CASE APPLICATIONAssignment # 1Case ApplicationFaded SignalSubject: Pinciples o! "anagementName: "u#ammad $as#im "emon%egistation # 1&&'()1&*11Pogam: E"+ASpeciali,ation: Poject "anagementCase Application Faded Signal-uestion # 1:Whatstrategic mistakesdid NokiamakeintheU.S. market?Ans.e:Nokia made the following strategic mistakes in the U.Smarket: While Nokia still does well in other countries, it has recentlystruggled in the US. Nokias biggest mistake in the US wasthat it did not realize the change in the customers taste andthe trends of shifting into smart! "hone.Nokia thought itknew better what the customer wanted than the customersthemsel#es.Seeingthebuzz createdby the $"hone, Nokianeglected the growing fondness for a""s and touch screensand belie#ed that its "roducts were su"erior. Nokias second mistake is its ignorant attitude tocom"etitors. %es"ite the new com"etitors ha#e entered themarket, Nokiawasstill usingitsoldstrategywithout anychange or de#elo"ment "rocess to it, and also did not o&erany newinitiati#e "hone to the consumers. $t was 'ustforecasting the good to come and didnt antici"ate anycom"etitor in its industry. (nother mistakehastodowiththedi&erent technologiesused by cell"hones )*S+ #s. ,%+(-. Nokia was initially slowto ada"t to the technology currently used by a ma'ority of UScell "hone users that is ,%+(. -uestion#':Whydoyouthinkasmart!com"anymakesdumb! mistakes?Ans.e: Nokia makes the following dumb mistakes: .ne of the "arado/es of businesses is that many times theyare the #ictims of their own success. 0he same caseha""enedwithNokia. (s somee/ecuti#es of NokiasaidNokia, at the height of its success, decided not to ada"t its"hones for the U.S. market. 0hat was a mistake and theyrestill trying to reco#er from this.! Nokia wanted to force the consumer to its "roducts withoute#en trying to de#elo" it to meet their new needs and tastes,but ob#iously, Nokia ha#e "aid a "rice. 0hat arrogantattitude and the global economic slowdown ha#e continuedto hurt the com"anys sales and earnings. -uestion#(:What strategiesisNokiausingtore#italizeitsNorth (merican business?Ans.e: 1irst of all, Nokia is using a customer2oriented strategy.$t is also using its closer "artnershi"s with su""liers such as (030,4ualcomm, and +icrosoft to build the broadsheet of ca"abilitiesand e/"and their reach in the United States. .n one hand, thiscould be #iewed as a growth strategy. 0ake this statement fromthe case, 5#erything you see us doing is to build the broad set ofca"abilities to take us broader and dee"er into the U.S. market.!.n the other hand, in light of their resent failures what they aredoing could be #iewed as a turnaround strategy.-uestion#/:6owcouldNokia ha#edonebetter at usingstrategic management? What does this case story tell you aboutstrategic management?Ans.e:.b#iously, Nokia made the mistake of underestimatingthe com"etition )i.e. (""le- and not "aying attention to thecustomer. When com"anies fail to take these considerations intoaccount when determining their strategy, then they are sure tofail. 0he "rinci"le that they neglected is that strategicmanagement cannot be made in a #acuum. 0he e/ternalen#ironment and the com"etiti#e en#ironment must beconsidered when "lanning.