Value Chain Analysis Group 12 – 3

Primary Activities Analysis Primary Activities Support Activities Support Activities Analysis Primary Activity ☑ Core Distinctive Value Cost Reduction Inbound Logistics ☑☑ Operations ☑☑☑☑ Outbound Logistics ☑☑ “We have the most efficient sourcing, logistics, manufacturing, and distribution of any company” – Rick Simonson, CFO Production is divided into two steps; the first being the basic components and the second being the process of adapting to country-specific needs. Improvements in logistics, sourcing and mass production lowered the price of a 1616 handset by two-thirds over five years.

Primary Activities Analysis Primary Activities Support Activities Support Activities Analysis Primary Activity ☑ Core Distinctive Value Cost Reduction Marketing and Sales ☑☑☑☑ Service ☑☑ Lower cost of production due to only offering a small number of standard models but also offering a high degree of software customization. The repair system is able to process over 500,000 repairs per month. 90% of which were returned within 24 hours. “Nokia is transforming from an engineering-centered company to a consumer-centered company” -Alex Lambeek, Vice President of Mobile Phones Marketing

Support Activities Primary Activities Support Activities Support Activities Analysis Support Activity ☑ Core Distinctive Value Cost Reduction Procurement Tech Development ☑☑ HRM Firm Infrastructure ☑ Nokia utilizes a unique approach to manufacturing and distribution that results in a highly customizable production phase as well as creates a product that is well below the industry standard in terms of price. “Efficient massive production and technology is what allows Nokia to be competitive in price-sensitive markets.” - Martti Salomaa, Senior Plant Manager

Analysis and Strategic Implications Support Activities Support Activities Analysis Primary Activities Heavy focus is being placed upon getting the product that the customer needs to market at an efficient and affordable pace. Unique and efficient methods of manufacturing and marketing have allowed Nokia to meet the needs of specific regions. While it seems that Nokia’s market share is diminishing in the higher end markets, their efforts have done nothing but increase the market share in the emerging markets.