Table of Contents Introduction ............................................................................................................................................ 2

1. Competitive analysis of Apple and Nokia ....................................................................................... 3

1.1. Objectives................................................................................................................................ 4

1.1.1 Vision and mission statements ....................................................................................... 4

1.1.2 Impact on strategy .......................................................................................................... 5

1.2 Assumptions held by the leadership of both companies ........................................................ 7

1.3 Beliefs about its competitive position .................................................................................... 8

1.4 Past History ............................................................................................................................. 8

1.5 Industry Trends ....................................................................................................................... 9

1.6 The strategic capabilities of both companies ....................................................................... 10

1.6.1 Apples Strength ............................................................................................................ 11

1.6.2 Apples Weakness ......................................................................................................... 11

1.6.3 Nokias Strength ............................................................................................................ 11

1.6.4 Nokias Weakness ......................................................................................................... 11

1.7 Strategies being employed by both companies .................................................................... 12

1.7.1 Apples strategy ............................................................................................................ 12

1.7.2 Nokias strategy ............................................................................................................. 13

1.8 Analysis and Conclusion ........................................................................................................ 14

2 Problems with predicting how the market and the competition will change over the next few years and its implications for strategy development ........................................................................... 15

2.1 Macro Environment .............................................................................................................. 15

2.1.1 Political Challenges ....................................................................................................... 15

2.1.2 Economic challenges ..................................................................................................... 16

2.1.3 Social Challenges ........................................................................................................... 16

2.1.4 Technological Challenges .............................................................................................. 16

2.2 Implications for strategy development ................................................................................. 16

3 Lessons that can be learnt from Apples strategies ...................................................................... 17

3.1 The benefits of learning from ones failure ........................................................................... 17

3.2 The ability to take risk through innovation ........................................................................... 18

3.3 The benefits of understanding your consumers and their needs ......................................... 18

3.4 The benefit of having a keen eye for opportunities ............................................................. 19

4 References .................................................................................................................................... 20

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Introduction

The recent trends in the increasing competitiveness of the global market place with its

accompanying threats to the survival of many industries has forced several managers to

rethink the way they do business. There has been a paradigm shift from the yester years

philosophy where by apart from the recurring operational level planning for finances and

basic forecasting, strategic management was relegated to the bench on most corporate

level discussions on growth and success to a modern thinking where most managers now

consider strategic management as an effective weapon in their arsenal for securing

sustainable competitive advantage in their operational markets. The rise and fall of many

businesses either through very good effective strategies or through a deficiency in

sustainable strategy only go to reiterate this point further. In order to fully comprehend the

many benefits of strategic management it is necessary that we understand what the

concept means.

Strategic management in its basic form comprises of the many intended and emergent

initiatives taken by the management of a company involving the usage of its resources to

enhance the performance of the company in its external environment (Nag, et al., 2007). It

involves a careful study of an organisations internal environment and its interactions with

its external environment (customers, competitors, suppliers, macro environment) all with

the aim of maximizing the positive influences of its environments whilst minimizing their

negative effects. Central to the theme of strategic management is the need for business

leaders to be in touch with their business environments so as to be in a better position to

respond to varying stimuli. This need for greater environmental awareness can be as a result

of a deliberate plot by the business to shape its future through a series of well thought out

initiatives for the realisation of a specific end or as a means of continuous survival evolution

without a concrete end (the end of one journey begins another).

Irrespective of the approach that a business takes to realising its strategic potential, all

strategic planning initiatives consist of three distinct stages namely strategic analysis of the

businesss environment, strategic development of options and the strategic implementation

of one or a combination of the developed options. Strategic analysis of the businesss

environment is concerned with identifying the impact on strategy of the environment, an

organisations strategic capability (resources and competences) and the expectations and

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influence of stake holders (Johnson, et al., 2008). The strategic development of options

helps a company assess varying paths to accomplishing its aims and objectives in relation to

the identified capabilities of the organisation in the strategic analysis phase (Lynch, 2011).

Strategic Implementation the final member of the trio is concerned with all the activities

performed by the business to ensure the chosen strategy not just works but pays off as

intended.

Subsequent chapters in this report will further explore the concepts in strategic

management through a competitive analysis of some of the businesses presented in the

case study notably Apple and Nokia as well as assess the problems with predicting the

future state of external environments. Also the lessons from Apples strategies throughout

its history as presented by the case will also be examined.

1. Competitive analysis of Apple and Nokia Strategy can be said to be a cycle driven by motivations and actions in the sense that most

strategic actions are initiated on the basis of stimuli in an organisations environment both

internal and external. Thus all strategic management initiatives can be reversed engineered

to its constituent actions and what motivated those actions. By understanding the

relationship between a companys actions (implemented strategy) and what might have

motivated them, an assessment can be made on the efficacy of such strategies in satisfying

their intended outcomes. Michael Porters four corners model (Porter, 1980) provides a very

good framework to help dissect an organisations competitive strategies along the lines of

motivations and actions. According to Porter most organisations will be motivated based on

their objectives and held beliefs about their internal and external environments (Porter,

1980). Their actions (strategies) will be based on their perceived capabilities.

This cycle of motivations and actions can be translated onto the 3 phases of strategic

management. The analysis of the businesss strategic position feeds its motivations which in

turn helps the business define its strategic options based on its capabilities. The strategic

implementation of the best option for the businesss case consist of the many actions taken

to satisfy its motivations.

Drawing from this understanding, the strategic analysis of Apple Inc. and Nokia will be based

on four broad areas:

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The objectives of both companies.

Assumptions held by the leadership of both companies.

The strategic capabilities of both companies.

The strategy being employed by both companies.

1.1. Objectives At the heart of every strategy lies its motive. An organisations motives are formed after an

introspective assessment of its current position, its past and where it wants to go. The result

of this is the formulation of its vision and mission statements which epitomizes its values,

culture and philosophy. Time bound realistic objectives are then set based on this vision

with specific, measurable targets for the business to attain. This gives the business a sense

of purpose and direction in its operations.

Its apparent therefore that an assessment of any organisations competitive strategies

should begin with an understanding of what that organisation stands for.

1.1.1 Vision and mission statements Although the vision and mission of both Apple and Nokia are not stated within the case, an

examination of some released official documents, press releases and a look on the websites

of both companies revealed in the case of the former the absence of a clearly defined vision

and mission statement. Piecing together little bits of information and examining these

further, Apples vision and its beliefs as revealed by its then COO, Tim Cook is presented as:

We believe that we are on the face of the earth to make great products and that's not

changing. We are constantly focusing on innovating. We believe in the simple not the

complex. We believe that we need to own and control the primary technologies behind the

products that we make, and participate only in markets where we can make a significant

contribution. We believe in saying no to thousands of projects, so that we can really focus

on the few that are truly important and meaningful to us. We believe in deep collaboration

and cross-pollination of our groups, which allow us to innovate in a way that others cannot.

And frankly, we don't settle for anything less than excellence in every group in the company,

and we have the self-honesty to admit when we're wrong and the courage to change

(Frommer, 2009).

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Its mission statement was however seen to vary as per the strategic direction of the

company at any point in time. Although Apples mission statement varies with its strategy

the central theme of all the variations is as presented below:

Apple is committed to bringing the best personal computing experience to students,

educators, creative professionals and consumers around the world through its innovative

hardware, software and internet offerings (Apple Inc., 2004).

Nokia on the other hand had a clearly defined vision with an accompanying mission

statement reproduced below:

Our vision is a world where everyone can be connected. Everyone has a need to

communicate and share. Nokia helps people to fulfil this need and we help people feel close

to what matters to them. We focus on providing consumers with very human technology

technology that is intuitive, a joy to use, and beautiful. We are living in an era where

connectivity is becoming truly ubiquitous. The communications industry continues to

change and the internet is at the centre of this transformation. Today, the internet is Nokia's

quest. Nokia's strategy relies on growing, transforming, and building the Nokia business to

ensure its future success (CEMS, 2012).

1.1.2 Impact on strategy An assessment of both companies vision and mission statements reveal some similarities as

well as differences in their approach to growth.

Table 1 A comparison of the vision and mission of Apple and Nokia

Mission components Apple Nokia

Slogan Think Different Connecting

People

Products or services PC hardware, software, consumer

electronics and internet services

communication

products,

internet

services

markets Global Global

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Mission components Apple Nokia

customers Students, Educators, creative

professionals and general

consumers

Everyone

Technology Own and control the primary

technologies behind the products

that they make (use in house

technology).

Technology

with a human

touch

Concern for

survival/growth/profits

participate only in markets where

we can make a significant

contribution

growing,

transforming,

and building

the Nokia

business to

ensure its

future success

Philosophy Innovation as a driver for success,

simplicity, focused product

development, collaborative effort

to development,

Products

should be

intuitive,

arouse joy and

should appeal

to the senses

Self-Concept self-honesty, courage, excellence helpful

Concern for public image Not clearly stated Not clearly

stated

Concern for employees Not clearly stated Not clearly

stated

A convergence in their operations is in the products they offer and the markets they operate

in. Both companies see great potential in the market of providing internet services and

consumer telephony devices and as such have included it in their product portfolio. They

also envision the global market place to be their operational turf.

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Apart from these similarities Apple and Nokia are very different in their beliefs and

purposes. These differences span the areas of defining key customers, approach to

technology development and the companys philosophies amongst many others. Apple

clearly defines its key customers whilst Nokia is content in providing services to satisfy a

wider market base. Their differences also show in their approach to technology

development with Apple preferring to look in house for all its technological needs with

Nokia choosing to emphasise on the kind of technology it prefers rather than the source.

Their differences become even more profound through a comparison of their philosophies.

Nokia believes that their garnered competitive advantage comes through the development

of intuitive products with the ability to appeal to the senses of their customers. Apple on the

other hand believes that by making their products more innovative albeit simple, they stand

the chance to appeal much more to their intended customers.

These differences and similarities should show in their choice of strategies. Assessing their

vision and mission alone will only provide the analyst with a summary of what to expect in

terms of a companys outlook and as such would not be the only determinant of a

companys strategy. A companys vision and mission may be or may not be enshrined in its

operations thus there is the possibility of a company having a very beautiful vision and

mission statement on paper but with contradictions in its actions. Companies with a

formalised vision and mission statement tend to gain an advantage in terms of an increased

familiarity with the companys purpose amongst its entire working populace although this

does not necessarily translate to it having a competitive advantage over its competitors that

do not have formalised vision and mission statements.

1.2 Assumptions held by the leadership of both companies The perceptions of senior management about their internal and external environment often

than not contribute a great deal to shaping the strategies of most organisations. The

important role management assumptions play in shaping strategy can be seen through an

example of a company that fails on various occasions at introducing a new product to the

market being very unlikely to get management support for the reintroduction of similar

products because of their past experiences of failure. A companys held assumptions may be

based on a number of factors. These may include:

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Beliefs about its competitive position

Past history

Industry trends

Regional factors

Rules of thumb (NetMBA.com, 2010)

1.3 Beliefs about its competitive position A companys competitive position relates to the way it differentiates its offerings and

creates value for its market. A companys competitive position is determined through the

spot it occupies in its competitive landscape and what its best known for (Moderandi Inc,

2006).

Apple views itself as the producer of very innovative high quality products which usually sets

the pace in which ever market they compete in. Due to this, most of Apples products are

premium priced to match this perception of higher added value to the customer. This sense

of innovation translates into:

Leadership in the PC hardware and software for the creative arts consumer market

through its reputation as being the developer of the worlds first desktop

publishing software (Page Maker).

Leadership in the personal music player market through the IPod.

Leadership in the digital music purchasing market through its online music store

ITunes.

Nokia in comparison to Apple with its core business being in the production of

communication related products and services sees itself as the leader in the mobile

telephone market.

1.4 Past History A companys history recited through its origins, challenges, successes and failures plays a

role in determining the companys present state as well as where it may be heading. Most

manager gain experience as they grow in the business and these experience usually come to

bear on their judgement in decision making.

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Apple started off as a maker of PC products having picked up ideas from a visit of it soon to

be founders to the research laboratories of Xerox. This visit inspired them in the

development of its first wave of innovative easy to use PCs that were applauded market

over. The sway its first generation products had on the market was short lived once

competitors were able to imitate them. Learning from this experience, Apple has since tried

to be on the front foot of which ever market it do decide to participate in. Its hallmark has

been to bring positive disruptions through innovation and thinking differently. Apple over

the years has learnt that products and technologies can be copied once they are launched

and whatever first mover advantage they possess at product launch will erode as the

product matures. Constant product innovation to them is the only way they can stay ahead

of their competition.

Nokia has grown from a small company in Finland to a global giant in telecommunication

products and services. This growth has come on the back of its leadership in the mobile

telephone market with the development of intuitive, simple to use handsets its hallmark.

Often challenged but never overtaken by its competitors, Nokia has grown comfortable in

its position as the brand of choice in its operating market.

Both companies possess an abundance in rich history from which to draw from when

developing current and future strategies. Apples experience through its participation in

different markets gives it the edge over Nokia who throughout its history had have to

contend with only competitors from the telecommunications industry. Nokia however can

count on its vast experience in dealing with the threats from past competitors such as

Siemens and Sony Ericson as it seeks to consolidate its hold on the mobile telephone market

as Apple plans entry.

1.5 Industry Trends The perception of a companys management about the industry in which they operate in

affects the kind of strategies they will deploy in their battle for supremacy. According to

Michael Porter (Porter, 2008) the competitiveness of any industry can be assessed through

five key determinants which include the ability of new entrants to break into the market,

the bargaining power of buyers to drive up value and lower product cost, the bargaining

power of suppliers to drive up their returns, the availability of products from other markets

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that offer similar functions and the intensity of the rivalry between existing competitors. In

an industry where the odds have always been against new entrants will see existing market

players placing very little emphasis on the threat from a new entrant. A companys held

views about the industry in which it belongs can be its advantage as well as its demise.

Correct views held by an organisation about its market may help determine where the

companys efforts should be channelled to gain advantage whilst an organisation with a

wrong perception about its market may be blind to possible threats which can affect its

survival.

Apples perceptions about the PC industry in its initial foray into business led to its loss to

Microsoft, with the latter growing to become the market leader in Personal Computing

software. Apple has since moved on from its initial setbacks in becoming a force to reckon

with in varying markets. Nokia as a market leader had always seen itself as insulated from

the threats of new entrants in the mobile telephone market, after all, existing competitors

were already struggling to compete in the market. This oversight allowed Apple to foresee a

strategic gap in Nokias product offering and take advantage of that.

1.6 The strategic capabilities of both companies A companys strategic capability can be defined as the key resources and competences

needed by the company for its survival and prosperity (Johnson, et al., 2008). An

understanding of a companys capabilities is useful in understanding how it might respond

to a competitive attack. A companys strengths usually lie in its resources and the way it

utilizes these resources (competencies) to counter threats and secure opportunities. A

companys resources can be both tangible (physical assets such as workers, factories, and

equipment) and intangible (non-physical assets like information, intellectual rights) and

comprises of physical, financial, human and intellectual resources (Johnson, et al., 2008).

Adherents of the resource based view believe that a companys competitive advantage only

comes through the resources it possess and not from a thorough understanding of both its

internal and external environment. In order for a company to gain competitive advantage

they argue that its resources and competencies must be rare, hard to imitate and not easily

substituted. This ideology goes to show how relevant a companys capabilities are to its

survival and growth.

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A SWOT analysis of both Apple and Nokia should reveal their strengths and Weaknesses

which together determines their strategic capabilities.

1.6.1 Apples Strength In accessing the strength of Apple, it can be seen that Apple is a company with a strong

brand name, a leader in the online music download market, possesses a strong vision led by

the charismatic Steve Jobs and has a solid financial base. Apple by offering exclusive

contracts on their mobile phones maintain their identity as a premium brand producer.

Apples ability to offer innovative but yet easy to use quality products coupled to its skill in

product design contributes to its strength. Apple is known within the industry circles to be

very cost efficient.

1.6.2 Apples Weakness Apples weakness lies in its pricing strategy which has the tendency to discourage potential

customers whose selection is based on low pricing. Also Apples history shows that although

the company has always been a first mover through innovation, its competitors have always

been able to imitate this over time. This presents a challenge to them staying competitive

over the long haul. Further the companys preference for direct distribution or limited

partnered distribution chains as was in the case of the IPhone means that the company will

be missing the benefits of a broader exit through multiple channels for its products into the

market. Currently in comparison to Nokia, it holds a smaller share of the mobile phone

market. This means any open confrontation with the market leader may be to its

disadvantage since Nokia can count on its market position.

1.6.3 Nokias Strength Nokias main strength is by virtue of its position. Observed to be the market leader in the

mobile telephone market it can draw on a large customer base for future product

development endeavours. Its reputation for making good products adds to its already strong

brand name. Its solid financial foundation makes the company an even more formidable

opponent in its market of operation.

1.6.4 Nokias Weakness With the mobile phone market maturing and heading towards becoming commoditized with

the release of every new product, Nokia is presented with the challenge of staying relevant.

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It needs to grow into an innovative company if its to survive which its history has yet to

prove. The indifference of Nokia in assessing the strategic gaps provided in similar markets

in order to take advantage as Apple did in the consumer electronics and music downloads

market shows as a weakness of the company to develop alternate streams of revenue there

by shielding it against the shocks of a faltering market.

1.7 Strategies being employed by both companies

1.7.1 Apples strategy Apple has varied its strategies very little over the timeframe of the case recovering from its

initial upset in the PC market where by it employed a non-cooperative approach to an

emerging market although it had first mover advantage in contrast to Microsofts strategy

of building advantageous relationships with key suppliers and promising distribution

channels. Microsofts strategy ensured that its products set the taste and requirements for

this new market. Since then Apple have had to play catch up to Microsofts market share.

Irrespective of this setback, Apple stayed true to its vision of organic growth by building a

vertically integrated process chain opting to develop both the hardware and software

components of its PC line different to the approach of its competitors.

Since then Apple have been more open to cooperation with key market players when it sees

the possibility of forming a strategic Alliance with no direct threats to its business ambitions.

This can be seen in its approach to the development of the ITunes Music Store by partnering

with five of the worlds biggest record labels for the creation of one of its very successful

business endeavours.

Apples strategy to market development described using Porters generic strategies (Porter,

1980) is based on a focus approach where by it targets a section of the market with varied

needs from the general population and provide tailored solutions. By leveraging on its

ability to provide a product different to what its competitors offer, the company is able to

arouse in their customers that feeling of uniqueness. This ability to create the perception of

only providing premium products enables Apple to command higher prices on their

products.

Apples strategy to growth and expansion is through diversification into new markets with

new products although ensuring that the potential for a relationship with its existing

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products exist. By developing products that can be integrated in a way although for different

markets, apple capitalise on the potential to cross sell existing products to buyers of the

new products. This strategy falls in line with Apples strategic direction of not just

developing standalone products but rather an ecosystem of functionally related consumer

products which work in harmony to the ultimate satisfaction of the customer.

Apples core strategic principles in its business endeavours can be summarised to be:

1. Focused strategy to market development through product differentiation.

2. Related diversification taking advantage of strategic gaps in surrounding markets.

3. Vertical integration taking control of its up and down stream supply networks.

4. Achieving cost efficiency so as to increase profit margins.

5. Form strategic alliance when beneficial.

6. Seek first mover advantage where possible.

The fuel behind apples strategies is its ability to rapidly innovate to match the requirements

of the competitive markets in which the company operates in. its in-house technological

know-how working in tandem with its strong product design skills have enabled Apple to

churn out market defining products time and time again.

1.7.2 Nokias strategy Nokia had enjoyed considerable success on its way to the top of the mobile phone market

till Apple disrupted the market with the launch of the first touch phone, the IPhone.

Although Apple had targeted a section of the market not catered for, the premium touch

screen phone segment, Nokia foresaw the possibility of Apple eating into its revenue

streams due to the strong appeal of Apples product wooing over its admirers and as such

had to adjust its strategies.

Prior to Apples arrival, Nokias strategy had been to provide a wide range of personal

communication devices tailored for various market segments. Nokias competitive

advantage was through cost leadership with the ability to provide products to suit the

varying income levels of its customers. Nokias strategic direction had been conservative

choosing only to develop its existing markets for increased market penetration.

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Nokias response to Apples foray into the mobile phone market in a bid to quell Apples

ambitions was to launch its own line of products similar in design and function to Apples

IPhone offering a lower price advantage. Subsequent actions included attacking Apples

strong hold, the online music download market, through diversifying into the provision of

such services.

Nokias change in strategic direction takes into consideration the need to protect the value

accrued to its stakeholders by diversifying into other sources of income hitherto ignored.

1.8 Analysis and Conclusion Apple and Nokia are currently embroiled in a competitive cycle with Apple keen on breaking

Nokias hold on the mobile phone market whilst Nokia is determined to stay at the top. This

competitive rivalry is good for the industry which have for a long time been stifled of

innovation and gone stale approaching commoditization. Both companies have their own

strengths and weaknesses and have been able to create value for their shareholders

although through different strategies.

There exist a strong correlation between their purpose, assumptions and strategies. In the

context of the case study using the BCG Matrix to assess their product portfolio, Apple have

three cash cows in IPod, ITunes and the IPad, a star with their IPhone and a problem child

with their PC line. In comparison to Nokia whose entire portfolio had been centred in the

mobile phone market under different segments. Its foray into the online music market can

be seen as a problem child since the outcome on its investments had not been determined

during the time frame of the case.

Most markets are not static and as such makes it difficult to predict the outcome of any

companys strategy in the long term. History has shown that although Apple always have an

advantage through its innovative approach to development, this advantage is usually short

lived as most of its competitors are able to imitate its strategies easily. Only time will tell if

Apple can continue its rapid cycle of innovative development as without it the company

loses its edge over other competitors.

Nokia on the other hand takes solace in its large market share in its core business. However

a lack of diversification puts a huge strain on it being overly dependent on its sole source of

revenue. This approach leaves the company susceptible to market shocks.

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As to whos stronger? Both companies are relatively comfortable with their profit margins

and can count on a solid financial base. Apples strategy have failed it before in the past but

it quickly recovered to gain new ground. As to whether it will fail it again cannot be decided

within the context of the case study. Nokia has altered its strategic direction in relation to

changing market conditions. As to whether this change in strategic direction will pay off in

the long run cannot also be decided within the context of the case study. In conclusion, both

companies are strategically strong in their own right although Apple may have a slight

advantage due to its ability to innovate rapidly.

2 Problems with predicting how the market and the competition will

change over the next few years and its implications for strategy

development

Most markets consist of a complex relationship between sellers competing for buyers, their

suppliers and the macro environment in which they operate. The many variables in the

market mix increases the permutations of possible market behaviour and performance at

any point in time. This presents a source of worry to many businesses as the many market

variables behave differently under different stress as such makes near to impossible

predicting long term market behaviour in order to lock in their market strategy.

2.1 Macro Environment An industrys macro environment using the PESTLE frame work consist of the Political,

Economic, Social, Technological, Legal and Environmental aspects. These aspects play a vital

role in shaping the future of most markets either positively or negatively. An organisations

macro environment is outside its control and as such any changes outside the organisations

tolerance has the capacity to cause serious damage to the organisations business

endeavours.

2.1.1 Political Challenges Political factors refers to government policy. These include regulations on trade restrictions,

subsidies, employment laws, environmental regulations and tax policy that might change

with the coming of every new government. Political decisions can impact on many vital

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areas of business such as the level of education of the workforce, the infrastructural quality

of the country such as the road and rail system and the overall health of its citizens. The

uncertainty in predicting what a change in government will bring makes it very difficult to

plan effectively. This situation becomes worst in highly volatile areas where the political

climate is very unstable.

2.1.2 Economic challenges Another factor that poses an obstacle to effective market prediction is the degree of

economic uncertainty that may impact on a customers purchasing power as well as an

organisations ability to produce. Economic factors represent the wider economy so may

include economic growth rates, levels of employment and unemployment, costs of raw

materials such as energy, petrol and steel, interest rates and monetary policies, exchange

rates and inflation rates.

2.1.3 Social Challenges Social factors represent the culture of the society that an organization operates within. They

may include demographics, age distribution, population growth rates, level of education,

distribution of wealth and social classes, living conditions and lifestyle. Changes in social

trends can impact on the demand for a firm's products and the availability and willingness of

employees to work.

2.1.4 Technological Challenges New technology creates new products and new processes. Technology can reduce costs,

improve product quality and increase innovation. As much as technological advancement

can be beneficial for businesses this can also result in the loss of a competitive advantage

especially in the case where by this may lead to competitors being able to imitate

competencies. Easy and open access to technology can greatly reduce the barriers to entry

for new entrants. This can also result in the commoditization of the market. An example will

be open standards like Bluetooth and Wi-Fi which has greatly commoditized the consumer

electronics market.

2.2 Implications for strategy development The uncertainties in predicting the market brings into question the effectiveness of the

deliberate or rational approach to strategic planning. A prescriptive or deliberate corporate

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strategy is one where the objective has been defined in advance and the main elements

have been developed before the strategy commences (Lynch, 2011). This is what some

managers will call long term planning whereby a company decides on a strategic direction

and puts in measures for that. This approach will require a degree of certainty as to know

the future behaviour of the market in which the organisation participates in. However

events in the real world like the global financial meltdown proves that this is not always

possible. Most companies can control their micro environment which may include their

industry competitors, suppliers, competencies and to some extent their customers. They

however are faced with the challenge of the impact of their macro environment, which is

out of their control, on their operations. How do they predict what the Government will do

next or whether the economy in their operational markets will decline or grow? These are

some of the difficult questions managers are faced with day by day. An alternative to the

deliberate approach to strategy development is the emergent way. An emergent corporate

strategy is a strategy whose final objective is unclear and whose elements are developed

during the course of its life, as the strategy proceeds (Lynch, 2011). The emergent approach

to strategy development sees strategy as a continuous process taking into consideration

actual environmental factors at any point in time so as to maximise the companys

advantage. The advantages of the process include its consistency with actual practice in

organisations; it takes account of people issues such as motivation; it allows

experimentation about the strategy to take place; it provides an opportunity to include the

culture and politics of the organisation; it delivers flexibility to respond to market changes

(Lynch, 2011).

3 Lessons that can be learnt from Apples strategies Apples strategies over the years have taken it from a small maker of PCs to a global giant in

the personal consumer electronics market. There are many lessons that other companies

can learn from Apples strategies:

3.1 The benefits of learning from ones failure No company ever wants to fail but in todays ever changing markets, failure might come.

Apple lost its first competitive battle to Microsoft which most industry pundits would have

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based on to signal the end of them. However being gracious in defeat, Apple saw its lost as

an opportunity to learn. The company went back to the drawing board recooked its

strategies and its subsequent products were hits. Irrespective of its new found success,

some of its products like the Newton personal assistant still struggled to make an impact on

the market and was hence dropped. This tells us that even very good companies do fail

sometimes and there is no golden rule to strategy but learning.

3.2 The ability to take risk through innovation The fuel to Apples fire is its ability to innovate and not just innovate but innovate rapidly.

With the ever changing demands of todays modern markets, a companys ability to meet

the demands of the market will be the determinant of its survival or demise. Innovation is

the way through which companies can gain advantage in very competitive markets. Apple

realised this fact early in its life and made it its guiding principle (Apples slogan: Think

Different). Innovation has the ability to breathe new life into stagnant markets and allows

companies to reap profits from otherwise barren markets. However despite all the benefits

innovation can bring to a company there is no escaping the fact that innovation is a risky

choice albeit it pays off when done right. The prospect of conservative markets rejecting

new products is high. In spite of this fact, Apple have taken this gamble over and over again

winning most of the time when its competitors have preferred to rather sit and watch.

3.3 The benefits of understanding your consumers and their needs Apples focused approach to market development means that they only develop a product

when they have identified a strong need to be met. This limits the chances of failure as

there will be a market ready for the product when launched. This approach to market and

product development can be rather tedious as it requires really getting to know your market

segment. The niche market approach has been shunned by many businesses since this

requires tailoring products to suit a small section of the general population which goes

contrary to popular perceptions of production like economies of scale. The ability of a

company to serve such markets may lead to increased returns since niche markets usually

command higher prices. Apple is able to charge premium of its products by way of being

able to provide to its customers just what they want.

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3.4 The benefit of having a keen eye for opportunities Apples ability to recognize strategic gaps between already existing markets and capitalize

on them is profound. The music industry was not a product of Apples creation neither was

the mobile phone market, however the companys ability to identify a strategic gap in the

offerings of existing market players and capitalize on that was what really set them apart.

The IPod and the ITunes music store helped the music industry solve an existing issue with

piracy and the IPhone set the standard for a new way users interacted with their phone.

This gave the company first mover advantage in already existing markets something very

rare in hyper competitive markets. Strategy is about the way and manner companies take

advantage of the opportunities in their environment. Being attentive to detail will help

managers pick up on opportunities their competitors might have ignored.

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4 References Ackoff, R. L., 1990. Redesigning the future: Strategy. Systems Practice, 3(6), pp. 1-4.

Apple Inc., 2004. HP and Apple Partner to Deliver Digital Music Player and iTunes to HP Customers. [Online] Available at: http://www.apple.com/pr/library/2004/01/08HP-and-Apple-Partner-to-Deliver-Digital-Music-Player-and-iTunes-to-HP-Customers.html [Accessed 1 February 2015].

CEMS, 2012. Corporate partners: Nokia Corp. [Online] Available at: http://www.cems.org/corporate-partners/list/nokia-corporation [Accessed 1 February 2015].

Chartered Institute of Purchasing and Supply, 2012. Strategic Supply Chain Management, Stamford: Profex Publishing Limited.

David, F. R., 2011. Strategic Management: Concepts and Cases. 13th ed. Upper Saddle River: Prentince Hall.

Frommer, D., 2009. Apples Tim Cook: we're fine without Steve. [Online] Available at: http://www.businessinsider.com/2009/1/apples-tim-cook-were-fine-without-steve-jobs [Accessed 1 February 2015].

Johnson, G., Scholes, K. & Whittington, R., 2008. Exploring Corporate Strategy. 8th ed. Harlow: Pearson Education Limited.

Kotabe, M. & Murray, J. Y., 2004. Global sourcing strategy and sustainable competitive advantage. Industrial Marketing Management, Volume 33, pp. 7-14.

Lynch, R., 2011. Strategic Management. 6th ed. Harlow: Pearson Education Limited.

Moderandi Inc, 2006. Competitive Positioning. [Online] Available at: http://www.marketingmo.com/strategic-planning/competitive-positioning/ [Accessed 1 February 2015].

Nag, R., Hambrick, D. C. & Chen, M.-J., 2007. What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal, 28(9), pp. 935-955.

NetMBA.com, 2010. Competitor Analysis. [Online] Available at: http://www.netmba.com/strategy/competitor-analysis/ [Accessed 1 February 2015].

Porter, M., 1980. Competitive Strategy. New York: The Free Press.

Porter, M. E., 2008. "The Five Competitive Forces That Shape Strategy." Special Issue on HBS Centennial.. Harvard Business Review, 86(1), pp. 78-93.

Quick MBA, 2010. Global Strategy. [Online] Available at: http://www.quickmba.com/strategy/global/ [Accessed 18 February 2015].

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QuickMBA.com, 2010. Foreign Market Entry. [Online] Available at: http://www.quickmba.com/strategy/global/marketentry/ [Accessed 18 Febraury 2015].

Thilmany, D., 2008. What are Niche Markets? What Advantages do they offer in Niche Market: Assessment and Strategy Devolpment for Agriculture, Reno: Western Extension Marketing Committee.

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Introduction1. Competitive analysis of Apple and Nokia1.1. Objectives1.1.1 Vision and mission statements1.1.2 Impact on strategy

1.2 Assumptions held by the leadership of both companies1.3 Beliefs about its competitive position1.4 Past History1.5 Industry Trends1.6 The strategic capabilities of both companies1.6.1 Apples Strength1.6.2 Apples Weakness1.6.3 Nokias Strength1.6.4 Nokias Weakness

1.7 Strategies being employed by both companies1.7.1 Apples strategy1.7.2 Nokias strategy

1.8 Analysis and Conclusion

2 Problems with predicting how the market and the competition will change over the next few years and its implications for strategy development2.1 Macro Environment2.1.1 Political Challenges2.1.2 Economic challenges2.1.3 Social Challenges2.1.4 Technological Challenges

2.2 Implications for strategy development

3 Lessons that can be learnt from Apples strategies3.1 The benefits of learning from ones failure3.2 The ability to take risk through innovation3.3 The benefits of understanding your consumers and their needs3.4 The benefit of having a keen eye for opportunities

4 References