From in-House to Joint R&D

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From In-house to Joint R&D: The Way forward for Nokia Denmark Harvard Case Solution & Analysis
The case describes and discusses 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 and contained the largest Nokia R & D division, focusing on the development of mobile phones outside of Finland. In 2007, Nokia Denmark received instructions from corporate headquarters to dramatically increase the number of mobile phone. Guided by the need to release the pressure on its internal capacity, Nokia Denmark decided to outsource certain projects of product development Taiwanese company Foxconn in joint R & D (USC) plant. Foxconn, one of the world’s largest electronics manufacturers, who are also developing products for many of the competitors Nokia, was responsible for the development and testing of selected standardized and less sophisticated mobile phones, while the more complex and sophisticated technological projects were kept in the house . However, by 2010, Foxconn has become a central figure in Denmark Nokia product development with responsibility for more complex projects. Given the growing importance of Foxconn for Nokia Denmark, growing pressure from corporate headquarters and the competitive environment of the market for the products and costs, Nokia Demark way to the central question of how to proceed with the USC. Three alternatives have been identified for the future JRD Nokia Denmark with Foxconn. Management may decide to increase, phasing out or continuing the status quo “Hide by Torben Pedersen, Marcus Moller Larsen Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: December 20, 2011. Prod. #:…...

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