Evaluating Internationalization and Business Strategy of Nokia - Essay Example

?Select One of the Locations of the Assigned Multinational Corporation (NOKIA) and Discuss It In Terms Of the Form of Its Internationalisation and Business Strategy, By Using the CSA-FSA Matrix Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Form of its Internationalisation and Business Strategy by CSA-FSA Matrix 6 3.0 Conclusion 10 References 11 Bibliography 14 1.0 Introduction Nokia is regarded as one of the largest manufacturer of cellular devices in the world. It has been much successful in “connecting people” throughout the world. Headquarter of Nokia is in Finland and it has become the icon of the nation. The company has covered 40% of global market. Their main focus is to innovate products by pioneering GSM (Global System for Mobile Communications) and by reinventing the model of product personalisation in order to keep constant growth in the market. The main aim of the company is to maintain the position in the world in spite of huge competition from both Google as well as Microsoft. They have a strong brand with which they may have great future plans. The company is offering excellent service and comprehensible software to the billions of customers along with operators in the world (Nokia, n.d.). The new strategies have been developed by the company which are related to the transformation of operational structure along with leadership in order to facilitate the company to accelerate in competitive environment. Their main strategies include developing a new wining ecosystem of mobile they have intended to make a strategic partnership along with Microsoft. They have developed the strategy to make investment in the disruptive technologies of subsequent generations. To make a good focus on result, accountability as well as speed, they build an effective organisational structure along with efficient leadership team (Nokia Connecting People, 2011). The company is concerned with developing, manufacturing as well as designing of communication devices. They offer internet service in order to facilitate various facilities such as video, music, and games to the users. The company operates in three reportable segments which include ‘Devices and Services’, ‘Nokia Siemens Networks’ and ‘NAVTEQ’. Devices and Services consist of Multimedia, Enterprise Solutions and Mobile Phones. Under NAVTEQ, it provides services and digital maps related information along with location based content (Docstoc, 2010). In 1985, Nokia first started its operation in Australia with a view to build the telecommunication network of the country. Nokia Mobile phones were first used by Australian customers in the year 1993. In 2000, Nokia Internet Communications began its operations with the purpose of providing products for internet security along with solutions for ventures. In Australia, the company has gained wonderful success with its developed brand and became the market leader with its mobile technology, network infrastructure as well as services and products of the enterprise. The company also achieved ‘National Best Employer’ of “Best Employer to Work for in Australia Awards” in 2002. The new technologies with its Future Lab facility are also developed in Sydney. The Future Lab is a mutual project between Nokia and Optus which has been designed in order to develop mobile technologies, applications and services and then delivery to the market. Besides these Nokia Australia participates enthusiastically in the community with a view of supporting numerous charities. They are also involved in participating in Land Care; as well as Coast Care initiatives in Australia (Nokia Connecting People, 2011). In Australia, Nokia Australia Pty Limited is recognised as a ‘foreign owned private company’. It is a wholly-owned subsidiary of the Nokia Corporations. It’s headquarter is located in Pyrmont in New South Wales. Nokia Australia Pty Limited offers various products as well as services. The mobile devices which include phones along with accessories are sold and marketed to both domestic as well as business consumers. The popular brands of Nokia which are available in the country are N97, X6 and E8. The services are provided for the repairs and maintenance of all branded products and related software of Nokia (IBIS World, 2009). 2.0 Form of its Internationalisation and Business Strategy by CSA-FSA Matrix The multinational companies enter the foreign market in order to expand the business. A multinational company such as Nokia entered the market of Australia to expand its Firm Specific Advantages (FSA) and Country Specific Advantages (CSA). FSA are owned by the firm which is related to the internalisation of assets such as technology, knowledge and managerial along with marketing skills. CSA are related to natural resources such as minerals, forest and energy as well as labour force and cultural factors. The company develop strategies to create interaction between FSA and CSA and as a result the company can be positioned in an exclusive strategic space (Rugman, 2007). Nokia use huge supply, logistic system as well as network with the purpose of producing phones in various nations and efficient delivery system of input to various continents throughout the world. Technology based company such as Nokia continuously require just-in-time systems with an intention to rapidly respond to the changes in its supply network. This is owing to the requirements of the changing technology along with development of the product which has been taken in the value chain (Tornroos, n.d.). The company while entering the Australian market collaborated with a local manufacturer and made its entry. A part of the products are manufactured in Australia to sell it in local market. For accessing in the market, collaboration is much essential as it assist to enter the market of mobile and network technology. This is the only way to sell the products in international market (Dittrich, n.d.). Nokia Australia Pty Ltd maintains National Packaging Covenant, Product Stewardship Principle and Environmental Code of Practice for Packaging. By becoming a participant, the company focuses toward industry funding arrangements to help in attaining Covenant targets. Nokia Australia Pty Ltd has sourced 25 per cent of energy from green energy and predicted to enhance its quantity in future. Nokia has proposed a take-back in addition to recycling service strategy to its network customers. They also offer take-back strategy of mobile devices throughout its service centres all over the country where Nokia perform its operations. Nokia has been involved in the development as well as operation of the ‘Mobile Muster program’ in Australia for collecting and recycling of mobile phones and its accessories. In Australia a charge of 30 cents has been enforced on every mobile handset which was sold to that region and assist fund Mobile Muster’s 1,700 drop off points around Australia. The major challenge of Mobile Muster is to make certain that high number of consumer comes back for recycling of products. In spite of this challenge, the program has also assisted to collect above 630,000 handsets and more than 1.68 million batteries (Australian Packaging Covenant, 2010). Source: (Emerald, 2008). Quadrant 1, 2, 3 and 4 possess different strategies in this matrix. In quadrant 1, the firms generally belong to cost leadership category and are based on resource and are matured. FSA are less valuable in this quadrant and energy cost of CSA is important for the competitive advantage of the firm. Quadrant 2 is inefficient, they do not possess definite strategy and FSA and CSA are also not important. Quadrant 4 possesses strong FSA then CSA and the firm in this quadrant have strong brand name. In quadrant 3, the firm can develop any of the strategies of all these quadrants because both FSA and CSA are important and efficient (Rugman, 2007). Nokia is placed in quadrant 3 because of its strong firm strategic advantage such as technological abilities and strong IT infrastructure and corporate strategic advantages. 3.0 Conclusion From the above discussion, it has been observed that Nokia, due to its growth and expansion in the global market, has adopted various strategies. Their mission is simple just related to “connecting people” but in order to fulfil this simple mission they have adopted and implemented effective business strategies. In this study, it has been discussed about the business market of Nokia in Australia and their various strategies. It has been found that in Australia Nokia has achieved tremendous success and by their efficient operations they have become the market leader in their business segment. References Australian Packaging Covenant, 2010. Environmental Management Practices. National Packaging Covenant Action Plan for Nokia Australia Pty Ltd. [Online] Available at: http://www.packagingcovenant.org.au/documents/File/AP_Nokia_06_10pdf.pdf [Accessed March 18, 2011]. Dittrich, K., No Date. Nokia’s Strategy Change: A Case of Open Innovation. Nokia’s Strategic Change by Means of Alliance Networks. A Case of Adopting the Open Innovation Paradigm. [Online] Available at: http://www.impgroup.org/uploads/papers/5672.pdf [Accessed March 18, 2011]. Docstoc, 2010. Nokia Corporation- Company Overview. Nokia Corporation: SWOT Analysis and Company Profile. [Online] Available at: http://www.docstoc.com/docs/72368630/Nokia-Corporation-SWOT-Analysis-and-Company-Profile [Accessed March 18, 2011]. Emerald, 2008. The International Competitiveness of Asian Firms. Journal of Strategy and Management. [Online] Available at: http://www.emeraldinsight.com/journals.htm?articleid=1742625&show=html [Accessed March 18, 2011]. IBIS World, 2009. Nokia Australia Pty Limited. Where Knowledge is Power. [Online] Available at: http://www.ibisworld.com.au/enterprisefull/default.aspx?entid=5453 [Accessed March 18, 2011]. Nokia Connecting People, 2011. Nokia in Australia. Company. [Online] Available at: http://www.nokia.com.au/about-nokia/company [Accessed March 18, 2011]. Nokia Connecting People, 2011. Vision and Strategy. Company. [Online] Available at: http://www.nokia.com/about-nokia/company/vision-and-strategy [Accessed March 18, 2011]. Nokia, No Date. Profile Nokia. Innovation Leaders. [Online] Available at: http://www.innovationleaders.net/nok_company_profile.html [Accessed March 18, 2011]. Rugman, A. M., 2007. Theory: The FSA/CSA Matrix of MNEs. Multinational Enterprises from Emerging Markets. [Online] Available at: http://www.g8.utoronto.ca/conferences/2007/rugman2007.pdf [Accessed March 18, 2011]. Tornroos, J. A., No Date. The Role of New Technological and Systemic Change in Distribution and Logistics. Challenging Internationalisation Theory: Some New Trends forming the International and Global Business. [Online] Available at: http://www.impgroup.org/uploads/papers/127.pdf [Accessed March 18, 2011]. Bibliography Horn, S. S. & Et. Al., 1999. The Dynamics of International Strategy. Cengage Learning EMEA. Hjorth, L., 2008. Mobile Media in the Asia Pacific: Gender and the Art of Being Mobile. Taylor & Francis. Lindholm, C. & Et. Al., 2003. Mobile Usability: How Nokia Changed The Face Of The Mobile Phone. McGraw-Hill Professional. Mourdoukoutas, P., 2006. 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