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Nokia Denmark

Nokia Denmark. The Challenge. Create a strategic plan for the evolution of our product development division. Table of Contents. Analysis PESTLE Porter’s Five Forces SWOT Analysis Value Chain JRD Analysis Financials Market Share Alternatives Recommendation Implementation. pESTle.

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Nokia Denmark

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  1. Nokia Denmark

  2. The Challenge Create a strategic plan for the evolution of our product development division

  3. Table of Contents • Analysis • PESTLE • Porter’s Five Forces • SWOT Analysis • Value Chain • JRD Analysis • Financials • Market Share • Alternatives • Recommendation • Implementation .

  4. pESTle Enternal Analysis

  5. Porter’s Five Forces New Entrants • Low threat • High cost barrier • High brand identity • High capital requirements Suppliers Buyers Competitive Rivalry • High power • High cost sensitivity • High buyer concentration • High buyer information • Low product differences • Low power • Low differentiation of products • Low cost relative to total purchase • High importance of volume to supplier • High rivalry • High idustry growth • High brand identity • Low switching costs • Moderate diversity of competitors Substitutes • Low threat • Low buyer propensity for substitution • Moderate relative price performance External Anaysis

  6. Value Chain • General Administration • Quality of the strategic planning system toachieveobjectives • Coordination & integration of allvalue chain activitiesamongallsubunits • Procurement • Procedures forprocurement of plant, machinery, and buildings • Relationshipswithreliablesuppliers Profit Margin • Inboundlogistics • Soundness of materialandinventory control systems • Research & Development • Success of R&D activities in leadingto product & processinnovations • Ability of work environment toencouragecreativity & innovation • Manufacturing • Effectiveness of production control systems toimprovequalityandreducecosts • Productivity • Appropriateautomation of productionprocesses • Distribution • Timelinessand efficiency of delivery of finishedgoods • Efficiency of finishedgoodswarehousingactivities • Marketing • Extent of market dominance • Effectiveness of market research • Development of an image of qualityand a favorablereputation • Extent of brand loyaltyamongcustomers Internal Analysis

  7. SWOT Analysis Internal / External Analysis

  8. Foxconn JRD • Started in 2007 due to capacity burdens at Nokia Denmark • Previous supplier of electronic components • Worlds largest manufacturer of electonic components • 920,000 employees • Experienced in optimization of product development processes • Advantages • Relevant knowledgeand expertise • Experience in optimizing product developmentprocesses • Helped Nokia engineers reduce product development time by 6 months • Disadvantages • Large internalresistanceamong Nokia engineers • Needtomicromanageentireprocess • High expendituresdueto the education of Taiwanese engineers • Controversial treatment of employees Analysis

  9. Financials Analysis

  10. Market Share Analysis

  11. Key Success Factors Potential Growth Entrepreneurial Spirit Highlydecentralizedandorganizedtoencouragecreativity, entrepreneurship, andresponsibility Mission Statement “Empower everyone to share and make the most of their life by offering irresistible personal experience” Ease of aligning projects with organization Financial Justification Analysis

  12. Alternatives Alternative #1 Scale-up JRD with Foxconn Alternatives #2 Phase out JRD with Foxconn Alternative #3 Continue parallel organizational structure Alternatives

  13. Alternatives Alternatives

  14. Weighted Competitive Strength Analysis Ranking Scale The alternative does not effectively address this criterion. The alternative may contribute to addressing this criterion. The alternative provides an average solution to this criterion. The alternative provides an above average solution for this criterion. The alternative effectively addresses this criterion. . Analysis

  15. Recommendation • Alternative #2 • Phase out Joint Research & Development agreement with Foxconn Recommendation

  16. Recommendation • Phase out JRD agreement with Foxconn • Reduce number of mobile phones developed each year • Concentrate in growing smartphone market share • Cultivate partnership with Microsoft • Continue innovation in-house Recommendation

  17. Market Share % Implementation

  18. Future Market Recommendation

  19. Implementation Implementation

  20. Short-Term Milestone Review Implementation

  21. Implementation Implementation

  22. Long-Term Milestone Review Implementation

  23. Contingency Plan Implementation

  24. Contingency Plan Implementation

  25. Contingency Plan Implementation

  26. Recommendation • Phase out Joint Research & Development agreement with Foxconn .

  27. Nokia Denmark

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