Introduction
One of the world’s most well-known manufacturers and sellers of mobile phones is Nokia. The organization employs more than 102,000 people across its sub-stations in 130 countries. In addition to producing mobile phones, Nokia also provides a comprehensive selection of other telecommunication services. The Fortune Global 500 ranks Nokia at position 415 regarding the company’s revenue (Chaturvedi et al., 2017). For over 150 years, Nokia Corporation has maintained its position as a prominent market leader in telecommunications.
Strength
Letter S in SWOT is an abbreviation for analyzing the company’s strengths. The primary strength that Nokia possesses is its well-known brand name. For over a century, the company has established a formidable reputation as a manufacturer of high-caliber mobile devices. Because of its endurance, dependability, and originality, Nokia’s handsets have become a popular choice for consumers worldwide. Furthermore, Nokia and Microsoft collaborate extensively on developing their mobile devices. With Microsoft’s help, many Nokia employees are gaining experience in the telecom industry. Comparatively, the resale value of other smartphones plummets over a few months or years, whereas that of Nokia phones remains stable over time (Khan et al., 2017). In addition, Nokia phones are simple to use, come in various styles, and can be found at various pricing points. The finding of collaboration helps the company to develop innovative and creative culture.
Weakness
The weakness of the firm being evaluated is represented by the letter W in the acronym for SWOT. For years, the company has been criticized for poor post-sale support in most of its worldwide locations. In addition, it has not been able to compete in the smartphone market with Apple, Samsung, and Huawei. (Chaturvedi et al., 2017). Nokia could not produce a competitive product during the smartphone boom’s height. Identifying weaknesses is an important finding that will help improve the quality of the products.
Opportunities
In SWOT analysis, the letter O stands for the company’s opportunities. A lucrative opportunity has presented itself for the corporation due to the partnership between Nokia and Microsoft. By merging with Microsoft, Nokia will be able to produce smartphones superior to those created by Apple and Samsung, allowing it to occupy a leading position in the rapidly increasing smartphone market (Khan et al., 2017). The smartphone market is expanding rapidly, and Nokia needs to diversify its product portfolio to compete with the growing number of low-cost smartphones produced in China.
Threats
The company’s threats are denoted by the T in the SWOT analysis. The most significant threat Nokia must contend with in telecommunications is intense competition. In recent years, the market for telecommunications services has seen an inflow of new companies from China, Japan, and Europe (Chaturvedi et al., 2017). Nokia’s globalization strategy has been impacted by inflation, currency fluctuations, and other worldwide financial concerns (Chaturvedi et al., 2017). Most Nokia phones can only be afforded by those with high incomes due to the complex technology they employ. When looking to expand into new markets, it has always faced competition from low-cost phones from China. This finding is essential in resolving the competition challenge by achieving a competitive advantage.
Conclusion
The findings show that the Windows operating system of Nokia products should be phased out in favor of something better, like Google Android, the corporation; this will help resolve high market value. In addition, the Nokia phones can compete favorably with Samsung, Apple, and other leading companies due to their competitive advantage through innovativeness in their products. To suit the demands of the general public, Nokia should broaden its product line. The corporation should focus on developing markets in Africa, Asia, and Latin America because the European market is now saturated.
References
Chaturvedi, S., Singh, S., & Chaturvedi, S. (2017). Analysis of decline market: Special reference to Nokia mobile phone. International Journal of Engineering Research and Development, 13(9), 22-27.
Khan, S. T., Raza, S. S., & George, S. (2017). Resistance to change in organizations: A case of General Motors and Nokia. International Journal of Research in Management, Economics and Commerce, 7(1), 16-25.