value chain analysis group 12 – 3. primary activities analysis primary activities support...
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Value ChainAnalysisGroup 12 – 3
Primary Activities Analysis
Primary ActivitiesSupportActivities
Analysis
Primary Activity☑ Core Distinctive Value
Cost Reductio
n
Inbound Logistics ☑ ☑ Operations ☑ ☑ ☑ ☑ Outbound Logistics ☑ ☑
• “We have the most efficient sourcing, logistics, manufacturing, and distribution of any company”
– Rick Simonson, CFO• Production is divided into two steps; the first being the basic
components and the second being the process of adapting to country-specific needs.
• Improvements in logistics, sourcing and mass production lowered the price of a 1616 handset by two-thirds over five years.
Primary Activities Analysis
Primary ActivitiesSupportActivities
Analysis
Primary Activity☑ Core Distinctive Value
Cost Reductio
n
Marketing and Sales ☑ ☑ ☑ ☑ Service ☑ ☑
• Lower cost of production due to only offering a small number of standard models but also offering a high degree of software customization.
• The repair system is able to process over 500,000 repairs per month. 90% of which were returned within 24 hours.
• “Nokia is transforming from an engineering-centered company to a consumer-centered company”
-Alex Lambeek, Vice President of Mobile Phones Marketing
Support Activities
Primary ActivitiesSupport
ActivitiesAnalysis
Support Activity☑ Core Distinctive Value
Cost Reductio
n
Procurement
Tech Development ☑ ☑ HRM
Firm Infrastructure ☑
• Nokia utilizes a unique approach to manufacturing and distribution that results in a highly customizable production phase as well as creates a product that is well below the industry standard in terms of price.
• “Efficient massive production and technology is what allows Nokia to be competitive in price-sensitive markets.”
- Martti Salomaa, Senior Plant Manager
Analysis and Strategic Implications
SupportActivities
AnalysisPrimary Activities
• Heavy focus is being placed upon getting the product that the customer needs to market at an efficient and affordable pace.
• Unique and efficient methods of manufacturing and marketing have allowed Nokia to meet the needs of specific regions.
• While it seems that Nokia’s market share is diminishing in the higher end markets, their efforts have done nothing but increase the market share in the emerging markets.