Strategic Management of Nokia: SWOT, PESTLE, Ansoff Matrix Analysis

Running Head: Strategic Management
Strategic Management
Nokia

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Executive Summary
This is the era of globalization and digital age, markets are becoming open with each
passing day and consumers are getting cogent while buying a product or service from a
company. Nokia which is over 142 year’s old company was sitting at the helm of success
back in the time. It was the year 2003-2004 when the industry saw disruption created
by IPhone and other android manufacturers. It has been observed that the biggest
reason for failure of Nokia as a company can be attributed to its inability to come up
with software to meet the growing requirements of the consumers. Within the purview
of the assignment, the company is assessed according to various strategic management
tools which provide both the internal and external environmental scan for Nokia. The
external environmental analysis shows that company has slight disadvantage over other
players owing to its lack of funds, lack of government support and lack of competency to
create high tech advanced product. The Ansoff Matrix gives an evaluation of the
company’s strategy which demonstrates that it adopts product development strategy to
capture the lost market share. A set of recommendation are provided at the end of
report which would provide the company a chance to win back the lost market share
and size.

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Table of Content
Introduction.......................................................................................................................................................... 3
Organization Overview.....................................................................................................................................4
The beginning.................................................................................................................................................. 4
Revenue.............................................................................................................................................................. 5
Vision and Mission Statement.......................................................................................................................5
Values at Nokia.................................................................................................................................................... 6
Strategic management & functional objectives of Nokia...................................................................6
PESTLE Analysis of Nokia............................................................................................................................... 6
Political Factors............................................................................................................................................... 7
Economic Factors........................................................................................................................................... 7
Social Factors................................................................................................................................................... 7
Technological Factors...................................................................................................................................8
Legal Factors.................................................................................................................................................... 8
Environmental Factors................................................................................................................................ 8
Porter 5 Force Analysis.................................................................................................................................... 9
Threat of New Entrant................................................................................................................................. 9
Power of Suppliers...................................................................................................................................... 10
Power of Buyers........................................................................................................................................... 10
Threats of substitute Product................................................................................................................ 10
Competitive Rivalry.................................................................................................................................... 11

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Internal analysis of Strategic capabilities..............................................................................................11
SWOT Analysis of Nokia........................................................................................................................... 11
The basis of Competitive Strategy............................................................................................................ 13
Bowman’s Strategy Clock Model...........................................................................................................13
Strategic Choice and Strategic Evaluation.............................................................................................14
Strategic Choice............................................................................................................................................ 14
Ansoff Matrix................................................................................................................................................. 14
Market Penetration..................................................................................................................................... 14
Product Development................................................................................................................................ 15
Diversification............................................................................................................................................... 15
Market Development................................................................................................................................. 15
Strategy Evaluation......................................................................................................................................... 15
Sustainability................................................................................................................................................. 16
Acceptability.................................................................................................................................................. 16
Feasibility........................................................................................................................................................ 16
Recommendation............................................................................................................................................. 17
Collaboration and Partnering.................................................................................................................17
Design Element............................................................................................................................................. 17
Customer Service......................................................................................................................................... 18
Conclusion........................................................................................................................................................... 18
References........................................................................................................................................................... 19

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Introduction
Strategic Management is the study of management which is involved with formulation
and implementation of the goals and the initiatives taken by the top management on the
behalf of managers(Robson, 2005). It is a process which defines the overall strategy of
the organization to reach the goal of business sustainability and increasing profits.
Managers and the employees of the organization have to work in accordance with the
strategy devised for the organization with enhanced productivity(Hill, 2017). The
strategic implementation helps the employees in the organization to move on the path
created by the top management, and the goals of the employees in the organization are
aligned with those of the business organization. Strategic management also helps the
company to have an overall understanding of the ecosystem in which the company is
operating(Hill, Jones & Schilling, 2014).
Rapid Globalization has fuelled strategic management and the organizations are coming
up with a comprehensive strategy to outsmart the competition and provide customers
with exemplary services. Strategic management comes handy in combating the
challenges posed by the international firms who come with rich experience, capabilities
and the resources to capture the market. Thus, it is one of the pivotal tool in the hands
of the management which helps the organization to reach at the Zenith of success(Hitt &
Duane Ireland, 2017).