SWOT Analysis for Nokia Corporation

SWOT Analysis for Nokia Corporation

This SWOT analysis for Nokia Corporation will provide an overview of the strength and weaknesses of and the opportunities and threats of the company. It is an elaboration of Nokia’s strategy and situation, which can be used to evaluate the position of the business and guide the company’s business strategy (Harrison, 2005). It can also be used to assess the specific business segments of the company, for example, production, sales and marketing. An identification of the strengths and weaknesses is fundamental in exploring the available opportunities and facing the imminent threats of the company.

Strengths of Nokia Corporation

Strengths include the positive traits of Nokia that are under its control. First, the biggest strength of the company is that it has an invaluable experience in the telecommunication industry stemming from its humble beginnings in 1865. Over the years, the company had had a fantastic history until the early 2000s when it experienced some leadership and financial constraints (Haque, 2020). During this time, the company has had a robust understanding and experience of the global communication and technology market. Second, the company has a workforce that contains the most technologically advanced and experienced people. This workforce has upheld the reputation of Nokia by producing and distributing high-quality products across the world (Haque, 2020). Third, the company has an extensive network of selling and distribution across the globe, making it benefit from global expansion. In that case, the Corporation has set many retail shops and customer care bases around the world. Lastly, the company manufactures and distributes high-quality and durable products. These products are user-friendly, which makes the resale value to remain as high.

Weaknesses of Nokia Corporation

Weaknesses include the factors under the control of Nokia yet hinder its capacity to keep a competitive edge. The first weakness of the company is a slow reaction to competition and low sensitivity to industrial changes and market trends. The company took a long time to enter the booming smartphone network, not until in 2013, when it collaborated with Microsoft to produce the Windows 7 phone. This low sensitivity to market trends and the industrial revolution made the company lose a lot of its once huge market share. The company’s competitors in the telecommunication industry, for instance, Samsung, Huawei, and Sony, have overtaken Nokia in the global market share. The second weakness is the production of low-performance smartphones. Their phones are poorly designed and not meeting the expectations of the customers. As such, the number of sales for Nokia products has declined significantly. This decline in sales has led to a corresponding reduction in the company’s profits by over 7% (Haque, 2020). Finally, the company does not offer quality services after-sales. This phenomenon has been because of the massive closure of the company’s customer care points and retail shops in many parts of the world. To improve on this, the company needs to strengthen its leadership.

Opportunities for Nokia Corporation

Opportunities include some external factors that can be harnessed to ensure or increase the chances of market survival. The first opportunity is the fact that the smartphone market is growing each day (Haque, 2020). As such, Nokia will still have a chance to access this massive market to sell its products, provided it improves on the weaknesses stated in the previous section. Secondly, the company can respond to the needs of the customers by bringing in new applications and features to their products. A consideration for this case is the adaptation of Android OS phones and moving from the Windows OS, which is not very user-friendly. An exploration of these opportunities will see Nokia Corporation regaining its lost reputation and world market share.

Threats of Nokia Corporation

Threats include external factors not directly under the control of the company that test the structure and strategy of the company (Abraham, 2012). The biggest threat for Nokia is the stiff competition from the likes of Sony, Huawei, Samsung, and Infinix. Recently, there are new entrants in the market, for instance, Oppo, HTC and Xiaomi, who are seemingly more sensitive to customer demands than Nokia. Therefore, Nokia has a significant threat to face in terms of new technology, design, and quality. These new entrants are manufacturing cheap and wider range models along with the telecommunication industry trends and the needs of the customers. The second threat is the exact copy of Nokia models by China mobiles (Haque, 2020). These generic models of Nokia are set to push Nokia out of the market. Therefore, Nokia Corporation must brace itself for these threats in their venture in the telecommunication industry.

In conclusion, these findings are essential for the company to examine its positive and negative attributes. From this examination, it can then proceed to determine the best way to compete in the market. In this process, Nokia needs to recognize its weaknesses but capitalize on its strengths. Nokia was once a reputable company, but its slow reaction to sensitivity and market trends coupled with poor leadership brought it down. However, if it can explore these opportunities accurately, then it can make its way to the top of the telecommunication industry once more.