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Cell

Executive Summary
In early 2001, Nokia faced a defining moment in its history. Chairman Jorma Ollila and his team of executives sidestepped bankruptcy in the early 1990s and charted the company's path into the emerging cell phone industry. By 2001, this savvy executive team made Nokia the leading cell phone maker. They built a venerable brand name; forged important relationships with suppliers, customers and business partners; and fine-tuned design and manufacturing processes that produced superior operating margins. Moreover, Nokia was debt-free with $2.5 billion in cash, and it operated the biggest research and development budget in the industry. Management was prepared to embark on a strategy to stimulate future growth and solidify its dominance in the mobile telecommunications industry.
The company fixed its eyes on a new prize, the high-speed mobile internet. "If the strategy pans out, the Finns could well sit atop the next stage of the Web, kings not just of Web-surfing machines, but also a power in software and networks" (Baker, Shinal, & Kunii, 2001, 6). However, the road ahead would be fraught with obstacles, including volatile financial markets, business partners suffering under massive debt, mastering new technologies different from existing competencies, and competition from some world's leading technology companies.
In executing its strategy, Nokia should leverage its strengths to profit from the opportunity presented by the mobile internet, keeping a watchful eye on its own weaknesses and dodge the threats that jeopardize its success. Specifically, the company should re-evaluate its aggressive pursuit of a vertical industrial model within the mobile telecommunications industry. Instead, Nokia should proactively pursue strategic partners that complement its core competencies of market-driven product research, design and engineering; brand management; and innovation leadership. In addition, despite its superior manufacturing processes, the...