Vol. 7(26), pp.
2597-2602, 14 July, 2013
DOI: 10.5897/AJBM12.1154
African Journal of Business Management
ISSN 1993-8233 © 2013 Academic Journals
http://www.academicjournals.org/AJBM
Full Length Research Paper
Nokia and strategic agility
Chen-Yuan Chen
Department and Graduate School of Computer Science, National Pingtung University of Education, No. 4-18, Ming Shen
Rd., Pingtung 90003, Taiwan.
Accepted 12 July, 2013
The high-tech industry is the competitive strength as well as major profit source for countries in the
world. However, these companies face a lot of uncertainties including market demands, technology
progress and new competitors that bring new strategies and technology into the market. Because of
self-owned operating system, Nokia is facing patent issues with Apple and the increasing number of
competitors. Nokia faces challenges in creating comparative advantages in the smart phone industry.
Therefore, it is a crucial issue to formulate strategies to maintain its survival and growth. Technology
develops rapidly. Cell phones are one of most important invention for human beings. The popularization
of cell phone makes people communicate with each other conveniently. With the development of
technology, the functions of cell phone changed from black-and –white interface to color interface; the
camera in it makes it to increase the more. It also connects with network. Nowadays, cell phones have
become one of the indispensable electronic devices for people in daily life.
Key words: Multimedia messaging service (MMS), mobile internet, mobile phones, Nokia, short message
services (SMS).
INTRODUCTION
Nokia, a leader in the cell phone industry, was initially a LITERATURE REVIEW
small company from Finland. Due to the elastic and
innovative enterprise culture and accommodating A cell phone is a necessary product of life. Someone will
environment development strategy, it achieves a famous not have a sense of security without a cell phone. That is,
enterprise around the world. In glory days, it had they will feel that they are secluded from the world.
promoted the fifth of one-hundred global brands. As a Although cell phones were developed few years ago,
leader of a group in [the] cell phone industry for 14 years, they have influenced our life. They are not only a tool for
Nokia‟s market capitalization dropped sharply to 87% communication but also a camera, a video camera, a
(Aguado and Martinez, 2007; Gye, 2007; Hillis, 1999; walkman and a satellite navigation (Allan, 2007; Con-
Lehtonen, 2000; Leiss et al., 1990; Marvin, 1988; tinental Research, 2004; David, 2010). It has become a
Nightingale, 2007; Nye, 1997). Not only it was surpassed multi-function product(Figure 1). Like external image, a
by HTC in Taiwan, but also its credit rating almost cell phone presents a need in life and persistence of
became junk bond rating. What are the reasons why tastefulness in functions (Caronia and Caron, 2007).
Nokia falls into decay in a short period? This paper is to The development of cell phone starts from first
explore the reasons why Nokia falls and the relationship generation to fourth generation. A smart cell phone can
between the development trend of smart cell phone and not only download films, but also aids navigation,
Nokia (Sontag, 1977; Steinbock, 2001; Williams, 1978). electronic wallet, real time communication and video
E-mail: [email protected].
2598 Afr. J. Bus. Manage.
Personal
Satellite
Digital
Navigation
Assistant
Electronic
Camera
Book
Electronic
Walkman
wallet
Video Cell Electronic
Camera games
Phone
Figure
Figure 1.
1. Modernized cell phone
Modernized cell phoneconnecting
connectingwith
withmulti-functions.
multi-functions.
Figure 2. Procession or progression of cell phone.
conference (Goggin, 2005, 2006; Grossberg, 1992; Scifo, thing.
2005; Snowden, 2006). It can carry out international
commercial negotiations on the go to change human
living in the future thoroughly (Figure 2). ANALYSES AND SUMMARY
Nowadays Apple is not only a rival to Microsoftmerit, a
personal computer system dealer, but also an innovator In February 11, 2011, Nokia announced officially that it
to traditional industry from technology industry (Pohjola was going to cooperate with microsoftmerit and was
and Kilkki, 2005; Du et al., 1997). In the future, the going to release a cell phone with windows phone 7 office
present high stage will not chased any more. The system. Nokia did not consider hot google android office
revolution to disruptive innovation is the most important system. One of the main reasons of choosing windows
Chen 2599
60.00%
50.00%
40.00% Symbian
Windows
30.00% RIM
iPhone
20.00%
Android
other
10.00%
0.00%
2008 2009 2010 2011
Figure 3. Trend map of cell phone office system.
phone 7 is that Nokia did not have a common consensus can contact customers directly by Nokia‟s conces-
with google. Besides, for cell phone system, android sionaires (Figure 4).
platform is better than symbian and windows phone 7
(Figure 3) at present but if Nokia chooses android
platform, it will not have the right to speak. However, Conclusion
microsoftmerit provided the above mentioned niches to
Nokia. In cooperation memorandum, it is clearly recorded In the past, marketing thinking is to press close to the
that Nokia had a voice in development of windows phone market, to be single-minded, to enhance competition
7. Thus, it obviously differentiated between Nokia and doorsill, and to strengthen a nucleus power to prolong
general factories of windows phone 7. If Nokia chooses properties. In recent years, low-priced aviation changed
android system, it will be managed or handled by google the service rules to make traditional aviation companies
on developing a cell phone „s appearance. It did not crash one by one. The press and record stores were also
present that Nokia had a distinct position from others. forced by networks and cell phone service networks
That is, since Nokia had dealings with Microsoftmerit, it respectively to stop doing business. The examples of
could possess a stronger position. Nokia wanted to these “professional” companies beaten by “unpro-
influence a new version while it was in development fessional” ones bring fear from invisible competitors. It is
stage. really difficult to get out of age-old success inertia. After
all, it made you succeed before, and you formed a habit
Strategic advantage in a fast-changing world of it. According to the above mentioned examples, since
the wheel of time turns, one using his unusual imagi-
No cell phone manufacturer can be compared with native power in formulating game rules of the market will
android but Nokia can be compared with windows phone be the winner in the future.
7. In other words, Nokia did not develop its smart cell Due to maturing hardware solving scheme, the doorsill
phone office system, but it possessed the influence in of designing and releasing smart cell phones is not higher
office system and surpassed Samsung, HTC and LG. than two or three years ago. Even bandit cell phone
That is a key factor. Nokia in windows phone 7 system, a manufacturers with MediaTek as the leader have the
high flier, possessed more superiorities than other ability to manufacture smart cell phones. In the future, the
factories. Additionally, Nokia owned a lot of shops and cell phone industry must take smart cell phone as a
concessionaires around the world (including some trend. Whether cell phone manufacturers succeed or not
straggly rural areas). It is superior to Apple in sales depends on the quality of application platform. During
places. For windows phone 7, it is also common that one several years, Nokia was aware that symbian was out-of-
2600 Afr. J. Bus. Manage.
Strengths Weaknesses
Opportunities Threats
Figure 4. Swot diagram of Nokia status.
Figure 5. Cooperation of Nokia and Mircosoft.
date in present hardware trend (Table 1), and decided to
cooperate with Microsoftmerit to develop new brand
windows phone 7 smart cell phones. Two big companies
are expected to cause explosive change for present
smart cell phone platform (Figure 5). The future trend will
be the situation of the three kingdoms, windows phone,
android and ios and three main platforms (Figure 6).
ACKNOWLEDGEMENTS
The author acknowledges the support to the received
from the National Science Council of the Republic of
China, for providing the CYC under Grant Nos. NSC 101-
2221-E-153-001-MY2, and NSC 100-2628-E-153-001.
Figure 6. Market main platform in the future. He is also most grateful for the constructive suggestions
Chen 2601
Table 1. Merit and disadvantage of all brands system.
System Merit Disadvantage
1.Slow reactive touch interface
2.Weak supportability to main stream medium
1.Interface close to general cell phones and easy format
operation 3.Different version software with bad compatibility
Symbian
2. Bargain 4.Headache authentication
3.well-controlled memory with low standard 5.Few application programs in Symbian platform
support上touch interface
6.Clapped-out source code of system
1.High opened application program
2.High liberty to approach network by software
3.Integration service of google
1.High hardware request
4.Plentiful operation interface (like htc
Android 2.High crash
sense、Samsung touchwiz and so on)
3.Ragged application program
5.Abundant types
6.Opened source code allows to compile
7.Downloading rich application program
1.Monotonous main interface
2.System depends on itunes strongly
1.Strong entertainment
3.Closed platform
2.More application programs
Ios 4.High price
3.Smooth system interface
5.Unchanged batteries
4.Successful brand marketing
6.Weak multitask
7.Few types
1.Weak multimedia
2.Closed system
1. Special sharp
3.Transmitting data communications like music and
Blackberry 2. qwerty keyboard
video by Blackberry pc set
3. High security of system
4.Few application programs
5.Low entertainment
1.Similar interface and operation with windows
Windows 1.It engages more system resources.
computer
mobile 2.It is easy to crash system.
2.A computer can share information with a cell phone.
1.More fluent / operation interface
Windows 1.It is incompatible with windows mobile 6.5 system.
2.Brand-new operation interface
phone 7 2.Application program is insufficient
from the anonymous reviewers. Caronia L, Caron AH (2007). Moving Cultures: Mobile Communication
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