Introduction Hichem

● Briefly introduce the company and its industry

● Explain the purpose and scope of the report
Partie 1 : Company Hichem
● Provide a brief presentation of the company, including its history, mission, vision, and values
● Outline the company's organizational structure and key business units
● Identify the firm's key resources and capabilities and explain their role in the company's
performance
● Analyze how the company leverages these resources and capabilities to gain a competitive
advantage
● Identify the company's international activity over the past five or ten years
● Analyze the company's international expansion strategies and assess their effectiveness
● Examine the company's global footprint and its impact on its financial performance
Partie 2 : Environment Zakaria
● Conduct a scan of the market and geographic segments in which the company operates
● Identify the key players in the industry and assess their strengths and weaknesses
● Draw up to 5 forces model of the industry and analyze the level of competition and bargaining
power of buyers and suppliers
● Conduct a scan of the company's internal environment, including its culture, structure, and
processes
● Analyze the company's strengths and weaknesses and assess its ability to execute its
international strategy
● Conduct a scan of the external environment, including economic, political, social, and
technological factors
● Identify potential opportunities and threats that may impact the company's international
strategy
Partie 3 : Perception - Hichem
● Analyze the company's market entry strategies and assess their effectiveness
● Evaluate the advantages and disadvantages of different market entry modes, such as
exporting, licensing, joint ventures, and wholly owned subsidiaries
● Evaluate some perspectives for the future of the company and its international strategy
● Identify potential challenges and opportunities that the company may face in the short and
long term
● Provide recommendations for the company's international strategy
Conclusion Zakaria
● Summarize the key findings of the report
● Answer the question(s) posed at the end of the case, based on the analysis conducted in the
report
● Provide final recommendations for the company's international strategy.
Introduction Hichem

● Briefly introduce the company and its industry

Nokia Corporation is a Finnish multinational telecommunications equipment company founded in
1865. The company is headquartered in Espoo, Finland and is primarily engaged in the manufacturing
of networking and communications equipment, including mobile phones, base stations, and routers.
In the early 2000s, Nokia was the world's largest manufacturer of mobile phones, holding over 40%
market share. However, with the rise of smartphones and the emergence of companies like Apple
and Samsung, Nokia's market share began to decline.
In 2014, Nokia sold its mobile phone business to Microsoft, and has since shifted its focus towards
providing networking infrastructure and services to businesses and governments. As of 2021, Nokia
employed over 90,000 people worldwide and had a revenue of €21.9 billion in 2020.
The telecommunications equipment industry is highly competitive, with major players including
Huawei, Ericsson, and Nokia. The industry has experienced significant growth in recent years due to
the increasing demand for mobile data, 5G networks, and the Internet of Things.

● Explain the purpose and scope of the report

The purpose of this report is to conduct a comprehensive analysis of Nokia's international strategy,
its resources and capabilities, as well as its impact on the company's financial performance. This
report is divided into three main parts.

The first part provides an overview of Nokia, including its history, mission, vision, values,
organizational structure, and key business units. This section also includes an analysis of Nokia's
resources and capabilities, its international activity, and how it leverages these resources to gain a
competitive advantage.

The second part of the report focuses on the environment in which Nokia operates. This includes a
market analysis, a scan of the company's internal and external environment, as well as a review of
potential opportunities and threats that may impact the company's international strategy.

The third part of the report explores Nokia's market entry strategies and evaluates their
effectiveness. This section also provides an assessment of potential challenges and opportunities that
the company may face in the short and long term, along with recommendations for its international
strategy.

Overall, this report aims to provide valuable insights into Nokia's international strategy and its ability
to adapt to the changing telecommunications industry. Through a comprehensive analysis of the
company's resources, capabilities, and market environment, this report seeks to provide a
comprehensive understanding of Nokia's competitive position and future prospects.
Partie 1 : Company Hichem
Company overview

● Provide a brief presentation of the company, including its history,

mission, vision, and values
Nokia is a Finnish telecommunications giant that has undergone significant changes throughout its
history. It was founded in 1865 as a single paper mill operation on the banks of the River Nokia, and
has since moved into various industrial sectors including rubber boots, cable, paper products, tires,
televisions, and mobile phones. Nokia's current focus on telecommunications began in 1990 when it
launched its first GSM call using Nokia equipment.
By 1998, Nokia had become the best-selling mobile phone brand in the world, and continued to
innovate with the launch of its first phone with a built-in camera in 2001, and the introduction of 3G
phones that could capture video, browse the web, download music, and watch TV on the move by
2004. In 2007, Nokia experienced a turning point with the recall of 46 million phones due to
potentially faulty batteries, and struggled to compete with the iPhone despite partnering with
Microsoft in 2010. Microsoft eventually bought Nokia's mobile manufacturing unit in 2013, but Nokia
returned to the market in 2016 with a focus on telecommunications 5G equipment.
Today, Nokia's mission is to create the technology to connect the world, and its vision is to shape the
future of technology to transform human experiences. Nokia values trust, customer success,
innovation, and teamwork, and is hoping to expand its 5G network solutions in Europe and Western
countries in 2021. Despite its ups and downs, Nokia remains a significant player in the
telecommunications industry.

● Outline the company's organizational structure and key business units

Nokia operates in more than 100 countries worldwide. As of 2021, the company has a diverse
organizational structure that reflects its various business segments and geographic regions.

At the top of Nokia's organizational hierarchy is the Board of Directors, which consists of 11 members
who oversee the company's strategic direction and governance. The Board appoints the President
and CEO, currently Pekka Lundmark, who is responsible for implementing the company's strategy
and managing its operations.

Nokia's operations are organized into four main business groups, each with its own president and
focused on specific products and services. These business groups are:

● Mobile Networks: This group is responsible for developing and delivering mobile network
infrastructure, including radio access, transport, and core networks, as well as software and
services related to these products. The Mobile Networks group serves mobile operators,
public safety agencies, and other industries that require high-performance connectivity.
● Network Infrastructure: This group provides products and services for the fixed access, IP
routing, optical transport, and network management segments. The Network Infrastructure
group caters to customers such as telecom operators, enterprises, and governments.
● Cloud and Network Services: This group offers software and services for cloud-native
networks, network automation, and digital operations. The Cloud and Network Services
 group serves operators, enterprises, and webscale companies that require agile and
automated network solutions.
● Nokia Technologies: This group focuses on patent licensing and intellectual property (IP)
management. Nokia Technologies licenses its IP to third-party companies in industries such
as consumer electronics, automotive, and healthcare.

In addition to these business groups, Nokia also has regional organizations that oversee sales,
marketing, and customer relationships in different parts of the world. These regional organizations
are responsible for adapting Nokia's global strategy to local market conditions and customer needs.

Overall, Nokia's organizational structure reflects its focus on delivering end-to-end network solutions
and leveraging its IP portfolio. The company's business groups and regional organizations work
together to serve customers across different industries and geographies, while the Board and CEO
provide leadership and oversight for the entire organization.

Resources and capabilities (+SWOT)

● Identify the firm's key resources and capabilities and explain their role
in the company's performance
Nokia's key resources are the assets that provide the company with a competitive advantage over its
rivals. Nokia's brand name, patents, research and development (R&D) facilities, and manufacturing
infrastructure are its key resources. Nokia's brand name is one of its most valuable assets, and it has
been recognized worldwide for its reliability, durability, and innovation. The company's patents
provide it with a legal shield against imitators and competitors. Nokia's R&D facilities are among the
best in the industry, and they have played a critical role in the company's success. Finally, Nokia's
manufacturing infrastructure, which includes production facilities and supply chain management, has
been a source of competitive advantage for the company.
Besides that, Nokia's capabilities are the skills, expertise, and competencies that the company has
developed over the years. Nokia's key capabilities include its expertise in mobile phone design,
software development, and distribution. Nokia's design capabilities were evident in its early mobile
phones, which were known for their durability, ease of use, and aesthetic appeal. Nokia's software
development capabilities allowed it to develop a user-friendly operating system for its phones,
making them accessible to a wider audience. Additionally, Nokia's distribution capabilities, which
included partnerships with mobile carriers and retailers, allowed the company to reach customers in
markets around the world.
In brief, Nokia's key resources and capabilities played a critical role in the company's performance.
Nokia's brand name and patents provided the company with a competitive advantage in the mobile
phone industry, allowing it to charge higher prices for its products. Nokia's R&D facilities enabled it to
innovate and develop new products, keeping the company ahead of its competitors. Additionally,
Nokia's manufacturing infrastructure allowed it to produce and distribute its products efficiently and
effectively.
However, Nokia's success was not sustained in the face of changing market dynamics. The
emergence of smartphones and new competitors, such as Apple and Samsung, challenged Nokia's
key capabilities in design and software development. The company was slow to adapt to these
changes, and its once-dominant position in the mobile phone industry began to erode. Despite

efforts to reposition the company, Nokia's decline continued, and in 2014, it sold its mobile phone
business to Microsoft.

So, Nokia's key resources and capabilities played a critical role in the company's success and decline.
Nokia's brand name, patents, R&D facilities, and manufacturing infrastructure provided the company
with a competitive advantage in the early years, enabling it to dominate the mobile phone industry.
Nokia's inability to adapt to changing market dynamics ultimately led to its decline. By analyzing
Nokia's key resources and capabilities, we can better understand the factors that contributed to the
company's rise and fall in the mobile phone industry.

● Analyze how the company leverages these resources and capabilities to

gain a competitive advantage
The mobile phone industry is highly competitive, and firms need to leverage key resources and
capabilities to gain a competitive advantage. Nokia's success was largely due to its ability to
effectively leverage its resources and capabilities.

Nokia's reputation for reliability, durability, and innovation allowed it to build a strong brand name.
This, in turn, allowed Nokia to charge premium prices for its products and protect its intellectual
property through a strong patent portfolio.

Nokia invested heavily in R&D to develop new products and technologies. This allowed the firm to
stay ahead of the curve and gain an advantage over competitors. Nokia's manufacturing
infrastructure was also a key resource, as the company could produce phones efficiently and cost-
effectively.

Design, software development, and distribution capabilities were also important resources for Nokia.
By developing aesthetically appealing and user-friendly phones, Nokia was able to appeal to a wide
range of consumers. By partnering with mobile carriers and retailers, Nokia was able to distribute its
products effectively and reach customers in markets around the world.
International activity

● Identify the company's international activity over the past five or ten
years
Over the past decade, Nokia's international activity has been characterized by a focus on expanding
its presence in emerging markets and maintaining its position in developed markets while
diversifying its product portfolio. The company's international expansion strategies have included
strategic partnerships and collaborations with local firms, investments in research and development
centers, and diversification of its product portfolio.

Nokia's expansion into emerging markets has been a key strategy to capture growth opportunities in
these regions. The company has achieved this by forming strategic partnerships with local firms to
gain access to local knowledge and expertise. For example, in 2020, Nokia signed a multi-year
agreement with Indian telecom company Bharti Airtel to deploy 5G networks in the country. Nokia
has also invested in research and development centers in emerging markets to better understand
local consumer needs and preferences. In 2020, Nokia opened a new 5G R&D center in Taiwan.

To maintain its position in developed markets, Nokia has focused on innovation and new product
development. For example, the company has introduced new technologies such as 5G and expanded
its range of mobile devices to appeal to a wider audience. Nokia has also diversified its product
portfolio by investing in areas such as networking equipment, cloud services, and cybersecurity
solutions. In 2020, Nokia's net sales in network infrastructure were €15.1 billion, while net sales in
Nokia Technologies were €1.5 billion.

● Analyze the company's international expansion strategies and assess

their effectiveness
Nokia's international expansion strategies have been largely effective in achieving its goals of
expanding in emerging markets, maintaining its position in developed markets, and diversifying its
product portfolio. The company's strategic partnerships and collaborations with local firms have
allowed it to tap into local knowledge and expertise, while investments in research and development
centers have helped it better understand local consumer needs and preferences. Diversification of its
product portfolio has also allowed Nokia to compete in new areas beyond traditional mobile phones.

However, Nokia's international expansion strategies have also faced challenges. The company has
faced stiff competition from rivals such as Apple and Samsung, particularly in developed markets.
Additionally, political and economic instability in some emerging markets has made it difficult for
Nokia to expand in those regions.

Overall, Nokia's international activity over the past decade has been characterized by a focus on
expanding in emerging markets, maintaining its position in developed markets, and diversifying its
product portfolio.
 ● Examine the company's global footprint and its impact on its financial
performance
Nokia's global footprint has played a significant role in its financial performance over the years. The
company has a presence in over 100 countries and has sales and services operations in more than
130 countries. This global presence has allowed Nokia to capture growth opportunities in emerging
markets while maintaining its position in developed markets.

One of the key ways in which Nokia's global footprint has impacted its financial performance is
through its revenue streams. The company's net sales in 2020 were €21.9 billion, with Europe,
Middle East and Africa (EMEA) being the largest market, accounting for 41% of net sales. Asia-Pacific
was the second-largest market, accounting for 28% of net sales. By having a global presence, Nokia
has been able to diversify its revenue streams and reduce its reliance on any one market.

Nokia's global footprint has also enabled the company to access a wider pool of talent and resources.
The company has research and development centers in multiple countries, including Finland,
Germany, the United States, and China. This has allowed Nokia to tap into local expertise and
knowledge, while also enabling it to access a wider pool of resources.

However, Nokia's global footprint has also had some negative impacts on its financial performance.
The company has faced challenges related to currency fluctuations, political instability, and economic
downturns in some markets. For example, in 2020, the COVID-19 pandemic led to a slowdown in
economic activity in many countries, which negatively impacted Nokia's financial performance.

Overall, Nokia's global footprint has had a significant impact on its financial performance. By having a
presence in over 100 countries, Nokia has been able to capture growth opportunities in emerging
markets while maintaining its position in developed markets. However, this global presence has also
exposed the company to challenges related to currency fluctuations, political instability, and
economic downturns in some markets.
Partie 2 : Environment Zakaria
Market analysis (+PESTEL)

● Conduct a scan of the market and geographic segments in which the

company operates

Nokia Corporation operates in the global telecommunications equipment industry, which

encompasses various geographic segments. A comprehensive market analysis using the PESTEL
framework provides valuable insights into the external factors that impact Nokia's operations.

Political Factors:
Political factors significantly influence Nokia's market presence and operations. Government
regulations related to telecommunications policies, trade agreements, and intellectual property
rights affect the company's ability to operate in different countries. Additionally, political stability and
geopolitical tensions can impact Nokia's business relationships and market opportunities.

Economic Factors:
Economic factors play a vital role in Nokia's market performance. Economic conditions, such as GDP
growth rates, currency exchange rates, and inflation rates, influence consumer purchasing power,
investment decisions, and infrastructure development. These factors directly impact demand for
telecommunications equipment and services, thereby affecting Nokia's revenue and profitability.

Sociocultural Factors:
Sociocultural factors reflect the social and cultural environment in which Nokia operates. Consumer
preferences, technological awareness, and acceptance of new technologies shape market demand
for mobile devices, networking solutions, and telecommunications infrastructure. Societal trends,
such as the increasing need for connectivity and the adoption of digital lifestyles, provide growth
opportunities for Nokia.

Technological Factors:
Technological advancements have a profound impact on Nokia's market landscape. The rapid
development of 5G networks, Internet of Things (IoT), artificial intelligence, and cloud computing
drives demand for advanced telecommunications equipment and services. Nokia must continually
innovate and adapt its offerings to stay competitive in this dynamic technological environment.

Environmental Factors:
Environmental considerations, such as sustainability and green initiatives, have gained prominence in
the telecommunications industry. Nokia needs to address environmental concerns, reduce carbon
footprints, and promote eco-friendly practices throughout its operations. Compliance with
environmental regulations and meeting sustainability expectations can positively influence the
company's reputation and market position.

Legal Factors:
Legal factors encompass various regulations and laws that affect Nokia's business operations. These
include intellectual property rights, antitrust regulations, data protection and privacy laws, and
international trade regulations. Compliance with legal requirements is essential for Nokia's market
presence and competitiveness.

By analyzing the market through the PESTEL framework, Nokia can better understand the external
factors that shape its operating environment. This analysis helps identify opportunities and threats,
enabling the company to formulate effective strategies and adapt to changing market conditions.

● Identify the key players in the industry and assess their strengths and
weaknesses

Huawei Technologies Co., Ltd.: Huawei is a Chinese multinational technology company that offers a
wide range of telecommunications equipment and services. The company has a strong global
presence and is known for its competitive pricing and technological advancements. Huawei's
strengths lie in its extensive R&D capabilities, which have enabled it to develop innovative products.
However, Huawei has faced challenges related to security concerns raised by certain countries, which
have impacted its market access in some regions.

Ericsson AB: Ericsson, a Swedish multinational networking and telecommunications company, is

another key player in the industry. The company provides a comprehensive portfolio of products and
services, including 5G infrastructure and network solutions. Ericsson's strengths lie in its strong
customer relationships, global reach, and technological expertise. The company has made significant
investments in 5G research and development. However, Ericsson faces intense competition and must
continuously innovate to maintain its market position.

Samsung Electronics Co., Ltd.: Samsung, a South Korean conglomerate, operates in various
industries, including telecommunications equipment. Samsung offers a wide range of products,
including mobile phones, network infrastructure, and semiconductors. The company's strengths lie in
its vertical integration, with capabilities in both hardware and software development. Samsung's
extensive product portfolio and strong brand recognition contribute to its competitive advantage.
However, Samsung faces challenges in penetrating certain markets where other established players
have a stronger presence.

Cisco Systems, Inc.: Cisco, an American multinational technology conglomerate, provides networking
solutions and services to businesses and organizations. The company specializes in networking
hardware, software, and security solutions. Cisco's strengths include its robust product portfolio,
focus on network security, and strong presence in enterprise markets. However, Cisco faces
competition from specialized vendors and must continue to adapt to evolving market trends.

ZTE Corporation: ZTE, a Chinese multinational telecommunications equipment and systems company,
is known for its telecommunications infrastructure and mobile devices. The company has a strong
presence in emerging markets and has achieved notable success in expanding its global footprint.
ZTE's strengths include its competitive pricing, technological capabilities, and its ability to tailor
solutions to specific market needs. However, ZTE has faced challenges related to compliance issues
and regulatory scrutiny in certain countries.
 ● Draw up to 5 forces model of the industry and analyze the level of
competition and bargaining power of buyers and suppliers
Porter's Five Forces Analysis of the Telecommunications Equipment Industry for Nokia:

Competitive Rivalry:

The competitive rivalry in the telecommunications equipment industry is intense. Major players like
Huawei, Ericsson, and Samsung compete for market share and strive to offer innovative products and
solutions. The industry is characterized by frequent product advancements, rapid technological
changes, and significant R&D investments. This high level of competition puts pressure on Nokia to
continuously enhance its offerings and differentiate itself to maintain a competitive edge.

Bargaining Power of Buyers:

Buyers in the telecommunications equipment industry, such as network operators and businesses,
generally have a moderate level of bargaining power. While they rely on equipment providers like
Nokia for high-quality products and solutions, they have the ability to negotiate pricing, contract
terms, and demand customization. Buyers often consider factors like product performance, cost, and
reliability when choosing suppliers. Nokia needs to understand and meet customer needs to
maintain customer loyalty and satisfaction.

Bargaining Power of Suppliers:

Suppliers in the telecommunications equipment industry, such as component manufacturers, may

have a moderate to high level of bargaining power. This is due to the reliance of equipment
manufacturers like Nokia on specialized components and technologies. Suppliers that possess unique
technologies or hold patents can exert influence over pricing, terms, and availability. However,
Nokia's size and global reach enable it to have multiple supplier options, reducing the overall supplier
power.

Threat of New Entrants:

The threat of new entrants in the telecommunications equipment industry is relatively low. Entering
this industry requires substantial capital investment, extensive R&D capabilities, and established
relationships with network operators. Furthermore, existing players have strong brand recognition,
extensive product portfolios, and long-standing customer relationships. These factors create barriers
to entry for new competitors, reducing the threat of new entrants for Nokia.

Threat of Substitutes:

The threat of substitutes in the telecommunications equipment industry is relatively moderate.

While there may not be direct substitutes for networking infrastructure and equipment, alternative
technologies or solutions can potentially disrupt the industry. For example, the emergence of cloud-
based services and software-defined networking (SDN) presents alternative approaches to traditional
hardware-based solutions. Nokia must adapt and innovate to stay ahead of technological
advancements and potential substitutes.

In summary, the telecommunications equipment industry exhibits a high level of competitive rivalry
among major players. Buyers hold some bargaining power, while suppliers' power can vary based on
their technology and product differentiation. The threat of new entrants is low, but the industry
faces the moderate risk of substitutes. Nokia's success depends on its ability to effectively compete,
address buyer demands, manage supplier relationships, and anticipate and adapt to technological
advancements and potential substitutes.

Internal environment

● Conduct a scan of the company's internal environment, including its

culture, structure, and processes
Nokia's internal environment comprises its culture, structure, and processes, which collectively shape
the company's operations and strategic decision-making. A scan of Nokia's internal environment
provides insights into its strengths and weaknesses, as well as its ability to execute its international
strategy effectively.

Organizational Culture:
Nokia's organizational culture plays a significant role in shaping its internal dynamics and employee
behavior. The company values innovation, collaboration, and customer-centricity. It fosters a culture
of continuous learning and encourages employees to take ownership and initiative. Nokia's culture
emphasizes agility and adaptability, allowing the company to respond to market changes and
technological advancements.

Organizational Structure:
Nokia's organizational structure is designed to facilitate efficient decision-making and collaboration.
The company has evolved its structure over the years to align with its strategic focus. It operates
through multiple business units that are responsible for specific product lines and geographical
regions. This structure enables decentralized decision-making, encourages innovation at the business
unit level, and facilitates a customer-centric approach.

Processes and Operations:

Nokia emphasizes effective processes and operations to drive productivity and quality. The company
focuses on operational excellence, striving for efficient production and delivery of its products and
services. Nokia has implemented robust research and development processes to foster innovation
and bring new products to market. Furthermore, the company emphasizes continuous improvement
through the use of lean and agile methodologies.

Human Resources:
Nokia recognizes the importance of its employees as key assets. The company invests in talent
acquisition, development, and retention strategies to ensure a skilled workforce. Nokia encourages
diversity and inclusivity within its workforce, fostering a multicultural and global mindset. The
company offers training and development programs to enhance employee skills and capabilities,
enabling them to meet the demands of the rapidly evolving telecommunications industry.

Strengths and Weaknesses:

An analysis of Nokia's internal environment reveals its strengths and weaknesses. The company has a
strong reputation for technological expertise and innovation. It possesses extensive intellectual
property, R&D capabilities, and a vast patent portfolio. Nokia's global reach and established customer
relationships are additional strengths. However, the company has faced challenges in adapting to
market changes, particularly in the shift from mobile phones to networking infrastructure. Nokia has
undertaken restructuring efforts to address these weaknesses and leverage its core strengths.
 ● Analyze the company's strengths and weaknesses and assess its ability
to execute its international strategy
Strengths:

Technological Expertise: Nokia has a long-standing reputation for technological expertise in the
telecommunications industry. The company possesses extensive experience in developing and
delivering innovative networking solutions, including 5G technology, IP routing, optical networks, and
cloud-based services. This technological strength enables Nokia to offer advanced and reliable
solutions to its global customer base.

Intellectual Property and Patents: Nokia holds a significant number of patents, which serves as a
valuable asset and a competitive advantage. The company's extensive intellectual property portfolio
covers various technologies and enables Nokia to protect its innovations while also generating
licensing revenue.

Global Presence and Customer Relationships: Nokia has a strong global presence with operations in
various geographic segments. The company has established long-standing relationships with major
network operators, governments, and businesses worldwide. This extensive customer base provides
Nokia with a solid foundation for expanding its international strategy and leveraging its market reach.

Research and Development Capabilities: Nokia maintains robust research and development
capabilities, investing a significant portion of its resources in technological advancements. The
company's R&D efforts enable it to introduce new products, adapt to emerging trends, and address
customer needs. Nokia's focus on continuous innovation and R&D helps sustain its competitiveness
in the global market.

Weaknesses:

Past Mobile Phone Business Challenges: Nokia faced challenges in the mobile phone industry, leading
to the sale of its mobile phone business to Microsoft. This transition impacted the company's brand
reputation and market share in the consumer segment. While Nokia has successfully shifted its focus
to networking infrastructure, the aftermath of the mobile phone business challenges continues to
impact its perception in certain markets.

Market Share in Networking Equipment: Nokia faces strong competition from other major players,
such as Huawei and Ericsson, in the networking equipment segment. Despite Nokia's solid presence,
it has experienced fluctuations in its market share in certain regions. Competitors' aggressive
strategies, pricing pressures, and technological advancements pose challenges to Nokia's market
position.

Organizational Adaptability: Nokia's ability to adapt to market changes and execute its international
strategy has been a point of concern. The company has faced challenges in swiftly responding to
shifts in customer demands and industry trends, which impacted its competitive position in the past.
Nokia has undertaken restructuring efforts to improve its organizational agility and align its
operations more effectively with its strategic objectives.

Assessing Nokia's Ability to Execute its International Strategy:

Nokia possesses several strengths that contribute to its ability to execute its international strategy.
Its technological expertise, extensive patent portfolio, and global presence provide a solid foundation
for expanding into new markets and delivering advanced networking solutions worldwide.
Additionally, Nokia's emphasis on research and development enables it to stay at the forefront of
technological advancements and meet evolving customer demands.

However, Nokia faces certain weaknesses that can impact its international strategy execution. The
challenges encountered in the mobile phone business and fluctuations in market share highlight the
need for continuous improvement and competitive differentiation. Nokia must address these
weaknesses by leveraging its core strengths, enhancing customer relationships, and proactively
adapting to market dynamics.

To enhance its ability to execute its international strategy effectively, Nokia should focus on
strengthening its competitive positioning, fostering innovation, improving organizational agility, and
optimizing its operational efficiency. By addressing these areas and capitalizing on its strengths,
Nokia can better position itself for success in executing its international strategy and maintaining its
competitive advantage in the global telecommunications industry.

External environment

● Conduct a scan of the external environment, including economic,

political, social, and technological factors

External Environment Analysis for Nokia:

Economic Factors:
Economic factors significantly impact Nokia's external environment. Factors such as GDP growth
rates, consumer spending, and disposable income affect the demand for telecommunications
equipment and services. Economic downturns or fluctuations can lead to reduced investments in
infrastructure and technology, which may impact Nokia's revenue and market opportunities.
Additionally, currency exchange rates and trade policies influence the cost of production, pricing, and
international competitiveness.

Political Factors:
Political factors play a crucial role in Nokia's external environment. Government regulations, policies,
and trade agreements impact the company's operations and market access. Regulatory frameworks
related to telecommunications standards, spectrum allocation, data protection, and intellectual
property rights influence Nokia's ability to develop and deploy its products and services. Political
stability, government initiatives, and geopolitical tensions in different regions can also affect Nokia's
international operations and market opportunities.

Social Factors:
Social factors shape Nokia's external environment by influencing consumer preferences and
behavior. The adoption of mobile devices, digital lifestyles, and increasing connectivity needs are
driven by social trends. Nokia must understand societal attitudes towards technology, privacy
concerns, and the demand for sustainable and socially responsible practices. Social factors also
include demographic trends, such as population growth, urbanization, and changing age
demographics, which can impact the demand for telecommunications products and services.

Technological Factors:
Technological advancements and innovations are key drivers of Nokia's external environment. The
rapid evolution of 5G networks, Internet of Things (IoT), artificial intelligence, and cloud computing
present opportunities and challenges for the company. Nokia needs to continuously invest in
research and development to stay competitive in the dynamic technological landscape. Technological
factors also include the emergence of disruptive technologies, the pace of innovation, and the ability
to adopt and integrate new technologies into its products and services.

Environmental Factors:
Environmental factors have gained prominence in the external environment of Nokia and the
telecommunications industry as a whole. The focus on sustainability, energy efficiency, and reducing
carbon footprints is shaping market expectations and regulations. Nokia must consider
environmental impact in its product design, manufacturing processes, and supply chain
management. Compliance with environmental regulations and meeting customer expectations for
sustainable solutions can impact Nokia's market reputation and competitiveness.

By analyzing the external environment through economic, political, social, and technological factors,
Nokia can identify opportunities and threats that affect its international strategy. This analysis helps
the company anticipate market trends, understand customer needs, navigate regulatory challenges,
and align its operations and offerings with the external environment to maintain a competitive edge
in the telecommunications industry.

● Identify potential opportunities and threats that may impact the

company's international strategy
Potential Opportunities for Nokia's International Strategy:

5G Network Deployments: The global rollout of 5G networks presents a significant opportunity for
Nokia. As a leader in telecommunications equipment, Nokia can leverage its expertise to provide
advanced 5G infrastructure solutions to network operators worldwide. The increasing demand for
high-speed connectivity, IoT applications, and innovative services opens doors for Nokia to expand its
international presence and capture market share in the growing 5G market.

Digital Transformation Initiatives: The ongoing digital transformation across industries creates
opportunities for Nokia to offer solutions and services that enable businesses to optimize their
operations and leverage new technologies. Nokia can provide networking infrastructure, cloud-based
services, and IoT platforms to support the digitalization efforts of industries such as manufacturing,
transportation, healthcare, and smart cities.

Emerging Market Expansion: Nokia can explore opportunities in emerging markets where there is a
growing demand for telecommunications infrastructure and services. Countries in Asia, Africa, and
Latin America are experiencing rapid economic growth, increasing mobile penetration, and
infrastructure development. By establishing strategic partnerships and local presence, Nokia can
capture market share and benefit from the expanding digital ecosystems in these regions.
Partnerships and Alliances: Collaborating with other technology companies, network operators, and
ecosystem partners can provide Nokia with opportunities to enhance its international strategy.
Strategic alliances can facilitate joint research and development, co-creation of innovative solutions,
and access to new markets. Partnerships can also help Nokia expand its service offerings and enter
new segments, such as enterprise solutions and vertical industries.

Potential Threats to Nokia's International Strategy:

Intense Competition: Nokia faces fierce competition from major players in the telecommunications
equipment industry, including Huawei, Ericsson, and Samsung. Competitors' aggressive pricing
strategies, technological advancements, and strong market presence pose a threat to Nokia's market
share and profitability. The constant need to invest in R&D and innovation to stay competitive can
impact Nokia's financial performance and its ability to execute its international strategy effectively.

Geopolitical Factors: Geopolitical tensions, trade conflicts, and changing regulations can pose
challenges to Nokia's international operations. Political decisions related to spectrum allocation,
network security, and market access can impact Nokia's ability to compete in certain countries or
regions. Restrictions on trade and supply chain disruptions may also affect the company's
manufacturing processes and global supply chain management.

Technological Disruption: The rapid pace of technological advancements brings both opportunities
and threats to Nokia. Disruptive technologies, such as software-defined networking (SDN) and
virtualization, could potentially change the dynamics of the telecommunications industry. Nokia
needs to adapt and transform its business models, offerings, and capabilities to stay ahead of
technological disruptions and remain relevant in the evolving market.

Changing Customer Preferences and Industry Dynamics: Customer preferences, demands, and
business models in the telecommunications industry are constantly evolving. The shift towards
software-based solutions, cloud services, and open architectures can impact Nokia's traditional
business of hardware-centric offerings. Failure to adapt to changing customer needs and industry
dynamics could result in the loss of market share to more agile and innovative competitors.

By identifying potential opportunities and threats, Nokia can develop strategies to capitalize on the
opportunities and mitigate the threats in its international operations. Proactive measures to leverage
emerging technologies, strengthen partnerships, address competitive challenges, and navigate
geopolitical complexities will be crucial for Nokia's success in executing its international strategy and
maintaining its market position.
Partie 3 : Perception - Hichem
Market entry strategies ZAKARIA

● Analyze the company's market entry strategies and assess their

effectiveness

Nokia has employed various market entry strategies to expand its global presence and enter new
markets. These strategies have aimed to establish a strong foothold, penetrate target markets, and
capitalize on emerging opportunities. Let's analyze some of the key market entry strategies
employed by Nokia and assess their effectiveness:

Direct Investment:
Nokia has pursued direct investment as a market entry strategy by establishing wholly owned
subsidiaries or acquiring local companies in target markets. This approach allows Nokia to have full
control over operations, distribution channels, and customer relationships. By investing in local
infrastructure, manufacturing facilities, and R&D centers, Nokia can tailor its products and services to
the specific needs of the market. Direct investment enables the company to build a local presence,
leverage its global brand reputation, and establish long-term relationships with customers. This
strategy has been effective in expanding Nokia's footprint and capturing market share in various
regions.

Strategic Partnerships and Alliances:

Nokia has formed strategic partnerships and alliances with network operators, technology
companies, and ecosystem partners as part of its market entry strategy. Collaborating with local
partners provides Nokia with market knowledge, distribution channels, and access to customer
networks. Partnerships can also facilitate joint development of customized solutions and shared
investments in infrastructure deployment. This strategy allows Nokia to leverage the expertise and
resources of partners to enter new markets and expand its reach more efficiently. Strategic
partnerships have proven effective in enhancing Nokia's market presence and offering
comprehensive solutions to customers.

Licensing and Technology Transfer:

Nokia has employed licensing and technology transfer agreements as a market entry strategy in
certain markets. This approach involves licensing its patented technologies, know-how, or software
to local companies in exchange for royalties or revenue sharing. By leveraging local partners'
distribution networks and market understanding, Nokia can enter markets quickly and benefit from
the partner's existing customer base. This strategy allows Nokia to generate revenue from its
intellectual property while expanding its market reach. Licensing and technology transfer agreements
have been effective in accelerating Nokia's entry into specific markets and expanding its technology
ecosystem.

Joint Ventures and Collaborative Projects:

Nokia has engaged in joint ventures and collaborative projects with local partners to enter new
markets and diversify its offerings. Joint ventures enable Nokia to pool resources, share risks, and
leverage local expertise while accessing new markets. Collaborative projects with other technology
companies or research institutions allow Nokia to tap into emerging technologies and drive
innovation. These partnerships provide a platform for knowledge sharing, market insights, and co-
development of new solutions. Joint ventures and collaborative projects have proven effective in
expanding Nokia's product portfolio, accessing new market segments, and fostering innovation.

Overall, Nokia's market entry strategies have been effective in expanding its international presence
and capturing market share. Direct investment, strategic partnerships, licensing, and joint ventures
have allowed the company to establish a strong foothold in target markets, access local expertise,
and cater to specific market needs. By leveraging these market entry strategies effectively, Nokia has
been able to navigate the complexities of different markets, drive growth, and maintain its
competitive position in the global telecommunications industry.

● Evaluate the advantages and disadvantages of different market entry

modes, such as exporting, licensing, joint ventures, and wholly owned
subsidiaries
Different market entry modes, such as exporting, licensing, joint ventures, and wholly owned
subsidiaries, offer distinct advantages and disadvantages for Nokia. Let's evaluate these entry modes
for Nokia:

Exporting:

Advantages:

Low initial investment: Exporting requires less upfront investment compared to other modes,
allowing Nokia to enter new markets without significant capital expenditure.

Fast market entry: Exporting enables Nokia to quickly enter international markets and start
generating revenue.

Access to new customers: Exporting allows Nokia to reach new customers without establishing local
operations or infrastructure.

Disadvantages:

Limited control over marketing and distribution: Nokia may have limited control over marketing and
distribution channels, relying on intermediaries in target markets.

Tariffs and trade barriers: Exporting can be subject to trade barriers, tariffs, and customs regulations,
affecting pricing and profitability.

Limited market understanding: Without a local presence, Nokia may have limited insights into local
customer preferences and market dynamics.

Licensing:

Advantages:

Low investment and risk: Licensing allows Nokia to generate revenue from its intellectual property
without substantial investments or operational commitments.
Access to local expertise: Licensing agreements provide access to local partners' market knowledge,
distribution networks, and customer relationships.

Quick market entry: Licensing enables Nokia to enter new markets rapidly by leveraging the
resources and infrastructure of the licensee.

Disadvantages:

Loss of control: Licensing involves granting the rights to use Nokia's intellectual property to third
parties, resulting in reduced control over product quality, marketing, and pricing.

Limited revenue potential: Royalties from licensing agreements may provide lower returns compared
to direct sales, limiting Nokia's revenue potential.

Potential competition: Licensing agreements may create future competition if the licensee gains
knowledge and expertise that could be used against Nokia.

Joint Ventures:

Advantages:

Shared risks and resources: Joint ventures allow Nokia to pool resources, share risks, and benefit
from the local partner's market knowledge and expertise.

Local market access: Joint ventures provide access to local distribution channels, customer
relationships, and regulatory knowledge.

Technology and knowledge transfer: Joint ventures facilitate the transfer of technology, know-how,
and best practices between Nokia and its local partners.

Disadvantages:

Potential conflicts: Differences in strategic objectives, decision-making processes, and cultural factors
can lead to conflicts between Nokia and its joint venture partners.

Shared profits and control: Nokia shares profits and decision-making authority with its joint venture
partners, potentially limiting its control over operations and strategic direction.

Dependency on partners: Nokia's success in the market may be influenced by the capabilities and
commitment of its joint venture partners.

Wholly Owned Subsidiaries:

Advantages:

Full control over operations: Wholly owned subsidiaries give Nokia full control over operations,
allowing it to implement its strategies and maintain consistent branding and quality.

Deeper market understanding: Wholly owned subsidiaries enable Nokia to have direct insights into
local market dynamics, customer preferences, and competitive landscape.

Higher profit potential: Nokia retains the full profits from its operations in wholly owned subsidiaries,
allowing for greater revenue potential.

Disadvantages:
High initial investment: Establishing and operating wholly owned subsidiaries require significant
upfront investment in infrastructure, marketing, and talent acquisition.

Market-specific risks: Wholly owned subsidiaries expose Nokia to market-specific risks, such as
regulatory changes, political instability, and economic fluctuations.

Slower market entry: Compared to other modes, setting up wholly owned subsidiaries takes more
time, resulting in delayed market entry and revenue generation.

Overall, the selection of a market entry mode depends on various factors, including market
characteristics, risk appetite, available resources, and strategic objectives. Nokia should carefully
evaluate the advantages and disadvantages of each mode to align with its international expansion
strategy and optimize market entry decisions.

Future perspectives HICHEM

● Evaluate some perspectives for the future of the company and its
international strategy
Nokia's future success will depend on its ability to navigate the rapidly changing technology
landscape and maintain a competitive edge in the global marketplace. The company's international
strategy will play a crucial role in determining its future growth and success.

One perspective for the future of Nokia is to continue to focus on expanding its presence in emerging
markets. The company has already demonstrated success in markets such as India and China, and
there is still significant potential for growth in these regions. For example, the Indian smartphone
market is expected to grow at a compound annual growth rate of 14.5% between 2021 and 2026,
providing significant opportunities for Nokia to capture market share.

Another perspective for the future of Nokia is to continue to invest in research and development to
drive innovation and differentiate itself from competitors. The company has already made significant
investments in areas such as 5G technology and the Internet of Things (IoT). Continued investment in
these areas, as well as emerging technologies such as artificial intelligence and blockchain, could
enable Nokia to maintain a competitive edge in the global marketplace.

A third perspective for the future of Nokia is to focus on partnerships and collaborations to expand
its reach and capabilities. For example, Nokia has partnered with Microsoft to provide cloud-based
solutions for businesses, and with Amazon Web Services to develop 5G-enabled cloud computing
services. Such partnerships can help Nokia to leverage the strengths of other companies and expand
its offerings to customers.

In terms of financial performance, Nokia reported net sales of €21.9 billion in 2020, with a net loss of
€1.1 billion. The company's financial performance has been impacted by factors such as the COVID-
19 pandemic and increased competition in the telecommunications industry.
 ● Identify potential challenges and opportunities that the company may
face in the short and long term
Nokia faces a range of challenges and opportunities in both the short and long term. In the short
term, the ongoing COVID-19 pandemic could impact the company's supply chain and demand for its
products, while intense competition from rivals such as Samsung and Apple could also pose
challenges.

Nokia must also navigate the complex global geopolitical landscape, where trade disputes and other
political factors could impact its operations. In the long term, Nokia's ability to innovate and stay
ahead of the curve will be crucial to its success. Opportunities for Nokia include expanding its
presence in emerging markets such as India and China, which are expected to experience high
growth rates in the coming years. The company could also leverage its strong intellectual property
portfolio to explore new business opportunities.

Overall, Nokia must adapt to the rapidly changing technology landscape and develop innovative
products to maintain its competitive edge.

● Provide recommendations for the company's international strategy

Firstly, Nokia should continue to focus on developing innovative products and solutions to maintain
its competitive edge in the global market. This could involve investing in research and development
activities, partnering with other companies, and exploring new technologies and trends.

Secondly, Nokia should consider expanding its presence in emerging markets such as India and China.
These markets are expected to experience high growth rates in the coming years and represent
significant opportunities for Nokia. The company could achieve this by investing in local production
and distribution capabilities, as well as building strong partnerships with local companies.

Thirdly, Nokia should prioritize strategic partnerships and collaborations with other companies in the
industry. This could include joint ventures, licensing agreements, and other forms of collaboration. By
leveraging the strengths of other companies, Nokia could enhance its own capabilities and expand its
market share.

Fourthly, Nokia should pay close attention to the regulatory and political environment in the
countries where it operates. This could involve working closely with government officials and
regulators to ensure compliance with local laws and regulations, as well as staying abreast of any
changes or updates that could impact its operations.

Overall, by focusing on innovation, expanding its presence in key emerging markets, building
strategic partnerships, and maintaining strong relationships with regulators and government officials,
Nokia can position itself for long-term success in the global marketplace.
Conclusion Zakaria

● Summarize the key findings of the report

Nokia was once a leader in the mobile phone industry, but its failure to adapt to changing market
trends and competition from Apple and Samsung led to its downfall. The company's lack of
innovation, poor software development, and dysfunctional organizational structure were key factors
in its decline. However, Nokia's values, such as "Connecting people," can help guide its change
management plan and emphasize the importance of customer needs and communication.
To improve its international strategy, Nokia should focus on innovation and product development to
meet changing consumer needs and stay competitive in the market. The company should also
consider restructuring its organization to improve communication and decision-making, strengthen
its partnerships with other companies, and strengthen its presence in emerging markets.
Additionally, Nokia should use methods such as participation, facilitation, and negotiation in the
change management plan instead of manipulation and coercion to improve the effectiveness of the
plan.
Overall, Nokia has the resources and capabilities to regain its position as a leader in the mobile phone
industry, but it will require a strategic shift and a willingness to adapt to changing market trends. By
implementing the recommendations outlined above, Nokia can improve its international strategy
and better position itself for future success.

● Answer the question(s) posed at the end of the case, based on the
analysis conducted in the report
Why did Nokia fail in its change management program?
Nokia failed in its change management program due to several reasons, including a lack of
innovation, poor software development, a dysfunctional organizational structure, and a failure to
adapt to changing market trends. Nokia's change management plan might have worked better if
they had used methods such as participation, facilitation, and negotiation instead of manipulation
and coercion.

Why did Nokia fail - case study?

Nokia's failure is often cited as a case study in change management due to its inability to adapt to the
rise of smartphones and the dominance of Apple and Samsung. Nokia's organizational structure, lack
of innovation, and poor software development were key factors in its downfall.

What adjustments does Nokia's management need to make to its products?

Nokia's management needs to make adjustments to its products by focusing on innovation,
improving software development, and adapting to changing market trends. Nokia should also
consider restructuring its organization to improve communication and decision-making.

How will Nokia's values help execute the change in business strategy?
Nokia's values, such as "Connecting people," can help execute the change in business strategy by
emphasizing the importance of customer needs and communication. By prioritizing these values,
Nokia can improve its products and better adapt to changing market trends. Additionally, Nokia's
values can help guide its change management plan by using methods such as participation,
facilitation, and negotiation instead of manipulation and coercion.

What should Nokia have done differently?

Nokia should have done several things differently, including investing more in software development,
focusing on innovation, and adapting to changing market trends. Nokia should have also restructured
its organization to improve communication and decision-making. In addition, Nokia's change
management plan could have been more effective if they had used methods such as participation,
facilitation, and negotiation instead of manipulation and coercion.

● Provide final recommendations for the company's international

strategy.
1. Focus on innovation and product development to meet changing consumer needs and stay
competitive in the market.

2. Strengthen Nokia's presence in emerging markets, where there is high demand for mobile phones
and communication services.

3. Consider restructuring the organization to improve communication and decision-making, which

can help Nokia adapt to changing market trends more effectively.

4. Strengthen partnerships with other companies to improve Nokia's market position and increase its
market share.

5. Use methods such as participation, facilitation, and negotiation in the change management plan
instead of manipulation and coercion to improve the effectiveness of the plan.

By implementing these recommendations, Nokia can improve its international strategy and better
adapt to changing market trends, which can help the company regain its position as a leader in the
mobile phone industry.