nokia lost in globalization
DESCRIPTION
Brief discussion & analysis of Nokia in facing the globalization era.TRANSCRIPT
IBM Final Presentation
-Dragon Clan-
NOKIA lost in GLOBALIZATION
“Globalization is either a friend or an enemy for everyone;
depending on how you treat it.”
OPENING THOUGHT
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK PERIOD
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN
NOKIA HISTORY
1865Fedrik Idestam set up First wood pulp
mill (Nokia Ab)
1912Arvid Wickstrom sets up Finnish Cable Works
Nokia History NOKIA HISTORY
1963Nokia became the
third largest TV manufacturer in
Europe
NOKIA HISTORY
1967Nokia Ab, Finish Cable Works and Finnish Wubber Works officially merge as Nokia
Corporation
NOKIA HISTORY
1979Mobile era begins
to create radio telephone
NOKIA HISTORY
1980Nokia well known around the world
NOKIA HISTORY
NOKIA HISTORY
1981First International
Cellular network and the first to allow
international roaming
NOKIA HISTORY
1982Nokia introduce the
first car phones
NOKIA HISTORY
1998Nokia is the world leader in mobile
phones
“Connecting People”
GLOBAL BRAND MANAGEMENT NOKIA BRAND
POSITIONING
“Connecting people by offering great and affordable mobile products that enable billions of people worldwide to enjoy more of what life has
to offer.”
GLOBAL BRAND MANAGEMENT
NOKIA’s OBJECTIVE
THE GOLDEN PERIOD
1998 - 2007
Strong Brand Image
The Largest Mobile Phone Manufacturer
Globally Largest Network of Selling and Distribution
Nokia Care
1998 HIGHLIGHTS
1. Net Sales grew by 51%
2. Operating Profit by 75%
3. Share price by over 220%
4. Sold 40.8 million handsets
5. Market Capitalization grew to 356
billion
6. Dividends have grown by 360%
PREVIOUS INFLUENCE LEADER
Jorma Olila
PREVIOUS INFLUENCE LEADERSTRATEGY
International Company Through Acquisition
Full Concentrate on Telecommunication
PREVIOUS INFLUENCE LEADERPEOPLE
Strengthen Human
Capital by
Education
Build Learning
Centre
Opinion Survey to
Give Feedback
PREVIOUS INFLUENCE LEADERPROCESS
Membangun competitive advantage
manage its resources carefully
InnovationCompetitive Advantage
PREVIOUS INFLUENCE LEADERTOOLS
Build IT Group Technology Investment
RECENT INFLUENCE LEADER
Stephen ElopCEO of NOKIA
RECENT INFLUENCE LEADERSTRATEGY
Build ECOSYSTEM
RECENT INFLUENCE LEADERPEOPLE
Engaging and Empowering People
RECENT INFLUENCE LEADERPROCESS
NOKIA join forces with Microsoft
RECENT INFLUENCE LEADERTOOLS
TechnologyInvestment
2007Nokia recognized as 5th most valued brand in
the world
NOKIA HISTORY
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK PERIOD
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN
✔
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK PERIOD
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN
✔
NOKIA PERFORMANCE
Net Sales
Brand Value
Total Phones Shipped
Profit Sharing
Market Share
Market Share
NOKIA PERFORMANCE
Net Sales
Brand Value
Total Phones Shipped
Profit Sharing
Profit Sharing
NOKIA PERFORMANCE
Net Sales
Market Share
Brand Value
Total Phones Shipped
Total Phones Shipped
NOKIA PERFORMANCE
Net Sales
Market Share
Profit Sharing
Brand Value
Net Sales
Market Share
Total Phones Shipped
Profit Sharing
NOKIA PERFORMANCE
Brand Value
WHY???
GLOBALIZATION
7 forces of Globalization
LOST IN GLOBALIZATION
QUALITY
VARIETY
LOWER COST
CUSTOMIZATION
DILEMMA & PARADOX
SPEED
CONVINIENCE
Globalization Forces
Low Price
High Quality High Variety
LOST IN GLOBALIZATION
Convenience
21stc e n t u r y
13 forces of Globalization
QUALITY
VARIETY
LOWER COST
CUSTOMIZATION
DILEMMA & PARADOX
SPEED
CONVINIENCE
LOST IN GLOBALIZATION
QUALITY
VARIETY
LOWER COST
CUSTOMIZATION
DILEMMA & PARADOX
SPEED
CONVINIENCE
LOST IN GLOBALIZATION
INFRASTRUCTURE
FREE TRADE AGREEMENT
TECHNOLOGY
GOV SUPPORT FOR GREEN ENVIRONMENT
GLOBAL FINANCIAL INTEGRATION
CRUDE OIL SCARCITY
21stc e n t u r y
13 forces of Globalization
Free Trade Technology Global Financial Integration
21stc e n t u r yGLOBALIZATION
LOST IN GLOBALIZATION
Infrastructure
21stc e n t u r yGLOBALIZATION
Global Collaboration
Global Competition
LOST IN GLOBALIZATION
Nokia has blue
ocean
Competitor senses
the opportuni
ty
Red Ocean
Different strategy to compete
LOST IN GLOBALIZATION
LOST IN GLOBALIZATION
2007 - 2012
Negative Brand Image
Cannot Keep Up To Date With Technology and Consumer
Trend
Emergence of competitive rivalries
2011Join forces with
Microsoft
NOKIA HISTORY
WHITE HAT
NOKIA HISTORY
NOKIA join forces with Microsoft
ECOSYSTEM
NOKIA HISTORY
VS
Nokia is on a burning platform! The products were
failures! Let us jump to Microsoft’s
ship now!
BURNING PLATFORM
Stephen Elop, CEO of NOKIA
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK PERIOD
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN✔
✔
ACTION LEARNING JOURNAL
AGENDA
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK PERIOD
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN✔
✔
BOUNCE BACK PERIOD
WILL NOKIA STILL SURVIVE???
WHAT WENT RIGHT ?
Low PriceInfrastructur
e
High Quality
Convenience
WHITE HAT (PREVIEW)
Net Sales Market Share
Profit Sharing Brand Value
Join Microsoft
BLACK HAT
Bad Brand Image
Inefficient Marketing &
Promotion Activities
Lack of Vision Alignment
No Solid Strategy
Lack of Transformation
GREEN HAT
Brand Repositioning
Increase Brand Awareness
GREEN HAT
Transformation and Innovation
Align Vision with Partner
Create Solid Strategy
YELLOW HAT
“Find your Blue Ocean”
Understand The Market
Understand your brand product and
where you want to go
INTERNATIONAL MARKETING MANAGEMENT
Brand Positioning
Building Brand Strategy
YELLOW HAT
“Find your Blue Ocean”
Understand The Market
Understand your brand product and
where you want to go
INTERNATIONAL MARKETING MANAGEMENT
x
Brand Leadership
Building Brand Strategy
YELLOW HAT
“Find your Blue Ocean”
Understand The Market
Understand your brand product and
where you want to go
INTERNATIONAL MARKETING MANAGEMENT
Building Brand Strategy
Brand AwarenessWith Co-
Promotion
“Find your Blue Ocean”
Building Brand Strategy
Understand The Market
Understand your brand product and
where you want to go
YELLOW HAT
Customer
Needs
INTERNATIONAL MARKETING MANAGEMENT
Understand your brand product and
where you want to go
YELLOW HAT
Seek theOpportuni
ty Seek theMarket
INTERNATIONAL MARKETING MANAGEMENT
Building Brand Strategy
“Find your Blue Ocean”
Understand The Market
Building Brand Strategy
Understand your brand product and
where you want to go
YELLOW HAT
“Find your Blue Ocean”
Understand The Market
INTERNATIONAL MARKETING MANAGEMENT
YELLOW HAT
COMMITMENT BUILD UNITY
YELLOW HAT
INTERNATIONAL HUMAN CAPITAL MANAGEMENT
IncreaseLeadership
Brand
Remove Elop Effect
Rearrange strategy, vision,
mission
Increase Human Capital
Develop Skill &
Competence
Continuous Learning
YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Fore ign D i rec t Inves tment
YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Technology
Infrastructure
Transfer of Capital
Transfer of Knowledge
YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Technology
Infrastructure
Transfer of Capital
Transfer of Knowledge
YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Technology
Infrastructure
Transfer of Capital
Transfer of Knowledge
YELLOW HAT
INTERNATIONAL FINANCIAL MANAGEMENT
Transfer of Technology
Infrastructure
Transfer of Capital
Transfer of Knowledge
YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT
Total Quality Control
Management
Least Cost Country to Produce
Technology Improvement
YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT
Total Quality Control
Management
Least Cost Country to Produce
Technology Improvement
YELLOW HAT
INTERNATIONAL OPERATIONAL MANAGEMENT
Total Quality Control
Management
Least Cost Country to Produce
Technology Improvement
See Telecommunication Growing
Hear
Taste
Touch
See
Smell
RED HAT
Smell
Taste
Touch
See
Hear
RED HAT
Source: The Economic Times India
The Most Trusted Brand
Smell
Taste
Touch
See
Hear
RED HAT
Offering Different Experienc
e
Smell
Taste
Touch
See
Hear
RED HAT
What Customer Needs and Wants
Smell
Taste
Touch
See
HearElegant and Simple
RED HAT
Smell
Taste
Touch
See
Hear
Positive Comment about Nokia
Durability and Simple
RED HAT
BLUE HAT
NOKIA is the VICTIM of Globalization
“NOKIA still has a potential to REBORN to be the BRAND LEADERSHIP”
In conclusion,
however,
Action Learning: 1. Integrate 2. Innovate 3. Implement
ACCELERATE LEARNING
Purpose People Process
Scope Support Schedule
Strategy Structure System
DELTA MATRIX - THINKING
Holistic Thinking
System Thinking
Critical Thinkin
g
PURPOSEPurpos
ePeople Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Enable Nokia to become the top brand in mobile phone industry
again
PEOPLE
The leader should has ability to sense the market condition
Purpose
People Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Educate and increase awareness toward NOKIA
brand perception
PROCESS
INTERNALSYNERGY
Effective Marketing Not only innovate but also transform
Change people perception
Align the vision
Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People
SCOPE
GLOBAL – MOBILE PHONE
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
SUPPORT
Partnership with Microsoft
Foreign Direct Investment
Strategy
Structure
System
ScopeSuppor
tSchedu
le
Purpose
People Process
SCHEDULE
LONG-TERM
MEDIUM-TERM
SHORT-TERM
Find new market
Sustain the sales
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
SCHEDULE
LONG-TERM
MEDIUM-TERM
SHORT-TERM
Increase Popularity
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
SCHEDULE
LONG-TERM
MEDIUM-TERM
SHORT-TERM
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
Top Brand
STRATEGY
MarketingVision
AligningBranding
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
STRATEGY
Marketing
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
Vision Aligning
Branding
STRATEGY
Product Repositioning
Co-Promotion
Reanalyze and Correct STP
Marketing
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
STRATEGY
Vision Aligning
Branding
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
Marketing
STRATEGY
Increase Brand Awareness
Increase Brand Image
Increase Brand Equity
Branding
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
STRATEGY
Vision Aligning
Branding
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
Marketing
STRATEGY
Share Common Goals
Aligning Vision
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Purpose
People Process
Purpose
People Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
STRUCTURE
Purpose
People Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
STRUCTURE
Purpose
People Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
STRUCTURE
SYSTEMPurpos
ePeople Process
ScopeSuppor
tSchedu
le
Strategy
Structure
System
Feedback, do Research,
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUTPROCESS OUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
DELTA MATRIX - THINKING
Enable Nokia to be the top brand in
Phone industry again
The leader should has ability to sense
the market condition
Educate and increase awareness toward NOKIA
brand perception
G L O B A L
Partnership with
Microsoft
Foreign Direct
Investment
FeedbackMust do Research
Kaizen
TOP GLOBAL BRANDVICTIM OF
GLOBALIZATION
INPUT
PROCESSOUTPUT
THE GOLDEN PERIOD
LOST IN GLOBALIZATION
THE BOUNCE
BACK
•Global brand management•Globalization•Strategy•People, process, tools
•Negative impact of globalization
•6 Thinking Hats•Delta matrix
NOKIA’S REBORN
AGENDA
✔✔
✔
CLOSING THOUGHT
“CHANGE is the only CONSTANT,
and SUCCESS is a JOURNEY not a DESTINATION.”
Good Night and Sweet Dream