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International Strategic Management – HC3141

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  1. Finland’s Nokia Analysis and discuss about Strategy of Finland’s Nokia:

Annual mobile phone market is growing. The number of subscribers using wireless services increase comes with it is the mobile device as well as growth. Prominent among the companies producing mobile phone is Nokia. Nokia is a pioneer in the field of wireless phone manufacturing. Nokia from the only major development in Finland and the Nordic countries have carried out the world market. With the advantage of being the first company to manufacture mobile phones, so Nokia easily win the market. Many companies produce mobile phones launched in direct competition to Nokia’s market. So Nokia has a new strategy is to reduce production costs to voters customers can buy products cheaper and produce many different types of customers can easily choose. This business strategy has helped Nokia to take the market from competitors. Nokia invested a lot of money for the development of human resources and research the new products. The new products launched continuous and integrated software and upgrades hardware. Nokia plan is develop design attractive, diverse. The products are designed with the style of Finland, made a difference, utility. Parallel to the introduction of new products, the Nokia is also very focused on the quality of the product. The company’s products made customers feel the best quality, durable so they chose it. Marketing strategy of Nokia is also very reasonable and famous for the Nokia Connecting People. You can see that in many place of the world. The company has spent a lot of money for marketing campaigns; about €3.8 billion/year .Nokia had sponsor many activities to promote the brand to their customers. From 1999 to 2004 the company has sponsored London Fashion Week and collaborating with famous fashion such as Kenzo, Louis Vuitton. The company also sponsors the main field of music and concerts such as X factor. Thereby Nokia brand growing and more known in the mobile market. Although the company is a pioneer in the mobile sector, but Nokia did not stop developing the product and make a reasonable strategy to compete with other companies, thus the number of products sold increased dramatically and revenue increases. Nokia has produced many different phones with different prices so more people can buy and use products. And Nokia also opened many stores in the world to sell products and special attention to exploitation of the large markets such as China, India, and South America. This market has high population, so easy to get more customer and benefit. If you want to buy mobile phones, the first customers will think of Nokia. Along with the growth of the company, Nokia is also focused on environmental issues. Nokia has launched the environmental strategy as the use of raw materials, waste disposal, and reuse and recycle many materials. Thus the company is known for products with environmentally friendly and energy saving. Although Nokia is the company not consumes much energy but with this strategy the company is considered environmentally responsible. So the customers trust and product selection.
In recent years Nokia market is decrease because the strong growth of other companies. Apple, HTC, Sony Company launched the new smart phone product. These products quickly gained market share of Nokia in the smart phone segment. So Nokia are the new rational strategies to help companies increase revenue and compete with products of other companies.

  1. Southwest Airlines

 Analysis and discuss about Strategy of Southwest Airlines

Aviation is one of the industry is the most intense competition. Southwest Airlines are the most prominent among the airline pricing revenue as well. Strategy of Southwest Airlines is selling the lowest possible fares to customers, this is cost leadership strategy. Also known as lower budget airline. To accomplish this strategy the company must have a reasonable approach can help firms maintain operations. Southwest Airlines used a Boeing 737 aircraft. This saves the cost of repairs, maintenance or pilot training. Southwest Airlines customer service style first-come, first serve, no appointment of seats. Therefore it can save costs for the system in check. Most of its flights are not too long should not have to serve food. So it can save costs as well as serving no money for the preservation of food. Southwest Airlines landing at small airports with cheaper price compared to other large airports. And airports often have densities less takeoff and landing, allowing for the Southwest Airlines plane can quickly take off and landing. Its aircraft can spin continuously and not waste time waiting. Aircraft as well as helping to save fuel, with fuel prices rise; the fuel savings can help companies reduce costs so much. Employees of Southwest Airlines are hard working and can do many different jobs, helping decrease the company’s human resource use and reduce labor costs. All these things help the company reduce costs. That may reduce the lowest fares possible. Customer service is also a key strategy of Southwest Airlines to increase number of customers and capture of U.S.A domestic market. To be able to do that Southwest Airlines has focused on human resource issues. Southwest Airlines paid higher salary for staff to be able to get the best employee, effectively and help build trust from our customers. Southwest Airlines strategic is providing good working environment to staff. Highly paid, low fares, very large profits, other company could not be like Southwest Airlines. It is this that makes the difference between Southwest Airlines and other airlines. The slogan “you can go with the speed of the aircraft but only with the price of the car”. This slogan has made clear that Southwest Airlines’ strategy to pursue. Slogan help promote to customers. Customer service is easy to see Southwest Airlines to provide high speed and low fares. Southwest Airlines’ marketing strategy also focuses on such factors as cheap cost, airplane’s speed. Besides that, the marketing departments of Southwest Airlines have to appreciate the density of passengers moving through the stages, which offer reasonable fare levels. This makes a reasonable allocation of flights and increase profits for the company. Southwest Airlines restrict the sale of tickets through travel agents and online ticket sales focus, facilitate and help its customers can keep ticket prices as buyers. Southwest airlines develop sell ticket thru automatic machine and put it many where in city. Thanks to cheap strategy which in time of crisis the aviation industry, but companies still make profits and growth. But the other U.S. airlines are the loss or bankrupt. The company started to pursue the strategic for a long time. Loyalty strategy makes Southwest Airlines the right direction and stable development.

III. Discuss the similar and different between strategy of Finland’s Nokia and Southwest Airlines.

  1. Similar

Nokia and Southwest Airlines are the same pioneering companies in their field. Nokia pioneered mobile phone manufacturer and Southwest airline is cheap airline first. Many other companies have learned and follow the strategies of these two companies.
Both companies are trying to reduce the cost and selling price possible for our customers. Nokia made many type of mobile for other market segment including low-cost phones to help so many customers use our products. Southwest Airlines offers fare is much cheaper than other airlines.
Both companies are very successful in marketing strategy. The slogan of nokia is “Connecting people” ,“You can go with the speed of the aircraft with the pen only price of the car” of Southwest airline slogans are very popular and are widely known. With this slogan, customers can easily see that the two leading price offer.
The two companies are focused on human resources. Human resources is one important strategy to help create the success of the company.

  1. The different

Nokia and Southwest Airlines are the two different fields.

Nokia provide a product cheaper, on the other way the company has high-tech  products with high price to serve the purpose and use of different customers. Southwest airline is focused primarily on cheap fares.
Nokia’s business market is greater than the Southwest Airline’s market. Because Nokia is providing the company’s products worldwide,Southwest Airlines main market is domestic of U.S.A. Nokia sells products through the company’s stores, distributors via mobile phone store, through other companies or via internet. Southwest airline tickets also sold only through the internet or store of the company without going through travel agent.
Nokia’s business strategy changed  follow competitive and demanding of market. Southwest airline also maintains a certain strategy after 30 years of operation.
Nokia company primarily focused on human resources to produce new products, new software. Southwest airline is focused on customer service.

  1. Strategy recommendation
  1. Nokia

Nokia’s market in the world with strong competition by companies like HTC Mobile, Apple, Rim and a few other companies. Especially in the Nokia smartphone market showed weak compared to other companies. Operating system of nokia is Sympian almost lost because it is very slow and can’t compete to the new operating system like Android and iPhone OS . So Nokia should have developed new strategies to compete with other companies. Nokia need to create new products with nice design,quality and more function. Nokia focused on developing software rather than only hardware development as before. Nokia has new plans in conjunction with Microsoft to produce phones that run on Windows operating systems. In the future there could be the breakthrough product and runs on Mircosoft’s. Besides being able to manufacture new products, they also work with Microsoft to bring success in marketing strategy. Because Microsoft is one of the leading brands of information technology and software production. That makes Nokia will be more widely known, customers will want to go back and use the new product of nokia. Nokia will also need to focus on marketing strategy. Nokia to make a difference to the attention of customers like what Apple has been successful in promoting the iPhone. Instead of producing many kinds of products have fairly similar patterns and only few other functions,Nokia should  to focus on new product breakthrough in technology and that customers enjoy using. Nokia need make store for customer can buy or download application to setting to phone. Use high human resource to create much good software for application software store. Nokia also be changed using numbers to name the phone as before. Nokia should create special name. This name of product can make impression to customer, and then customers will remember and distinguish the product with any product.

  1. Southwest Airlines

Lower price strategic of airline Southwest Airlines helped the company grow and achieve profitability even during a crisis. Southwest Airlines should have a new plan to help keep the company can compete with other airlines overall company strategy. With rising fuel prices, Southwest Airlines should purchase a new aircraft fuel efficiency and speed. This makes it possible to reduce the cost of gasoline and effective in shortening the time of flight. Other way they use the new airplane help customer feel safety than old one. Because now many airplane accident.

Customers almost buy ticket thru Southwest Airlines website. Southwest Airlines should focus to develop website of them. By the way they make website easier to use and faster speed. Develop software to setting to mobile phone, so customer can download to mobile phone and use it to check in, buy ticket or get information.

They should maintain their strategic with low price, good service and fast travel.