Case study: Finland and Nokia
1. How was Finland able to move from a sleepy economy to one of the most competitive nations in the world by the end of the 1990’s?
Finland was considered a sleepy country even after their independence from Sweden, depending its economy mainly on the Soviet Union by exporting its natural resources. Finland however slowly but constantly developed its economy up to the OECD average, following the models of its Nordic neighbors to invest highly in social welfare and public infrastructure. Also, Finland had gone though dramatic change in its macroeconomic policy starting from 1970s, featuring fixed nominal exchange rate, centralized wage bargaining, and an increasing fiscal budget though the 1980s. Strict
…show more content…
Due
Finnish telephone network was never monopolized by the state, granting many licenses for telephone operations to prevent the Russia to seize its national telephone system when Finland was Russian Grand Duchy. After independence, Finland’s attempts to nationalize poorly performing telecom failed due to political resistance, but could stimulate private operators to upgrade their technology to prevent their nationalization. The legacy of communication business left a lot of competitive companies in the sector for development. However despite all the reasons mentioned above, emerging demand for such technology from global market would be the greatest reason why mobile communication industry emerged in Finland and made Finland a world-leading nation in mobile communication.
3. How was Nokia able to become a world leader in mobile handsets?
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
Although there were certain differences between Japan and Russia with regard to the role of state in economic development during the late nineteenth and early twentieth century, they were very similar in their movement to abolish feudalism and the construction of industrial projects. Despite these similarities they were different in their success rate by the end of this period of industrialization.
In the 1900’s the USSR’s economy was at it’s peak. For example, in Document B, the chart shows that USSR’s gross national product was almost as much as the US’s. This means that the Soviet people were making almost as much as the US which didn’t set them too far off from them. Although in the 1980’s the USSR wasn’t as well off as
The so-called powerhouse country that was known to be Japan, known to be unstoppable was known never to fall. Japan seemed to be unstoppable after there amazing recovery post World War II compared to the rest of the effected countries. Japan had an economic bubble in the 1980’s to the later part of the decade however; an insidious cancer took root and metastasized in Japan’s economic infrastructure. The cancer was vastly over-inflated
because of Norway’s economic boom due to the foreign investors and immigrants in the 1800’s. Nora
During the decade of the 1960s, the monetary value of exports grew at an average annual rate faster than the average rate of all noncommunist countries. This rapid productivity growth in manufacturing industries made Japanese products more competitive in world markets. With the fixed exchange rate for yen during the decade of 1960, the chronic deficits that the nation faced in the 1950s had disappeared by the middle of the 1970s.
In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.
So, that why I chose Nokia Company to do this research and solve the problems that company has. I have two objectives from this research. First, I want to solve the problem that Nokia Company have it in their technology. They should make a new technology for their produce to avoid any problem. The second objective is advancement again to the marketplace and to compete with other companies to be the first company in produce mobile phone like in past.
Nokia is the world leader in mobile phones. The decision to concentrate only on telecommunications and early investment in GSM has made Nokia to become the world leader in mobile phones. In a span of five years , Nokia's turnover increased almost 5 times from 6.5 billion euroes to 31 billion euroes. This enhanced Nokia to improve the technology and bought many new features in the mobile phones later.
From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet
For Nokia to stay in the business they need to meet these basic requirement of the customer. If Nokia does not meet the customer requirements, then the customers will walk away and will use another brand such as Samsung, Erickson etc. Nokia was successful because they met the needs of the customers. “The Marketing concept holds that the key to achieving the organisational goals lies in determining the needs and wants of target markets and delivering the desired satisfaction more efficiently and effectively than the competition”[3]. For an organisation to provide products that satisfy customers needs through a co-ordinated set of activities that also allows the organisation to achieve its goals, because customer satisfaction is the major aim of marketing concept.[4] Organisations need to communicate effectively with their customers, outlining the benefits of its service and how they can be used to
The alliance between Nokia and Microsoft provides many benefits to both organizations. Nokia’s Chief Executive Officer (CEO) Stephen Elop initiates the alliance with Microsoft in order to grow after Nokia was losing market share to Google and Apple. The alliance was also appealed to Microsoft, since they were looking into the future of the smartphone industry and there particular industry. The current standing was that Nokia was still the market leader, even though they were losing ground to the competition due to the aging technology. At the time of the alliance was announced it is clear that both firms needed each other. Microsoft brought capital to inject into the alliance and technological advancements, while Nokia brought market share and brand reputations.
Korean industrial production rose forty-five-fold between 1960 and 1984, whereas Turkish industrial production was 6.6 times higher in the same period. (Yilmaz)
The mobile telecommunications industry in Ireland has always been a competitive and rapidly changing industry. It has changed considerably from it’s initial birth with only one competitor, to it’s liberalisation in 1998, all the way through to the introduction of MVNO’s in the 2000’s. Mobile penetration has increased from 42 % in 2000 (Telecommunications and Internet Federation, 2005) to almost 97% of Irish adults owning a mobile phone now in 2013. (Irishexaminer.com, 2013) In order to fully understand the rapid development of this industry and the future of it, we must first look at its history in 1998.
Nokia and Microsoft intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity. As each company would focus on its core competencies, the partnership would create the opportunity for rapid time to market execution. Additionally, Nokia and Microsoft plan to work together to integrate key assets and create completely new service offerings, while extending established products and services to new markets.
For this assignment, I chose the company NOKIA. Now Nokia is a mobile telecommunications company, which offers far more than just mobile phones for day to day use. Nokia offers networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, first I will talk about what Nokia is and what they do. I will also mention their history, from where they started to where they are today. Vision, goals, and their