Strategic Actions by Nokia CEOs
The main strategic actions taken by each NOKIA CEO.
QUESTION 1
Assess the main strategic actions taken by each NOKIA CEO. What actions created enduring sources of competitive advantage? What actions (or lack of actions) contributed to NOKIA’s fast decline? Please be sure to cover the following dimensions of strategy: products, vertical scope, horizontal scope, geographic scope, technology, organizational structure.
QUESTION 2
How did NOKIA manage its ecosystem (consisting of operators in the early years and app and software developers more recently)? What would you have done differently?
QUESTION 3
What decisions would you have made differently and when? Why?
QUESTION 4
What were the external factors that enabled NOKIA to establish market leadership in the mobile phone business? How did each CEO react to these external factors? Did NOKIA have any influence on these external factors? How could NOKIA have better prepared itself for the smartphone era?
Nokia is a Finnish telecommunications company that has played a significant role in the development of the mobile phone industry. Throughout its history, Nokia has had several CEOs who have implemented different strategies to grow and maintain the company’s competitive advantage. Below is an assessment of the main strategic actions taken by each Nokia CEO, their impact on the company’s competitive advantage, and how they contributed to Nokia’s fast decline.
- Kari Kairamo (1977-1988)
Kari Kairamo was the CEO of Nokia from 1977 to 1988. Under his leadership, Nokia expanded its product portfolio beyond traditional telecommunications equipment to include personal computers, cables, and rubber boots. Kairamo also initiated Nokia’s globalization strategy, establishing operations in multiple countries to expand its customer base.
Kairamo’s actions helped Nokia achieve a significant competitive advantage in the telecommunications industry, enabling the company to become the world’s leading mobile phone manufacturer. However, the company’s expansion into other unrelated businesses diluted its focus, making it difficult for the company to compete effectively in all of its markets. Additionally, Kairamo’s sudden death in 1988 left Nokia without a clear succession plan, leading to internal conflicts
