1. MOR 559 – Strategic Renewal: Discussion Questions University of Southern California ©2000, Michael A. Mische GLOBALIZATION & TRANSNATIONALISM: Case Discussion Nokia

2. MOR 559 – Strategic Renewal: Discussion Questions University of Southern California ©2000, Michael A. Mische Nokia… A Global Communications Leader 1.In 1996, the cornerstone of Nokia’s strategy was to become more global.  Discuss the particular attributes of this strategy.  What were some of the action steps that Ollila took and why were they successful?  To what extent was Nokia an imitator? 2.What was Nokia’s strategy with respect to technology standards and how did this strategy affect its industry position?  Was Nokia an early adopter?  What is the impact of CDMA?  What types of strategies can Nokia expect from Japanese wireless manufacturers? 3.What factors led to the turnaround of Nokia?  What type of leadership qualities did Ollila bring?  What type of company history and corporate culture did he inherit?  What technologies did Nokia use to transform the company? 4.You are attending a BOD meeting; what questions do you ask the BOD and the senior officers with respect to:  The identity and quality of growth markets; what’s changing and why?  The importance of branding?  The future of 3G technology?  Impact on profit margins?

3. MOR 559 – Strategic Renewal: Discussion Questions University of Southern California ©2000, Michael A. Mische Nokia… A Global Communications Leader 5.What are the major competitive threats confronting Nokia and how should Nokia position itself to best address these threats? Compare Nokia to Kodak. 6.To what extent is culture important to Nokia?  What are the salient attributes of Nokia’s culture?  What parts of Nokia’s culture will most likely change?  What “problems” can be created by the culture that a new CEO would face? 7.Looking into the future (2005), can you discuss any similarities between the competitive pressures confronting Kodak in the 1990s and early 2000s with Nokia?  What are they?  How relevant are they?  To what extent are they similar? 8.In the light of our previous discussion of the computer industry (Dell & IBM), compare and contrast the trends and future/possible developments in the mobile communications industry?  Do you foresee any similarities with respect to product commoditization and shifts in product/service value in the mobile communications industry?  What do you expect to be the sources of differentiation and competitive advantage in the future mobile communications market?  What strategies and competencies should Nokia pursue/develop to achieve such competitive advantage over its competitors? 9.Once having an opportunity to acquire Nokia, its competing “neighbor” Ericsson now has about 1/3 of the US mobile phone market (E-11%, N-30%). Discuss the key differences between the strategic decisions, strategies and competitive actions implemented by these companies that led Nokia to global leadership and put Ericsson to a follower position?