Nokia's Blue Ocean Strategy Essay

2513 Words Jul 15th, 2013 11 Pages
Strategic Management

As Consultant, you have been invited by the Board of Directors of a company of your choice to advise them on the possibility of changing the strategy of their company. In particular, they are keen to redesign their strategy along the lines of the much publicized blue ocean strategy and to shift from the red ocean in which they are currently competing. * Analyze industry competition and the implications of the red ocean strategy for the company. * Critically discuss the ways in which the company could challenge their respective industry paradigm to offer a unique set of offerings * Critically analyze the management process that needs to be implemented to realize strategic objectives *
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Second, Nokia’s executives should fundamentally shift the strategy canvas of its operations by reorienting the strategic focus from competitors to alternatives, and from customers to non customers of the business. * The four actions framework consists of reconstructing buyer value elements in crafting a new value curve. These actions consist of eliminating the factors that Nokia takes for granted, reducing factors well below Nokia’s standard, raising factors well above Nokia’s standard, and creating factors that Nokia has never offered. * The Eliminate-Reduce-Raise-Create Grid is key to creation of blue oceans. The grid will push Nokia to act on all four to create a new value curve. By doing it, the grid will give four immediate benefits: * Pushing Nokia to simultaneously pursue differentiation and low costs to break the value-cost trade-off. * Lifting its cost structure and overengineering products and services * Creating a high level of engagement in its application since it is easily understood by managers. * Scrutinising every factor Nokia competes on, making it discover the range of implicit assumptions they make unconsciously in competing.
An effective blue ocean strategy has three complementary qualities: focus, divergence, and a compelling tagline. To make its competition irrelevant, Nokia should then

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