Business Strategies

This report discusses the importance of business strategies in organizations, focusing on Nokia as a case study. It explores the strategic choice theory of Nokia and its application in the company. The report also discusses various strategic theories used by Nokia, including BCG Matrix, Ansoff's theory, Bowman's Strategy Clock, stakeholder mapping, and value chain analysis.

Business Strategies

Table of Contents
INTRODUCTION...............................................................................................................1
NOKIA COMPANY............................................................................................................1
IDENTIFICATION AND JUSTIFICATION OF STRATEGIC CHOICE THEORY OF
NOKIA.................................................................................................................................2
APPLICATION OF STRATEGIC CHOICE MODEL TO THE NOKIA COMPANY.....2
STRATEGIC THEORY......................................................................................................3
CONCLUSION....................................................................................................................9
REFERENCES....................................................................................................................9

Illustration Index
Illustration 1: BCG Matrix...................................................................................................4
Illustration 2: Ansoff's theory..............................................................................................5
Illustration 3: Bowman’s Strategy Clock.............................................................................6
Illustration 4: Stakeholder mapping.....................................................................................7
Illustration 5: Value chain analysis......................................................................................8

INTRODUCTION
Business strategy plays an important role in the organization because this strategy
provides a platform to the firm where they can plan for their future goals and objectives.
It also provides the information of the competitive markets. This business strategy also
guides the business like what they have to produce or in which market they have to focus
more (Teece, 2010). By applying this strategy, company can easily raise their profit and
brand images in the customers mind. Business strategy is based on the organization
internal and external environment so with the help of business planning, firm can easily
find their positive and negative aspects. The present report is based on Nokia which is a
technology based company which are providing different kinds of mobile phones. This
company is famous for their fast customer service. The prices of their phones are
affordable and approximately all mobile shops sell their products to the customer.
Mission of the organization is to connect with their customers and provide them best and
innovative services or products. This report also includes the organization profile, the
roles and responsibility toward their customers and their strategy model. It also includes
the different kind of cultural web and strategic theory which has been covered in this
report.
NOKIA COMPANY
Nokia Company is known as world no. 1 manufacture company for their mobile
phones. The head office of this organization is situated in Finland and the current CEO of
the firm is Olli- Pekka Kallasvuo. This firm acquired approximately 38% mobile market
share and the earning is about $40 billion in the years (Montgomery,2011). The image of
firm is well established and they have approximate 55,000 employees team. This
company divided their market into four segments which are based on customers'
satisfaction, devices, competitive market and NAVTEQ. It is an information provider
application which acquired by the company in their Mobile phones. This company
changes the perspective(Verbeke, 2013)s of the customers by launching their small
mobiles phones. All people put their interest on it and they do not use the big bulky
phones. Nokia provides so many features in their new phones like they are wireless,
having good camera and the different games' application etc. So all things attract the
customers and profit of the organization goes high. This company launches OVI
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application into the world. By this application, people can easily find the operation center
and during driving people can easily find the way if they have internet connection. For
the better suitability, company simplified their products like they divided the mobile
phone into series as C, X, E , S etc. Here C shows the business focused group, N stand for
high end technology, S stands for limits and selective editions and X shows the
entertainment things of the mobile phones. When the time passed, company launched
their new phones which were based on the QWERTY keyboard (Campbell, Edgar and
Stonehouse, 2011). After launching this phone the progress of the organization went
high. More ever, firm start their You-Tube channel where they guide their customers how
to use their phones and the application.
IDENTIFICATION AND JUSTIFICATION OF STRATEGIC
CHOICE THEORY OF NOKIA
Strategic choice theory based on the consideration of the external forces and the
impact on customers and the company. It also explains the changing environment and
how organization accept the changes. The strategic choice theory is based on the
company strength, weakness and their opportunities. More ever, this theory also provide
an information about the external environment and the sources. Nokia strategic choice is
based on operational channel and the latest technology. This firm put their focus on
geographical segmentation and the growth of business. Company use this theory for
better mobile designs and styles in their mobile phones. The main reason behind using
this theory is when firm get a feedback from their customers so they noticed that
customers want more stylish mobile phones' so for the better convenience they use choice
model theory (Cinquini and Tenucci, 2010). By applying this mode; the organization can
easily find their resources because it is based on the environment analysis. With the help
of this, company can easily find customers' perspective toward them and the negative and
positive point of their mobile phones. As per example, for better customer relationship
Nokia put a feedback form at outside of their office and in their website. So by using this
form customers can easily share their views and problem with the firm and by customers
Review, Company change their future strategy. This planning is based on the mobile
phones design and the services of the company.
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APPLICATION OF STRATEGIC CHOICE MODEL TO THE NOKIA
COMPANY
Strategic choice and their evaluation- Today's world is growing fast so for their
better development Nokia put their focus on the customers' choice and preferences. The
director of the company use this model for understanding the taste and demand of the
customers. The main concept of choice model is organization cannot provide everything
to everybody. So for solving this problem, firm choose the unique way where they launch
a product which satisfied the basic need of the consumers. More ever, Nokia uses the
leadership strategy, in this planning they minimize the cost and put their focus on goal
which are based on the development of the organization (Loorbach, van Bakel and
Rotmans, 2010). By applying choice strategy firm provides a cheap price mobile phones
to their middle class customer and also give them discount and loyalty vouchers. The
main evaluation come by applying this strategy is Nokia company raise their profit and
satisfied their middle class peoples. So the trust of the other consumers are build and they
start purchasing this company product.
Impact of strategic choice model- By applying this model In the organization
board of directors and mangers find that their brand images goes high (Teal and Becker,
2011). Customers feel happy that company put their concentration on their feedback. The
trust of the customer on this company goes high and it creates a positive relationship
between them.
Critical analysis of this choice model- According to the Teece (2010) choice
model is good for knowing the customers' need and demand. For the better development
of Nokia they have to use the business strategy as well. As per Verbeke ( 2013) By
applying different strategies firm not only know the customer need but also gain the
knowledge of competitive market and their internal environment. However, business
strategies provides the information of the positive and negative points of the organization
so by this, company put their focus on decreasing department and by applying
appropriate staratigies they can easily change into the profitable department.
STRATEGIC THEORY
For better understanding Nokia used some theories in their internal and external
environment which are explained as follows:
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BCG Matrix- This matrix is based on the analytically tool which are proving the
information of the brand marketing, portfolio diversification and the strategic
management. It also provides the information about the market shares rate, growth
position as compare to other companies. In the another word BCG matrix analysis the
business and compare them with competitive market (BCG Growth-Share Matrix?,
2010). This matrix divided into the four parts where the horizontal axis repents the
market share and the vertical axis provide the information of the growth rate. More ever,
the middle line show the economic changes and their impact on the company.
Stars- It shows the business units and there market share into the competitive
market. The maintenance is so high because for fast growing market they need more
investment and maintenance cost. For example, Nokia company cash flow is modest and
based on the technology so when the market goes high the stars become a cash cow. It
shows that organization become mature and try to invest into the other markets.
Cash cows- It represents the business units and shows how many shares they have
in the organization. It need only little investment and generate more cash for the
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Illustration 1: BCG Matrix
Sources: (BCG Growth-Share Matrix, 2010)

investors. Nokia company follow the established strategies so cash cow lose their shares
and they move toward the deterioration.
Question marks- It shows the units of the company and also guide them if their
shares goes down. In this segment firm need lots of amounts of cash to maintain the right
position of market shares. When company found that there share goes down so they exit
the market and after some time when all prices are normal so firm re enter into the
market.
Dogs- It represents the business market share and their growth into the market. It
neither generate cash nor need high amount of the cash. These business having a week
market shares because the cost of maintenance is high.
Ansoff's strategy theory- This model is based on the market situations and the products
of the company. This theory divide into the four parts which are explained as follows:
Market penetration- It shows the status of existing customers and their perceptive
toward the product of the company. Company create their new strategies and their
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Illustration 1: Ansoff's theory
Sources: ( What is the Ansoff Matrix? , 2013)

performance according to their existing customers. Nokia company use this for boost up
the sales percentage and the framework of the products.
Product d development- It is a part of natural growth, where firm includes the
high technology and unique ideas (What is the Ansoff Matrix?, 2013). For better product
development it is necessary for the company to know the ex-sect need and desire of the
customers and according to their review firm plan for the new products.
Market development- In this strategy, company find a new market for their old
and existing products. Also, by applying this thing, firm get a new customers and they
can use their products. As per example, Nokia launch their QWERTY keypad mobile
phones in India, the main reason behind this is it is new and innovative thing for the
Indian people. But if company compare with other country so it is so common concept.
Diversification- It means company moving to new markets with new products. It
is a risk thing because some time customers do not admit the changes and the established
image of the organization goes down.
Bowman’s Strategy Clock- It is the best strategy for knowing competition market and
the position into market (Campbell, Edgar and Stonehouse, 2011). In this strategy, Nokia
identifies the competitors and then management make a strategy according to the market.
In this clock, organization follow some points which are explained as follows:
Low price- For the better development company launch their new product with
the lowest prices and after some time when product well devloped into the market they
raise their prices.
Hybrid- It shows the reinvestment of the company into other sectors.
Differentiation- This thing explained the positive and negative points which are
based on different products. But they all are belonged from the same company.
Stakeholder mapping- stakeholder mapping shows the relationship between the
company and their stakeholders. The mapping of Nokia company is explained into the
below lines:
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Illustration 1: Bowman’s Strategy Clock
Sources: (Bowman’s Strategy Clock, 2016 )

High power, interested people- In this, the stakeholder put their main efforts on
the development of company and also put a participation in decision making.
High power, less interested- In this, the stakeholder is having a large power but
they do not put any efforts in development of the company.
Low power,interested people- The employees are the part of this strategy they put
their best efforts for success of the organization but they do not have any decision
power (Nokia: a product or a service company?, 2016).
Less interested and less power- In this strategy company include the lower
ground people they do not put their participation in the decision making and they
also put their less interest in the work or decision making process
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Illustration 1: Stakeholder mapping
Sources: ( Stakeholder Analysis, 2016)

Value chain analysis-
It is very useful analysis with the help of this company can easily know what their
customers want from them. Value chain is an analytic tool which are identified the
customers' need and demand for the firm. Nokia company conduct a survey for this and
according to the survey report company plan their business strategy. Finally, company
evaluate the planning into the market and take a feedback from them. According to the
feedback they put the changes.
CONCLUSION
According to the present file, it has been concluded that by applying appropriate
business strategy Nokia company can raise their business standard in the customers mind.
More ever, with the help of different model they can easily identify the customers need
and demand. Firm time to time update the technology in their mobile phones and by this
activity they maintain their position into the market.
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Illustration 1: Value chain analysis
Sources: (Value Chain Analysis, 2016)

REFERENCES
Books and journal
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction.
Palgrave Macmillan.
Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business
strategy: a loose coupling?. Journal of Accounting & Organizational Change. 6(2).
pp.228-259.
Loorbach, D., van Bakel, J. C. and Rotmans, J., 2010. Business strategies for transitions
towards sustainable systems. Business Strategy and the Environment. 19(2).
pp.133-146.
Montgomery, C. A., 2011. Resource-based and evolutionary theories of the firm: towards
a synthesis. Springer Science & Business Media.
Teal, R. F. and Becker, A. J., 2011. Business strategies and technology for access by
transit in lower density environments. Research in Transportation Business &
Management. 2. pp.57-64.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range
planning. 43(2). pp.172-194.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
What is the Ansoff Matrix?. 2013. [Online]. Available through:
<http://www.ansoffmatrix.com/>. [Accessed on 11th April 2016].
BCG Growth-Share Matrix?. 2010. [Online]. Available through:
<http://www.quickmba.com/strategy/matrix/bcg/>. [Accessed on 11th April 2016].
Nokia: a product or a service company?. 2016. [Online]. Available through:
<http://nextconf.eu/2012/09/nokia-a-product-or-a-service-company/>. [Accessed
on 11th April 2016].
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