SWOT Analysis of Nokia Corporation

Nokia Corporation is a Finnish multinational communications corporation and is the world’s largest manufacturer of mobile phones. It is headquartered in Keilaniemi, Espoo, a city neighboring Helsinki. It has an employee base of around 123,000 employees in 120 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. It has 15 manufacturing facilities located in China, UK, Finland, Hungary, Germany, Mexico, Brazil, and the Republic of Korea. SWOT analysis of the company is given below:

 

Strengths

 

  1. Nokia Corporation has the strong Research and Development centers in 16 countries and employs approximately 37020 personnel, nearly 30% of total workforce of the Nokia Siemens.
  2. Nokia has 500 researchers, engineers and scientists and has sites in seven different countries.
  3. World’s first marketable GSM call was made over a Nokia-supplied network.
  4. Nokia is incredibly creative and it is known for innovation, reliability and durability.
  5. Nokia is the only manufacturer experiencing all four style and fashion strategies engaged by the main mobile set sellers, whereas Sony Ericsson utilized only one.
  6. Nokia is the globe’s biggest producer of mobile phones and it has 15 manufacturing facilities around the world.
  7. It has the biggest network of distribution as contrast to any other cellular phone player.
  8. Nokia 1100 handset, launched in 2003, was the best-selling mobile handset of all time and the globe’s top-selling end user electronics product.
  9. In mobile phones and converged mobile devices Nokia still leads all sellers by a significant margin.
  10. Nokia has efficient and diverse work force labor and innovative technology.
  11. In the worldwide Smartphone competition, Nokia dominates the global mobile markets.
  12. Nokia has sales of its products in more than 160 countries.
  13. It has strong financial position, achieving net revenue of EUR 41.0 billion and operating profit of EUR 1.2 billion.

 

Weaknesses

 

  1. In July 2010, Nokia declared that their profits had dropped by 40 percent.
  2. Nokia Corporation has very weak presence in the United States’ cellular market.
  3. In Japan, domestic sellers such as Panasonic, Fujitsu, sharp and NEC mainly drives the cellular market growth and Nokia has very fragile position.
  4. At the end of 2008, Nokia publicized that it was closing mobile handset distribution in Japan and canceled distribution of E71.
  5. In India Nokia has very few service centers and terrible after sales service.
  6. Few products are not comprehensible and have higher prices as compared to china mobiles.

 

Opportunities

 

  1. Nokia had a 50-50 joint venture with Siemens of Germany which provide opportunity to expand in Europe. Creating such ventures will boost the market share of company.
  2. The Asia-Pacific cellular phone market is one of the fastest-growing in the world today.
  3. Fashionable, stylish and aesthetics of the handsets drive new market and there is adequate consumer demand for fashion mobile phones by 2010.
  4. Nokia has enormous demand potential in new developing markets like India and China.
  5. In the third quarter of 2010, the global cellular industry grew by 14.6 percent.

 

Threats

 

  1. Nokia’s hold on the long-established cellular phone market has been loosing after the arrival of several Chinese manufacturers mainly in emerging markets.
  2. RIM, Apple and the different sellers have created strong pressure on Nokia by creating Android-based handsets/Smartphone.
  3. In the Asia/Pacific competitive forces are emerged and have put the Nokia’s quarter in loss.
  4. It is very difficult for sellers to differentiate their products by just adding up superior technology features.
  5. In emerging countries, brands like Nexian, i-Mobile and Micromax snatched away Nokia’s market share.
  6. In the selection of handset consumers are becoming more complicated in the choice of handset. They need fashionable and stylish mobile phones.
  7. Lenovo, ZTE and Huawei offered devices in numerous markets and race in South Korea is won by Samsung.
  8. Nokia has been facing strong price pressure from different competitors.

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9 responses to SWOT Analysis of Nokia Corporation

Nice and clear infomation on this site
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Regards…..Majid

i pleasant to knowing about nokia with swot analysis inspite of knowing their weakness.but i m satisfied as a customer

i was very happy in knowing about the SWOT analysis in NOKIA………AND THIS INFORMATION HELPED ME A GREAT DEAL IN PREPARING MY PRESENTATION………AND I AM FULLY SATISFIED

thanks for the relevant information it is actually helping me in presentation preparation

I m pleased to inform, when we talk about the opportunity n threats that results out from analysis of external environment, when we talk about external environment that is classified as 1)general & 2) industry, I m intended to learn/ know the output of ( opportunity n threats) analysis external environment specifically based on 1.general & 2. industry

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