According to the CEO, Nokia is winning deals to roll out the 5G technology in various countries worldwide. Suri mentions that the technology company has become one of the biggest 5G vendors globally. He also indicates that in 2019, Nokia grew three percent on a global basis, excluding a one-time licensing benefit it received in that year. The entity is keen to capture more 5G deals to ensure it is in a suitable position to increase its licensing opportunities in various markets. In this case, the firm can increment its licensing revenue considerably. This information relates to the chapter as it depicts the use of the licensing technique as a market entry strategy. In licensing, one party utilizes an industrial property right while making payments to the owning party (Daft, 2021) . By winning 5G deals, the technology company is putting itself in a suitable position to receive payments from entities utilizing its 5G patent rights.
The CEO also indicates that the entity has a global supply chain and is keen to rely on such infrastructure to meet demand in case its manufacturing operations in China are halted due to the coronavirus. Based on this evidence, it is evident that Nokia has wholly-owned operations in other countries, including China. According to the chapter, wholly-owned subsidiaries are avenues for entry into a foreign market (Daft, 2021) . Nokia, an MNC, has set up a wholly-owned subsidiary in China to control its manufacturing operations in the foreign country. Suri mentions that Nokia can move its manufacturing operations around different counties in terms of where it needs to ship from. In this case, Nokia has a global structural arrangement that allows it to allocate its resources based on global threats such as the coronavirus.
Delegate your assignment to our experts and they will do the rest.
Reference
Daft, R. L. (2021). Management . Cengage Learning.
