Essay on Corporate Entrepreneruship Nokia

1965 Words Jul 17th, 2016 8 Pages
Corporate Entrepreneurship Assignment

Name of Student: Hazeem Azam Naz Dar Company: Nokia

(a) Discuss ways in which Nokia could achieve sustainable competitive advantage
There are four ways Nokia gain competitive advantage: 1) Cost Leadership 2) Differentiation 3) Cost Focus 4) Differentiation Focus
Cost leadership:
With this strategy, the objective is to become the lowest-cost producer in the industry. Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low-cost producers who may undercut your prices and therefore block your attempts to increase market share. The traditional method to achieve this objective is to produce on a large scale which
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* Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.
Firms perusing this strategy have to be not only up to date with latest innovations but be the leaders of innovations
Cost focus Strategy:
In cost focus strategy, the firm chooses a segment of the market it wants to serve and then charge the lowest prices relative to other firms in that segment. Redbox, for example, uses vending machines placed outside grocery stores and other retail outlets to rent DVDs of movies for $1. There are ways to view movies even cheaper, such as through the flat-fee streaming video subscriptions offered by Netflix. But among firms that rent actual DVDs, Redbox offers unparalleled levels of low price and high convenience.
Differentiation Focus Strategy
While applying this strategy, the firm chooses a segment of the market and provides the most differentiated offering to that segment relative to other firms. When it comes to uniqueness, few offerings can top Kopi Luwak coffee beans. High-quality coffee beans often sell for $10 to $15 a pound. In contrast, Kopi Luwak coffee beans sell for hundreds of dollars per pound. These beans are found in the back excrement of the civet, a nocturnal, furry, long-tailed catlike animal that are found Southeast Asia’s coffee-growing lands for the tastiest, ripest coffee cherries. Although many consumers consider Kopi Luwak to be disgusting, a relatively small group

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