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The following article was published in our article directory on August 2, 2010.
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Adopt Flexible Strategies to Ensure that Nokia's Dominance

Article Category: Business Management

Author Name: xia zihui

The late 20th century, 80, Nokia's senior management realized that a sea change is coming. At that time, Nokia has developed into a company with century-old conglomerate and cable). Diversity initiatives from business technology and innovation has always attached importance. For example, in the 20th century, 60s, and the production of insulated cables Nokia, like most electrical equipment companies started to engage in the telecommunications industry. 20th century in the next 70 years, from the sale of cable to telecommunications companies, to develop the switch, to buy Mobira company (a mobile phone manufacturer), Nokia has undergone tremendous changes. But in the 20th century, late 80s, Nokia has struggled. Internationalization and diversification of the ambition to carry out a number of Nokia and uneconomical for consumer electronics and computer business acquisitions.

Nokia digital mobile communications concern, in fact, did not experience systematic and formal strategy development process, but from major changes to the predictability and personal intuition. In the early 20th century, the mid-80s, Nokia's senior management telecom business group will be expected of the two major changes about to happen.

First, the Government may in the mobile services market, the introduction of new competitors, the introduction of these new small operators have not huge R & D Center, Nokia just to provide a cost advantage of end to end solution. Nokia is a young business planners suggested that the base stations and switches (belonging to two different business units - telephone sector and the network infrastructure sector) to restructure the department into a new network. After the reorganization, cell phone business into a separate business unit (later developed into a Nokia mobile phone company). Nokia has set up a match with the emerging strategic opportunities for the organization, a new organization to contain the old and new departments compete for resources come to blows over the phenomenon, so that resources can more easily flow to digital from analog phones in the field of telecommunications, simplifies the end-number Network Solutions development process. Mobile phone will become a separate business, rather than just a network of "terminal" only.

Secondly, Nokia realized that the network may be fully digital reform. 70 years of the 20th century, due to limited financial resources and technical capacity, Nokia in the development of the first circuit-switched system can not even complete their own semiconductor design. When competitors are still around the development of large-scale computer circuitry and patented hybrid switch, the Nokia will start the help of the early Intel processor, developed around a small processor, modular design of the digital switch. Nokia's management than its competitors a better understanding of the digital means.

Zai understanding of these two major changes, and the company's benefit after Keneng, Nokia decided the following actions: Jinzao meet the pan-European digital GSM (global mobile communications) norms; Zhuan Zhu Yu GSM base station Kaifa European R & D alliance; Jijijianli with just Huodetexu the right to operate an independent mobile network operator cooperation.

Thus, when the GSM market in the early 20th century, 90 starts, Nokia has and a new operator (Finland's Radiolinja company) signed the first major single. This clearly shows that Nokia's early input is entirely correct. Nokia's new CEO Jorma Ollila (Jorma Ollila) began focusing on mobile communications. This means that Nokia is not only to give up traditional paper products, rubber and chemicals business (Nokia began in 1989 divestiture of these businesses, and ultimately in 1995 to split these operations tire company Nokia), also including computer operations (1991 sold to ICL-Fujitsu company) and consumer electronics business. Under the leadership of the Ollila, Nokia introduced the 1992 "Vision 2000" plan, should a telecommunications company into areas of high value-added products, global company. This is Nokia's future development lay a good foundation.

Nokia's in the 20th century, the strategic flexibility of the early 90s with the other two views (more like a personal opinion) are closely related. First of all, Nokia young management team have been playing inspired Mac computer - if the phone is user friendly and well designed, they also can become a mass consumer goods. However, when Nokia's competitors did not think so, in their view, the phone just the network "terminal" only. Subsequently, the Nokia user interface, product design (including a well-known design agencies in California to cooperate) and the brand has invested significant resources, so in the emerging mobile phone market, grab a head start, the consumer has won.

Secondly, Nokia believes that the establishment of subsidiaries around the world in emerging markets is not the only way to get the opportunity, this view is still inconsistent with the competitors. State-owned telecommunications monopoly, has proposed a condition - the need for local investment of Nokia, otherwise all transactions have no chance. But the newly licensed commercial operators do not have these requirements. Coincidentally, Nokia was one key executives are in a large European business school doctoral degree, he exactly is the object of study will be those from the early days of the new orientation in international business; also is writing another executive PhD thesis, to study international business process system, how to, without prejudice, while economies of scale and global integration, so that the localization of products to suit different needs. Their research for Nokia's rapid international expansion describing an important blueprint.

All in all, in the 20th century, early 90s, the flexibility of Nokia's strategy not only in the corporate level, also in the business sector level. Company-wide strategic flexibility allows easier flow of resources, but it still requires enterprises to maintain a unified leadership. As early as the late 80s in the 20th century, the market turmoil prompted Ollila will form their own management team. At this stage, strategies for enterprises to maintain a very high sensitivity.

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