Scheme is a construct used by companies in order to non merely keep competitory advantage over challengers within a competitory industry but besides to give the administration a end or “ overruling purpose in line with the values or outlooks of stakeholders. ” ( Scholes & A ; Whittington, 2008, p. 9 ) . With this in head it is possible to research how the nomadic phone maker Nokia aims to make and keep an advantage over rival companies within a extremely competitory, technologically goaded market. As Nokia operates within a fast moving consumer goods market it is indispensable that it answers the demands of consumers to guarantee future possible and create chances, in consequence making a way in which the company can direct itself towards with its merchandises and services.
Nokia is Finnish Telecommunications company which has branched off into assorted industries the most important being the telecommunications industry during the 19 1880ss. The ground for the displacement was due to the acquisition of the company by International Computers Limited ( ICL ) which created a more focussed attack with respects to Nokia ‘s merchandise portfolio ( Mayo & A ; Hadaway, 1994 ) . From this strategic confederation, the parent company ( ICL ) was able to place Nokia as one of the market leaders in the telecommunications industry ( Nokia, 2009 ) .
Technological progresss have meant that companies within the nomadic phone sector, such as Nokia are now able to supply a huge array of services through their nomadic phone French telephones ; besides innovative promotions have enabled companies to keep a competitory advantage ( Carral & A ; Kajanto, 2008 ) . The promotion in engineering has enabled companies to develop package for French telephones which can be used in mundane scenarios for illustration package on a French telephone that can read barcodes at a supermarket leting the consumer to go wholly independent as to how they shop ( Ramnarayan, 2009 ) . The alteration in consumer attitudes and the application of engineering agencies that companies will be more inclined to listen to the demands of consumers, in consequence altering the manner the market operates.
To analyze the macro environment of Nokia the “ PESTEL ” analysis model will demo what factors influence the manner in which the company operates within a peculiar market, in this instance the telecommunications sector ( Johnson, Scholes & A ; Whittington, 2008, p. 55 ) . The overview will foreground factors such as political issues which in bend may make ethical concern due to the nature of manner in which the company has been runing.
It is evident from the PESTEL analysis that the engineering produced by Nokia has Political applications, as the company has supplied the Persian Government with French telephones that can be monitored, in an effort to better security in the state ( The Dark Side, 2009. Appendix A1/ A1.1 ) hence if foreign authoritiess are willing to put in the engineering manufactured by the company it shows that there is a planetary niche market available to the company. The current recession has put force per unit area on companies and the manner in which they operate within markets, one manner in which Nokia has been able to counter this is by using its relationship with consumers ( Appendix 1.3 ) hence making merchandises which in some instances, can be alone and built for a peculiar intent utilizing a feedback cringle from its consumer based cognition.
The services offered to consumers have been supported by Third Generation ( 3G ) Networks which have allowed services and package to be consumed whilst connected to a “ Wifi ” connexion ( Why the hereafter is in your custodies, 2008 ) . However investing in the engineerings next stage or Fourth Generation Networks ( 4G ) are set non merely to turn to jobs with the Third Generation Networks but besides to be able to manage new applications for the Fourth Generation Mobile phones ( Forge, 2004 ) . The benefits to companies such as Nokia are that alone user created content can so be distributed amongst the web and consumed by other consumers.
The singularity of the merchandises are that the package used in the merchandise is tailored for a intent, i.e. consumers are trusting on package to keep contact with societal networking sites such as Facebook and Myspace ( Appendix A1.3 ) as a consequence the phones produced by Nokia now have integrated applications. In concurrence with this, it has been identified that consumers are in fact still willing to put in engineering during a recession ( Stewart, 2008 ) . The outgrowth of the new markets are yet to be utilized nevertheless rivals are demoing marks of ill will for illustration Apple stated copyright violation by Nokia ( Nokia clashes with Apple, 2009 ; Apple and Nokia ‘s conflict hots up, 2009 ) this may hold deductions on how rivals perceive Nokia i.e. they may non see strategic options such as a strategic confederation so readily as keeping the market portion gained will be a companies chief nonsubjective.
The company should keep a argus-eyed mentality on the environing environment as engineering is invariably altering and with it so make the markets ( Marlin, Hoffman & A ; Lamont, 1994 ) . As stated above keeping a relationship with its consumers could give the company an advantage and a agencies to bring forth a merchandise that consumers are willing to put in. The manner in which Nokia has created a relationship in the sense that it provides merchandises and services that consumers will put in, has been achieved through Nokia ‘s Differentiation scheme. Nokia has created merchandises that have revolutionised the market i.e. Nokia ‘s “ N-Gage ” service, which allowed consumers to download applications such as games and pictures via the cyberspace to their nomadic phone. Dasgupta and Sanyal ( 2009 ) argue that if a house or administration is to win for illustration in the fast moving mobile phone market so the house must be connected to its consumers via webs ( Appendix, B1.1 ) .
The connexion between the administration and its consumers has provided the company with an advantage in that it can impart the information it additions into its internal operations ( Appendix D ) . However the procurance of licences and the cost to implement such a extremist engineering for the new 4G nomadic phones, may impede rival ‘s velocity of entry into the market ( Forge, 2004, pg. 13 ; Appendix E ) . Therefore Nokia as a consequence will derive individualized informations from its consumers that will let the company to orient its new 4G webs to accommodate the consumer. Distribution of the merchandises will be more direct as a consequence of the new web in consequence lowering costs as consumers will be able to entree stuff more easy than on the 3G Networks. Besides Human Resource Departments will be able to construct a more individualized image of the consumer, for illustration if a consumer hunts for a specific merchandise via the 4G Network the company could “ text ” the consumer the latest offers for merchandises related to that class or a more individualized message could incorporate video messages. This may do ethical concern as the consumer may comprehend this as an invasion of privateness or torment.
As the companies chief purpose will be to fulfill its stakeholders for illustration through marketing a new merchandise in order to excite demand and hence create ingestion ( Carrigan, Marinova & A ; Szmigin, 2005 ) . Due to the cultural variegation of the stakeholder base the distribution of advertisement will hold to be monitored and scrutinised in order to keep positive public dealingss ( Juholin, 2004 ) therefore the company may see developing a division within the administration to supervise issue that may happen and besides to supervise user made content which in some instances may pique for illustration certain consumers due to the content. The nature of the market may besides endure another alteration in demand and hence Nokia may besides necessitate to make for illustration a forum online where consumers can discourse their thoughts. From this Nokia will be able to find whether a new tendency will happen within the market ( Appendix E, Threat of Substitutes ) the administration can see a eventuality program and whether they have the resources to fulfill the new demand.
Nokia would be angled towards a focussed distinction scheme with relation to Bowman ‘s Clock ( Appendix F ) if the administration were to angle its attempts towards user created content. As demand has already been stimulated for the content its advertisement would non hold to be as intense and as a consequence thrust down costs. Rivals such as Apple are held within three on Bowman ‘s Clock due to their premium position and the cost of the unit itself, nevertheless Apple are still utilizing and implementing user created content within their services and Nokia could therefore under cut premium merchandises with merchandises and services that are non every bit expensive to implement and keep.
Nokia may be able to consolidate its place in the current market nevertheless it has already been highlighted that the market does non hold consistent tendencies and it is hence unwise for the administration to see consolidation of its place as a long term scheme. Technological progresss will besides intend rivals deriving an advantage which will take clip to retrieve, besides run outing on resources which in the current economic clime the company may non be able to prolong. Consolidation should be considered as a short term scheme that will let the company clip to plan and bring forth a merchandise or service to be used in concurrence with the new “ 4G ” Networks in consequence planning what the hereafter may keep with respect to demand.
Taking advantage of the new engineering will let the administration to hold first mover advantage in the market and rapidly determine whether the services are capable of fulfilling demand, this could be achieved by short market trials in the signifier of studies and pilot trials for the merchandise in order to derive first manus experience and besides what consumers first feelings are.
A concluding strategic option for Nokia could be a strategic merge with a company of similar corporate values, so that a merge can be carried out more successfully. A company Nokia could theoretically unify with is Research In Motion who are the market leaders in concern engineering and bring forth the “ Blackberry ” Mobile phone. Research In Motion angle their merchandises and services towards the concern market and a merge with this company would let Nokia entree to a mature market in comparing with earlier merchandises which were angled towards consumers for illustration its “ N-Gage ” bet oning service. The merge would signal the beginning of a more reputable merchandise and as a consequence Businesses and besides Governments would be more willing to put in the engineering. The administration has shown that it can supply a high quality service to consumers, therefore it may be able to orient a service to accommodate demand from a mature market in consequence following a focussed scheme.