Building a global telecommunications business
A Nokia case study

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Page 4: Competitive advantage

Nokia 4 Image 4As broadband systems become more popular, the share of data in all network traffic will increase. New product possibilities include the Internet whose rapid expansion is stunning the world. The Internet will generate a new demand for broadband services, thereby offering new challenges, as well as business potential, to Nokia.

The highly entangled Internet web-sites provide neither sure access to the data required nor guarantees as to their accuracy. In the future, there will be many opportunities for companies who can offer a professionally managed Internet network to operators. Nokia is currently developing circuit switched and packet switched data traffic which will vastly speed up the transfer of large volumes of data in a quickly and easily accessed way through the Internet.

The telecommunications market is highly competitive. In the future, telecommunications and information technology, as well as different media technology applications, will often merge. In order to keep ahead of the field, Nokia is seeking differentiation strategies which build on its current strengths and include its high frequency technology expertise. Nokia’s extensive R & D investment has been channelled into a number of key areas where it knows it can create a competitive edge over its rivals. Staff training and development is targeted at these areas known as core competencies.

By focusing on consumer requirements, Nokia has become a symbol of user-friendliness, simplicity and style, combined with high technology and broad choice of features. The emphasis placed on meeting consumer requirements is likely to maintain Nokia’s competitive edge in the future.

Nokia’s ability to keep ahead of the competition is illustrated by one of its most recent state-of-the-art products, the Nokia 9000 Communicator, launched in 1996. It is a GSM phone with fax, e-mail, short message service, address-book, calendar and Internet connections and created an entirely new category of digital all-in-one communications device. The Nokia 9000i Communicator was introduced in 1997 with enhanced software features.

Nokia | Building a global telecommunications business