CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.DiscussiondocumentDecember2000NokiaCaseStudy:WinningintheU.S.NJ-262408.756/001031NdkocHR12RatingProductProductandcategoryselectionProductsoptimizedforUSmarketCapabilitiesResourcesResearchanddevelopmentMarketrelationsDistributionandsaleschannelsMarketingAlliancesandacquisitionsOrganizationAspirationandpriorityTalentDecisionmakingandresponsibilitiesCulture,valuesandstyleCoordinationmechanismsFINGERPRINT–NOKIARationale•Focusedonhighgrowthcategories(e.g.,mobilephones,digital)•AnticipatedshifttodigitaltechnologyintheU.S.beforecompetitorsanddirectedresourcestooptimizeopportunity;tailorsproductstotargetcustomers(e.g.,fashioncoversforyoungersegment)•Somedifficultytoattractingtop-tierlocalseniormanagementduetoglassceiling(e.g.,allseniorleadershipinFinnish0;FinnishmanagersusedtomanageU.S.operations•Succeedsinattractingtopengineersbecauseofattractiveproducts•Localmanagershavelimitedautonomyandaccountabilityexistsattheunitlevel,butheadofficeretainsfinalinput•Difficultytranslating“TheNokiaWay”toU.S.(“Theculturedoesn’thavethesamerichnessorvalueasitdoesinEurope”)•Devotessufficientresourcestolocalorganizationtowininmarket(e.g.,providedresourcesforU.S.towininmobilephonesegment)•Outsourcesnon-coretechnologies(e.g.,microprocessorsfromIntel,componentsformMotorola)andusesstandardcomponentstosaveonR&Dspendandreactfastertochangingtechnologiesthanitscompetitors;leveragespartnershipsformoreefficientR&D(e.g.,JVwithCisco,Geoworks,HP)•N/A•Createsbroaddistributionreachthroughnumerous,innovativerelationshipswithretailersanddistributors(e.g.,Sears,AT&Twirelessservices,Tandy)•Developsandlaunchesinnovativemarketingcampaigns(e.g.,firsttotargetconsumersratherthanprofe...