support excellence.
  At 2007 they found three failures at its customer
  contact strategy that were improved with the
  implementation of a service capability
  performance standard (SCP)
• We were measuring customer satisfaction more as
  a tool to know what our current status was,
  rather than as a method to define needed actions
  to improve the support product
• Action to use the SCP to establish a global and
  complete its roadmap that helps to define
  improvement actions.
• The points we were trying to measure on the
  customer satisfaction surveys really didnt
  result in clear actions for improvement.
• Action to use the SCP allows them to be on
  real data removing tendency and trying to
  implement process at a regional level, and have a
  clear global view of performance, helping them to
  give a feedback to areas that need an
  improvement
• We found that we werent focusing on the correct
  areas and didnt have true measures of customer
  satisfaction.
• Action to use the SCP provides Nokia with a
  framework for ongoing improvement of the
  organization and they are focusing in the right
  areas to improve those things

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CUSTOMER CONTACT STRATEGY

• Customer contact strategy goes according to Nokia
  marketing segmentation.
• Even though Nokia trust in data the think that
  data is not enough. Its employees and developers
  must experience, feel and understand what's
  happening around the world
• Nokia sent its engineers from Finland and told
  them to live in places where exciting things were
  happening. They sent them to spend time in
  nightclubs in Tokyo, in the King's Road in
  London, on Venice Beach in southern California.
  Their brief was to observe marginal trend-setting
  lifestyles and blend in, then report back.
• One of the advantages of Customer services
  strategy is that the service provided to the
  customers is divided by regions trying to
  differentiate its service by cultural background
• Europe -United States
  -Canada -Latin America
• Brazil -Middle east and africa -Asia
  pacific -Greater china
• India

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CONTINUOS IMPROVEMENT STRATEGY
Globalization is a fact and is increasing day by
day, there is more competition among companies
and the life product cycles is shorter, and
customers have become more demanding.   That is
the reason why factors such as customization,
cost, response time, quality... becomes very
important, In these times we must continually
improve in order to be competitive and be able to
react to the customer needs, before the others.
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CONTINUOS IMPROVEMENT STRATEGY

• Points that characterize Nokia strategy are
• Constant understanding of customer needs and
  aspirations.
• Product differentiation in a competitive
  landscape.
• Cost advantage and a favorable supply
  environment.
• Nokias business is supported by five technology
  priority areas
• Device technology leadership, smart connectivity
  
• Leading web evolution
• User experience leadership
• The preferred innovation platform.

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CONTINUOS IMPROVEMENT STRATEGY
Never undertake anything in advance if we wanted
to ensure the success of our company. The leaders
of the organization, as Nokia, must implement a
new culture of constant change to define the
current situation and improve it.   Otherwise,
Nokia would not be one of the leading brands in
mobile phones, and would be starting a phase of
diversification of products. In our opinion, an
open mind to change, similar to the Nokia, is the
best weapon which to combat the crisis.
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OTHER IMPORTANT FACTS

• Day by day Nokia is trying to increase different
  features, specially product life cycle, due to it
  wasnt as profitable to keep short product life
  circles.
• Even though cost strategy is pretty important for
  Nokia they are not focusing on low cost
  production, they care more about high quality
  production and good production methods.
• Nokia is trying to focus at different factors as
  design, color and devices
• Nokia has realized that money is tat
• Fast growing of markets
• Be focus on different
• Be focus on customer needs
• Business Diversification, that is the reason why
  they are not focus at the same business

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OTHER IMPORTANT FACTS

• The link with the university is pretty important
  and works properly with universities from
  Finland. University is contributing to Nokia for
  be one of the market leaders
• Strategic alliances The world goes too fast,
  that is why Nokia is needing others companies
  help, those companies are experts on components
  and different parts from their devices.
• Brand recognition Nokia has acquire an excellent
  brand name, they are trying to keep their name on
  the customer top of mind.
• They are trying to change customer way of thing,
  in the sense that they are not selling a product
  they are selling a complete service.
• They have the diversity as a key of success.

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BIBLIOGRAPHY

• Alec Saunders Squawkbox, Sunday, February 17th,
  2008 at Tech and Business
• Michael E. McGrath, Product Strategy for High
  Technolgy Companies, 21.10.2004
• Internet Sources
• http//p.sponsor.com/execsummary/introduction/noki
  a/proposalsjsessionid5A4892518E81F3710320EA4CDD8
  0B23A.node01
• http//www.nokia.com/corporate-responsibility
• http//www.customerthink.com/forum/abandon_custome
  r_led_strategies
• http//www.servicestrategies.com/uploadedFiles/Upl
  oaded/Files/Success_Stories/Nokia_05_07.pdf
• http//www.clarin.com/suplementos/economico/2006/1
  1/12/n-00811.htm
• http//www.emprendedoresnews.com/notaR/el_marketin
  g_de_nokia-3493-5.html
• http//www.eleconomista.es/mercados-cotizaciones/n
  oticias/842116/11/08/Nokia-apuesta-por-los-mercado
  s-emergentes-y-recorta-empleos.html