Nokia Swot Analysis
Nokia SWOT Analysis Strengths Strong brand image is Nokia’s core asset. The company continues to strengthen its brand equity through various marketing campaigns. Nokia’s brand was the fifth most valued brand in the world according to the top 100 best brands list compiled by InterBrand in 2009, and was the only mobile phone manufacturer in the top 10 best brands list.
A strong and highly visible brand enables the company to command a premium for its products and differentiate itself from competitors. The company has been the leading player in the global mobile devices market since 1998.
The company’s strong market position, besides enhancing the brand image, provides economies of scale in operation. Nokia has the unique production technology, strong technical strength, perfect quality control system. Nokia has an great advantage over other rivals. Nokia, as a company with a 150-year history, has abundant marketing experience, first-class customer service and outstanding large-scale purchasing skills. Nokia’s mission is simple: Connecting People. Its goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer.
Its ideas of the new products are from the consumer’s needs, expectations and dreams, based on detailed market analysis and classifications of consumers. The Nokia-Microsoft partnership brings together two global businesses with highly complementary sets of assets and competencies. The strategic partnership sees Nokia smart phones adopting the new Windows 7 operating system, with the Symbian platform gradually being sidelined. The goal is to establish a third ecosystem to rival iOS and Android. Weaknesses The company’s high-end product portfolio is weak compared to its competitors.
The company’s high-end products are mainly offered through the N-series range of multimedia computers. While, the company’s multimedia products feature music players, cameras, pocket computers, gaming consoles and navigation devices, it lacks appealing touch screen functionally and sleek designs compared to products of its competitors. Nokia also faces significant price competition in this market as phones are being offered at lower price or free, when purchased with a contract. Although the company has been the leading player in the global mobile devices market, the market shares in its other industries are being reducing.
Opportunities The company launched Ovi Life Tools (Nokia Ovi Sheng Huo Tong), which offers a range of information services covering healthcare, agriculture, education and entertainment. Launch of new innovative services will enable the company to enhance its customer base thereby increasing its revenues in the coming years. The company made several strategic acquisitions in the recent years. The company’s strategic acquisitions enhance its offering and enable it to record revenue growth from new offerings, while providing competitive advantage.
It allows high bandwidth applications, is expected to increase with the growing need for advanced data and video services. New growth markets where cell phone adoption still has room to go, including India and other countries. Threats Nokia faces intense competition in all the segments of the communications market it operates. In the low-end mobile devices segment, the company has been facing competition South Korean mobile device companies such as LG and Samsung, while it continues to compete with Motorola and Sony Ericsson, among others.
In the high end mobile devices/smart phones segment, the company is facing intense competition from Apple, RIM, HTC, and Samsung. The company operates in more than 150 countries across Europe, Americas and Asia Pacific and is exposed to risk from changes in foreign currency rates. Nokia’s business and results of operations are from time to time affected by changes in exchange rates, particularly between the Euro, the company’s reporting currency, and other currencies such as the US dollar, the Japanese yen and the Chinese Yuan.
And European debt crisis brings great impacts on the world, especially Europe where Finland located. Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC and others. The market is fast changing, the consumers’ expectations vary. The development tendency of mobile phone is big screen, high resolution, touch screen, intelligent system. But NOKIA touch screen support software is very few. Besides its intelligence system needs to be further ascent. Trapped in the fluidity of the mobile phone business, and missed the latest innovation and trendy design.