STRATEGICAL

ANALYSIS OF
NOKIA
Prepared By
Dr. Myuresh Agarwal
PRN- 15040141069

Introduction
When Finnish Engineer Fredrick Idestam set up his initial wood pulp mill in
Southern Finland in 1865, he took the first step in laying the foundation of
Nokias capacity for innovating and finding the opportunity.
Sensing growing pulp product demand, Idestam opened a second mill a short
time later on the Nokianvirta river, inspiring him to name his company Nokia AB.
In 1960, Nokia become a conglomerate.
Conglomerate- It is the combination of two or more corporations engaged in
entirely different business that fall under one corporate group, usually a parent
company with many subsidiaries.
For Nokia the main company was: Wood pulp mill and its subsidiaries were
rubber, cable, forestry, electronics and power generation business.

 Power generation business resulted from the merger of Idestam Nokia

AB with Finnish cable works ltd.
Analysis: A merger took place at the early phase of the Nokia which led it
to become a conglomerate.
In 1982, Nokia introduced both the first fully digital local telephone
exchange in Europe and the worlds first car phone for the Nordic mobile
telephone analogue standard.
The first GSM call was made with a Nokia phone over the Nokia built
network of a Finnish operator called Radiolinja in 1991.
Transformation: In 1991, Nokia made the strategic decision to make
telecommunication and mobile their core business.
Other business were: Aluminum, cable, chemicals, paper, rubber, power
plant and television business.
In 1998, Nokia was the world leader in mobile phones, enjoyed position for
the decade.

Strategy for 2007:

Nokia combined its telecom infrastructure operations with Siemens to create
Nokia-Siemens Network Joint Venture.

Strategy for 2014:

Joined forces with Microsoft to strengthen their position in the highly competitive
smart phone market.
Microsoft then bought most of the devices and services, with the deal closing in
2014.
Here, the firm revive with, i) Nokia Network ii) HERE Maps iii) Nokia Technologies.
HERE was the Heartland for Nokia, whereas Nokia network and Nokia
technologies are the Edge of Heartland.
Thereby, the Acquisition of Alcatel-Lucent took place in 2015 by Nokia, whereas
Nokia sold its key pillar HERE to a car company in the same year.
Alcatel-Lucent is an innovatory powerhouse that has been bolstered by the
addition of Bells labs.

McKinsey 7s Analysis
A. Strategy: It strategized itself from the beginning as a
i) Conglomerate ii) Joint Venture iii) Acquisition.
B. Structure: The five businesses report to the Nokia president and CEO, Mr.
Rajeev Suri.
-. Hence more of a centralized structure
-. Each business is run by a group president who reports to Mr. Suri. And Each
business group has strategic, operational and financial responsibility for its
portfolio and if fully accountable for meeting its target.
C. System: The primary operative decision making body for the company is the
Nokia Group Leadership Team. The group leadership team is responsible for
group level matters, including the execution of companys strategies and overall
business portfolio.

D. Staff: There are the 5 business groups with their respective leaders.
There are 7 additional unit leaders who report directly to the President and
CEO.
These are: Chief Financial Officer, Chief Customer Operations Officer, Chief
Innovation & Operating Officer, Chief Human Resources Officer, Chief Strategy
Officer, Chief Marketing Officer and Chief Legal Officer.
E. Style: The style of the organization is again centralized. There are 5
business groups of network business comprising
- Mobile network
- Fixed network
- Application and analytics
- IP/ Optical networks
- And Nokia technologies
All these business groups work collaboratively and cooperatively for the
mission and vision of the company.

F. Skills: Certain skills with which the workers of the company work as a team and
these are as followsi.

Respect: The workers within the organization respect and work hard to earn it
from others.

ii.

Achievement: They work together to deliver superior results and win in the
market place.

iii. Renewal of skill sets: They invest to develop their skills and grow their business.
iv. Challenging team: The teams are never complacent and perpetually question
the status quo.
G. Shared Values: Nokia is an innovation leader in the technologies that connect
people and things.
Together they have the capabilities and global scale to meet the extraordinary
demands and opportunities of a world where everyone and everything are
increasingly connected.
Nokia is creating a new hype of network that is intelligent, efficient, and secure and
advancing the technologies that tap its power through smart devices and sensors.

THANK YOU