International Implementation Strategies
Strategy is often defined as a long-term direction of the company, which considers available resources and environmental challenges in the attempt to meet customer and stakeholder demands. Strategies, which are implemented internationally and are designed for major global players, should carefully consider customer preferences and the peculiarities of the markets not only on the national level but also internationally.
The recent example of Nokia shows the difficulty of capturing the market globally and maintaining leadership for a longer period. Continuous success may result in irresponsiveness of the company to the emerging trends, which eventually may be detrimental for the company’s future. Thus, Nokia was not able to predict the quick development of the smartphone market, hence losing sales to their competitors. The strategic targeting in Nokia has undergone a number of changes in order not to lose international market completely. While just some years ago Nokia targeted high-end mobile phone segment in the developed world, with the fast development of Google and Apple smartphones, Nokia had to concentrate on the lower-end segment of the market, mostly in the developing countries. Its international strategy today aims to enter the smartphone market in cooperation with Microsoft. As a part of the new approach Nokia plans to reduce its presence in Finland, while opening new premises globally. Their international strategy aims to develop an “ecosystem”, rather than just a device, through establishing closer links with their partners, such as software and application developers, hardware suppliers etc. The prices, set below those of Google and Apple, could allow Nokia competing globally, targeting also lower-income customers in developing countries. Thus, their international implementation strategy would allow Nokia to establish market presence worldwide, while avoiding direct competition in the high-end market, but attracting customers, who are looking for more affordable products.
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