Nokia Corporation

• History and background of

• Business strategy

• Supply chain strategy

•Order winners and order qualifiers

•The overall supply chain (players and complexity)

Agenda

How does Nokia perform its supply chain strategy to

succeed in the telecommunication market?

Brief history and background

1865

Founded by Fredrik Idestam as a paper mill

1871

“Nokia” is set as the company name

1982

Start of phone production •telecommunications

• consumer electronics

• rubber and cable

1992

Focus on telecommunication business

Business Strategy

Mission statement

Connecting People

enable billions of people everywhere to get more of life’s opportunities through mobile.

Business Strategy

•Plans for a broad strategic partnership with Microsoft to jointly

build a new winning mobile ecosystem.

•connect ”the next billion” to the Internet in developing growth markets

•Focused investments in next-generation disruptive technologies

•clear focus on speed, results and accountability

Business Strategy

Targeted customers Nokia serves all major market segments (with different types of products)

Competitive advantage

• Manufacturing expertise,

• several first mover advantages,

• Links with other firms (Philips),

• Economies of scale and scope

Core Competencies

Manufacturing of mobile phones and telecommunications devices

Supply Chain Strategy

Four performance dimensions

• quality

• time

• flexibility

• cost

decision by firm to emphasize one performance dimension over another

Stages of alignment with the business strategy

The operations and supply chain areas participate in the strategic debate. Mgt. recognizes

that the operations and supply chain structural and infrastructural elements must be

aligned with the business strategy.

Order qualifiers – Order winners

Order qualifiers

•Set and meet technological standards

•Acceptable level of reliability

Order winners

•Quick and cheap manufacturing

•High flexibility

Supplier perspective End consumer perspective

Order qualifiers

•Possible to connect with other people

•Good quality and design

Order winners

•Superior quality and design

•Use of innovative technologies

•Customization

•Environmental friendly

The Overall Supply Chain

Plan

Devices

Service

Nokia/Siemens

Navteg

1st Stage 2nd Stage

Direct Supply

Indirect Supply

Customer

Source

Make Deliver

The Overall Supply Chain

Plan

Plan

Manufacturing 1 Manufacturing 2 Supplier A Customer

Intra Supply Chain

Inter Supply

Chain Source Make Deliver

The SCOR model

Supplier B

Nokia‘s Supply Chain

Conclusion

Sustainable efforts seemed promising but multiple factors have to be considered

(changes in technology, demand, competition etc.)