Presentation Transcript
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