Business Strategies of Organizations

Running head: BUSINESS STRATEGIES OF ORGANIZATIONS
BUSINESS STRATEGIES OF ORGANIZATIONS
Name of the Student
Name of the University
Author Note

1BUSINESS STRATEGIES OF ORGANIZATIONS
Table of Contents
Introduction....................................................................................................................2
Analysis of the two organizations..................................................................................2
Five forces and PESTEL............................................................................................2
Value chain analysis...................................................................................................4
Generic business level strategy..................................................................................5
Attack and response, Drivers.....................................................................................5
Corporate level strategy and level of diversification.................................................6
Restructuring..............................................................................................................6
International cooperative level and international entry mode....................................7
Strategic alliance and changes after that....................................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9

2BUSINESS STRATEGIES OF ORGANIZATIONS
Introduction
The report will be based on the analysis two major organizations named Apple and
Nokia. Apple has been successful in the smartphone industry and Nokia has proved to be
unsuccessful in its operations. Apple is a multinational technology based organization of
American origin that develops different software and hardware products. The headquarters of
the organization are located in Cupertino, California (Apple.com 2019). Nokia is a Finnish
organization that has global operations and develops different technology based products.
The company was established in the year 1865 in Esopo. Both the organizations have been
operating in the technology industry and have faced competition from different smartphone
companies (Nokia.com 2019).
Analysis of the two organizations
Five forces and PESTEL
Five forces analysis of Apple
Competitive rivalry – The competitive rivalry that is faced by Apple in the
smartphones industry are high due to aggressiveness of the firms. Nokia faces high
competition in the smartphone industry and has failed to maintain its position due to
competition offered by Apple.
Bargaining power of the buyers – The buyers in smartphone industry are high and
this force is considered to be quite strong for the organization. The rising power of buyers
have affected sales and revenues of Nokia is a negative manner (Brix-Asala et al. 2018).
Bargaining power of the suppliers – The suppliers in the technology have low power
to affect the prices of products offered by Apple. Nokia is dependent on the suppliers for raw
materials that are offered by them for manufacture of high technology based products.
Threats based on substitution – The substitute products related to those which are
offered by Apple are not considered to be effective. The power of substitutes is low as it is
quite hard to find a substitute of mobile phones. This has reduced the level of this threat
(Buganza et al., 2015).

3BUSINESS STRATEGIES OF ORGANIZATIONS
Threats based on new entry – The threats based on entry of new organizations in
smartphone industry are low and this force is quite weak for Apple. The threat related to
entry of new organizations in the industry is low and this has an impact on Nokia as well.
PESTEL analysis
Political factors The improvement in trade policies have provided growth
opportunity to Apple in order to distribute more products in
different markets.
The regulations in production processes have a negative
impact on the operations of Nokia.
Economic factors The high levels of growth of emerging economies and the
stable economies have been able to support the growth of
Apple.
The downfall that has been faced by Nokia is based on
increase in turmoil in global economic condition (Dell’Era et
al. 2017).
Social factors The rise in usage of mobile technologies and social media
have improved operations of Apple.
The lack of understanding of customer needs have been able
to affect the revenues of Nokia.
Technological factors The trend based on cloud computing and levels of
technological integration have enhanced operations of Apple.
The high levels of creativity of products of Apple have not
been matched by Nokia in an efficient manner (Hanson et al.
2016).
Environmental factors The trends of sustainability and product efficiency are
effective for Apple and its growth.
The user friendly products of Nokia have been able to
enhance customers of the company.