Value ChainAnalysisGroup 12 – 3

Primary Activities Analysis

Primary ActivitiesSupportActivities

Analysis

Primary Activity☑ Core Distinctive Value

Cost Reductio

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Inbound Logistics ☑ ☑ Operations ☑ ☑ ☑ ☑ Outbound Logistics ☑ ☑

• “We have the most efficient sourcing, logistics, manufacturing, and distribution of any company”

– Rick Simonson, CFO• Production is divided into two steps; the first being the basic

components and the second being the process of adapting to country-specific needs.

• Improvements in logistics, sourcing and mass production lowered the price of a 1616 handset by two-thirds over five years.

Primary Activities Analysis

Primary ActivitiesSupportActivities

Analysis

Primary Activity☑ Core Distinctive Value

Cost Reductio

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Marketing and Sales ☑ ☑ ☑ ☑ Service ☑ ☑

• Lower cost of production due to only offering a small number of standard models but also offering a high degree of software customization.

• The repair system is able to process over 500,000 repairs per month. 90% of which were returned within 24 hours.

• “Nokia is transforming from an engineering-centered company to a consumer-centered company”

-Alex Lambeek, Vice President of Mobile Phones Marketing

Support Activities

Primary ActivitiesSupport

ActivitiesAnalysis

Support Activity☑ Core Distinctive Value

Cost Reductio

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Procurement

Tech Development ☑ ☑ HRM

Firm Infrastructure ☑

• Nokia utilizes a unique approach to manufacturing and distribution that results in a highly customizable production phase as well as creates a product that is well below the industry standard in terms of price.

• “Efficient massive production and technology is what allows Nokia to be competitive in price-sensitive markets.”

- Martti Salomaa, Senior Plant Manager

Analysis and Strategic Implications

SupportActivities

AnalysisPrimary Activities

• Heavy focus is being placed upon getting the product that the customer needs to market at an efficient and affordable pace.

• Unique and efficient methods of manufacturing and marketing have allowed Nokia to meet the needs of specific regions.

• While it seems that Nokia’s market share is diminishing in the higher end markets, their efforts have done nothing but increase the market share in the emerging markets.