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Supply Chain Analysis Nokia Essay

This assignment investigated knowledge of supply chain management in 3 main areas, which include quality management, innovation development and sustainability. The supply chains of mobile phone industry were studied in this assignment. It represents how to apply theories in class to real world business. The result of this assignment will be shown in the process map for proving that supply chains are not only concerned in one organization, but it was also liked to external organizations.

Nokia is a firm company in mobile phone industry with long history. As a leader in mobile phone industry, Nokia have to face with changing of business world all the time (Nokia1, 2012). However, in globalized circumstances, Nokia is challenged by new technology, short life cycle product, and new competitors, who would like to replace leader position as Nokia used to be. Ali-Yrkkö et al. (2011) mentioned that Nokia is using supply chain management to co-operate with suppliers and customer to survive in globalized situations. In order to establish supply chain management, Nokia have to pay attention on quality of products and services, increasing new technology, and looking for sustainable with customers and suppliers. 1.Quality management

1.1Objective Quality
In terms of objective’s quality, Boyer and Verma (2010, pp 33-35) mentioned that the objective’s quality is divided in to 2 groups. Firstly, product quality included with performance, features, reliability, conformance, brand equity, service, aesthetics, and durability. Another is service quality, which included with reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding of customer and tangibles. Particularly, in cases of aesthetics and understanding of customers, Das (2008) cited that the Nokia designers travel to every corner of the world to talk with their customers in order to design mobile phone, which their customer really want to have. Moreover, in cases of features, brand equity and serviceability, Veverka (2005) reported that Nokia would like to maintain their leader position by adding new features of new mobile
phones of Nokia. For example high quality digital cameras, e-mail, web-surfing and increasing the size of mobile phone in order to easy to see the text in mobile phone. As a result, Nokia could have potential to keep their position to be leader in mobile phone industry.

1.2 Customer Expectations
Typically, the most customers would like to receive high quality of products or services with paying a few money, However, there are many factors, which may contribute customers to purchase the products by ignoring about prices. Boyer and Verma (2010, p35) referred to the 3 factors, which are expected by customers. Those factors included with personal needs, word of mount and past experience. In terms of personal needs, PR Newswire (2005) cited that Nokia N-series increased game features, such as, 3D graphics and ability to play in multiplayer in their mobile phones in order to increase customers, who are game lover, to use their mobile phones. Moreover, Harwood (2007) mentioned that word of mouth is another way, which deals with customer expectations because customers will receive information about product by passing reliable and creditable resources of information, that those are trust. In addition, past experiences of customer, who used to Nokia mobile phones, can lead to new purchasing of new model of Nokia’s mobile phones. As it can be seen from customer’s recommendation, Yogendra (2009) referred to the good experiences of Nokia mobile phone, which it conducts him/her to be a royalty customer, to choose Nokia brand as a first choice of new purchasing. 1.3 Perceived Quality

Perceived quality may contribute customers to realize about their expectations of products or services, which relate to objective quality of products or services. It would be said that if Nokia lose their concentrate on expectations of customers or their quality of products and services, Nokia will lose their customers. For example, dhcmega (2010) said that the past experience of Nokia 6600 and N 95 were excellent, thus the new model of N97 and N900 were bought by referring to proper experiences in the past. However, N97 and N900 did not bring proper experiences to user. 2.New product development

2.1 Why it is important for organization to continue innovating products Innovation is play a vital role to keep organization able to compete with competitors. Innovation could keep organization on the track, which will come along with profits and dominates above competitors or it could make the business bankrupt. For instance, Barnes (2011) reported that Nokia was lost their share market because Nokia had problems with smart phone technology, which cannot beat technology of competitors in market. Besides, slowly to launch new smart phones model could bring to losing of profits, and customers, who do not want to use and to wait the new mobile phones of Nokia anymore. 2.2 How this innovation impacts the supply chain

For developing products or services to achieve customer satisfactions, organization would like to integrate information of customers, performance of suppliers and performance of its organization in a same way. Supply chain is a key role of business in order to link suppliers, customers and its organizations to be a team in present. Dedrick et al. (2011) mentioned that mobile phone companies apply supply chains to make flowing of information from customers to suppliers and suppliers to customers for creating innovation, which can add value to all organizations in that supply chain. 2.3The types of product innovation categories

As Boyer and Verma (2010 pp 78-79) cited that the ways to innovate new products or new services are included with radical, continuous, and disruptive. Following by smart phones innovation, Chang et al (2008) mentioned that abilities of mobile phones are increased efficiency of mobile phone closely abilities of computer by innovations. 2.3.1 Continuous innovation

Chang et al (2008, pp. 741-742) cited that smart phone have many features in its mobile phone. For example multi-tasking operation system, wifi, games, video/audio streaming, camera, internet accessing and music/video player. These can add value to mobile phones and keeping customer to pay attention on these mobile phones. 2.3.2Radical innovation

Chang et al (2008, pp. 743-744) also reported that many mobile phone
companies attempted to create unique products for outstanding over competitors in market. For example Nokia 9300 provided full QWERTY keyboard feature, Motorola Q provided design, which thinnest and lightest to their mobile, and Samsung provided built- in wifi on their mobile phones. 2.3.3Disruption Innovation

Chang et al (2008, pp. 744-745) mentioned that even though smart phones contained with the features, which useful for users, those may have limitation of battery and size. For providing more features in its mobile phone, these mobile phones will use high energy, which required large size of battery, thus the size of smart phones have to increase as well. 3.Internal and external in Supply chain

Following figure1, internal and external organization structure from Nokia, which include with logistic companies, and component suppliers (Nokia2 2012). Ran (2009, p 48) referred that Nokia used many companies to involve with transportation. For example DHL, DANZAS, EXEL, PANALPINA, and UPS. In terms of suppliers, Lawton (2011) referred the name of component suppliers of Nokia, for instance, STMicroelectronics at Geneva, and Texas Instruments at USA.

Figure1. Suppling and sustainability of each department in Nokia 4.Sustainability
Sustainability is a method, which have to think about environment, people and social around organization. Johnson (2012) cited that assessment sustainability is not easy to do. However it have a few tips,such as, really understand its business, classify supply partners, and to be honest when evaluate organization. As can be seen in figure1, substanabilities of Nokia organization are expressed on right side of table. Most of substanability actions within Nokia will focus on maintanance starndards of working and quality of working, while external organizations are concerned about environtment, such as , planning schedule of delivery products for saving fuels and environment.

5.Process map of Nokia organization

Figure 2A. process map of Nokia organization

Figure 2B. process map of Nokia organization
It could be said evaluation of sustainability in supply chains in organization included with qualtity management, innovation to develop product, and thinking about the method to maintain environment around organization.That may contribute its organization, suppliers and customer growth together.

References List
Ali-Yrkkö, J, Rouvinen, P, Seppälä, T & Ylä-Anttila, P 2011, ‘Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone’, Journal of Industry Competition and Trade, vol.11, no.3, pp263-278, accessed 28/05/2012, Academic OneFile.

Barnes, R 2011, ‘Nokia’, Marketing, 15 June,p21, accessed 30/05/2012, ProQuest Central. Boyer, K & Verma, R 2010, Operations & Supply Chain Management for the 21st Century, South-Western Cengage Learning, Mason, USA, pp33-35 and 78-79. Chang, Y, Chen, C.S & Zhou, H 2008, ‘Smart phone for mobile commerce’, Computer Standards & Interfaces, vol.31, iss.4, pp740-747. Das, A 2008, ‘Nokia’s Product Innovations/INNOVATIONS DES PRODUITS DE NOKIA’, Canadian Social Science, vol.4, no.3, pp55-58, accessed 29/05/2012, ProQuest Central. Dedrick, J, Kraemer, K & Linden, G 2011, ‘The distribution of value in the mobile phone supply chain’, Telecommunications Policy, vol.35, iss.6, pp505-521. Dhcmega 2010, ‘After years of great experiences with Nokia, I got an N97 and a N900. Sadly.’, weblog post, accessed 30/05/2012, http://talk.maemo.org/archive/index.php/t-44255.html Harwood 2007, ‘Nseries leads Nokia brand revival’, Revolution, January, p3, accessed 29/05/2012, ProQuest Central. Johnson, L 2012, ‘Sustainability and the supply chain’, National Provisioner, vol.226, iss.3, p24-26, accessed 01/06/2012, ProQuest Central. Lawton, C 2011, ‘Business Technology: Nokia’s Troubles Hit Suppliers — Ripple Effects Could Reshape Global Chain That Provides Phone Components’, Wall Street Journal, 27 September, pB.8,
accessed 01/06/2012, ProQuest Central. Nokia1 2012, The Nokia Story, accessed 28/05/2012, http://www.nokia.com/global/about-nokia/about-us/story/the-nokia-story/ Nokia2 2012, The Nokia Story, accessed 28/05/2012, http://www.nokia.com/global/about-nokia/about-us/structure/our-structure/ PR newswire 2005, ‘Nokia Expands N-Gage Quality Gaming Across Smartphone Portfolio’, PR newswire, 18 May, p1, accessed 29/05/2012, ProQuest Central. Ran, T 2009, ‘Internal logistics as a part of supply chain,Case:Nokia-China, Dongguang Branch’, Bachalor’s thesis, Lahti University of Applied Sciences, Finland, accessed 01/06/2012, http://publications.theseus.fi/handle/10024/3577 Veverka, M 2005, ‘Nokia Strikes Back’, Barron’s, vol.85, iss.46, pp26-27, accessed 29/05/2012, ProQuest Central. Yogendra, S 2009, ’Shefaly Yogendra’, weblog post, Who’s shaping your customer’s expectations?, accessed 30/05/2012,


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