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A company evaluation of Nokia

Content
  1. History of Nokia
  2. SWOT analysis
  3. Strengths
  4. Weakness
  1. Opportunities
  2. Threats
  3. Porter's five model
  4. Porter's five Model: Nokia
  5. Threat of new entrants
  6. Patents, Rights
  7. Brand building
  8. Absolute cost Advantage
  9. Strong Distribution string.
  10. High
  11. Competitive Rivalry
  12. Motorola, Sony-Ericson
  13. Growing mobile industry
  14. Diversity in the industry
  15. intense advertising
  16. High
  17. Relative cost performance
  18. Buyer propensity to substitute
  19. High
  20. Threat of replacement product
  21. Bargaining leverage
  22. Price sensitivity
  23. Substitute
  24. High
  25. Supplier/Firm
  26. Switching cost
  27. Substitute Inputs
  28. Supplier to Organization ratio
  29. Low
  30. Bargaining ability of suppliers
  31. Bargaining electricity of customers
  32. Applying Porter's Five to Nokia:
  33. The threat of new entry is high: rights and patents for Nokia is the fact that Nokia's mobile phone model and/or software has similar properties and stuffs as other cellphone might have.
  34. Competitive rivalry is incredibly high. When comparing companies like Nokia, Motorola and Sony-Ericson, if someone boosts prices, they'll be undercut. Intense competition puts strong downward pressure on prices. Companies with more advertising might just make an impression on more customer.
  35. Bargaining vitality of customers is strong, again implying strong downward pressure on prices. Buyers made not need to buy Nokia's telephone model due to price awareness compared to others.
  36. There is some risk of alternative product as the performance of the phone does not should have the required price that Nokia has stated.
  37. Nokia's strategies
  38. Recommendations
  39. Conclusion
More...

A Finland multinational company, Nokia Corporation (Nokia) is one of the numerous companies in the current mobile industry. Nokia aspires to provide a range of mobile devices which enable visitors to enjoy their services and software in areas like entertainment, business purposes and many more.

In 1865, Nokia was founded by by Fedrik Idestam with the business of cable, plastic and pulp supplier. Today, the CEO of Nokia is Olli-Pekka Kallasvuo and the chairman is Jorma Ollila.

Nokia is one of the worlds leading cellular phone provider functioning in more than 150 countries around the globe with an increase of than 123, 000 employees of which almost 30 percent is utilized for Research and Development in 16 countries. By 2009, the global earnings for Nokia was EUR 41 billion and the operating profit was 1. 2 billion.

Its rapid development in the 1990s coincided with a basal structural change of the Finnish overall economy and industry which Nokia acquired played an important role. Despite being a leading multinational company in Finland, Nokia performs an important role in the economical expansion of Finland as it has been one of the quickest growing companies in the whole of European countries.

History of Nokia

In 1865 when the demand for newspaper was strong, engineer Fredrik Idestam established a wood-pulp mill began manufacturing newspaper in southern Finland near the banks of the river. This made the business's sales improved enormously and Nokia widened even faster. Nokia acquired first exported newspaper to Russia followed by the uk and lastly, France. Nokia factory then employed a sizable workforce and a small community grew around it.

Finnish Rubber Works, one of the maker for Rubber goods was impressed with the hydro-electrcity produced by the Nokia wood-pulp. They decided to merge and started reselling goods under the brand name, Nokia. After World Battle II, it purchased a major area of the Finnish Cable tv Works shares. The Finnish Cable Works had widened quickly because of the increasing need for telegraph, telephone systems and power transmitting. Gradually the possession of the Plastic Works and the Wire Works companies consolidated. In 1967, Nokia Group was produced when all the 3 companies merged-up. The Gadgets Department produced 3 percent of the Group's net sales and provided work for 460 people.

In the beginning of 1970, calling exchanges contains electro-mechanical analog switches. Soon Nokia efficiently developed the digital move (Nokia DX 200) thus replacing the prior electro mechanised analog move. The Nokia DX 200 was fixed and increased with high-level computer language as well as Intel microprocessors which allowed computer-controlled telephone exchanges to be the best and is also the foundation for Nokia's network infrastructure even till today.

In 1981, the advantages of mobile network enabled the Nokia creation to invent the Nordic Mobile Telephony(NMT), the world's initial multinational mobile network. The NMT was later on introduced in a great many other countries. Immediately after, a digital mobile telephony, Global System for Mobile Communication (GSM) was launched and Nokia began the development of GSM phones. Starting of 1990, there is an economic recession in Finland which made Nokia's sales of GSM cell phones increased tremendously. This was the main reason for Nokia never to only be one of the largest but also the most crucial companies in Finland. Predicated on resources, Nokia offered GSM systems to a total of 59 providers in 31 countries in August 1997. Improving effectively; Nokia also became a sizable television company and the major it company in the Nordic countries.

Today, Nokia is a world head in digital solutions, including multimedia system terminals, wireless data solutions, telecommunications networks and mobile phones.

SWOT analysis

Strengths

Nokia has a strong brand name which is one of the main strength as it is then advantageous for Nokia to release its new products which is reliable for the customers. Its circulation network very extensive, globally so that their products are easily designed for their goal customers.

Nokia has also strong finances which make it possible to make inventions easily. Nokia products are user-friendly, even an illiterate person from growing or third- world countries can use their products easily. The financial aspect of Nokia is verystrong as it offers many profitable businesses.

Nokia has a higher variety of products which is attractive for his or her customers and each place have high re-sell value as compared to other brands which is favorable for Nokia as well as for the customers. The merchandise also being user-friendly which likewise have all the accessories you might want which explains why it is at high demand, rendering it the No. 1 offering cell phones brand on the planet.

Nokia has one of the largest networks of syndication and selling as compared to

other mobile phone company on earth. Also, Nokia has a HRD Division employed with the high quality and professional team in the HRD Dept. The merchandise also being user-friendly and also have all the accessories one want

that is excatly why is within great demand rendering it No-1 selling cell phones in

the world.

Weakness

Although Nokia products are a lot more costly when compared with others, it has good quality and is reliable which in some way cover this weakness of Nokia but still it is this weakness that the people belonging to the low class cannot to purchase Nokia products.

Some of the Nokia products are not user friendly which was why it isn't successful on the market.

Nokia's has only a few sales and service centers therefore it's after deal service is not impressive. If customers were to handle problems or problems regarding the product, they have to hold back for a time period before their questions or concerns get answered.

In bottom line for Nokia's strengths and weaknesses, there are more strengths compared to weaknesses. The main weaknesses are the price of the product and the very little service centers.

Opportunities

Nokia can grow its market stocks by bringing out their brand and by wedding caterers new marketplace as well.

Nokia can also improve their sales by getting more customers in the existing market, by changing the costs, introducing new product range and also by innovating product features of existing products.

Telecommunication market is growing rapidly and more folks are being interested towards the industry so it is great opportunity for Nokia to develop market share and grow as well.

Through excessive advertisement and effective market communication it can build a strong reputation and increase its sales and also create good brand image among the list of people and their customers.

With the wide variety in their products, their features and various price ranging for different people, it comes with an advantage on the competition around. With the

opportunity like 'Telecom penetration in India', Nokia comes with an opportunity to increase its sales as well as the marketplace shares. As the standard of moving into India has increased more people would want to acquire better still products, so Nokia must focus on the right customers at right time to gain the most out of the situation.

Threats

As the telecommunication industry is increasing, not only will the opportunities increase but also dangers.

Nokia has many dangers to face to keep up its position as the market leader in the mobile telecommunications market. The threats like appearing of other mobile companies in the marker like Motorola and Sony Eriksson can increase more competition which might lead to a decrease in sales. These companies have come to the stand of rough competition with Nokia in the field of Mobile Phones.

Some rivals even offer products which may be similar of Nokia at a much low price so that as the current economic climate is slipping down. This truth can entice more customers towards the merchandise due to the low prices.

Another danger for Nokia is the development of WLL network because Nokia provides CDMA cell phones so its products can go toward the down street to redemption with the rise of WLL network.

Porter's five model

An exemplory case of Porter's five Model

Porter's five Model: Nokia

Threat of new entrants

Patents, Rights

Brand building

Absolute cost Advantage

Strong Distribution string.

High

Competitive Rivalry

Motorola, Sony-Ericson

Growing mobile industry

Diversity in the industry

intense advertising

High

Relative cost performance

Buyer propensity to substitute

High

Threat of replacement product

Bargaining leverage

Price sensitivity

Substitute

High

Supplier/Firm

Switching cost

Substitute Inputs

Supplier to Organization ratio

Low

Bargaining ability of suppliers

Bargaining electricity of customers

Applying Porter's Five to Nokia:

The threat of new entry is high: rights and patents for Nokia is the fact that Nokia's mobile phone model and/or software has similar properties and stuffs as other cellphone might have.

Competitive rivalry is incredibly high. When comparing companies like Nokia, Motorola and Sony-Ericson, if someone boosts prices, they'll be undercut. Intense competition puts strong downward pressure on prices. Companies with more advertising might just make an impression on more customer.

Bargaining vitality of customers is strong, again implying strong downward pressure on prices. Buyers made not need to buy Nokia's telephone model due to price awareness compared to others.

There is some risk of alternative product as the performance of the phone does not should have the required price that Nokia has stated.

Nokia's strategies

Here are some strategies Nokia has:

Changes of competitive environment - Traditional rivals that are in the low end are making an effort to increase their volume level talk about. As the mobile telecom, Internet and Computer market sectors converge, the industry ecosystem is expanding, and new entrants like Apple, RIM and Google are creating new mobile alternatives.

Change of consumer needs - The significance and volume progress of words and design motivated devices business continues and can continue. Many consumers look forward to innovative mobile solutions. Nokia aims to be a truly consumer driven company and it is responding to these divergent consumer needs.

Believing in a world of changing paradigms - Changing of the nature of consumer's relationships with companies.

Nokia's business - Nokia services and devices has two major priorities; Products(business emphasized on keeping and increasing deal edge) and Alternatives(business provides mobile alternatives emphasizing on advancement and unified UX). The delivery of groundbreaking location-aware alternatives and advertising prospect is empowered by NAVTEQ's mapping content. NSN enables Communications Service Providers to make the most of networks efficiency and also to bring rich activities.

Nokia uses the power of we - Nokia uses their level for good by presenting maintainable products and solution across the whole profile, advocating sustainable choices with mobile services and guaranteeing a world-class global take-back program

Competitive advantage now and in future - leveraging Nokia's main talents; leading brand, scale, distribution capabilities, product profile excellence & leading market position generally in most markets. Expanding new strengths; smooth, delightful and easy user experiences, vivid spouse ecosystem, people and places enriched solutions, direct and limitless consumer interactions, regain market standing up in all markets

Irresistible alternatives and radiant ecosystems - starting from a consumer needs and wants, radically enhance the individual experience, co-creating value with developers, operators, and partners by building an open up ecosystem.

Direct and countless consumer human relationships - Nokia devices make an effort to start all consumers to the rich world of services. Consumer understanding to maximize Nokia's value to the buyer. Level of privacy and trust: authorization based. 300Million dynamic users by end 2011.

Best devices - three devices areas with various ways to build and take value; computers, smartphones and cellphone. Seamless individual experience is number one priority.

Smart services - concentrate on four interconnected services under Ovi brand. Differentiation through framework enrich services - people and places.

Recommendations

Though Nokia has many good items that is certainly has the right strategies, Nokia should come up with something unique to its own companies such that it wouldn't be so easily rivaled by others easily. Such as maybe come up with its own software that's only unique to Nokia and not use the same software that Sony-Ericsson uses too. Nokia can also produce more user-friendly and customer reasonable mobile phone models.

Conclusion

Nokia is a major and successful company that has lasted and changed from a tiny company dealing with wiring and newspaper, to a major company that deals with a lot of electronic devices that many are using right now. It has improve through the years and live up till today but still improving. It may be a major company and retains quite a reasonable little amount of shares on the globe, but you may still find rooms for improvement as rivaling companies emerge the industry. Nokia has big seeks and flexible strategies for days gone by, present and future.

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