Scm-Nokia

IMD: International Case StudyNodia(A) Lausanne-Switzerland POM 197 Professor Thomas E. Voomann and Carlos Cordon NOKIA peregrine PHONES (A): SUPPLY LINE MANAGEMENT This case was prep atomic number 18d by look for Associate Jussi HeikAi&~ under the supervision of Professors Thomas E Vollmann and Carlos Cordon as a basis for class discussion rather than to elaborate either effective or ineffective handling of a business situation. The phenomenal growth of the cellular phones market move through the first half of the 1990s. In Western Europe, the image of subscribers grew from 5 million in 1991 to 23 million in 1995. The three glob aloney leading mobile phones manufacturers, Motorola of the US, Nokia Mobile Phones of Finland and Ericsson of Sweden had reinforced their positions (refer to Exhibit 1). Up to the end of 1995, the industry had been in an allocation state: all the phones that manufacturers could produce were sold. Until 1995, global demand had exceeded all expectations. At the end of 1995, however, sales growth slowed down, coinciding with a global lack of semiconductors. Surfing on a tsunami of a growing market suddenly did not seem so lucrative anymore. Nokias Response Of the leading companies in the industry, Nokia Mobile Phones was the least vertically integrated.

They were facing, an opportunity of gaining market share or getting staidly wounded in the competition. Pertti Korhonen, Vice President for Logistics, was thinking almost their supply concatenation management challenges: What is the importance of supply chain partnerships for Nokia Mobile Phones? With our growth rates, we have to be sure that our suppliers are able to provide us good quality components, just-in-time, with minimal total cost of ownership. However, we cannot tie up capital or management resources in running our suppliers businesses. Furthermore, we cannot afford to tie ourselves to a technology partner whose technology might become archaic for the future generations of mobile... If you want to get a full essay, site it on our website: Ordercustompaper.com

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