Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation Vision Statement

1.Introduction 2.Analysis 3.Alternatives 4.Recommendation 5.Implementation Table of Contents

Introduction How can Nokia Denmark modify its R&D strategies to most effectively meet the needs of consumers? IntroductionAnalysisAlternativesRecommendationImplementation

Population 401 million cells phones shipped in the fourth quarter of 2012 Economic Increasing middle class population Globalizations making interconnectivity more important than ever Societal Increased need for cell phones within the global society Increased desire for high-end products Technology Prevalence of smartphones in cellular industry Constantly evolving industry. IntroductionAnalysisAlternativesRecommendationImplementation

Strengths Well-defined R&D timeline and structure Streamlined value chain High creative opportunity Knowledge base in new technologies Early mover and established name in cell phone industry. Threats Decreasing market share Comparative strength of other firms in smartphone market Opportunities Increased demand for mobile phones Growth of population in developing countries Weaknesses Separation of development centers slightly redundant Reactionary corporate history Resistance to joint R&D from Nokia workers IntroductionAnalysisAlternativesRecommendationImplementation

New Entrants Industry Competitors Substitutes Moderate -Economies of Scale in R&D -Established base of worldwide competitors -Local Markets breed regional competitors -High -Electronic components require specialization -Prices dependent on supplier choice -High cost to switch suppliers -Strong -Mercy of consumer preferences -Brand preferences -Market volatility -Consumers can play brands off of each other -Few -Alternate product availability is limited -Nothing exists that provides the information power in the portability of a small component -Very Strong -Numerous competitors -Emergence of smartphone competencies in competitors -Other firms have experienced higher recent growth. Buyer PowerSupplier Power IntroductionAnalysisAlternativesRecommendationImplementation

Utilization of Core Competencies Camera Technology Customization Rich Innovative History Long Term Sustainability Increase Market Size Fiscal Feasibility. IntroductionAnalysisAlternativesRecommendationImplementation

Decision Gate Retain same JRD concept? YesNo Continue to pursue the smartphone market? Yes Focus on marketing Symbian to under-reached markets Restructure JRD to better optimize competency in camera and other technology areas No Retain competency in mobile phones & Nokia Siemens Network IntroductionAnalysisAlternativesRecommendationImplementation

Alternatives Alternative 1 Marketing Initiative Focus on marketing Symbian to under-reached markets Alternative 2 JRD Overhaul Optimization of competences in cameras and other technology areas Alternative 3 Exit Smartphone Market Retain competency in mobile phones & Nokia Siemens Network IntroductionAnalysisAlternativesRecommendationImplementation

Alternative 1: Advertising Initiative AdvantagesDisadvantages Room to increase in developing markets Smartphone market share dropped by 25% from Under-reached developed marketsCostly Lack of currently distinguished smartphone Poor long-term feasibility. IntroductionAnalysisAlternativesRecommendationImplementation

Alternative 2: JRD Overhaul AdvantagesDisadvantages Already leader in camera technologyInvolves a turn around strategy Introduce of new niche market Uncertainty of interest in advanced camera technology and design Protection against loss of further smartphone market share Other companies are not as focused on camera technology. IntroductionAnalysisAlternativesRecommendationImplementation

Alternative 3: Exit Smartphone Market AdvantagesDisadvantages Competence in mid-level phone Doesn’t address decreasing smartphone market share Popularity in low income markets Unpredictable future of non- smartphone market See preference for smartphone devices in developed countries. IntroductionAnalysisAlternativesRecommendationImplementation

Alternatives 1. Marketing Initiative 2. JRD Overhaul 3. Exit Smartphone Market Key Success FactorsWeight Utilization of Core Competencies * Long Term Sustainability Increase Market Size Fiscal Feasibility Totals. IntroductionAnalysisAlternativesRecommendationImplementation

Alternatives 1. Marketing Initiative 2. JRD Overhaul 3. Exit Smartphone Market Key Success FactorsWeight Utilization of Core Competencies * Long Term Sustainability Increase Market Size Fiscal Feasibility Totals IntroductionAnalysisAlternativesRecommendationImplementation

Alternatives 3: Joint Research and Design Overhaul. IntroductionAnalysisAlternativesRecommendationImplementation

Joint Research and Design Overhaul Short Term Relocate 5 Nokia Denmark Engineers to Foxcomm location to oversee R&D of lower tech firms Hire camera development expert team for Denmark location Conduct market research on niche technology needs Long Term Begin product release of innovated camera design on phone Initiate an all encompassing marketing plan emphasizing revolutionary camera concept to effectively target current markets and expand into under-utilized markets Begin other innovative research based on market research. IntroductionAnalysisAlternativesRecommendationImplementation

Relocate 5 Nokia Denmark Engineers to Foxcomm location to oversee R&D of lower tech firms Hire camera development expert team for Denmark location Conduct market research on niche technology needs 3 months 6 months 9 months 12 months 15 months 18 months. IntroductionAnalysisAlternativesRecommendationImplementation

Initiate an all encompassing marketing plan Begin product release of innovated camera design on phone Begin other innovative research based on market research 3 months 6 months 9 months 12 months 15 months 18 months. IntroductionAnalysisAlternativesRecommendationImplementation

. IntroductionAnalysisAlternativesRecommendationImplementation RiskProbabilityPlan Little room for improvement in mobile camera phone technology Low Re-evaluate Alternative 1 Nokia smartphone sales continue to sink High Look into selling camera technology Cell phone market sales overall decrease Low Consider focus on other electronics

Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation Vision Statement

Strengths Well-defined R&D timeline and structure Streamlined value chain High creative opportunity Knowledge base in new technologies Early mover and established name in cell phone industry Threats Decreasing market share Comparative strength of other firms in smartphone market Opportunities Increased demand for mobile phones Growth of population in developing countries Weaknesses Separation of development centers slightly redundant Reactionary corporate history Resistance to joint R&D from Nokia workers

Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation Vision Statement