Nokia Core Competence Analysis

Core competence idea was designed by Gary Hamel and C. K. Prahalad, to introduced into management literature in 1990s, for organizations can move into new markets and market growth possibilities more easily by follow the core competences think. This learning are collective in the organisation, especially about the knowledge how to coordinate diverse production skills and integrate multiple streams of technologies, then this communication, involvement and a deep commitment to working in organisational boundaries that does not diminish with use. Then this thing is important for organizations to focus on their competences and draw their strengths from this when they want to get ahead of their competition. Unlike physical assets, which do deteriorate over time, competencies are enhanced as they are applied and shared. The core competence knowledge is specialized because that are so difficult to imitate by other organization. According the strategic objectives of Hamel and

Dominate the world for decades of Nokia, unable to get up after a fall. People can be summed it all sorts of errors in marketing, but its core competitiveness -- mobile phone technology, no one can deny the ability of Nokia. Nokia lack the ability which change technology into business, and this ability has not formed because Nokia’s ingrained conservative. Nokia executives believe that their responsibility is to improve their core competitiveness -- mobile phone technology. The Nokia senior executive Risku executives cited an example:” in the map business after the acquisition of Navteq, Nokia spend huge amounts of money; do not move in half year. At this time, Google maps are free, voice navigation is also free, and rivals are catching up." （Charles W. L. Hill, Gareth R. Jones 2012）. As can be seen, the rigid Nokia has indeed to extinction. The Icarus Paradox has been fully demonstrated in the Nokia