Mobile Industy Success Factors in Finland

Mobile Industy Success Factors in Finland (PDF)

2022 • 12 Pages • 87.67 KB • English
Posted June 30, 2022 • Submitted by pdf.user

Visit PDF download

Download PDF To download page

Summary of Mobile Industy Success Factors in Finland

Mobile Industy Success Factors in Finland Lead Project Seminar Finland – Leading National Mobile Market ? 24 May 2005 (v.6) Sauli Kamppari, M.Sc. Helsinki University of Technology P.O. Box 3000, FIN-02015 HUT, FINLAND Mobile Industry in the Mobile Cluster Framework Applications Based on Paija, L 2001, ‘The ICT cluster in Finland – can we explain it’, p. 15, in Finnish ICT Cluster in the Digital Economy, ed Paija, L, Helsinki, ETLA, Taloustieto Oy,ISBN 951-628-340-3. and Mäenpää, K & Luukkainen, S 1994, From telecommunications technology to multimedia – the competitiveness of the telecommunications cluster, Helsinki, ETLA, ISBN 951-628-184-2 Network Infrastructure End User Terminals Mobile Services Content Key Industries Machinery Education Components Supporting Industries Finance Research Consultancy Associated Services Information Technology Consumer Electronics Media Related Industries Firms and Organisations Consumers Customers Mobile Cluster Value Network Export Terminal manufacturers Portals Domestic end users Service Operators Network operators Terminal retailers Application developers Platform developers Major value adding linkage Minor value adding linkage Organisational linkage Network manufacturers ������������������������������������������� (Leppävuori, I 2002, Analysis of the Finnish mobile cluster - any potential in mobile services, Publications of the Ministry of Transport and Communications 28/2002, ISBN 951-723-791-X, ttp:// Success Factor Frameworks 1 (3) Porter's Diamond Firm strategy, structure and rivalry Related and supporting industries Demand conditions Factor conditions Chance Government Porter, M 1990, The competitive cdvantage of nations, The Free Press, New York. Success Factor Frameworks 2 (3) Industry Innovation Dynamics Technological system Competence bloc Idea generation Selection of winners Rejection of losers Cognitive dimension Organizational and institutional dimension Economic dimension Ideas Innovations Release of resources �������������������������������� Based on Carlsson, B & Eliasson, G 2001, ‘Industrial dynamics and endogenous growth’. DRUID Nelson&Winter 2001 Conference 12-15 June, Aalborg, Denmark. Success Factor Frameworks 3 (3) Resource Based View of International Strategy Based on Fladmoe-Lindquist, K & Tallman, S 1997?, ‘Resource-based strategy and competitive advantage among multinationals’, p. 155, in Strategy Manazgement in Global Economy, ed Vernon-Worzel, H & Vernon-Worzell, L, John Wiley and Sons, Inc.ISBN 0-471-15873-9 and Barney 1991: “Firm resources and sustained competitive advantage”. Journal of Management (JofM), 17(1), 99 - 120 Firm Strategic Choices Firm Specific Resources Home Country Environment Global Environment Idiosyncratic Firm Endowment Sustainable Competitive Advantage Identification, Development, Protection, Deployment Value, Rareness, Imitability, Substitutability Synthesized Frameworks Firm strategy and culture Cluster Demand Resources Government and institutions NMT National Success Factors � Capability build-up of terminal and network element development – Joint ventures, collaborations, networks of subcontractors – Placing early orders decreasing the uncertainty and financial risks – High quality service and low tariffs ... early benefits from economies of scale – PTT and ARP users were familiar with the mobile phone concept – Big number of summer cottages which didn't have fixed telephone lines – Specification of the NMT standard – Allocation of the radio frequencies for the mobile phone service – Government support in the form of bigger R&D budgets for PTT – Nokia reorganisations Firm Str & Culture Cluster Demand Resource s Gov & Ins GSM National Success Factors � Capability build-up of terminal and network element development – Coalitions where Nokia and PTT were members – PTT's existing mobile subscribers and base station sites – Nokia strategy – Nokia way Firm Str & Culture Cluster Demand Resource s Gov & Ins Success Factor Frameworks 6 (6) Synthesized Framework 1. Resources. Porter's Factor conditions + Resource Based View criteria 2. Demand. Porter's Demand conditions + Economic dimension from the Market Dynamics Framework The added dimension reflects the expectation that competent entrepreneurs will play a key role in selecting the winning innovations in the complex and uncertain environment 3. Cluster. Porter's Related and supporting industries + Organisational and institutional dimension from the Market Dynamics Framework 4. Firm strategy and culture. Porter's Firm strategy, structure and rivalry + special emphasis on the dominant firm strategy and culture 5. Government and institutions. Porter's Government category + Organizational and institutional dimension in the Market Dynamics Framework � The purpose of the new framework is to help in planning the future. The Chance determinant from the original Porter's model has been excluded because by definition it can not be planned. This does not mean that the role of chance in the past success is denied. Mobile Industry Opportunities and Challenges Driver category Driver Issues National remedy Category Technology Demanding technology Plethora of CE, Wireless and security technologies. Ever increasing performance demand World class intra firm capabilities and knowledge of the technology limits Resources, Cluster Technology Strong horizontal players IPR or de facto HW and SW component monopolies Strong IPR management, deep understanding on component development Resources, Cluster Markets Cost pressure Slow growth. New competitors Productivity gains by investing in cost efficient production, lower the cost of resources Resources, Cluster Markets High uncertainty in business opportunities The market potential for new personal and home entertainment, enterprise and operator innovations difficult to estimate Early adopting customers, competent etrepreneurs Demand Firm Str & Culture Cluster Demand Resource s Gov & Ins Conclusions 1. Porter's diamond model for national competitiveness is a good starting point for the mobile industry national success factor framework. Adding certain emphasis areas improves the explanatory power of the framework. 2. An evolution can be identified in the Finnish mobile industry success factors. The framework categories most crucial for the success have changed and the overall national role in the industry success has diminished. 3. Strong national success factors would help the mobile industry also in the future. Especially the Cluster and Resources categories of the new success factor framework seem to have a lot of potential. Firm Str & Culture Cluster Demand Resource s Gov & Ins