Nokia - Case Study Example

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Started in Finland in 1865 by an engineer named Fredrik Idestam, Nokia Corporation is one of the largest telecommunication equipment manufacturers in the world at present. Nokia started in the banks of a Finnish river and started paper manufacturing initially. Nokia exported…
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Nokia History Started in Finland in 1865 by an engineer d Fredrik Idestam, Nokia Corporation is one of the largest telecommunication equipment manufacturers in the world at present. Nokia started in the banks of a Finnish river and started paper manufacturing initially. Nokia exported paper to several European countries including Russia, France, UK etc during the 19 the century. After watching Nokia’s huge success in paper manufacturing, another Finnish company, Finnish Rubber Works merged with Nokia before World War 2. After World War 2 Nokia acquired the major shares of Finnish cable works and the Nokia group formed with the help of the above three companies in 1967(Nokia History).
SWOT of Nokia
Nokia’s biggest strength is the reputed brand name and the acceptance of Nokia products in over 150 countries. Nokia products are custom made for each country and region considering the economic and cultural situations. Moreover Nokia products are easy to use and a wide range of telecommunication products are available from Nokia to cater the needs of all the segments of people in the world. Being the number one mobile manufacturer in the world, the resale value of the Nokia products are best in the industry.
The major weakness of Nokia is the price of their product. Compared to other mobile manufacturers, Nokia products are expensive. Nokia is not offering much promotions and sales discounts to the customers compared to others. Moreover, after sales services of Nokia seems to be not adequate.
Globalization and liberalization has offered Nokia lot of opportunities worldwide. The heavily populated and rapidly developing countries like India and China offer great opportunities for Nokia products. In developing countries like India the standard of living has increased a lot and people started to use expensive items and Nokia can easily capitalize on that (Scribd)
The major threats for Nokia is from the competitors like, Motorola, Sony Erikson, LG, Samsung etc. Apple has recently introduced a touch screen phone which was new in that category. Even though Nokia has introduced some substitutes for countering the Apple threat, it was not successful enough to beat the Apple challenge. Recently Nokia has experience a major problem in India when some of the Nokia batteries started to burst. Nokia forced to replace all the batteries of a particular series in India which actually damaged the reputation of Nokia in India.
Corporate strategy
Nokia unveiled plans to launch a slew of services for mobile users, starting later this year in Europe and Asia. The scheme includes an online music store aimed at the 200 million music-capable Nokia mobile phones already on the market, an interactive multiplayer game service, and a new venue for Nokia handset users to swap photos, videos, and music (Business Week)
Nokia has realized that most of the mobile users are from the youth segment and it is necessary for them to attract such people by providing facilities which attracts them. Music is generally a passion for the youths and Nokia has started an online music store to target music loving customers.
In short, Nokia is one of the major players in the telecommunication world with ample business prospects in all over the world.

Works Cited
1. Business Week. 2007. “Nokia Aims Way Beyond Handsets”. Business Week August 29, 2007, and “Nokia Aims Way Beyond Headsets,” Business Week, September 6, 2007.
The McGraw-Hill Companies.
2. “Nokia History”. 01 December 2009. 3. Scribd. “. SWOT of Nokia”. 01 December 2009. Read More
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