Nokia is a Finnish company, one of the major companies of the telecommunication equipment sector. It's one of the most famous brands and its own occurrence can be observed in many local marketplaces. Its quest is to "connect people".
But currently, Nokia registered losses of vast amounts of dollars. It seems that it is living severe times, it's shedding its attractiveness and going out of space to other "giants" (Apple, Google and Samsung), Nokia is rarely trying to overcome the smartphone market. So, the ex-world's biggest vendor of cell phones fell from the very best and is also in decline. Naturally, the decrease matched with the spreading of the smartphones on the marketplace.
So, that people can understand the positioning on market of Nokia, we will make a SWOT evaluation of the company to see why Nokia has lost its popularity and also what it can do to improve and to keep carefully the step with other important cellular phone companies.
With an extremely simple to use and secure products, Nokia phones have always delighted a solid and profitable connection with the network companies and cellphone traders. With affordable prices relatively to other brands, Nokia was the first choice when about buying mobile (and continues to be is on some market segments and areas). For instance, in Romania, for almost all deals (Orange, Cosmote, Vodafone) there was a Nokia cellphone you could buy for an extremely little amount of money or you can get it even for free. So, the total amount between quality and price is very favorable.
Nokia products are well-known for their stability and durability. Talking about the grade of the batteries, established fact that the stand-by time of the Nokia devices is one of the prolonged.
Now talking about mapping system, Nokia is the greatest. So, centering specifically on performance it should be clear that Samsung hasn't his own mapping solution, and so employs Google services while Nokia has a distinctive software offer. Although the other rivals (Apple, Samsung) provide maps for European countries and THE UNITED STATES, in the rest of the coverage areas the maps are extremely unequal. Only Nokia protects more than 110 countries for which it provides navigation features, used very good behind by Apple, & most recently Google. Nokia stores the maps on the telephone and can be downloaded free of charge from all countries available. Within the other two websites, it isn't possible. Apples push its users to remain connected (bad idea if you travel in another country) and Google we can download but limitedly. Nokia has also one of the best Research & Development industries.
First of most, one of the weaknesses that Nokia cell 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 looked at the actual fact that Nokia doesn't offer sizeable savings for old devices. I believe there are still people in this world who are enthusiastic about buying older types of mobile phones. Not everyone desires or affords to buy a smartphone.
Third weakness inside our SWOT research is the tiny quantity 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 are affected" from a certain lack of other types of products. We all know that Apple and Samsung for example, have other types of products as well. Apple has mobile phones, laptop computers, mp3 players and Samsung has TVs, mobile phones, digital cameras. Nokia on the other hands, makes only cell phones which are no more enough to be able to contend.
China, India and Latin America are some markets where Nokia could broaden and increase its sales. These locations and also the developing countries offer huge market opportunities. It is critical to know that bringing down the price tag on the phones or just offering some marketing promotions, Nokia could increase its affordability for some market areas and areas.
Also the Western integration and the creation of Western Single Market and the Euro Area can be considered a great opportunity for Nokia to broaden its business.
The marriage between Nokia and Microsoft that is released to be always a long term partnership (Nokia smartphones implementing the new House windows 7 operating system). Microsoft is the leader in software area which way could compete keenly against Apple's market-leading iPhone. This is a prove of advancement and new technology.
Nokia could also take advantage on the extension of online market and make a more effective advert and an improved market communication.
As very good as this part of the analysis is concerned, we ought to first take into consideration the rivals. If a decade back, Nokia didn't see to own so many opponents on the market, nowadays Nokia has plenty enough. Amongst them, Apple and Samsung will be the strongest.
Speaking about the producing countries like China, Bangladesh, India and Pakistan which have a massive demand potential (fact considered as a chance), that may be also a delicacy to be able to meet it because they are developing their own brands. This leads us actually to another danger which is the price. There is a price pressure regarding cell phones that gets higher and higher nowadays. Everyone is looking for cheaper and better phones.
As last solution, we consider that Nokia should choose an offensive strategy (S-O) and think positively. They could diversify their profile of products, to make more appealing ones.
Another solution to be able to escape the decline, is that the R&D division work in order to discover a power supply for the smartphones or notebooks that could last more than what we have actually on the marketplace.