The Secret of Nokia 2006

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In order to understand how Nokia changed strategy during the 90s it is good to have just a short understanding that everything has not always been the same. Before the 90s Nokia has been known as a paper mill, producer of rubber boots and car tiers, they generated electricity and have also manufactured TVs. It was not before the end of 70s that Nokia started with mobile phones (as most of us know them today). Since the early 1990s, What was Nokia’s strategy in the 1990s? In the early 90s Nokia was once again at the “station”, with a new “driver” President and CEO Jorma Ollio. Nokia decided their Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks They decided to abandon the business of rubber, cable and consumer electronics and to excusevly focus on the manufacturing of mobile phones and telecommunications systems. Before this new strategy Nokia Mobile Phones (NMP) was the smallest of the five business divisions of Nokia, with annual sales of $500 million and 3,051 employees. Jorma Olilla, the new president of NMP, in the same year led the division to become the world's second largest manufacturer of mobile telephones after Motorola in just a year and half later. On nokias website we can read that they were world leaders in 1998 and this was due to “The strategic decision to focus on telecommunications, plus the early investment in GSM.” http://www.nokia.com/global/about-nokia/about-us/the-nokia-story/ It is also interesting to see that they were very much working on their own and not really cooperating with other firms. KEY POINTS 1990s New “driver” (president and CEO Jorma Ollio) Build distinctive competency in product innovation, rapid response, and

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