| 11/9/2010 | | | | Diagnosis and ScenarioFirm from the Fortune 500 Global: NOKIA case study | | | | | | |

Diagnosis and Scenario
Firm from the Fortune 500 Global: NOKIA case study
Introduction
This Nokia analysis is on global level, based in Finland and it’s also Industry as well as product/market based.
The fundamental question in the field of strategic management is how organizations achieve and sustain competitive advantage, and therefore attain above industry-average profit.
In 2004, Nokia lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralized the external threats.
Executive summary
1.0 Company Overview
Nokia, a Finland based company that was incorporated in 1967, stands today as a global communication leader. It started its venture into the business world by producing paper in the year 1865 (Nokia, 2008). The company undertook a move into the mobile business in 1968. Its products are sold across 150 countries which include mobile devices with a broad product portfolio. Although, over the years, Nokia has grown to be the largest mobile phone company in the world, the journey was not without difficulties. In particular, the year 2004 proved to be a very difficult period for Nokia.
It faced significant challenges posed from being too slow to respond and adapt to new market trends. In addition, Nokia was under threat of fierce competition especially from Asian rivals who were offering phones with better features and styles at reduced prices (BBC, 2005). Despite these difficulties, according to Olli-Pekka Kallasvuo, the CEO of Nokia, the company has managed to significantly increase its operating profit and EPS year on year (Nokia, 2008).
The company’s CEO stated that “Nokia’s strong operational management and market position makes it well positioned for the current economic downturns. It also enabled it