Nokia Corporation, headquartered in Finland, is a world leader in the cell phone

Question

Nokia Corporation, headquartered in Finland, is a world leader in the cell phone industry. Because much of Finland is heavily forested and sparsely populated, it is difficult and expensive to develop a land-based communication network. Nokia created Europe's first digital telephone network in 1982. Today, Nokia has 27 percent of the world market in cell phones, well ahead of their competition. 1. Nokia is a dominant market player in its industry. What are some risks that Nokia might face if it engages in a strategic alliance with a foreign company? 2. How might the imposition of a quota on cell phones impact Nokia's exportation of cell phones to the United States?

Explanation / Answer

1)A keyriskis loss of reputation. If the other company fails to perform, and the public associatesNokia's name with it, they could lose business.

Another risk would be diluting theirbusiness interests. They might lose focus on their strengths.

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