Nonaka & Teece (2001) indicated that new managerial and organizational ways of acting emerged during the period between 1970s and 1980s. First Nonaka & Teece (2001) determined that Nokia learned to appreciate a close and open customer interface when developing new products and systems in cooperation with demanding customers. Secondly, Nonaka & Teece (2001) says “the company learned how to create new technology quickly and efficiently by utilizing commercially available components and open standards” (p. 252).
The opportunity to innovate with the market has always been highly appreciated in Nokia (Nonaka & Teece, 2001). Based on the market demands and strategy, at Nokia individual tasks are largely perceived as open-ended and continuously changing, requiring an innovative approach to problem solving. This goes inline with organizational structure and strategy hence from the knowledge point of view this means that basic structural component of the firm is creative and innovative by nature and subject to being continuously challenged by its customers (Nonaka & Teece, 2001). The innovative nature of Nokia’s organizational structure enabled the company’s home market to provide an excellent stepping stone to international markets.
In addition Kumar (2004) established that “the literature on marketing strategy focuses on business units and ignores the role of marketing at the corporate level” (p. 245). Kumar (2004) continues to say that “most of the marketing functions and almost all marketing activities in an organization have fallen to the divisional and country organizational levels, but more firms are enhancing this role at the corporate level” (p. 245).
In his further studies Kumar (2004) established that “today marketing strategy is in a perfect position to galvanize an organization” (p. 245). For example at Nokia value creation strategies shift from the financial engineering of the past to more advanced ways of reaching its products to their customers (Kumar, 2004). Although the challenges to marketing are many each unearths new opportunities for seizing organizational leadership and strategy.
Kumar (2004) continues to say that “marketing must prove that it is willing and ready for its leadership role in transforming the company” (p. 245). The correlation between these two factors has been significant in the success of Nokia and its advances in technology. According to Kumar (2004) the organizational transformation brought about by marketing strategy has been able to convince others of its unique capabilities, resources and skills and its mind set to lead and that it has matured as a discipline to become more strategic, cross-functional and bottom-line oriented (Kumar, 2004).
On the other hand Nonaka & Teece (2001) established that “Nokia interlinks and upgrades individual and organizational tacit knowledge and converts it into explicit knowledge” (p. 256). The highly egalitarian and straightforward management culture offers a good opportunity for anyone to challenge the future directions of the company (Nonaka & Teece, 2001). This means that Nokia deploys managerial and organizational mechanisms that keep their marketing strategy continuously intertwined with implementation (Nonaka & Teece, 2001).
An analysis of how the global context has been incorporated into their marketing planning.
Nonaka & Teece (2001) indicated that in order to keep its current businesses around the globe out of comfort zones, Nokia used its marketing strategy to establish a new venture organization. Nonaka & Teece (2001) continues to say that “the venture was geared towards accelerating the development of new growth business around the globe” (p. 256). Nonaka & Teece (2001) also said that high quality global operations require standardized process in addition to shared values and management principles. As a result Nonaka & Teece (2001) noted that Nokia is considering new ways and means to interlink people, actions and knowledge globally.
The marketing strategy according to Nonaka & Teece (2001) has enabled Nokia to have a globally unified action, perception and reasoning in time and this can be translated into an ability to deploy creative and interactive strategies, structures, processes and actions that draw their substance simultaneously from different markets and environments. Globally Nokia’s growth has been an outcome of market maker behavior and strategy which is mutually constitutive creation of markets with customers (Nonaka & Teece, 2001).
The biggest challenge for Nokia globally is how to use its marketing strategy to interlink, worldwide, the foresight of both individuals and management for time paced strategies as well as for innovative interaction and reflective actions (Nonaka & Teece, 2001). In order to address this challenge Nokia emphasizes on the role of individual reflective actions more than that of structures or even processes (Nonaka & Teece, 2001).
Rapp (2002) says that through the marketing relationship with the trading company Mitsui & Co., allowed Nokia to monitor technology developments in Japan and other parts of the world. He thus says that Nokia was able to build brand credibility better than any foreign suppliers (Rapp, 2002). According to Rapp (2002) Nokia was aided in its international marketing by the knowledge and expertise accumulated from working with the earlier NMT standard. In 1991 Rapp (2002) established that Nokia decided to develop a phone that would work globally that is not only with the new European standard. This was one of the great steps that the company made as it promoted its global capability of being one of the global leaders in mobile phone manufacturing.