Development of Nokia

In 1993, Nokia focused only on just two businesses: telecommunication and mobile phone

. However, its focused product strategy had shifted to related diversification strategy which involves adding businesses whose value chains possess competitively valuable strategic fits with the value chain of the company's present business. Nokia had divested and expand their product ranges due to the rapid changing business environment in order to explore more market segment and opportunities. At the beginning of 2004, Nokia's re-organized its products primarily between four divisions: mobile phones (wireless voice and data devices for personal and business uses), multimedia (home satellite systems, and mobile gaming devices), networks (wireless switching and transmission equipment used in carrier networks), and enterprise solutions (wireless systems for businesses). In 2007, Nokia has a total of 68321 employees in these four business division around the world.

Nokia adopts a mass-market strategy, whereby it targets all segments of the market which is unlike its competitors Samsung and Motorola, which are concentrated only in the mid to high-end segments. The four major divisions that Nokia involved have different product range for each segment to satisfy the needs and expectations of different consumer and each product range have different pricing strategy and targeted at specific target market. Besides, Nokia had successful penetrated in various countries and had increased the penetration rate since 1999 and strong penetration strategy is extremely important for Nokia to gain more market share.

Nokia mainly diversified through acquisition of other companies with the aim to enter into a new market or adopted new technologies by acquiring companies that are specialized in those areas. By acquisition strategy, Nokia had successfully strengthen its position in the consumer electronic and telecommunicating market, the acquired of data system division of Ericsson had make Nokia to become the largest Scandinavian information technology company and Nokia expand its cable industry into continental Europe by acquiring NKF. In 2001, Nokia added Internet security appliances to its product line by acquiring Ramp Networks. Besides, Nokia also working with other equipment makers and wireless services providers to develop a global standard for 3G phone software. Unlike the usual acquisition strategy that Nokia implemented to expand, they outsourced the management of some of its infrastructure operation centers in the US, China and Singapore to HP.

The successful development of Nokia set us a great example in the business world and organizations need to learn from Nokia since their effectiveness in implementing various strategies had help them to secure their global position around the world.