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The Nokia Swot Analysis Marketing Essay

1022 words (4 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Nokia is a Finnish company, one of the largest companies of the telecommunication equipment sector. It’s one of the most famous brands and its presence can be noted in many local markets. Its mission is to “connect people” [1] .

But lately, Nokia registered losses of billions of dollars. It seems that it is living harsh times, it’s losing its popularity and leaving space to other “giants” (Apple, Google and Samsung), Nokia is hardly trying to conquer the smartphone market. So, the ex-world’s biggest seller of mobile phones fell from the top and is in decline. Obviously, the decrease matched with the spreading of the smartphones on the market.

So, that we can understand the position on market of Nokia, we are going to make a SWOT analysis of the company to see why Nokia has lost its popularity and also what it can do to improve and to keep the step with other important mobile phone companies.

Strengths

With a very easy to use and secure products, Nokia phones have always delighted a strong and profitable connection with the network service providers and cell phone dealers. With affordable prices relatively to other brands, Nokia was the first choice when about buying phone (and is still is on some markets and sectors). For example, in Romania, for almost all contracts (Orange, Cosmote, Vodafone) there was a Nokia phone that you could buy for a very little amount of money or you could get it even for free. So, the balance between quality and price is very favorable.

Nokia products are famous for their reliability and durability. Talking about the quality of the batteries, is well known that the stand-by time of the Nokia phones is one of the lasting.

Now speaking about mapping system, Nokia is the best. So, focusing specifically on performance it should be clear that Samsung has not his own mapping solution, and thus makes use of Google services while Nokia has a unique software offer. Although the other competitors (Apple, Samsung) provide maps for Europe and North America, in the rest of the coverage areas the maps are very uneven. Only Nokia covers more than 110 countries for which it provides navigation features, followed far behind by Apple, and most recently Google. [2] Nokia stores the maps on the phone and can be downloaded for free from all countries available. In the other two platforms, it is not possible. Apples force its users to stay connected (bad idea if you travel abroad) and Google allows us to download but limitedly. Nokia has also one of the best Research & Development sectors.

Weaknesses

First of all, one of the weaknesses that Nokia mobile phones have, is the design. Nokia’s design might not be as attractive as it is Apple’s or Samsung’s.

Furthermore, another weakness might be considered the fact that Nokia doesn’t offer considerable discounts for old phones. I believe there are still people in this world who are interested in buying older models of mobile phones. Not everyone wants or affords to buy a smartphone.

Third weakness in our SWOT analysis is the small number of service centers. Considering how important and known is the company, Nokia’s service centers shouldn’t be less important.

Last but not least, Nokia seems “to suffer” from a certain lack of other types of products. We all know that Apple and Samsung for instance, have other types of products as well. Apple has mobile phones, laptops, mp3 players and Samsung has TVs, mobile phones, digital cameras. Nokia on the other hand, makes only mobile phones which are no longer enough in order to compete.

Opportunities

China, India and Latin America are some markets where Nokia could expand and increase its sales. These regions and also the developing countries offer huge market opportunities. It’s important to know that lowering the price of the phones or just offering some promotions, Nokia could increase its affordability for some market zones and sectors.

Also the European integration and the creation of European Single Market and the Euro Zone can be a great opportunity for Nokia to expand its business.

The relationship between Nokia and Microsoft that is announced to be a long term partnership (Nokia smartphones adopting the new Windows 7 operating system). Microsoft is the leader in software area and this way could compete against Apple’s market-leading iPhone. This is a prove of innovation and new technologies.

Nokia could also take advantage on the extension of online market and make a more effective advertisement and a better market communication.

Threats

As far as this part of the analysis is concerned, we should first take into consideration the competitors. If ten years ago, Nokia didn’t see to have so many competitors on the market, nowadays Nokia has plenty. Amongst them, Apple and Samsung are the strongest.

Speaking about the developing countries like China, Bangladesh, India and Pakistan which have an enormous demand potential (fact considered as an opportunity), that could be also a treat in order to meet it because they are developing their own brands. This leads us actually to another threat which is the price. There is a price pressure regarding mobile phones that is getting higher and higher nowadays. Everyone is looking for cheaper and better phones.

As final solution, we consider that Nokia should adopt an offensive strategy (S-O) and to think positively. They could diversify their portfolio of products, to make more attractive ones.

Another solution in order to escape the decline, is that the R&D department work in order to discover a battery for the smartphones or laptops that could last more than what we have actually on the market.

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