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Strategic Plan for NOKIA

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Complete a 2,800- to 3,500-word strategic plan for your organization.
Discuss the following including justification of all recommendations in parts d-j:
a. Table of contents
b. Executive summary (2-page maximum)
c. Company background
d. Vision
e. Mission statements
f. SWOT results
g. Long-term objectives
h. Strategic analysis and choice
i. Short-term objectives
j. Tactics
k. Critical success factors.
Format your plan and presentation consistent with APA guidelines.

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Step 1
Executive summary:
Nokia Corporation is a Finnish multinational company that makes mobile products. The company is an information technology corporation. Even though the vision of Nokia is connecting people, it has a differentiation strategy. The mission supports the generic strategy of Nokia. It promises to make great mobile phones. The company promises to make mobile products of the highest standards, and incorporate the latest technology in its products. Nokia has the widest distribution network of mobile phones. Its retail outlets are spread over 150 countries. Nokia hardware has good compatibility with accessories of other companies. Nokia excels in technology, in research and development, and in innovation. Nokia has currently entered into a partnership with Microsoft to improve its presence in the US market. However, Nokia faces severe financial problems. It made losses in 2012 and its sales are declining. Another problem that Nokia customers face is weak after sales service. There are few service centers and these are difficult to reach. In the marketplace, Nokia is facing cut-throat price competition. Even though its strategy is differentiation, its products are very similar to those of competitors. The cost structure of Nokia does not allow it to successfully compete on basis of costs. The company has not been able to establish itself in the US market. Even in the Japanese market, consumers do not prefer Nokia products. Nokia has exciting opportunities in expanding its product line, increasing the features of its product, or broadening its price range. Nokia can do really well if it innovates improves its after sales service. Alternately if Nokia chooses to go in for cost leadership strategy it must realize economies of scale and target price sensitive segments. Other opportunities for growth include the emerging markets and targeting the fast growing youth segment. There are formidable threats for Nokia. Competition in the high end segments is from companies such as Apple Inc., Motorola, and Samsung. In the price sensitive segment there is competition from Chinese manufacturers who have access to low cost factors of production. On balance, the long term objective of Nokia is to successfully differentiate its products through innovation. It must assume leadership in technology and innovation. What Nokia needs to do is to revamp and recuperate its research and development and improve its innovation. Its innovations should be disruptive, must have high market value, and should be fast to the market. A restructuring and revamping of the research and development department at Nokia is highly recommended. To achieve its long term objectives and remain competitive Nokia must develop and launch at least three innovations every quarter. Each innovation should have at least four features not found in the products of competitors. Only this approach will enable it to sustain its differentiation - innovation strategy. Also, it is important to cut cost of manufacture and reduce overheads so that the company can be turned around within one year's time. In the past Nokia has depended on innovation and new products to achieve market leadership. Now it is imperative that Nokia should revive its prowess for innovation and regain its rightful place. It must innovate better than others, used the latest technology, and innovate quickly.
Step 2
Company Background: Nokia Corporation is a Finnish multinational communications and information technology corporation. The company headquarters are in Espoo. Its main products are mobile phones, and portable IT products. It also deals in mobile network equipment and associated solutions. For example, it makes a wide range of mobile phones. The company is divided into four business segments namely multimedia, mobile phones, networks, and enterprise solutions. The company has close to 100,000 employees working all over the world. Nokia operates in 150 countries. In 2003, Nokia launched Nokia 1100 mobile phone and shipped more than 200 million units. It was the bestselling phone at that time ahead of all competitors (R.B. Turnbull1988). In 2004 Nokia launched its first touch screen phone the Nokia 7710, in 2006 it launched Nokia N95 a Symbian powered slider smart phone. In February 11, 2011, Nokia entered into a strategic alliance with Microsoft and announced that its mid-level and high priced phones will have Microsoft's Windows Phone operating system.
Step 3
The vision of Nokia is "Connecting People". It explains that Nokia will make the world a better place by building great mobile products that will empower billions of people worldwide through connecting them.
The justification of the vision statement is that Nokia is in the business of making mobile phones and other mobile communications devices. These devices help people connect with each other better and exchange opinions, knowledge, and information with each ...

Solution Summary

This solution explains the strategic choices for Nokia. The sources used are also included in the solution.