SWOT of Nokia and Its Corporate Strategy - Case Study Example

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 to the needs of all segments of people in the world. Being the number one mobile manufacturer in the world, the resale value of Nokia products are best in the industry.
The major weakness of Nokia is the price of its product. Compared to other mobile manufacturers, Nokia products are expensive. Nokia is not offering many promotions and sales discounts to customers compared to others. Moreover, the after-sales services of Nokia seem to be not adequate.

Globalization and liberalization have offered Nokia a 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 are from the competitors like Motorola, Sony Erikson, LG, Samsung, etc. Apple has recently introduced a touchscreen 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 experienced a major problem in India when some of the Nokia batteries started to burst. Nokia was forced to replace all the batteries of a particular series in India which 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). 

Music is generally a passion for the youth 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 all over the world.

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