Redhawks Consulting
Nokia Denmark
“Empower[ing] everyone to share and make
the most of their life by offering irresistible
personal choices.”
- Nokia Corporation Vision Statement
Table of Contents
1.
2.
3.
4.
5.
Introduction
Analysis
Alternatives
Recommendation
Implementation
Introduction

How can Nokia Denmark modify its R&D
strategies to most effectively meet the
needs of consumers?
Introduction
Analysis
Alternatives
Recommendation
Implementation
Population
•401 million cells phones shipped in the fourth quarter of 2012
Economic
•Increasing middle class population
•Globalizations making interconnectivity more important than ever
Societal
•Increased need for cell phones within the global society
•Increased desire for high-end products
Technology
•Prevalence of smartphones in cellular industry
•Constantly evolving industry
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Strengths
•
•
•
•
•
Weaknesses
Well-defined R&D timeline and
structure
Streamlined value chain
High creative opportunity
Knowledge base in new technologies
Early mover and established name in cell
phone industry
•
•
•
Opportunities
•
•
Threats
Increased demand for mobile phones
Growth of population in developing
countries
Introduction
Analysis
Separation of development centers
slightly redundant
Reactionary corporate history
Resistance to joint R&D from Nokia
workers
Alternatives
•
•
Decreasing market share
Comparative strength of other
firms in smartphone market
Recommendation
Implementation
.
New Entrants
Moderate
-Economies of Scale in R&D
-Established base of worldwide
competitors
-Local Markets breed regional
competitors
Supplier Power
-High
-Electronic components
require specialization
-Prices dependent on
supplier choice
-High cost to switch
suppliers
Industry
Competitors
Buyer Power
-Very Strong
-Numerous competitors
-Emergence of smartphone
competencies in competitors
-Other firms have experienced
higher recent growth
-Strong
-Mercy of consumer
preferences
-Brand preferences
-Market volatility
-Consumers can play
brands off of each other
Substitutes
-Few
-Alternate product availability is
limited
-Nothing exists that provides the
information power in the portability
of a small component
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
•Utilization of Core Competencies
•Camera Technology
•Customization
•Rich Innovative History
•Long Term Sustainability
•Increase Market Size
•Fiscal Feasibility
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Decision Gate
Focus on
marketing
Symbian to
under-reached
markets
Yes
Yes
Retain same
JRD concept?
No
Continue to
pursue the
smartphone
market?
No
Introduction
Analysis
Alternatives
Recommendation
Restructure
JRD to better
optimize
competency in
camera and
other
technology
areas
Retain
competency in
mobile phones
& Nokia
Siemens
Network
Implementation
Alternatives
Alternative 1
Marketing Initiative
Alternative 2
JRD Overhaul
Focus on marketing Symbian
to under-reached markets
Optimization of competences
in cameras and other
technology areas
Alternative 3
Exit Smartphone
Market
Retain competency in mobile
phones & Nokia Siemens Network
Introduction
Analysis
Alternatives
Recommendation
Implementation
Alternative 1:
Advertising Initiative
Advantages
Disadvantages
Room to increase in developing
markets
Smartphone market share dropped by
25% from 2009-2010
Under-reached developed markets
Costly
Lack of currently distinguished
smartphone
Poor long-term feasibility
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Alternative 2:
JRD Overhaul
Advantages
Disadvantages
Already leader in camera technology
Involves a turn around strategy
Introduce of new niche market
Uncertainty of interest in advanced
camera technology and design
Protection against loss of further
smartphone market share
Other companies are not as focused
on camera technology
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Alternative 3:
Exit Smartphone Market
Advantages
Disadvantages
Competence in mid-level phone
Doesn’t address decreasing
smartphone market share
Popularity in low income markets
Unpredictable future of nonsmartphone market
See preference for smartphone devices
in developed countries
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Alternatives
Key Success Factors
Weight
1. Marketing
Initiative
2. JRD Overhaul
3. Exit
Smartphone
Market
Utilization of Core
Competencies
.35
2
0.7
5*
1.75
4
1.40
Long Term Sustainability
.30
1
0.3
4
1.2
1
0.3
Increase Market Size
.20
3
0.6
3
0.6
1
0.2
Fiscal Feasibility
.15
3
0.45
3
0.45
2
0.3
Totals
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Alternatives
Key Success Factors
Weight
1. Marketing
Initiative
2. JRD Overhaul
3. Exit
Smartphone
Market
Utilization of Core
Competencies
.35
2
0.7
5*
1.75
4
1.40
Long Term Sustainability
.30
1
0.3
4
1.2
1
0.3
Increase Market Size
.20
3
0.6
3
0.6
1
0.2
Fiscal Feasibility
.15
3
0.45
3
0.45
2
0.3
Totals
Introduction
Analysis
2.05
Alternatives
4.00
Recommendation
2.20
Implementation
.
Alternatives 3:
Joint Research and Design Overhaul
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Joint Research and Design Overhaul
•Short Term
•Relocate 5 Nokia Denmark Engineers to Foxcomm location to oversee
R&D of lower tech firms
•Hire camera development expert team for Denmark location
•Conduct market research on niche technology needs
•Long Term
•Begin product release of innovated camera design on phone
•Initiate an all encompassing marketing plan emphasizing revolutionary
camera concept to effectively target current markets and expand into
under-utilized markets
•Begin other innovative research based on market research
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
3 months
6 months
9 months
12 months
15 months
18 months
Relocate 5 Nokia
Denmark
Engineers to
Foxcomm location
to oversee R&D of
lower tech firms
Hire camera
development
expert team for
Denmark location
Conduct market
research on niche
technology needs
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
3 months
6 months
9 months
12 months
15 months
18 months
Initiate an all
encompassing
marketing plan
Begin product
release of
innovated camera
design on phone
Begin other
innovative
research based on
market research
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Risk
Probability
Plan
Little room for
improvement in
mobile camera
phone technology
Low
Re-evaluate
Alternative 1
Nokia smartphone
sales continue to
sink
High
Look into selling
camera technology
Cell phone market
sales overall
decrease
Low
Consider focus on
other electronics
Introduction
Analysis
Alternatives
Recommendation
Implementation
.
Redhawks Consulting
Nokia Denmark
“Empower[ing] everyone to share and make
the most of their life by offering irresistible
personal choices.”
- Nokia Corporation Vision Statement
Strengths
•
•
•
•
•
Well-defined R&D timeline and
structure
Streamlined value chain
High creative opportunity
Knowledge base in new technologies
Early mover and established name in cell
phone industry
Weaknesses
•
•
•
Opportunities
•
•
Increased demand for mobile phones
Growth of population in developing
countries
Separation of development centers
slightly redundant
Reactionary corporate history
Resistance to joint R&D from Nokia
workers
Threats
•
•
Decreasing market share
Comparative strength of other firms in
smartphone market
Redhawks Consulting
Nokia Denmark
“Empower[ing] everyone to share and make
the most of their life by offering irresistible
personal choices.”
- Nokia Corporation Vision Statement