Nokia SWOT

Slide1: Exploring Corporate Strategy

Nokia : Nokia :Vision: Voice Goes Mobile….If it can go mobile – it will :Mission: Connecting People

Nokia’s Strategy in India : Nokia’s Strategy in India Expand mobile voice Drive consumer multimedia
Bring extended mobility to enterprises Clearly defined objectives and goals Right timing of decisions
Determination and risk taking Foreseeing and using rising market opportunities Creating the future

Slide6: Nokia ..\..\..\IMG_0317.jpg Samsung

What is SWOT Analysis : What is SWOT Analysis It is a non-financial planning tool. It links the analysis
in terms of advantages and disadvantages; and the internal and external business environment (in a
matrix format). The Strengths and Weaknesses are defined by measures such as market share, loyal
customers, level of customer satisfaction and product quality. Opportunities are new potential areas for
business in the future, such as new markets, or new conditions in existing markets. Threats describe how
the competition, new technology, or other factors in the business environment may affect the business's
development.

Three stages of a SWOT analysis : Three stages of a SWOT analysis Identify. Draw conclusions.
Translate into strategic action.

What it pays to be a business SWOT?: What it pays to be a business SWOT? Putting your firm under
the SWOT magnifying glass may work wonders If you think your business could be doing better, why not
try a SWOT analysis? SWOT stands for Strengths, Weakness, Opportunities and Threats By putting your
firm under the magnifying glass in such a fashion you may find the way to grow your company or increase
your earnings.

SWOT ANALYSIS: SWOT ANALYSIS

Advantages of SWOT Analysis: Advantages of SWOT Analysis Consolidate strengths Minimises

Weaknesses Helps to Grab Opportunities Minimises Threats Facilitates Planning Facilitates Alternative
Choices Helps to Innovate Ensure Survival & Success

SWOT Analysis On Samsung and Nokia: SWOT Analysis On Samsung and Nokia Strengths of
Samsung New product concept to rollout in five months Catching the pulse of the consumer, offering
good designs & understanding Emotions Heavy investment in technology, product design, and human
resources Focus on innovative products for the high-end market.

Slide14: Strengths of Nokia Strength of the corporate brand. Complexity improves its Competitive
position Design, the branding and the technology Backwards compatibility - protection from a Japanese
onslaught Lending personality to its products (fashion statement) Effective advertisement and market
communication Not only a tool for business but being an item of everyday convenience

Slide15: Weaknesses of Samsung Not pro actively coming out with newer models Lack in product
differentiation. Different models at different price points Focus on mass market instead of niche markets
Not very user friendly designs.

Slide16: Weakness of Nokia Lapse has opened up space for smaller competitors Potential threat from
Microsoft’s entry into mobile telephony Ericsson- king of wireless infrastructure Design to market takes
more time

Slide17: Opportunities of Samsung Distinguish its service from competitors. Offer product variations
Demand for cell phones driven by the service providers or carriers Tie up with service providers Lowering
the price of a phone by just $20 in many countries could increase its affordability by 43%.(As per a study
report)

Slide18: Opportunities of Nokia Highest growth in markets such as China and Latin America Feature-
loaded phones to act as an offset Providing value at a reasonable lifetime cost Life style marketing and
segmentation Building a worldwide supplier network Preempting competitors in critical markets Managing
competitive interaction

Slide19: Threats of Samsung Motorola’s dominance in the U.S, Nokia’s popularity in the European
market, controlling more than half of the world market Aggressive competitors, including Sony, Ericsson,
and Siemens eating into its share. Not keeping track of the new trends in the market Not an accessory
and fashion statement

Slide20: Threats of Nokia Biggest threat - “complacency” “Inflection point” - a disruptive technological
change New competitors with different skills and potent brands challenge 3G will increasing competition
between suppliers Cheaper midrange models from Motorola and others

One example of S.W.O.T.: One example of S.W.O.T. NIKE SWOT ANALYSIS Strengths: Nike is a very
competitive organisation. Phil knight (founder and ceo) is often quoted as saying that “Business is war
without bullets” Weakness: The organisation does have a diversified range of sports products.
Opportunities: product development offers Nike many opportunities. Threats: Nike is exposed to the
international nature of trade.
Nokia SWOT analysis
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STRENGTHS
-Is a dominant player in the smartphone market via its majority ownership of Symbian and
its propritary Series 60 user interface which are projected to represent majority of the 100M
smartphones sold in the next 4 years.
- 33% market share still the largest cell phone vendor by far, with double the market share
of nearest competitr
- Size should enable Nokia to amortize R&D costs and to get cost advantages
- Brand position: probably one of the top 20 brands in the world

WEAKNESSES
- The Ngage is considered a flop
- Being the market leader and its increase role in Symbian is giving Nokia a bad image,
much like Microsoft in the PC industry.
- Slow to adopt new ways of thinking: a good example are clamshell phones which are
preferred by many customers. Nokia was reluctant to produce a clamshell until this year,
when it launched its first model.

OPPORTUNTIIES
- Increase their presence in the CDMA market, which they are just entering, as well as 3G
and Edge
- New growth markets where cell phone adoption still has room to go, including India and
other countries.
- Leverage its infrastructure business to get preference and a stronger position with carriers

THREATS
- Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC
and others.
- Asian OEMs who are entering the market very agressively (TCL, nGo Bird)
- ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the
handset vendor. Operators want to lessen their dependency on handset vendors and the
dominance of Nokia. Orange, O2, and many other operators globally are selling their own
brand of phones.

- San )
 History of Nokia
The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river.
Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a
cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the
Nokia story begins.

Nokia started by making paper – the original communications technology

The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the
banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the
Nokianvirta river – the place that gave Nokia its name.

Who was Fredrik Idestam?

A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland
from Germany.

It was a great success. Idestam’s invention won a bronze medal at the Paris World Exposition in 1867,
and he is considered to be the father of Finland’s paper industry.

• Idestam named his company Nokia Ab in 1871

• Nokia Ab added electricity generation to its business activities in 1902

Did you know?

The Nokianvirta river is named after a dark, furry animal that was locally known as the nokia – a type of
marten.

Nokia's first century

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of
mobile communications. As European telecommunications markets were deregulated and mobile
networks became global, Nokia led the way with some iconic products...
In 1992, Nokia decided to focus on its telecommunications business. This was probably the most
important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile
telephone industry’s global boom – and made it the world leader before the end of the decade...

http://www.nokia.com/about-
nokia/company/vision-and-strategy