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Business-Level and Corporate-Level Strategies: Nokia - Case Study Example

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This case study discusses the corporate-level and business-level strategies as well as the environment of competition of Nokia. Nokia stands out in the news for the sale of its handsets business to Microsoft, dramatically altering the business dynamics of the firm, its size, and the kind of strategies…
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Business-Level and Corporate-Level Strategies: Nokia
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Download file to see previous pages Nokia also stands out for the equally dramatic collapse of its business, from being the most dominant player in the mobile phone business, to a player whose debt had been reduced to junk, with dwindling and increasingly marginal shares of the total smartphone market, the collapse of its market capitalization and revenues, and its precarious cash and overall financial position. It had been reduced moreover into this state in just a matter of a few years, overrun by the current giants of the business in Apple, Samsung, and a host of new players in China and elsewhere making Android phones.

On the other hand, what remains of the firm after the sale of the handset business is considered to be formidable and promising in terms of spurring future growth and establishing Nokia on a more solid footing. Its patents portfolio is large and valuable and should be a source of stable revenues moving forward. Without the handset business, Nokia is expected to leverage its patents portfolio more to be able to squeeze more revenues from them. Two, its mapping business, dubbed Here, is solid and provides services that cannot be duplicated to Microsoft in its Windows Phone platform, as well as to a host of other parties, such as car manufacturers. Thirdly its network infrastructure business is a substantial source of revenues and is a major player in that space. Together these three remaining business segments are expected to restore Nokia to financial health and prominence moving forward (Google, 2014; Cheng, 2014; Lappin, 2014; Ricknas, 2014; Mick, 2014; Scott, 2014).

The literature tells us basically that there are two business-level strategies that firms can pursue, one is differentiation and the other is low cost-based business-level strategies. Variations of these two focus on specific parts of a market and then doing either a low cost or a differentiation strategy (QuickMBA, 2014; Gallagher, n.d.). For Nokia, there are several business-level strategies that are relevant to the discussion. ...Download file to see next pagesRead More
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