Nokia Case

 Nokia Circumstance Essay

Exactly what are the trends in the cellular handset industry? What is Nokia's strategy and how has globalization changed it is way of procedure? Trends:

· Demand for cell phones in US and The european countries are lessening

· High demand for cheaper phone versions in Central East, Southeast Asia, Africa, China, India

o Low-cost handsets=reduced Average Selling Price

u Growing marketplace for $25 and $10 phones

· Companies going manufacturing plants to low-cost Parts of asia

* Increasing cost levels

* weak prices

2. higher competition

Nokia's approach and the positive effect:

· Preserve large business and financial systems of size

o Strong brand, source chain efficiency, dominant placement in growing markets, figure out consumer requirements and provide mobile phones that meet needs (phones less than 50 dollars to advanced phones w/ satellite nav and email

· Switch production to low-cost locations. Have selected locations source specific markets

o Finland, Germany, Hungary plants supply Europe, Middle East, The african continent

o Brazil and Mexico plants supply North and South America

to China, India, S. Korea plants source China and Asia-Pacific

improved competition as a result of globalization, people can sell anywhere

take advantage of a country' assets (cheap labour, human mind, lower fees etc . )

take advantage of a country's much less strict labour laws (ex. child labour)


Was the German backlash against Nokia justifiedadd your personal opinion? How can nations help to make themselves more competitive?

· New grow developed is always to maximize outcome in development to The european countries, Middle East and The african continent

· Other manufacturers (ex. BenQ [bankrupt], Motorola) dismantled their operations pertaining to competitive benefits

o Opponents who use outsourcing for will possibly destroy the business in the future, if perhaps no procedures were considered even the big profitable corporations will suffer in the long-run...

Bibliography: International Administration: Managing Throughout Borders and Cultures, Textual content and Instances (7th Edition) Helen Deresky

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