Introduction
This essay analyses and evaluates the competition Nokia faced between 1995 and 2010 by using a Five Forces Model template. Five factors that contributed to Nokia sustaning its competitive position are analysed by using Jay Barney’s framework. Four challenges Nokia would have to face in China market are indentified. Recommendations help to overcome these challenges are given.
Competition Nokia faced between 1995 and 2010
An industry life-cycle graph is used to illustrate the development of mobile industry. Due to macro environment’s changing, especially the technological factor, mobile industry was developing quickly before 2000. The industry’s growth culminated in 2000 (Juan Alcacer, 2011) and showed a trend of renewal with the indroduction of 3G networks and smart phones after 2004.
Figure 1 life cycle of mobile industry Source: Critical Thinking(BUSS5000), at The University of Sydney, Sydney, 13 April.
The competition can be analysed by using Porter’s Five Forces model. A template introduced by Michael E. Dobbs is used to facilitate the evaluation (Dobbs, 2014). In the template, five forces are divided into factors and numbers are used to show the degree of factors. Although the template enhances comprehensiveness, its limitations are obvious: the analysis is merely …show more content…
Brand, as an intangible asset, always plays an important role in a firm’s performance. Reputation, linked with Brand, benefits a company’s relationship with all stakeholders. Customers are willing to trust and be loyal to a company if it is a big brand. Suppliers also like to do business with companies with great reputation, as it seems less risky to supply them. Nokia’s brand and reputation did help to sustain its competitive
This essay analyses and evaluates the competition Nokia faced between 1995 and 2010 by using a Five Forces Model template. Five factors that contributed to Nokia sustaning its competitive position are analysed by using Jay Barney’s framework. Four challenges Nokia would have to face in China market are indentified. Recommendations help to overcome these challenges are given.
Competition Nokia faced between 1995 and 2010
An industry life-cycle graph is used to illustrate the development of mobile industry. Due to macro environment’s changing, especially the technological factor, mobile industry was developing quickly before 2000. The industry’s growth culminated in 2000 (Juan Alcacer, 2011) and showed a trend of renewal with the indroduction of 3G networks and smart phones after 2004.
Figure 1 life cycle of mobile industry Source: Critical Thinking(BUSS5000), at The University of Sydney, Sydney, 13 April.
The competition can be analysed by using Porter’s Five Forces model. A template introduced by Michael E. Dobbs is used to facilitate the evaluation (Dobbs, 2014). In the template, five forces are divided into factors and numbers are used to show the degree of factors. Although the template enhances comprehensiveness, its limitations are obvious: the analysis is merely …show more content…
Brand, as an intangible asset, always plays an important role in a firm’s performance. Reputation, linked with Brand, benefits a company’s relationship with all stakeholders. Customers are willing to trust and be loyal to a company if it is a big brand. Suppliers also like to do business with companies with great reputation, as it seems less risky to supply them. Nokia’s brand and reputation did help to sustain its competitive