SWOT

SWOT Analysis: Nokia

SWOT Analysis: Nokia

Nokia is a Finnish multinational company, and its headquarter is located in Keilaniemi. Espoo, Finland. The company mainly deals with producing high quality mobile telephones and along with diverse IT devices. The company also offers internet service packages which consist of applications, games, music, media and messaging via the Ovi platform. Nokia has also managed to form a joint venture with another multinational Siemens, to form the Nokia Siemens Networks (Darling, 1994,pp. 3).

Strengths

Strong Brand Recognition

Nokia enjoys strong brand recognition among its consumers globally. The company has strong market position and brand recognition. Strong market position provides Nokia a competitive advantage over its peers and also strengthens its bargaining power in the market. Its strong brand recognition can be converted into higher sales and customer loyalty, which will be meaningful drivers of revenues. However, intense competition has impacted the company's market share and revenues, as well as the pricing power in recent times (Nokia.com).

Extensive Distribution Network

Extensive distribution network enhances the global reach of the company and provides competitive advantage over its peers. In addition, it allows Nokia to effectively reach rural customers. During FY2011, the company shipped 417.1 million devices. In addition, Nokia has an extensive supply chain system comprising direct and indirect suppliers. The extensive supply chain has allowed the company to establish a strong position in the rapidly growing markets of China and India (Nokia.com).

Diversified Geographic Presence

Nokia has a diversified geographic presence. The company operates a worldwide network of cell phones and network infrastructure production plants in 8 regions around the world. This geographic diversity allows the company to reach out to its customers with ease and maintain close relationships with all its stakeholders.During FY2011, China, the company's largest geographic market, accounted for 15.9% of its overall sales (Nokia.com).

Weaknesses

Low Competitiveness in Smartphone Industry

The advents of smart phones have completely revolutionized the telecom industry. All of sudden, Nokia set have become obsolete in the market while smart phones now cover the 90% of the market. As compare to smart phones, Nokia cells have failed to follow-up the competition and therefore, present lower degree of competitiveness (Marketline, 2012, pp. 13-18).

Increasing Dissatisfaction Level with its Smartphone

Nokia has also offered its own windows based smart phones which have been unable to offer same features as that of Apple or Android causing dissatisfaction among its customers. The company has badly failed in fulfilling the requirements of ...