IndexSummaryIntroduction and case summaryNokia's five factors for a sustainable competitive positionFuture challenges and recommendationsConclusionSummaryNokia is a Finnish multinational telecommunications company. The paper examines the overall markets by identifying, evaluating and critically analyzing the development process under the gradually tough competition that Nokia faced from 1995 to 2010. The segments describe five sustainable competitive factors such as supply chain and R&D followed by four independent ethical challenges and social issues in the emerging market of China. It is recommended to reduce cultural distance, promote innovation and overcome these problems to ensure further performance of Nokia. For the profitable role that Nokia plays in the mobile industry, the emerging market would be a suitable option. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Introduction and Case Summary The paper critically introduces the business conditions with which Nokia competes strategically. It mainly evaluates and analyzes the three phases of Nokia covering the competition it faced in the mobile industry between 1995 and 2010. Furthermore, it identifies the five factors that Nokia possesses to sustain its competitive advantages in the intense competitive environment that has lasted for 15 years. Identifying the four challenges and recommending relevant strategies constitute the last part, dedicated to China, the emerging market after 2010. There is integrated information to provide a market option for Nokia as well. From this case, Nokia expanded its international scale by emphasizing research and development to dominate the industry market before 2007. Subsequently, increased pressure from Apple, Samsung and Blackberry threatened Nokia in both the low-end and in the high-end one. Nokia used an attack strategy and defense strategy with five sustainable resources to maintain its competitive position and capabilities. The emerging market is profitable but is also full of challenges, so it needs to restructure itself well and overcome the four issues foreseen for the post-stay. After Porter proposed five forces, Kotler further analyzed competitive rivalry in competitor profiling. Competition is high when a company's product sales reach a stage of maturity, just like Nokia is facing. Companies compete on price, differentiation, promotion, and supply chain, then segment positions into market leader, challenger, niche, and follower. Nokia's development process can be divided into three parts. Before 1990, Motorola used first-mover advantage by becoming the market leader according to the AMPS standard also as a defense strategy to maintain its position. However, between 1990 and 2000, one of the main standards used CDMA was not popular and recently took over from the other main standard GSM used by Nokia as an attack strategy with similar services, call forwarding and text messaging. As a result, Nokia defeated market challenger Motorola to dominate the market in 1998. Its market share increased by 10% to around 30% and approached the peak market capitalization at 250 million. At the same time, numerous competitors such as market followers such as Samsung and LG have entered the market with government support. The competition in the market has transformed to have high quality, low tariffs and complicated innovation.In 2005, Motorola began defending the status quo by cutting costs, outsourcing manufacturing, and establishing high-end models like the Razr. Nokia's market share also remained stagnant at 35%, followed by the presence of Apple, ZTE and Samsung which intensified competition in both the high-end and low-end markets in 2007. Apple and RIM Blackberry are challengers of the market, who launched iPhone and created profit market segments respectively as attack strategies and gradually corner the market share. New operating systems introduced by software companies such as Microsoft and Google to enable mobile phones to access the Internet gradually brought a big change to the mobile phone industry in mid-2009. Nokia focused on democratization strategy and launched a store OVI to maintain the leading position and scale with its sustainable competitive advantages even as it faced a number of challenges and threats. Nokia's Five Factors for a Sustainable Competitive Position Companies need to understand internal resources and capabilities to have sustainable competitive advantages rather than from the competitive environment. Resources must be valuable, rare, inimitable and non-substitutable (VRIO), referred to as heterogeneity according to the Resources Based View (Barney 1991). Nokia has five factors to maintain its competitive capabilities between 1995 and 2010. First, CEO Joma Ollila and Olli-Pekka Kallasvuo of Nokia helped expand and strengthen Nokia's international position in 2006 and restructured Nokia with an explicit market orientation in 2008. respectively. Managers' dynamic capabilities are Nokia's unique internal resources for making efficient decisions in changing competitive environments. Secondly, Nokia has boosted global research and development in the field of telecommunications, phones or lifting tools for Indian users during 2007. The valuable resources resulting from innovation and technologies are developed to support Nokia to maintain the current position with adaptability, even if mass production leads to unitary products. Furthermore, Nokia has the longest, most complex and non-substitutable supply chain to provide products with efficient sourcing, logistics, manufacturing and distribution. It has been pursuing a combination of quality products and customer services for the low-end market in emerging markets to meet the value chain since 2004. The primary activities of the integration-based value chain have been shown in cost reduction and personalized differentiation. So, good management of Ollila influenced the core of Nokia which turned into a link between people and the brand proposition. The inimitable brand, which means logo, is money. Nokia became a global value brand in 2000, which can be seen as a reputation for sustainable profits. Finally, in 1998, Nokia became the market leader that defeated Motorola thanks to the strength of the GSM standard. The strong and unrivaled hardware technology has built a long-standing market position until the presence of third generation threats. However, these competitive advantages might characterize Nokia as a leader, but they are also easy to get caught in a success trap that fails to grasp what the competition was doing and loses inspiration. Future challenges and recommendations In addition to sustainable factors, Nokia still faces challenges if it wants to discover more potential opportunities in emerging markets such as China. It is crucial to understand the context prior to Nokia's entry, so as to avoid the precedent trap.