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Nokia And The Ford Company

|Includes:F, Nokia Corporation (NOK)

Is Nokia using Henry Ford's strategy? It makes one think.

It was Nokia's VP of Design Marko Ahtisaari description of the re-invention of the wheel attracted me with the idea. He had stated numerous times in interviews that innovation in the phone industry has just began. Reminding everyone that it took 15 years for the automobile industry to standardize on the steering wheel as the dominant interface.

I believe there are great similarities between Ford's and Nokia's plight to victory. I am not referring to the Ford Company of today, but the year Ford incorporated the "Ford Motor Company" in 1903. Ford proclaimed, "I will build a car for the great multitude." He did so in 1908 offering the Model T for $950. In the Model T's nineteen years of production, its price dropped as low as $280. With Ford providing such discounted prices, 15.5 million Model T's were sold in the United States alone. Production of the Model T was the beginning of the Motor Age. It evolved from a luxury item for the well-to-do to essential transportation for the ordinary man.

Henry Ford also revolutionized car manufacturing by the use of an assembly line. In 1914, a Ford Motor plant in Michigan applied a new innovative technique which enable them to turn out a new car chassis every 93 minutes. Using a constant moving assembly line led to huge gains of productivity. Now with Ford's triumphant strategy to provide affordable automobiles for the masses, all of who was part of his vision came out prosperous. Ford Motor Company was literally "Connecting People"

Ford's Model T altered the American society. The United States suburbia was growing rapidly with the creation of national highway that ultimately lead to a high demand for cars. The U.S. population was entrance with the possibility of going anywhere anytime, similar on how NSN is creating numerous innovative infrastructure highways in the world.

The Nokia Strategy:

"We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia. We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions."

Stephen Elop, CEO

In conclusion

Nokia finally realized winning becomes no longer a matter of getting "there way" (arrogance), or persuading someone to do what they want them to do, it becomes a way of achieving what's best for all.

Disclosure: I am long NOK.

Stocks: NOK, F