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The Rise of Nokia

The Rise of Nokia. Factor Condition Lack of physical resources – poor climatic conditions  necessity development in technology for a cost effective and viable communication solution. Skill in wireless telecomm because of prevailing technology

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The Rise of Nokia

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  1. The Rise of Nokia • Factor Condition • Lack of physical resources – poor climatic conditions  necessity development in technology for a cost effective and viable communication solution. • Skill in wireless telecomm because of prevailing technology • Knowledge resources  first mover advantage. Benefited from the R&D in the Nordic countries. • Infrastructural – Lack of wired telephone infrastructure in less dense populated region. • Scandinavia 5 years ahead in wireless telecommunication.

  2. The Rise of Nokia • Supporting & Related Industries • Competitive Advantage – Prevailing competition from other suppliers and the Finnish pragmatic culture encouraged low cost technology.

  3. The Rise of Nokia • Demand condition • High local demand due to the climate conditions. • Consumer behaviour to purchase from lower price. • Strategy, structure & Rivalry • Domestic – Finnish pragmatism  encouraged competitions in the same market. Nokia responded thru innovation and cost leadership. • Strategy – Globalisation thru cost leadership and innovation. • Late 90s, global demand for mobile communication, Nokia responded through transformation to a leading telecommunication. • Finland never had monopoly in telecommunication.

  4. The Rise of Nokia • Govt • 1981 the Nordic govts cooperated to create first international wireless telephone network. This encouraged the further development of wireless technology giving Nokia an early mover advantage. • Chance • Climate condition  necessary conditions for the evolution of wireless technology.

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