Nokia Swot Analysis

- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.

It has wide range of products in the market and almost all the products getting success in the market.

Over the mid-year, Apple was offering a little more than half of the worldwide premium cell phones, and Samsung was offering just shy of 25%. By December 2016, those figures had developed to 70% and 17%, separately” (Richardson, 2017).

Nokia Corporation is a Finnish multinational corporation. Nokia focuses on fixed and wireless telecommunications products, with employees in 120 countries, selling products in more than 150 countries around the globe.

It established in 1871 and it is very old company. It was one of the biggest company in world in that time and it competition with other companies who is produce cell phone. The main product is cell phone. Nokia Company produce a lot types of mobile phone and different from other. There are phones with big screen and other with small screen. Also, they have phone with keyboard and other without it work by the touch. Also, Nokia Company provide other services which are internet services such as applications, music, digital media and messages. Nokia offers digital mapping and navigation

Successful brands build successful products when the product is one that the consumer desires as opposed to needs. Companies selling these types of products must put additional effort into marketing activities like brand

High level of commitment from the dominant coalition which trickled down the whole organization structure.

First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.

Threats: Nokia phones once dominated the phone market. However, it failed to see the threats from smartphone and the new phone manufacturer, and thus the brand Nokia faced serious strike and almost disappeared until recent.

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet

This is due to several reasons and the most reason is the Nokia don’t used the good strategies to developed the products. Nokia Company was acclaimed for its marketing and was seen as the company that had best figured out how to turn mobile phones into fashion accessories. It’s more accurate to say that Nokia was at its heart a hardware company rather than a software company. Nokia failed to recognize the increasing importance of software strategy also there was another mistake which is Nokia have overestimated the strength of its brand and believed that even if it was late to the smartphone game it would be able to catch up quickly. Long after the iPhones release, in fact, Nokia continued to insist that its superior hardware designs would win over users. Even today, there are people who claim that if Nokia had stuck with its own operating systems, instead of embracing the windows Phone in 2011, it could have succeeded. But even though the windows Phone has been a flop, the truth is that by 2010 Nokia had already introduction too many disappointing phones because Nokia Company don’t used successful strategy to developing the product. (James Surowiecki, September 3, 2013). “As a market firm for over a decade, Nokia Company didn’t really excellent plan for the future as it seemed a bit complacent with

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product

While leading worldwide in market share since 1998, Nokia was being pushed down-market as competitors emerged and the telecommunication market saturated. Competition in the market before the year 2000 was considerably low. Nokia, Ericsson and Motorola controlled collectively 95% of the global handset market in 1995. Nevertheless,

For example, in Europe, Nokia’s market share in the European smart phone market has shown a huge decline in the past couple of years. The problem began with the introduction of the Iphone in 2007, which set a new trend in the market. In order to return to the market leadership position, Nokia entered into partnership with Microsoft. Threatened by the rapid lost of market share to rivals, Nokia created series of Smartphones called Nokia Lumia. Nokia bet on these products to regain its lost market share. However two years after the partnership, with 9 Lumia products out in the European market. As Alison Donnelly (2008) points out the situation is already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was losing customers to rivals. The Finnish company had troubles adapting to the market changes, it did not recognize that the Iphone release in 2007 would create a new era into the mobile world. In a fast growing industry, time is a very expensive asset, as every company wants to possess the most innovative technologies and products before its