The Nokia Case
Transcript of The Nokia Case
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Nokia Corporation
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• History and background of
• Business strategy
• Supply chain strategy
•Order winners and order qualifiers
•The overall supply chain (players and complexity)
Agenda
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How does Nokia perform its supply chain strategy to
succeed in the telecommunication market?
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Brief history and background
1865
Founded by Fredrik Idestam as a paper mill
1871
“Nokia” is set as the company name
1982
Start of phone production •telecommunications
• consumer electronics
• rubber and cable
1992
Focus on telecommunication business
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Business Strategy
Mission statement
Connecting People
enable billions of people everywhere to get more of life’s opportunities through mobile.
Business Strategy
•Plans for a broad strategic partnership with Microsoft to jointly
build a new winning mobile ecosystem.
•connect ”the next billion” to the Internet in developing growth markets
•Focused investments in next-generation disruptive technologies
•clear focus on speed, results and accountability
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Business Strategy
Targeted customers Nokia serves all major market segments (with different types of products)
Competitive advantage
• Manufacturing expertise,
• several first mover advantages,
• Links with other firms (Philips),
• Economies of scale and scope
Core Competencies
Manufacturing of mobile phones and telecommunications devices
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Supply Chain Strategy
Four performance dimensions
• quality
• time
• flexibility
• cost
decision by firm to emphasize one performance dimension over another
Stages of alignment with the business strategy
The operations and supply chain areas participate in the strategic debate. Mgt. recognizes
that the operations and supply chain structural and infrastructural elements must be
aligned with the business strategy.
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Order qualifiers – Order winners
Order qualifiers
•Set and meet technological standards
•Acceptable level of reliability
Order winners
•Quick and cheap manufacturing
•High flexibility
Supplier perspective End consumer perspective
Order qualifiers
•Possible to connect with other people
•Good quality and design
Order winners
•Superior quality and design
•Use of innovative technologies
•Customization
•Environmental friendly
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The Overall Supply Chain
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Plan
Devices
Service
Nokia/Siemens
Navteg
1st Stage 2nd Stage
Direct Supply
Indirect Supply
Customer
Source
Make Deliver
The Overall Supply Chain
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Plan
Plan
Manufacturing 1 Manufacturing 2 Supplier A Customer
Intra Supply Chain
Inter Supply
Chain Source Make Deliver
The SCOR model
Supplier B
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Nokia‘s Supply Chain
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Conclusion
Sustainable efforts seemed promising but multiple factors have to be considered
(changes in technology, demand, competition etc.)