Finland and Nokia

Finland and Nokia : 

Finland and Nokia An analysis

Finland : 

Finland From a sleepy Country in 1990, Finland won the top spot from US in 2000 on Competitiveness The reasons for the above are: The Government formed councils, agencies and forums to become competitive The Government shifted its focus from pulp, paper and machinery to forming telecom clusters Framed policies with a philosophy of ‘minimum interference’ The Government kept on increasing spends on R&D Deregulated the financial market to attract international capital

Nokia : 

Nokia Evolved from being a pulp and paper company to a telecom giant Focused on 3 key verticals after scaling down a very diversified business group Networks Phones Ventures Expanded its R&D facilities to 14 Countries Production facilities to 9 Countries Got listed in about 6 Countries Innovation became the key to business

What happened to Finland or/& Nokia? : 

What happened to Finland or/& Nokia? Shortage of skilled labor Its current export markets are declining It was not an attractive destination to attract foreign students The launch of PDAs Parallel development in other communication industry as both Nokia and Finland did not have a diversified communication outlook

So what should Nokia do? : 

So what should Nokia do?

Porter’s Diamond Frame work : 

Porter’s Diamond Frame work

Porter’s Diamond Frame work : 

Porter’s Diamond Frame work Firm Strategy, Structure and Rivalry Competitive and an open market with multiple players Export oriented market Part of EU Relationship with neighbors Factor Conditions Investment in education Formation on clusters basis necessity Policies framed to favor competitiveness and innovation Uniform market Related and Supporting Industries R&D facilities Educational institutes Financial and Banking sector Content providers Network manufacturer Specialized industries Demand Conditions Wireless telephony Extreme weather conditions High per capita income High level of literacy EU – One market - Roaming

Porter’s Diamond Frame work : 

Porter’s Diamond Frame work Government Cultivated an open economy Initiated clusters to drive the relevant businesses Invested heavily on R&D Education Deregulated financial markets to keep capital available always Revisited policies to stay relevant and competitive from time to time Chance – Future Not mobiles but Fashion accessories Emergence of GSM Emergence of mailing services and multimedia Work closely with both computer hardware and software companies to Complement laptops or Replace laptops Focus on games Technology to fuse ipods, play stations into phones Stay focused on investments in R&D and education. Setup R&D facilities and Education institutes in emerging Countries Actively expand operations and manufacturing in emerging Countries

Connecting People : 

Connecting People Finland Nokia World