One of the successful strategies Nokia made can be summerized as 'Choice and Focus'. Long time ago, Nokia was not a mobile phone company. Its business was in various fields like pulp, paper, chamical, plastic, rubber and so on. However, its CEO withdrew uncompetitive and unrelated business and focused on mobile phone business which seemed to have potential outlook that that time. From that time, 'Connecting people', which is a present IT trend, has been its core value.
There are three other important strategies Nokia has.
First strategy is to make the most powerful brand in the world.They have acheived its brand value as 'No.1 mobile phone manufacture company', but Kallasvuo, who is the CEO of the company, wants to bring up the brand image to the best in all types of industry like Coca-cola has been doing. In that point, they also try to keep the brand image not to become lower due to some cheap products, so introduced the best brand VERTU which surface is covered with diamonds.
Second strategy is to extend their business to the other related fields like network service, software and entertainment. The CEO took over a wireless communication service company, and has made synergy effect by merging mobile phone manufacture business and that wireless communication service vertically.
Third strategy is market differenciation.Nokia has a plan to be No.1 in every market by catching the market share with high class products in North American, Europian , and Northeast Asian markets, which are mature, and with optimal products in China and the other new markets.
Relating the second stratey, there is a big movement in mobile telecommunication market, which is called as 'Convergence'. The boundary among telecommunication, manufacture, contents companies is becoming indistinctible. For example, Apple, Google, and Nokia produce terminal private equipment and started mobile music business. Motorola cooperate with Apple, and made Razr mobile phone in which people can download musics through i-Tunes, which is an Apple's music selling website. Nokia cooperate rate with MS, and made MP3 mobile phone. You know iphone which is the most awesome and innovative mobile phone until now, but if I say that iphone is an innovative change in mobile phone itself, Google phone will be a model which will change the way of telecommunication bussiness. Google's CEO said that people would get a free mobile phone instead of watching advertisement through their mobile phone, which means Google will earn profits from advertisement.
Nokia could not keep its No.1 position if it was satisfied with the position. Kallasvuo said their competitors are not only mobile phone manufacture companies like Samsung, Motorala, so they also have to compete with Apple, Sony and Cannon. /posted by 20500580
