Key Success Factors of Nokia

Key success factors (KSFs) are those factors which influence the capability of industry players to flourish in marketplace. On the basis of these factors customers decide between the competing brands of rivals. Some of the important key success factors of NOKIA are given below:

Extensive Research & Development

Nokia has many manufacturing plants and research & development facilities across the globe. In December 2009, Nokia had Research & Development (R&D) sites in 16 countries and engaged 37,020 people in R&D, representing around 30% of the Nokia’s total employees. The Nokia’s Research Center consists of nearly 500 researchers, scientists and engineers and has locations in seven countries. In addition to research units, Nokia has also established Nokia Institute of Technology (Research & Development institute in Brazil).

Production and Manufacturing Facilities

Nokia manufactures mobile devices that are complements of Internet and communications sectors, with more than 123,000 labor force in 120 countries. It is the world’s biggest manufacturer of mobile phones and it has total of 15 manufacturing facilities. Nokia has greater utilization of fixed assets around the world which allow it to achieve over all low cost. It has innovative technology and efficient workforce which result in higher productivity and low cost design according to buyer’s specification.   

Faster Learning Curve

Nokia benefits from a faster learning curve and has the capability to use extra resources in developing operational tools and method. In this way Nokia and its partners offer superior learning opportunities for workers interested in system operations so that they can run skill development more willingly and to retain staff. Nokia being a market leader in the technology industry can possibly gain considerable economies of scale in-house. Nokia can achieve economies of scale by organizing all spare parts throughout the one organization.

Innovative Activities

Nokia’s R&D has two objectives: long term and short term. Long-term activities comprise creating new and innovative products and technologies. Long-term actions further involve altering the method that the firm runs by innovating different methods of running the company. The short term activities comprise developing products to assured key technologies rather than creating new technologies. Nokia runs R&D activities by interrelating with research institutes, universities, other companies and standard bodies globally. In addition to research and development, it plays a strong part in influencing and monitoring the open standards used in its products.

Strong Distribution Network

Nokia has global digital retail distribution centre for “N-Gage” games. N-Gage holders can trial, download and purchase famous N-Gage games. Nokia is incorporating its devices with innovative services throughout the Ovi (, including maps, apps, maps email etc. Nokia has Southeast Asian distribution and customer support centre in Singapore. The regional customer distribution and support centre in Singapore offers superior flow of information and improved support and distribution services for Nokia’s selling partners in Malaysia, Indonesia, Singapore, Indochina, India, Sri Lanka, Thailand  and Bangladesh.

Capable Workforce

Nokia’s success depends on the dedication and talent of employees. Nokia has the robust and diversified workforce with different backgrounds. It has more than 55,000 personnel from 115 nationalities. Diversify workforce brings competitive advantage for Nokia. Diverse groups are more innovative and discover better solutions. Human Resources from diverse backgrounds bring insights into customer base throughout the globe while adding worth to Nokia’s business.

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