But how does a business decide upon the best strategy for growth?
A brief history of Nokia 4. Facts and Figures of Nokia in and 7.
Strategic Alliance between Microsoft and Nokia. Uploaded by. Sivaz benjaminpohle.com Download. Strategic Alliance between Microsoft and Nokia. Uploaded by. Sivaz benjaminpohle.com Based on the Ansoff matrix, Nokia have to develop their product as well as penetrate the market in the smartphone industry. Product development Although Nokia has a big. This is the reason why the Ansoff Matrix has become so popular because it charts the strategies that the firms must follow in each option, which again is a combination of the firms’ current capabilities, and the possibility of new market led growth. Free Essays on Nokia Ansoff Matrix. Search. Incentive Travel Agency Ansoff. within the existing market and product mix, maintaining the same famous SMG high quality level, moving towards offering integrated solutions. Ansoff Matrix for SMG Markets/ Products Existing Products New Products • Corporations • Businesses • Conferences.
Introduction Nokia Cooperation is the world leading supplier of mobile phones and a titan of European and world technology. Nokia is now suffering from the economic crisis and from the fast growing smartphone market, where its rival Apple became the leader.
The suc- cessful development of Nokia has set a great example in the business world in order to learn from its effectiveness in implementing various different strategies which had helped Nokia to secure the position around the world until recently.
After a definition of a diversification strat- egy this paper will than describe a brief history of Nokia. The aim of this investigation is to demonstrate the different diversification strategies Nokia has applied during the past until today.
Diversification First of all it is necessary to find a definition of diversification in order to analyse the business strategies of Nokia. There are different grwoth strategies outlined in table 1, the Ansoff Ma- trix.
Diversification is a growth strategy of entering product markets different from those in which the firm is currently engaged. A diversification strategy can be implemented by either acquisition, merger or a new business venture. This strategy can be categorized as a related or an unrelated diversification.
A related diversification characterizes that the new business areas do have meaningful commonalities with the core business of the company. Its founder was Fredrik Idestam who built a river bank mill in the Southern Finland and started producing paper.
He named this company Nokia. Over time, the Nokia factory attracted a large workforce and a community around the factory grew, which was later named Nokia. Next to the company Nokia, a rubber company and a cable manufacturer independently began their operations.
Finally, in these three companies merged to create the today known Nokia Cooperation.
The Cable com- pany was needed for the growing need of power transmission as well as telegraphs and tele- phone networks. With the acquisition of the Finnish Cable Works the roots for the telecom- munications was first paved. Puls-Code-Modulation PCM transmission equipment, Nokia already made in the early six- ties and seventies a strategic and significant move towards to digital and future technologies.
The intention of this unrelated diver- sification strategy was to grow fast, because at this time, it was believed that diversification can offer protection against economic fluctuations. Mobira, Salora, Televa and Luxor of Sweden. Again and again Nokia has seized opportunities to enter new and exciting businesses characterized by high risks but great promise to growth.
Since Nokia was listed on the Helsinki Stock Exchange.
Already in the beginning of the original company, as a forest industry, the international worldwide efforts were taken. Nokia continued its aggressive acquisition activities, also with foreign companies, in order to learn and get success to foreign markets.
Through acquiring the data system division of Ericsson in made Nokia to the largest information technology company in Scandinavia. The reason of such diversified conglomerates in Finland was the fact that Finland is a small marketplace and a small country.
If finish organizations want to stay in Finland they have to grow by finding new sectors and business areas.
At this time the overall trend resulted in unrelated diversifications and conglomerates. A new strategy came into action, which became famous: The huge growth in demand for mobile technology was significant. One of the highlights in the year were that the market capitalization grew to FIM billion in The Ansoff Matrix was developed by H.
Igor Ansoff and first published in the Harvard Business Review in , in an article titled "Strategies for Diversification." It has given generations of marketers and business leaders a quick and simple way to think about the risks of growth.
This is the reason why the Ansoff Matrix has become so popular because it charts the strategies that the firms must follow in each option, which again is a combination of the firms’ current capabilities, and the possibility of new market led growth.
Diversification is one of the four alternative growth strategies in the Ansoff Matrix.
A diversification strategy achieves growth by developing new products for completely new markets. As such, it is inherently more risky than product development because by definition the organization has little or no experience of the new market. The Ansoff Matrix management tool offers a solution to this question by assessing the level of risk – considering whether to seek growth through existing or new products in existing or new markets.
Sep 07, · Diversification is an Organisational Strategy for sustainability and growth. Its not a new strategy by any means but it is a necessary one. Nokia, the leading consumer mobile phone producer have now taken the next step towards creating new markets with new products and services.
Diversification Strategies of Nokia Term Paper, 14 Pages, Grade: 2,0 There are different grwoth strategies outlined in table 1, the Ansoff Ma- trix. Diversification is a growth strategy of entering product markets different from those in which the firm is currently engaged.
Diversification of the energy matrix in the metropolitan.