A strategic plan entails all aspects of the business. Of paramount importance to any business is the market. This comes before the actual business is initiated. The plan will illustrate the kind of market to venture in. In the case of Nokia Telecommunication Company, the details of the market of target could include: office managers, the business world, students who really on research and could benefit from the internet. Nokia could also target the general public who needs very cheap and affordable phones due to their low economic status.
Another market is the very rich citizens of the society. These are people who always go with class. A class in this respect is measured in terms of wealth. One is of a higher class if they have very expensive gargets. Nokia phone whose value range is 800 is the best for such a group (National statistics, 2007).
The strategic plan should also give a summary of activities that take place in the market. This explicitly gives the account of the market size and scope. Nokia targets the global market as a whole. However the greatest of this is in the major markets like USA. The United Kingdom is one of the world's most globalised countries, ranking fourth in one recent survey.
The capital, London is one of the three major financial centres of the world, along with New York City and Tokyo.
Such a market is large and very dynamic. New inventions arrive and go at a very high frequency. Nokia is therefore put to task of introducing new inventions at the market rate. As the fashion industry expands in creativity, Nokia is also forced to maintain the pas of assimilation. This is so because the buyers taste is influenced greatly by what is current in the market.
A strategic plan of a business also will contain information about the competitors that a company will meet in the market. It is a must to have competition in any sphere of life. The truth however is that no one gets pleased about this, especially when a rival has an advantage over them.
A Strategic plan gives details on how to be on top of the other players. Normal competitive pressures are not able to drive down a firm's earnings to the point where they cover all costs and just provide minimum sufficient additional return to keep capital invested. Most forms of competitive advantage cannot be sustained for any length of time because the promise of economic rents drives competitors to duplicate the competitive advantage held by any one firm. Firms get to improve their products, and lower the cost of purchase of their products.
Sustainable competitive advantage simply an advantage that one firm has relative to competing firms. The source of the advantage can be something the company does that is distinctive and difficult to replicate. This is known as core competency in business terms. Nokia has advanced in leading the market through Cost Leadership, Differentiation Focus and Cost Focus.
A company must have the right resources like finance, assets, and technical competence to thrive well in the competitive environment (Scholes, 2008). The environment may also affect the competition levels in the industry. The ways in which the environment does this are obvious. These include the number of companies in the market, the prices used by the competitor and the strengths of the host company.
Strategies exist widely at several levels in any organisation -