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Nokia Improvement Strategies
Sep 14, 2017 in Business
Nokia is a major and global mobile company that has a long and complex supply chain. Nokia has a great responsibility and is committed in ensuring its highest standards of corporate responsibility are fully exercised (Steinbock, 2010). The Nokia's Supplier Code of Conduct (NSCC) outlines our Key approach and has a great commitment to ethical and sustainable business practices. However there are various ways and techniques that will make Nokia Corporation to have a competitive edge in the electronic mobile phone market.
Nokia Corporation has four key commitment goals in respect to promote human rights, promote environmental and surrounding sustainable business activities must fully exercise a zero-tolerance policy towards corruption. This way it will reduce unnecessary revenue loss and will build up a higher net profit to make it ongoing in the foreseeable future. Nokia Corporation must commit fully to all suppliers of its raw materials as outlined in the Supplier Code of Conduct as well as fully apply the similar standards to its entire supply chains. Nokia Corporation must abide strictly to its regulatory principles for sustainable sourcing that includes the following:
Integrating sustainable practices into our business
Nokia Company must have a sole aim of ensuring that sustainable practices are not isolated add-on features but are fully embedded within all its sourcing practices that includes supplier selection and relationship development.
Close cooperation. Nokia Company must develop open communication, good relationships and transparency in order to ensure success in its sales. Moreover, Nokia Corporation should work closely with its potential suppliers, customers, industry peers, non-governmental organizations(NGO) and its entire stakeholders.
Nokia Corporation must ensure a consistent improvement of its working system and develop its requirements, tools, sales techniques and its processes over time to enhance full sustainability, thereby creating a room of earning more revenue and increase its subsidiary branches globally.
Nokia Company must Snapshot its supply chain. Nokia Company supply chain should consists of over a hundred direct suppliers for its hardware, components and parts, and thousands of software suppliers, this way it will have ensure full provision of its services and equipment needed for its operations. Nokia Corporations must begin with raw material extraction and processing and ends in the manufacturing of components and final product assembly so as to increase production rate of its final commodes than its rivals in the electronic mobile phone market and therefore increase its sales. Nokia Company must typically have 3 to 8 supplying layers between itself and its mining activities. Its supply chain must spread around the world so as to deliver its own production sites as well as to its offices globally. By operating its own global manufacturing network, most of Nokia's manufacturing will be indoor and must comply with its biding social and environmental requirements. This technique will minimize wastage of its resources and thus will increase effectiveness of its production.
Nokia Corporation must ensure it has a stainable sourcing of raw materials. Nokia must source its raw materials, components and services from suppliers globally and must expect them to meet its own full and high standards of environmental and social responsibility. To achieve this, Nokia Company must develop a comprehensive set of worldwide Nokia Supplier Requirements (NSR) that must incorporate specified environmental and social needs. Nokia must ensure its suppliers do comply with the NSRs, moreover suppliers must comply with Nokia's Supplier Code of Conduct. By this Nokia will continue producing high quality products that will compete and meet international standards than its rivals thus increasing its sale and acquiring a more global market niche.
Substance management and the Nokia Substance List. Nokia Corporation together with its suppliers' operations needs to consider the materials they provide all over their operations. Although Nokia is an industry leader in substance management, its their business to understand and know all its materials in their products including those materials of great concerns so as to ensure that all materials are sourced responsibly using ethical labor practices and ensure they are safe for people and the environment. As such Nokia must develop a sourcing organization and suppliers that will play a crucial role in ensuring that its components and all parts are safe and full comply with the Nokia Substance List (NSL). By use of these techniques Nokia will increase the standard of its products in the global market.
Nokia Corporation should develop a Natural Resources Policy(NRP).The Nokia Natural Resources Policy outlines our commitment to ensure that all materials used in our products come from socially and environmentally responsible sources.
Nokia Corporation must survey and understand the market Characteristics. Since market characteristics significantly influence the phone type's crucial issues like consumers awareness on environmental issues, their preferences of designs and their willingness to pay may vary across markets. Nokia Corporation must ensure it meets Operators Requirements: such as network operators that increasingly ask the mobile phone manufacturers to customize their products for their services. Moreover, Nokia Corporation must customize their mobile phones and optimize them around the services of specific operators. This way, specified operators will require the phone manufacturers to deliver and distribute the phones in some specific sales packages thus increasing the Nokia sales per a given period and therefore will increase efficiency and performance of Nokia Corporation.
Enhance Product differentiation. Nokia Corporation must use product differentiation technique in its models and functionality of each of its mobile products in different markets that is it must provide phones that vary by the markets for example: In mature markets the consumers are increasingly focus on phones that serve multiple functions, as people generally buy phones (products) basing on a subjective criteria due to its looks.
Nokia Corporation must ensure it strictly abide on Standard Product Requirements this ensure that its products are developed in line with the similar technical standards thus ensuring a better product quality and high customer satisfaction. Standard product requirements ensures that all requirements from reliability, mechanical functionality, operational conditions, field performance, product safety, regulatory, accessibility, and environmental issues are meet during procurements of raw. Nokia Corporation must ensure has a high product reliability that covers mechanical reliability that includes mechanical, chemical, radiation and full electrical requirements for portable, automotive, stationary use so as to increase efficiency in usage of its products by its consumers.
Nokia Corporation must meet the end User expectations that is based on product performance and its usability. Moreover Nokia Corporation must meet product acceptance that is focused on regulatory requirements and the requirements that are set by different certification bodies. It should also strive to meet Electro Magnetic Compatibility (EMC) by providing product safety requirements and guidelines for products accessibility of mobile devices in all regions globally. Nokia Corporation must also comply existing legislation. Its policies should be effective, realistic and consistent with each other and the different policy tools used for a product should reinforce each other's effect so as avoid unnecessary penalties and thus converge its revenue realized on its corporate developments.
Nokia Corporation must Unveils Low-Priced Phones Amid so as to Intensify Global Competition. Nokia Corporation must sell its new products such as the Lumia 720, Lumia 520, Nokia 301 and Nokia 105 at lower price than the prevailing market prices so as help it remain competitive and perhaps build on its position as the No. 2 maker of mobile phones globally behind Samsung and outdo the challenges generated by the two Chinese manufacturers, Huawei and ZTE. Nokia corporation should also increase its regional markets so as to ensure its products reaches all the consumers as required and must maintain low prices so as to increase the demand of its products, thus will increase the net profit.
Nokia Corporation must adopt a new strategy that will focus on youth consumers in the global market and sets to â€œrejuvenatingâ€ the brand in a bid to stay and remain competitive in the smartphone global market. Nokia Corporation through the Finnish manufacturer is set to ramp up massive use of social media such as Facebook and twitter advertisements, and also partner with more youth-focused global celebrities and brands and especially those in music industry thus and continue to ensure that its phones are affordable as set to capture the youth global market.
Nokia Corporation must reposition its global retail stores as the lead communications channel in its branding plan as it looks to make the malling experience more â€œtheatricalâ€. This Nokia Corporation decision must be part of its brand's revitalized â€œAmazing Everydayâ€ strategy, which it launched in October, and will lay a greater emphasis on experiential marketing as Nokia company looks to drive in-store product engagement. Nokia Corporation must formulates and develop new store layouts so as to encourage visitors to interact with its new phone line up, including the recently launched Lumia range and thus focus less on transactions (Rischpater,2010). Nokia Corporation should use experiential marketing initiatives, same as its branded installation at Westfield Shopping Centre, so as to drive consumers into its stores globally. Nokia should hope that once its consumers have played with its devices, they buy a mobile phone in the next time, basing on their previous experience with the brand resonates and thus influences the purchase decision of consumers, that way Nokia will increase its market sales hence improving their profitability and performance.
Nokia Corporation must promote highly its global social-media editor in chief Thomas Messett and take new role of head of digital marketing and advocacy as largest phone manufacturer focuses more on online conversation around the brand from its biggest fans (Rischpater, 2010). Messett will afterwards be charged with turning more Nokia handset owners and in particular its â€œtop 3 per centâ€ of potential influencers and focuses into a much stronger advocates for the brand as the company looks to prioritize their customers instead of platforms such as Facebook or Twitter within its digital strategy. Nokia also focuses on using real customers in our marketing.
Nokia unveils windows phone devices. Nokia should unveil the manufacturer's first Windows Phone devices, the Lumia 800 and 710, that dubbed and marked a launch of a â€œnew dawnâ€ for the Nokia company. For Nokia this was â€œthe first real Windows Phonesâ€. The Nokia Corporation's Lumia 800 (right) and 710 (left) devices should be expected to retail for â‚¬420 and â‚¬270 respectively and should be available in the UK with operators and retailers providing â€œunprecedented marketing supportâ€
Nokia Corporation must identify navigation, music and sports services as crucial differentiators in the existing competitive Windows Phone global device market. For example: Lumia devices should come preloaded with a music and must have a streaming service Mix Radio that gives (consumer)users access to remixes of full length tracks without charge. The Nokia's new devices should come with a unique ESPN Sports Hub app that have no subscription required and which has ability to stream the latest news updates and direct it to a user's device.
Nokia Corporation should launch a range of tablets as it focuses on accelerating its financial recovery and regain its standing against key market rivals such as Apple and Samsung. In modern world (Lindholm, 2003) â€œTablets are an important one and thus must be focused into, and thus there will be hybrids and different form factors in the future.â€ Although Nokia Corporation should adopt a massive global tablet shipments and project it to grow by 47.5% year-on-year to around 2.9 million units this quarter so as to overtake its market rival-Apple's iPad and thus dominate the market. Nokia Corporation should also pin its turnaround on its Lumia range of Smartphone's, although its sales of the devices have failed due to its dent rivals Samsung and Apple's market share( Lindholm, C. (2003).Nokia Corporation should increase production of Tablets so as to grip a large market share and increase sales and therefore more revenue collection and high profitability.
Nokia should create close join venture relationship in selling off its luxury phone brand Vertu as it focus on its core assets in a bid to turnaround its global business. By partnering with Vertu that sells some the world's most quality and expensive phones, handmade with precious gems and metals, Nokia brands will also be popular in Asia and the Middle East where Vertu Company majorly operates, this strategy (Hay, 2009) will increase Nokia's sales which will increase its revenue and consequently its net profit. The sale of Vertu Company will give Nokia Company a much needed cash injection. Private equity group Permira has also expressed its interest in acquiring the Nokia brand, for about Â£162m which will increase its capital base. Nokia should also bid on its Lumia range of smartphones so as to help it return to profit and better compete with its rivals. The Nokia's Lumia range should supported with increased investment in marketing and innovation as Nokia looks to broaden its appeal to new audience segments and emerging markets.
If Nokia Corporation adopt the above strategies (Hay, 2009), it will increase its market share and will thus increase its market performance which will rise its market efficiency and profitability level.