Essay on Nokia International Business
From the standpoint of innovation policy and supporting institutions the success of Nokia could be related to the Nordic decision to create the common standard Nordic Mobile Telephony (NMT).
This provided Nokia with a common Nordic market of 20 million techno savvy customers before anywhere else in the world. And it provided a perfect platform for ‘infant industry development’ .
When Nokia had grown sufficiently large on the back of this market it was blessed by the European Union’s decision to create a common European standard for mobile telephony – GSM. GSM grew in rapidly both in geographical scope and functions offered.
Nokia was among the best positioned companies to take advantage of this the then …show more content…
A crises in logistics led to re-evaluation and reorganization of production, sourcing, internal communication, financial management and other critical factors
Similar problems happened in the telecommunication division which led to shifting of experienced telecom people to the emerging GSM markets, which paid handsomely.
The Management created a corporate culture and modus operandi that provided a structure for successful R&D as well as efficient production and sales. Open an early communication with employees and investors has been the mantra at Nokia.
Nokia – The Finnish Connection
Finland’s innovation policy was a good match with a long history of supporting and nurturing design innovation and a world-class business framework conditions
Finnish national innovation system in which cluster approach played a key role is also behind this success experience.
The Cluster Approach - For promoting innovation, close, formal and informal, interactions and collaborations among private sector firms, universities and research institutions in a region are the key features.
Nokia – Porters Diamond
Factor Conditions :
One of the world’s most homogenous, united and stable nations (Scandinavian)