Swot analysis of the Nokia Company

Published Date: 23 Mar 2015

Nokia, as a one of the world's largest telecommunications equipment manufactorers. In telecommunication industry, nokia brand are famous and become a leading brand being in markets and business that has expanded greatly in every area to fulfill the customers needs. Nokia produces mobile and other telecomunications equiqment for applications even for every main market and protocal which also include the GSM, CDMA ans WCDMA.

Strength

According to the Nokia, the strength of Nokia Company is the strong brand name they have. Nokia release their products with more advantages than other because of the strong name brand that acceptable, reliable and trustable for customers. Nokia also have a wide network of promotion and selling their product which make Nokia stronger than the other telecommunication company. Nokia Company has the group such as high quality and professional teams in the Human Resource Development Department which make the Nokia Company have a strong backed. Nokia's product are user friendly and contain all the accessories satisfy their customer, this is one of the reason that make Nokia become No.1 selling mobile phones in the world. Their products are also affordable for all class of people.

Weakness

Nokia Company is a successful company on the world but it still has some weakness. The weakness like the product's price that offered by the company. Although most of their products are high quality and user friendly but the price is not. Some of the Nokia's products are cannot afforded by some lower class of the society people. These led those products hard to sell and make the market of those product fail at the end.

Opportunity

Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like 'Telecom penetration in India' being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation.

Threats:

Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.

Critical issue

Programmed and Market Threats

Programmed threats can definitely cause significant damage. The personal information of Nokia can be copied and get sent to any rival companies, confidential information can also be modified, and the configuration can be reset to allow subsequent unauthorized access, leaving an open entry to all intruders. The services provided by Nokia can be extended but the clients will start to worry about the Nokia Company and will start questioning the Company's security to safe guard their personal information. Nokia would have to face consequences if their system is used as strategic launch points for broader distribution of programmed threat software. In addiction, Nokia Company has a low popularity of Symbian Operating System. Most of the rivalry such as Samsung, Sony Ericsson, Apple and Motorola are now using the new the Google Android Operating System, which is better than Symbian Operating System. The Apple Company is taking up shares from the Nokia Company and their IPhone is the most popular mobile devices all over the world. There are now new entrants are entering the market following Apple such as Dell, Google, and Acer.

In 2009, Nokia Company now owns 36.4% of the market, and Samsung is the second runner-up with 19.5% of the market. Motorola and Sony Ericsson may now be an annoyance to the other two companies but it will change soon. Nokia isn't expected to solve it's problem anytime soon. For year, Nokia has been confident with its Symbian System and didn't explore the system because there wasn't much competition. During that time, Apple's experts have been coming up with ideas and they have come up with Google's Android OS which got Nokia's Symbian caught in a shocked. On the other hand, Nokia responded by having their cell phone market share increased from 35-40%. Samsung and Motorola have been chipping away at their competitor's market share and are delivering phones to consumers at a reasonable price.

Low-Cost threats and New Rivals

There are also some issues with the cost of the company. Nokia Company has been concentrating on their traditional competitors such as Motorola, Sony Ericsson, Samsung, and Siemens. Nokia Company has been focusing on how to compete with their competitors through mobile phones, market shares, and technology, that they allowed other low-cost company to be successful and has entered the market steadily. The low-cost company that has been successful is the Chinese low-cost competitor Huawei, whose company is now the leader in fixed-line networks, mobile-telecommunication networks, and Internet. Then another company, known as the Vizio, a little LCD TV supplier that took lead in the premium brand for five years and became the North American market leader in large-format TVs. These low-cost companies built their name and momentum slowly and in a smart way by paying close attention to the market and competing in an undeveloped segment in the market. Competition between low-cost competitors can go unnoticed due to their ranking in the market. With these said, it shows that Nokia Company has been too arrogant and comfortable with their position that they have made a blind spot for themselves. Nokia Company has a slow reaction when they are facing new rivals.