Business Strategy Nokia Corporation Case Study Example | Topics and Well Written Essays - 1750 words

Business Strategy Nokia Corporation - Case Study Example In addition, it provides recommendations and suggestions as how to employ the internal and external strengths, overcome the weakness, make use of the opportunities and identifying the potential threats in time and take preventive measures in time. Nokia Corporation is a Finland based company incorporated in the year 1966. The major breakthrough came when Nokia made an entry into the consumer electronics market. Through its remarkable internationalisation policies, Nokia over the years has evolved as the leading manufacturer of mobile devices and mobile networks across the globe. However from a humble start with paper, rubber and cable manufacturing, consumer electronics brought about a major reorientation of the company. It was towards the end of the twentieth century that Nokia aggressively started implementing expansionary policies in different electronic product areas. Over the next twenty - twenty five years, Nokia actively made acquisitions and divestments in an effort to internationalise and growth. In the year 1995, Nokia recorded revenue of a whooping FIM 36, 810 million of which 99 percent came from the electronics business: mobile phones, telecommunications and consumer electronics. (Lindell L. and Melin L., 1996) Today Nokia operat... It has a plethora of products and services to offer to consumers. Though its primary business area is manufacture and sell of mobile phone handsets, it also provides services to that help to protect a business from foreign intrusion, improve workforce communications and voice solutions. (About Nokia, 2009) The determining factor of Nokia's success in the consumer electronics industry is its timely identification and exploitation of business opportunities. Nokia's acquisition strategies played a major role in bringing about a remarkable corporate transformation. Between the period 1983 and 1992, Nokia made five well planned and strategised acquisitions of European companies. 1983 Salora (Finland), Luxor (Sweden) 1987 Oceanic (France) 1988 Standard Electric Lorenz (Germany) 1988 Main plants: Bochum (Germany) and Ibervisao (Portugal), with six other plants supporting the manufacturing of TV sets 1992 Finlux (Finland) In the 1970s when Nokia had just entered the computers manufacturing industry, another opportunity to expand in electronics appeared. There was a sudden creation of demand for a new type of portable radio telephone by the Finnish army. Eventually the three companies that got the order of manufacturing were Salora, Televa and Nokia. Salora was much ahead of its two counterparts in its Research and Development activities. In view of this, Nokia strategically approached Salora and for a joint venture initiative in the radio telephone business. (Lindell L. and Melin L., 1996) However in the 1970s Salora was forced to relinquish their ownership due to unethical business practices. After years of ill fate and business blunders, Nokia acquired 18 percent of the shares in Salora, however it