A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B)
This case addresses the theme of crisis leadership in a multinational enterprise in a powerful way, to help students internalize the critical challenges of a multinational company in an emerging market. In August 2007, a routine product feedback and defect analysis process identified a defective batch of batteries supplied by a Japanese vendor, Matsushita. India happened to be the recipient of the largest proportion of the defective batch. Nokia's corporate communications team, based in Finland, in cooperation with the Indian team, responded with a customary global product advisory. Instructions were made available on the Internet for customers to diagnose a defective battery and get a free replacement. Nokia was shocked to see the antagonistic response from the Indian press to the product advisory and the ensuing mayhem that spread quickly through the country. The head of Nokia India, and his team, had to act swiftly to preserve the company's hard-earned reputation and market share.Case A is set as a midnight strategy session at Nokia's Indian headquarters to chart out the way forward. Case B is a short version of what actually happened: how Nokia and the team successfully steered the organization through the crisis and not only survived but used the situation it to create new organizational capabilities.
Swot Analysis of "A Bomb in Your Pocket? Crisis Leadership at Nokia India (B)" written by Charles Dhanaraj, Hima Bindu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nokia Defective facing as an external strategic factors. Some of the topics covered in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) case study are - Strategic Management Strategies, Crisis management and Global Business.
Some of the macro environment factors that can be used to understand the A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) casestudy better are - – increasing household debt because of falling income levels, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nokia Defective, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nokia Defective operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) can be done for the following purposes –
1. Strategic planning using facts provided in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) case study
2. Improving business portfolio management of Nokia Defective
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nokia Defective
Strengths A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nokia Defective in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Harvard Business Review case study are -
Learning organization
- Nokia Defective is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Nokia Defective is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Nokia Defective has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Nokia Defective has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nokia Defective to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Nokia Defective is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Nokia Defective in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Nokia Defective is present in almost all the verticals within the industry. This has provided firm in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Low bargaining power of suppliers
– Suppliers of Nokia Defective in the sector have low bargaining power. A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nokia Defective to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Nokia Defective is one of the most innovative firm in sector. Manager in A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Nokia Defective has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Nokia Defective are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management
– Nokia Defective is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Nokia Defective digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nokia Defective has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) are -
High operating costs
– Compare to the competitors, firm in the HBR case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Nokia Defective 's lucrative customers.
High cash cycle compare to competitors
Nokia Defective has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Nokia Defective has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) can leverage the sales team experience to cultivate customer relationships as Nokia Defective is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B), in the dynamic environment Nokia Defective has struggled to respond to the nimble upstart competition. Nokia Defective has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B), is just above the industry average. Nokia Defective needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Nokia Defective is dominated by functional specialists. It is not different from other players in the Global Business segment. Nokia Defective needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nokia Defective to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Nokia Defective has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Nokia Defective needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Nokia Defective has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Nokia Defective even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Nokia Defective supply chain. Even after few cautionary changes mentioned in the HBR case study - A Bomb in Your Pocket? Crisis Leadership at Nokia India (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nokia Defective vulnerable to further global disruptions in South East Asia.
Opportunities A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Nokia Defective to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Nokia Defective can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nokia Defective can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nokia Defective can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, A Bomb in Your Pocket? Crisis Leadership at Nokia India (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Nokia Defective to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nokia Defective can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Nokia Defective can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Nokia Defective can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Nokia Defective has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nokia Defective to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Nokia Defective can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nokia Defective in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Nokia Defective to increase its market reach. Nokia Defective will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Nokia Defective in the consumer business. Now Nokia Defective can target international markets with far fewer capital restrictions requirements than the existing system.
Threats A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) are -
Environmental challenges
– Nokia Defective needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Nokia Defective can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Nokia Defective high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Nokia Defective business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Nokia Defective needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Nokia Defective demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Nokia Defective.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Nokia Defective in the Global Business sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nokia Defective can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nokia Defective in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B), Nokia Defective may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Nokia Defective is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nokia Defective with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Nokia Defective needs to make to build a sustainable competitive advantage.
