Nokia: From In-house to Joint R&D

Case Solution

Torben Pedersen, Marcus Moller Larsen
Ivey Publishing ()

The case describes and analyzes the organizational and strategic challenges of outsourcing research and development (R&D) activities from Denmark to China. Nokia Denmark was founded in 1996 as a subsidiary of Nokia Corporation and comprised Nokia’s largest R&D unit outside of Finland, focused on the development of mobile phones. In 2007, Nokia Denmark received instructions from corporate headquarters to dramatically increase the number of mobile phones developed. Driven by the need to relieve pressure on internal capabilities, Nokia Denmark decided to outsource certain product development projects to the Taiwanese company Foxconn as part of a Joint Research and Development Organization (JRD). Foxconn, one of the world’s largest electronic component manufacturers, which also developed products for many of Nokia’s competitors, was tasked with developing and testing selected standardized and less complex cell phones, leaving more complex and sophisticated technology projects in-house. . By 2010, however, Foxconn had become a central figure in Nokia Denmark’s product development process, with responsibility for increasingly complex projects. Given the growing importance of Foxconn to Nokia Denmark, increasing pressure from corporate headquarters and the competitive market environment on products and costs, Nokia Denmark was faced with a key question about how to proceed with the JRD. Three alternatives were outlined for the future of Nokia Denmark’s JRD with Foxconn: Management could decide whether to increase, expire or continue the status quo.

We don‘t have the case solution, but we pay up to $50 for yours!

  • Set a reminder to receive an email after your university‘s case study deadline.
  • Upload your case study solution. We will review it for quality.
  • Get your money via PayPal or to your bank account.