Nokia Business Strategy - Essay Example

? Nokia Business Strategy Report Table of Contents Executive Summary 4 Strategic Analysis 4 Profile of the Industry and the Organization 4 Organizational Purpose 5 External Environment Analysis 9 Competitive Environment Analysis 12 Internal Environment Analysis: 14 Basis of Competition and Key Success factors (Focus given as much as possible within word limit) 16 Strategic Development the layout of this part is confusing. Please do like this: (Any such layout was not stated) 17 Existing Strategies: 18 Generation of strategic Options 20 Choice of Strategies 27 Implementation (Any specific implementation purpose was not mentioned) 27 McKinsey’s 7S Model 29 Eventually, limit the word count to 3500 words (excluding the words in table) 30 All the above requirements are in the original instruction.References 31 Appendix 33 Executive Summary The report deals with the strategic analysis and strategic development of Nokia Corporation. This report will determine the purpose and business performance of Nokia Corporation. Both the external and internal analysis has been conducted for Nokia in order to determine the impact of external environmental factors on the business performance of Nokia. The internal environmental analysis will help to determine the strategic strengths and weaknesses of Nokia Corporation. The strategic development part of the report will evaluate the corporation’s existing business and corporate level strategy. It will help to recommend effective strategic operation for Nokia Corporation so that the organization can overcome its key issues and challenges. Strategic Analysis This part of the business strategy report will provide a brief about the organization and its operating industry. This strategic analysis part will help the readers to determine the implemented strategies of Nokia and the impact of several external and internal environmental factors on the business performance of the organization. Profile of the Industry and the Organization Nokia Corporation is one of the leading telecommunication and information technology multinational organizations. The organization is headquartered in Finland. Nokia Corporation used to operate within Telecommunication, Computer software and Internet industry. The brand name is popular among the people around the globe due to wide ranges of mobile phones and telecommunication accessories. Global telecommunication industry is highly competitive as several leading organizations, such as Samsung, Apple and HTC are operating within this industry. Once, Nokia Corporation was considered as the leader within the global industry. But the organization lost its huge market share to its competitors due to several external and internal issues. The organization is one of the largest telecommunication equipment manufacturers. Nokia Corporation has a strong global presence. The employee strength of the organization is 87,100 (Macroaxis, 2013, p.1). Since last 5-7 years, the products of Nokia Corporation faced low sales due to lack of effective differentiation strategy and inadequate quality control (Marion, 2013, p.2). The Smartphone market share of Nokia has reduced from 33 percent to 14 percent in 2011 (Hui, 2013, p.1) Organizational Purpose Currently the company has formed a strategic partnership with Microsoft with the aim to build a mobile ecosystem worldwide. The phones operating on Windows would serve as the primary smart phone platform for Nokia. From April, 2011 Nokia has formed two distinct business units in the form of Smart devices and Mobile phones. The former units will be responsible for cementing the status of Nokia in the smart phone market while the later will leverage the innovation into new target markets so as to connect billions to people worldwide. Nokia Corporation is a multinational organization that engages in manufacturing and distribution of mobile phones and related accessories. Mission Statement The mission statement of the Nokia Corporation is to focus on effective decision-making strategy. The organization will create an effective balance between the rival interests of several stakeholders. Nokia will inspire and motivate each and every organizational member (Nokia, 2013, p.1) Vision Statement Nokia Corporation will create a new world in order to transform a large planet to small village. The Vision of Nokia is to develop, build, create and encourage people around the globe to communicate effectively with each other in order to establish a globe where each and every individual is connected (Nokia, 2013, p.1) Ethical Values and Recent Position According to the stated mission and vision statement, Nokia Corporation tries to engage people around the globe by introducing different advanced modes of communication. In addition to this, the organization gives effective value to the employees, customers, several stakeholders and communities in this world. Recently, Nokia is facing serious management challenges due to inadequate leadership and stakeholder management process. However, Nokia treat its employees quite effectively. The complaints of employees against the organization are quite low (Jones international, 2010, p.193). According to some employees of Nokia in Finland, the career growth in Nokia is not sustainable (Ferrell, 2012, p.54). Moreover, few of the salaried employees faced several workplaces issues like irregular bonus distribution. Apart from these, the organization has able to make the employees happy and satisfied. Key Financial Indicators Figure 1: Ratio Analysis   2009 2010 2011 2012 Sales 40,984.00 42,446.00 38,659.00 30,176.00 PBIT 2,408.00 2,308.00 980.00 -644.00 Profitability Ratios         Capital Employed 20,550.00 21,583.00 18,761.00 15,303.00 ROCE 12% 11% 5% -4% Net profit margin 2% 4% -3% -10% Gross profit margin 32% 31% 29% 28% Return on asset 2% 5% -3% -10% Return on equity 6% 11% -8% -33% Liquidity Ratios         Current Ratio 1.6 1.5 1.5 1.4 Quick ratio 1.4 1.4 1.3 1.3 Efficiency ratios         Fixed asset turnover 22.5 22.9 21.9 22.2 Total asset turnover 0.07 0.06 0.03 -0.02 Leverage ratios         Debt ratio 0.59 0.59 0.62 0.68 Debt to Equity ratio 1.4 1.4 1.6 2.2 (Nokia, 2013, p.18) The above table represents key financial ratios of Nokia and the ratios indicate financial status of the company in four important financial perspectives like profitability, liquidity, operating efficiency and leverage. Evaluation of these financial perspectives is conducted to analyse the income statement and balance sheet of the company. From the above table it can be found that sales as well as profit before tax have decrease over the last four years. PBIT has decreased dramatically in the years 2011 and the company incurred huge loss in 2012, it indicates high operating cost of the organization. According to the decrease in sales, capital employed has also decreased over the years. Difference in gross profit margin and net profit margin is very high which indicates that operating expense is very high and also increased in high extent over the years that lead to negative net profit margin in last two financial years. Major decreases in return on asset and return on equity over the years indicate expensive asset management process and inefficient equity capital management by the management. These ratios also indicate that operating expenses are very high have been increased over the years and this fact lead to major decrease in profitability of the of the company in-spite of having good high amount of sales over the years. To evaluate how the balance of the company is, in-depth analysis of liquidity ratios and leverage ratios are required. Two important liquidity ratios are current and quick ratio. Current ratio trend of the company over the years remains almost same and indicates that the company has been able to maintain average 1.5 times current assets i.e. cash and cash equivalents etc to pay its short term payables. On the other side, quick ratio of the company indicates that company has not dependent on its inventory much to maintain its overall liquidity position. The standard current ratio should be more than 2 at least for any company. Therefore, liquidity position can be stated as moderate but not strong. Two important leverage ratios i.e. debt to asset and debt to equity can evaluate the capital structure of the company. Debt ratios over the year indicate that average total liability is more than 60% of its total asset that indicate strong capital structure of the company. Debt to equity ratio also supports for strong capital structure of the company as equity position is more than 1.5 times than total liability of the company. Therefore, from the overall analysis of capital structure it can be said that Nokia has high financial intervention from shareholders than the debtors. Operating efficiency ratios evaluates the asset turnover of the company over the past few years. Fixed asset turnover indicates that the company is able to generate high revenue per unit of fixed asset. This also shows that depreciation of fixed assets is very high over the years. But, total asset turnover is very low which means current assets of the company have not been utilized efficiently. It is mentioned in the original instruction as “SBU level (different for different SBUs)” The companies do not provide detailed financial statements for different SBUs. External Environment Analysis This part of the strategic analysis will conduct an external and internal analysis for Nokia. In addition to this, a competitive environment analysis has been conducted in order to determine the degree of competition in the industry. PESTEL Analysis PESTLE analysis will help to determine the impact of key external environmental factors on Nokia’s core competency. Political The telecommunication products and services industry in UK is highly competitive. Government in UK has introduced new strict rules and regulations for the business organizations in order to maintain environment sustainability, economic sustainability. In addition to this, government of UK is trying to implement new rules and regulations in order to ensure the health and safety of the employees. Nokia is finding it difficult to maintain newly developed rules and regulations in the business process. It is affecting the organization’s business performance (Kumar, 2013, p.1). The regulations on the use of mobile phones and smart devices will affect the demand of those products. The two SBUs of Nokia are likely to get affected from the political scenario in UK and the aim of Nokia can get hampered. Economical Recent financial crisis and economic recession affected the purchasing power of people. Change in interest rate and high fluctuation rate in global currency is affecting the profitability of the organization. It is true that Nokia implemented cost leadership strategy in business process in several places around the globe. In UK, the organizations used focus on high end priced products. Inadequate marketing research and product differentiation strategy based on the demand of people affected the business performance of Nokia in UK. The mobile phones from Nokia are within the reach for people of all income levels. So the economical situation will affect less on the mobile phones demand but the smart devices will get affected since these are high end products. Social It has been discussed earlier that the organization failed to implement effective differentiation strategy. Demand for both high-end priced smart phones and low priced economic handset is increasing. Nokia is failing to meet the social demand in UK as the organization is not focusing on new designed differentiated cell phones. The new smart device is likely to attract the customers while mobile phones can attract the customers if and only if Nokia can present some product differentiation. Technological The demand for advanced smart phones is increasing in UK. The organization is failing to implement advanced technology in business process. On the other hand, competitors like Samsung, Apple and HTC are implementing advanced and modified OS versions in the smart phones (Dziri, 2013, p.29). Lacks of ability to adopt and implement advanced technology in differentiated product lines is affecting the brand value of Nokia. The increasing demand of advanced smart phones is a blessing for Nokia. Therefore the demand of smart devices shall be high while the demand for mobile phones can be expected to remain stable under the assumption Nokia does not roll out any new invention in these units. Environmental Government of UK has introduced several environmental policies for the manufacturing and distributing business. Havoc use of mobile phones can affect the health of human beings. The organization is failing to capitalize on green energy sources that are increasing the carbon emission level in supply chain management process. The regulation imposed will affect the mobile phones market and Nokia shall not be the exception. But use of smart phones will remain unaffected. Legal Nokia is facing several legal issues in the UK market. Lobbying, international operator’s license and inadequate adherence to developed regulatory affecting the business performance of the organization. Competitive Environment Analysis Porter’s Five Force Analysis Porter’s five force analysis is an important strategic analytical tool that helps an organization to determine the threat of several competitive factors within the industry on its business performance. Bargaining Power of Buyer’s People in UK are brand centric regarding consumption of mobile phones. In addition to this, people in UK always try to follow current trend. It is highly important for an organization to maintain effective products differentiation strategy and competitive price of the products. Recently Nokia is losing its market share to the potential competitors due to several reasons. Other competitors in UK are providing differentiated smart phones with advanced technology and processor according to the current customer trend. Nokia is failing to integrate differentiation and innovation in the business process. It is forcing the loyal customers of Nokia to switch over another brand. The failure of Nokia to maintain the brand value will affect negatively on the mobile phones and smart devices demand. Bargaining Power of Supplier’s Threat of suppliers’ bargaining power is quite low for the organization. Large number of suppliers is available in UK telecommunication industry. Therefore, Nokia capitalizes on the opportunity of low influencing power of the existing suppliers. The availability of large number of suppliers is a blessing for Nokia SBUs since they can reduce the production cost at the minimal as well as can maintain the quality of products. Smart devices need constant monitoring while phone phones require advanced technology. Nokia can enable such monitoring and inventions at cheaper cost. Threat of Substitute Threat of substitute for Nokia in UK is medium. No real and effective substitutes are available. Portable computers and tablets are the substitutes of Nokia’s smart phones. Demand for tablets and portable computers among the target customers are decreasing. New companies are actively engaging themselves in research and development of smart devices. Since customers are still respect the brand value of Nokia it can be expected that the mobile phone market is less volatile for it. The substitute for mobile phones can be smart phones. So the interesting part is the two SBUs are substitutable. Threat of New Entrants Threat of new entrants is low for Nokia. New organizations require high investment capital. In addition to this, generic retail formal, legal entry barriers and low brand equity can make it difficult for the new organizations to increase market share (Ferrell, 2012, p.82). The market is already saturated with many companies offering smart phones and Nokia managed to maintain the market share for all these years although the share has taken the steep falling curve recently. The smart devices market is emerging and more and more customers and getting attracted to that. Nokia will have to compete with many players in the market. Degree of Industry Rivalry Degree of industry rivalry is high. Samsung, Apple and HTC are considered as industry leaders. These organizations are trying to implement several unique business level and corporate level strategies in the business process in order to increase sales growth rate and market share. Lack of switching cost, high exit barrier, low degree of diversification and differentiation, and short device life cycle is affecting the level of core competencies of Nokia. The two SBUs are open to competition and should be affected by industry rivalry. Internal Environment Analysis: SWOT Analysis SWOT analysis is an important strategic analytical tool. It will help to determine Nokia’s internal strengths, weaknesses and external opportunities and threats. Strengths Strong brand name and significant brand value. High number of manufacturers and suppliers in the global market place. Strong product portfolio and supply chain network. Effective cost leadership strategy. Implementation of advanced technology to ensure competitive market position (Bradley, 2005, p.636). Strong global workforce. Weaknesses Lack of efficiency and ability of research and development team. Lack of high quality economic priced phones where the competitors are offering high quality smart phones in competitive pricing. Lack of product differentiation strategy. Lack of integration of innovation and modern technological features. Lack of cooperation with the mobile operators. The strengths of Nokia will contribute in attracting the customers in the smart phone market and regain the market share for mobile phones. But series weakness can lag the process since product differentiation and advanced technologies are the two important parameters that customers in this market will like to look at. VRIN Model Resource Valuable Rare Hard to Imitate Non Substitutable Implications Production Capability No Yes Yes Yes Temporary Competitive Advantages. Cost leadership and Economy of Scale Yes Yes Yes Yes Sustained Competitive Advantage. Expertise in Broadband and Network Technologies Yes Yes Yes Yes Sustained Competitive Advantage. Brand Value and Differentiation Yes Yes Yes Yes Sustained Competitive Advantage. Global Distribution Network Yes Yes Yes Yes Sustained Competitive Advantage. Research and Development No Yes Yes Yes Temporary Competitive advantages. Leading carrier relationships around the globe No Yes Yes Yes Temporary Competitive Advantages. Dominance in Large Market No Yes Yes Yes Temporary Competitive Advantages. Quality control Yes No No Yes Temporary Competitive Advantages. Effective Engineering Competence Yes Yes No Yes Temporary Competitive Advantages. Capital Management in Profitable Manner No No No Yes Temporary Competitive Advantages. Vertical Integration No Yes Yes Yes Sustained Competitive Advantages Basis of Competition and Key Success factors (Focus given as much as possible within word limit) Please focus more on KSFs Nokia is one of the leading multinational telecommunication goods manufacturer and distribution organizations. The organization is popular among the target customers due to its strong brand value and good quality of the products. Recently the sales of Nokia went down due to lack of integration of advanced technology and innovation in business process. However, the organization is trying to reposition the brand through effective forward and backward integration strategy. Leading organizations within the industry are trying to implement strong and unique business strategies in order to achieve potential competitive advantages. Key success factor for the industry is speed and innovation of response to the consumer needs. Demand for smart phones and advanced operating system is highly increasing among the people around the globe. People are significantly shifting from the economic and limited featured phones to advanced smart phones. This demand is forcing the organization to develop effective and high quality smart phones in competitive price level. Strategic Development the layout of this part is confusing. Please do like this: (Any such layout was not stated) Existing strategy: SBU level (show how it fit into overall corporate strategy) Corporate level Generation of strategic options: the five strategies generated from above should be analysed here. Remember to answer the questions and use the tools in the file called "N1079_MAIN_REPORT_Key_elements_v5_21-9-12_1_ ". Evaluation and ranking of options: Rank the feasibility of the above 5 strategies. Nokia has reshuffled the management that led to the departure of Steve Overman, the vice president of global brand strategy and Ilari Nurmi, the vice president of product marketing of Nokia. It is trying to reposition itself as the challenger brand; so that it can stop the decline in the market share which made Samsung gained the top slot in the market last year by gaining market share of 22% as compared to Nokia’s 19.1%. At the core competencies of Nokia are attributes like innovation, quality and relevancy. Nokia is currently trying to evoke stronger emotional response along with brand features like trust-worthiness, quality, innovativeness and ethics. Being a challenger in the mobile market they have to be bolder to make their points clear. They also need to make strategy which resonates with the consumers (Schmitt, 2000, p.13). Nokia focuses on digital and retail marketing so that they can target the majority of the consumers who are seeking out information before purchasing the smart phones. By 2010, Nokia was facing down two tough competitors, Apple and Samsung. Though the handsets of the Nokia were challenged by the low-cost manufacturers in the emerging world, Samsung’s smart phones and Apple’s iPhone had given tough completion to Nokia. Though Nokia listened to their customers, Nokia became less responsive and more self-contended. Hence when Apple started to push their user friendly iPhone in the market in 2007, Nokia’s R&D was not keeping up to it. Existing Strategies: SBU Level Strategies Nokia Corporation is achieving slow growth rate in market share and sales. The organization believes in both cost leadership strategy and differentiation strategy. But, lack of effective leadership and inadequate integration of advanced technology in business process is affecting the organization’s brand value or business process. Nokia considers four different levels in is existing strategic business unit level, such as mobile phones, multimedia, enterprise and Nokia Siemens. In mobile phone segment the organization develop strategies regarding the production and distribution of the cellular and devices. In terms of multimedia aspect, the organization failed to implement effective strategy to differentiate its existing product line. On the other hand, competitors like Apple and Samsung are increasing rapidly focusing on this multimedia segment. In terms of enterprise, the organization introduces strategies on corporate e-mail and network security. Nokia Siemens is an effective collaboration that used to focus on effective cellular network service. Corporate Level Strategy ADL Matrix Embryonic Growth Mature Aging Dominant All out market push. Turnaround. Industry Growth. Hold Position. Strong Improve position. Improve Position. Industry Growth. Harvest or Hold Position. Favourable Turnaround. Improve Position. Custodial Or maintenance. Harvest. Tenable Selective Push. Market Protect. Niche Market. Abandon. Weak Up or Out. Abandon. Turnaround. Abandon. BCG Matrix There are four components in the BCG matrix, such as Stars, Cash Cows, Question marks and Sleeping dogs. It is clear from above discussion that Nokia’s Market and sales growth rate decreased quite rapidly. The products of Nokia can be considered as Cash Cow products due to low market share growth rate and inadequate market demand for the products. Generation of strategic Options This part of the strategy will help Nokia to overcome the external and internal challenges and issues that are discussed in the strategic analysis part. Ansoff Matrix Following strategic direction matrix or Ansoff matrix will help the organization to adopt and implement effective business and corporate level strategy that can help the organization to achieve strong competitive advantages. (Businesscasestudies, 2013, p.1) Nokia Corporation should focus on market penetration and product development as it is important for the organization to penetrate the global target market by developing significant product portfolios. It is true that the market share of smart phones have increase significantly in the year 2013(Phys, 2013, p.1). Therefore, it is important to integrate advanced technology and required features in the product development process so that the organization can influence global people to consume new differentiated products of Nokia. Value Chain Analysis Value chain analysis helped an organization to determine its internal factors and issues. This analysis will help to develop and generate appropriate business level strategy that can help to secure future growth rate. Human Resource management Recently the organization faced several issues. It is true that the organization tries to maintain sustainability in workplace and give value to the employees. Inadequate leadership style affected the workplace environment. The organization cut down a significant number of jobs in device and service business unit to reduce business operation cost. It affected organization’s value in front of the stakeholders. Technology Development It is discussed earlier in the technological issues that the organization failed to implement effective and advanced technological process in the products. Inadequate quality control and failure of research and development team affected overall business performance of Nokia. Procurement Nokia’s relationship with suppliers is quite strong and effective. It is important for an organization to maintain a strong relationship with the global suppliers to source effective resources and raw material from different parts of the world. Inbound Logistics The logistics and supply chain network of Nokia Corporation is quite long and strong. The organization never failed problems in its inbound logistics. Operation The organization is trying to reposition its brand. Nokia is trying to bring change in leadership and operational structure in order to accelerate the speed of strategy execution process. Outbound Logistics The industry highly depends upon strong and large logistics and supply chain network. Marketing It is discussed earlier that the organization is trying to reposition the brand in order to get back high brand value and customer loyalty. Sales The sales growth rate of Nokia is decreasing due to intense market competition and lack of prompt response to social needs and market demand. Porter’s Generic Strategies Cost Leadership: Strategic Option 1 Differentiation: Strategic option 2 Market Penetration- Organic Development. The organization should develop on its existing strategies. The organization should adopt several cost effective measures. Nokia should consolidate manufacturing facilities in order to produce products in time and cost effective locations near to market and suppliers. Nokia Corporation should target operational excellence and should consider the retrenchment of the resources. The organization should influence the research and development team to identify several innovative ways to reduce business operation cost. The organization should reduce the layers of management in order to ensure quick adoption to changes. The organization should focus on forward and backward integration strategy in supply chain and business development model to reduce operating cost and maximize revenue generation. Product Development- Integration. The organization should provide benefits for effective customer lock in operation strategy. The organizations should integrate advanced and modern technological accessories in the products. Focus on effective differentiated product lines as lack of effective product differentiation strategy is affecting the business performance of organizations. The organization should effectively utilize the research and development team in order to develop innovative design and functionalities. First of all the organization should try to achieve expected market share growth rate through above mentioned strategies. After achieving the objectives, the organization should slowly move towards the focus differentiation strategy to target a niche market segment. SBU Level Strategies It is clear from above SBU level strategy analysis that the organization failed to focus on multimedia segment. On the other hand, the competitors like Nokia, Apple and HTC effectively integrated advanced technology in order to meet market demand. The organization should collaborate with one of the leading operating system processing organizations in order to increase its market share and regain its high brand value. Evaluation of Strategic Options (Suitability) Cost Leadership: Strategic Option 1 Differentiation: Strategic option 2 This strategy will help the organization to regain market share. This cost leadership strategy will help the organization develop significant target customer base. The industry is in growth stage. Cost leadership strategy will help the organization to grow simultaneously along with the industry. This strategy will help to back the purchasing power of people as recent financial crisis and economic slowdown affected the purchasing power of people. The research and development capability of Nokia can support the development process of cost effective products. The organization should not compromise with the quality. Effective differentiation will help the organization to regain leadership in smart phone segment. Effective integration with the leading OS organizations will help the organization to ensure the high quality of differentiated products (Steinback, 2010, p.52). Functional Strategies The organization has to focus on the market demand and segment products accordingly. It is true that demand for android OS phones is highly increasing. Therefore, it is important for the organization to introduced differentiated products. Corporate Strategies Nokia should try to concentrate on effective resources that are required for the Smartphone as these products have huge potential for growth. Evaluation of Strategic Options (Acceptability and Feasibility) Cost Leadership: Strategic Option 1 Differentiation: Strategic option 2 High profitability by reducing business operation cost. High ROCE by economies of scale. Lower external risk. High efficiency in order to increase the organization’s performance. Focusing on sustainable growth in near future (Viardot, 2004, p.5). Limited requirement of capital investment as Nokia already has sufficient capabilities and resources. The strategy implementation process will be time effective due to availability of basic requirements. High profitability through premium pricing. High risk associated with the differentiation. The strategy implementation process will be time consuming as development of differentiated product will require huge manufacturing time. Evaluation and Ranking of Options Cost Leadership Differentiation Identification of Key Opportunities (Suitability) + + Avoiding Critical Threats (Suitability) - - Acceptability to Stakeholders (Acceptability) + + Acceptability of Returns (Acceptability) + + Acceptability of Risk (Acceptability) + - Finance (Feasibility) + - Skill of Employees (Feasibility) + - Resources (Feasibility) + - Workable in Practice (Feasibility) + + Total Positives 8 4 Choice of Strategies It is clear from above ranking and evaluation of both the strategic options, it can be stated that Nokia should implement cost leadership strategy. Implementation (Any specific implementation purpose was not mentioned) This should be about how to implement the choice of strategy. It is important for the organization to increase the manufacturing facilities around the globe. The organization should reduce the labour and per unit material cost by mass production to control operational cost. The organization should introduce more distribution networks in order to manage increase revenues in emerging markets (Doole and Lowe, 2008, p.75). The organization should reduce the operation cost. In addition to this, the organization should focus on marketing research and different marketing activities. In terms of SBU level strategies, the organization should collaborate with the leading OS organization to motivate the customers who are seeking for Smartphone. In terms of functional level, it is important for the organization to offer differentiated products in economic price. The research and development team should help the organization to focus on operational cost control. Activity Month Market Research (6-9 Months) 7 Adoption of Cost Leadership Strategy (3 Years from Now) 36 Integration of Advanced technologies in Smartphone (Within 6 Months) 6 Competitive Pricing of different Products and Promotion (Next 1Years) 12 McKinsey’s 7S Model McKinsey’s 7S Model consists of strategy, structure, systems, skills, style, staff and shared values. Each and every S is covered in above mentioned chosen strategies option. The organization needs to bring change in the leadership style to ensure high workplace performance. Nokia needs to follow a flatter organization structure to make quick decisions. The leaders of the organization should educate the employees about the organizational values by sharing some cultural aspects and values with them. Effective training and development programmes are required for staffs to bring efficiency. The major strategy would be cost leadership strategy as it will help the organization to introduce high quality products in low price. Eventually, limit the word count to 3500 words (excluding the words in table) All the above requirements are in the original instruction.References Bradley, F., 2005. International marketing Strategy. London: Routledge. Doole, I., and Lowe, R., 2008. International marketing Strategy. Stamford: Ce4ngage Learning. Dziri, R., 2013. Avoiding Strategic Drifts in a Hypercompetitive market. Munich: GRIN Verlag. Ferrell, O., 2012. Marketing Strategy. New Jersey: Pearson. Kumar, N., 2013. Nokia: Channels of Distribution. Munich: GRIN Verlag. Schmitt, B., 2000. Experiential marketing. London: Kogan Page. Steinback, D., 2010. Winning Across Global Market. London: Routledge. Viardot, E., 2004. Successful marketing Strategies for High-Tech Firms. London: Sage. Macroaxis., 2013. Nokia Number of Employees. [Online]. Available at: [Accessed on December 2, 2013]. Nokia., 2013. Our Company. [Online]. Available at: . [Accessed on December 2, 2013]. Marian, L., 2013. Is Nokia’s performance in the Smartphone market affected negatively by marketing strategy decisions? [PDF]. Available at: . [Accessed on December 2, 2013]. Hui., 2013. Group Nokia Samsung Compare. [Online]. Available at: . [Accessed on December 2, 2013]. Nokia., 2013. Consolidated Income Statements, IFRS. [PDF]. Available at: . [Accessed on December 2, 2013]. Jones international., 2010. Organizational Structure and Change. [PDF]. Available at: [Accessed on December 2, 2013]. Phys., 2013. Global 2013 Smartphone sales to hit 1 billion. [Online]. Available at: . [Accessed on December 2, 2013]. Business case studies., 2013. Achieving growth through product development. [Online]. Available at: . [Accessed on December 2, 2013]. Appendix Opportunities Emerging smart phone market in BRICK countries. Demand for high-end mobile devices and technologies. Growing demand for advanced software applications in smart phones. Threats Intense industry competition. Strict legal and environmental regulations. High market saturation. Economic slowdown and low disposable income of middle class people. Read More