The three important issues the company should focus on in terms of expense control
Employment at the company should be cut down to a manageable size. The company should only retain a sizeable number of workers that it can manage comfortably as the revenues continue to dwindle. The goal is to save a significant amount of revenues currently being paid out as salaries and wages.
Business acquisitions should only be limited to those that are viable and those that require less time to return profits. The financial goal of this move is to save funds from further non-profitable ventures.
Closing the extra regional offices and branches and instead maintaining the main ones only is the third strategy. This action will save a significant amount of revenue that is currently being spent on meeting rent and other related expenses.
Assessment of Nokia-Microsoft’s Windows Mobile
The Window’s smartphone by Nokia has failed to recapture the market leadership in the sector. Instead, Nokia has continued to lose its market share while recording huge losses, especially in the smartphone sector. The Windows mobile platform has failed to achieve its intended purpose of spurring growth for the brand maker.
From the current market trend, it is possible to adjudge that the Windows mobile platform is inferior to its main competitors Android by Google and iOS by Apple.
The best alternative for Nokia should be using the licensed Android OS on its smartphone devices in order to boost its market share. This will see Nokia devices enjoy the same superiority as other leading Android devices such as Samsung, thus attracting a huge global market to recapture its market share.
Necessary steps to regain the North American Market
Nokia should begin by carrying out an extensive study of the North American market in order to determine trends and preferences. Market needs for the smartphones, especially in North America, keep changing rapidly as users seek for new features and capabilities.
A closer link to the market will enable the brand maker recapture the market. Additionally, Nokia should seriously consider introducing the Android OS in its devices because this platform is sought after by the North American market.
Realistic strategies for regaining market share
Price competition
Nokia should shift its competition towards the aspect of price by targeting to avail high quality products at cheaper prices. Lowering prices will see more users acquiring its products, thus increasing the market share.
The costs will involve buying more materials and utilizing them on more products in order to achieve economies of scale advantage. However, this strategy is risky because the gadgets might be of an inferior quality to compromise on cost.
New products
This strategy should focus on releasing new products with enhanced features and performance. This will provide the market with a high range of products capable of competing with the other brands. The costs involve intensive research and development, while the risk lies in spending too much on a technology that fails to pick up.
I prefer the price competition strategy because with its capacity, Nokia is able to achieve success through building economies of scale advantage. Nokia is also shifting production to Asia where it is likely to benefit from cheaper labor.
Evaluation of Stephen Elop Performance
Stephen Elop has performed dismally in his leadership. The company has continuously lost market share and registered losses. I recommend that he should change his strategy by focusing more on changing market trends and incorporating them immediately, instead of taking time before acting. Nokia has been rigid in its operations, failing to read signs early and take the right steps to address challenges.
Thus, the CEO must consider flexibility while competing for business. Additionally, Elop should consider expanding Nokia’s business by venturing into new business areas, such as personal computers and laptops. This will see the firm cushion itself from harsh business conditions and performance affecting one area.