Download presentation
Presentation is loading. Please wait.
1
Nokia Denmark
2
The Challenge Create a strategic plan for the evolution of our product development division
3
Analysis Alternatives Recommendation Implementation Table of Contents
PESTLE Porter’s Five Forces SWOT Analysis Value Chain JRD Analysis Financials Market Share Alternatives Recommendation Implementation .
4
pESTle Economic Highly competitive industry with several global players Worldwide spread of mobile telecommunications Social Growing popularity of smart phones and tablets Strong Brand Awareness Technological Constant introduction of new products High R & D efforts Analysis slide Enternal Analysis
5
Porter’s Five Forces External Anaysis New Entrants Suppliers Buyers
Low threat High cost barrier High brand identity High capital requirements Suppliers Buyers Competitive Rivalry High power High cost sensitivity High buyer concentration High buyer information Low product differences Low power Low differentiation of products Low cost relative to total purchase High importance of volume to supplier High rivalry High idustry growth High brand identity Low switching costs Moderate diversity of competitors Analysis slide Substitutes Low threat Low buyer propensity for substitution Moderate relative price performance External Anaysis
6
Value Chain Profit Margin General Administration Procurement
Quality of the strategic planning system to achieve objectives Coordination & integration of all value chain activities among all subunits Procurement Procedures for procurement of plant, machinery, and buildings Relationships with reliable suppliers Profit Margin Inbound logistics Soundness of material and inventory control systems Research & Development Success of R&D activities in leading to product & process innovations Ability of work environment to encourage creativity & innovation Manufacturing Effectiveness of production control systems to improve quality and reduce costs Productivity Appropriate automation of production processes Distribution Timeliness and efficiency of delivery of finished goods Efficiency of finished goods warehousing activities Marketing Extent of market dominance Effectiveness of market research Development of an image of quality and a favorable reputation Extent of brand loyalty among customers Analysis slide Internal Analysis
7
SWOT Analysis Opportunities Growing demand for telecommunications
Strengths Understand how to combine technological possibilities with commercial success* Integrated high-tech manufacturing and logistics Largest Nokia development centre outside Finland History of successful products and technologies Partnership with Microsoft Office * Distinctive competency Weaknesses Capacity issues Distance from outsourcing company Declining market share Opportunities Growing demand for telecommunications Growing market for smartphones Constant innovation Threats Strong competitive industry Reputation of outsourcer New industry replaces mobile technology Strengths Understand how to combine technological possibilities with commercial success* Integrated high-tech manufacturing and logistics Largest Nokia development centre outside Finland History of successful products and technologies Partnership with Microsoft Office * Distinctive competency Weaknesses Capacity issues Distance from outsourcing company Declining market share Opportunities Growing demand for telecommunications Growing market for smartphones Constant innovation Threats Strong competitive industry Reputation of outsourcer New industry replaces mobile technology Strengths Understand how to combine technological possibilities with commercial success* Integrated high-tech manufacturing and logistics Largest Nokia development centre outside Finland History of successful products and technologies Partnership with Microsoft Office * Distinctive competency Weaknesses Capacity issues Distance from outsourcing company Declining market share Opportunities Growing demand for telecommunications Growing market for smartphones Constant innovation Threats Strong competitive industry Reputation of outsourcer New industry replaces mobile technology Strengths Understand how to combine technological possibilities with commercial success* Integrated high-tech manufacturing and logistics Largest Nokia development centre outside Finland History of successful products and technologies Partnership with Microsoft Office * Distinctive competency Weaknesses Capacity issues Distance from outsourcing company Declining market share Opportunities Growing demand for telecommunications Growing market for smartphones Constant innovation Threats Strong competitive industry Reputation of outsourcer New industry replaces mobile technology Analysis slide Internal / External Analysis
8
Foxconn JRD Started in 2007 due to capacity burdens at Nokia Denmark
Previous supplier of electronic components Worlds largest manufacturer of electonic components 920,000 employees Experienced in optimization of product development processes Advantages Relevant knowledge and expertise Experience in optimizing product development processes Helped Nokia engineers reduce product development time by 6 months Disadvantages Large internal resistance among Nokia engineers Need to micromanage entire process High expenditures due to the education of Taiwanese engineers Controversial treatment of employees Analysis slide Analysis
9
Financials Analysis
10
Market Share Analysis
11
Entrepreneurial Spirit
Key Success Factors Potential Growth Entrepreneurial Spirit Highly decentralized and organized to encourage creativity, entrepreneurship, and responsibility Mission Statement “Empower everyone to share and make the most of their life by offering irresistible personal experience” Ease of aligning projects with organization Financial Justification Analysis
12
Alternatives Alternative #1 Scale-up JRD with Foxconn Alternatives #2
Phase out JRD with Foxconn Alternative #3 Continue parallel organizational structure Analysis slide Alternatives
13
Alternatives Alternative Advantages Disadvantages
Scale-up JRD with Foxconn Enable focus on creativity Lack of control Necessity for micromanagement Phase out JRD with Foxconn More control Financially justified Highly integrated value chain Reduces possible information loss Increased capacity requirements Continue parallel structure No increase to capacity requirements Little growth potential Analysis slide Alternatives
14
Analysis Weighted Competitive Strength Analysis Ranking Scale
Alternatives Scale up JRD with Foxconn Phase out of JRD with Foxconn Continuation of Parallel Structure Key Success Factors Rating Rank Total Potential Growth ,25 4 1,00 3 ,75 Entrepreneurial Spirit 1 5 1,25 Mission Statement ,20 2 ,40 ,60 Ease of aligning projects with organization Financial Justification ,10 ,30 1.0 1,95 4,05 2,60 Ranking Scale The alternative does not effectively address this criterion. The alternative may contribute to addressing this criterion. The alternative provides an average solution to this criterion. The alternative provides an above average solution for this criterion. The alternative effectively addresses this criterion. . Analysis
15
Phase out Joint Research & Development agreement with Foxconn
Recommendation Alternative #2 Phase out Joint Research & Development agreement with Foxconn Recommendation
16
Phase out JRD agreement with Foxconn
Recommendation Phase out JRD agreement with Foxconn Reduce number of mobile phones developed each year Concentrate in growing smartphone market share Cultivate partnership with Microsoft Continue innovation in-house Recommendation
17
Market Share % Implementation
18
2009 2010 2020 Future Market Smartphones & High-end Mid-priced Low-end
Smartphones 53,9 Million (38,6% captured) Mid-priced Low-end 2010 Smartphones 100,9 Million (28,0% captured) Mid-priced Low-end 2020 Smartphones & High-end Mid-priced Low-end Recommendation
19
Short-Term What Who Implementation Establish plan for phasing out JRD
Executive Staff Determine and cut product focus to fewer devices Board / Executive Staff Bring back priority items from Foxconn Entire staff Implement company image mitigation Public Relations Relocation of ex-patriot employees HR / Management Cut in-house items according to strategic plan Coordinate precise approach to cultivate Microsoft partnership Executive Staff / Management Analysis slide Implementation
20
Short-Term Implementation 1 month 3 month 6 months 9 months 1 year
Establish plan for phasing out JRD Determine and cut product focus to fewer devices Bring back priority items and phase out Foxconn Implement company image mitigation Relocation of ex-patriot employees Cut in-house items according to strategic plan Coordinate precise approach to cultivate Microsoft partnership Milestone Review Implementation
21
Long-Term What Who Implementation
Evaluate/create plan to incorporate services into devices Product Development Market to emerging markets Marketing Evaluate utilization of mobile technology and tablets Product development Implement mobile/tablet strategic plan Entire staff Phase out products with small market share Continue innovation into new products Analysis slide Implementation
22
Long-Term Evaluate/create plan to incorporate services into devices
1 year 2 years 3 years 4 years Evaluate/create plan to incorporate services into devices Market to emerging markets Evaluate utilization of mobile technology and tablets Implement mobile/tablet strategic plan Phase out products with small market share Continue innovation into new products Milestone Review Implementation
23
Mitigation/Contingency
Contingency Plan Risk Level Mitigation/Contingency Foxconn refuses to continue supplying components Low Switch suppliers Unable to meet capacity Moderate Expand capacity Continue research into process improvements Lack of skilled workers Establish internship program Expand training program Analysis slide Implementation
24
Mitigation/Contingency
Contingency Plan Risk Level Mitigation/Contingency Foxconn refuses to continue supplying components Low Switch suppliers Unable to meet capacity Moderate Expand capacity Continue research into process improvements Lack of skilled workers Establish internship program Expand training program Analysis slide Implementation
25
Mitigation/Contingency
Contingency Plan Risk Level Mitigation/Contingency Foxconn refuses to continue supplying components Low Switch suppliers Unable to meet capacity Moderate Expand capacity Continue research into process improvements Lack of skilled workers Establish internship program Expand training program Analysis slide Implementation
26
Phase out Joint Research & Development agreement with Foxconn
Recommendation Phase out Joint Research & Development agreement with Foxconn .
27
Nokia Denmark
Similar presentations
![Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation.](/15/4783490/big_thumb.jpg "Redhawks Consulting Nokia Denmark “Empower[ing] everyone to share and make the most of their life by offering irresistible personal choices.” - Nokia Corporation.>")
