Case Study of Nokia

SWOT Analysis of NOKIA

STRENGTHS

• Pricing.
• Workforce Diversity (160 nationalities working in more than 100 countries).
• Enabling infrastructure for 5G and IoT.
• Serving communications service providers, governments, large enterprises and consumers.
• Emerging applications in virtual reality and digital health.

WEAKNESSES

• Due to workforce, diversity there can be a rise in the problem of language and thus cause language barrier.

• Competition has affected the market share that Nokia has in the telecommunication industry to some extent yet they still hold a strong 29% (2011) of the market share.

OPPORTUNITIES

• Penetration pricing of Android smartphones from Nokia-Nokia 3, Nokia 5 and Nokia 6 where Nokia 3 will be the cheapest offering for an expected price of under Rs. 10,000. The Nokia 5 is expected to cost under Rs. 15,000 while the Nokia 6 is likely to be priced under Rs. 18,000 enables them to penetrate through the market.

• This will enable Nokia to expand its market in a better way.

THREATS

• China mobile phone manufacturers selling various brands of their phones like Huawei (ranking third in the global cell phone business behind Apple and Samsung), Xiaomi, OPPO, Vivo which falls in the same ranges as provided by Nokia of under Rs. 10,000; Rs. 15000 and Rs. 18,000 are liked and bought by many customers poses a major threat for Nokia.

Company analysis of NOKIA

Before launching of Android, smartphones in India there is a need of evaluations to done? Nokia had done certain market research, and unique strategy to sell millions of phones-and revitalize the ‘boring’ smartphone market.

It dominated the headlines at Mobile World Congress as it unveiled a new range of smartphones made by its Finnish licensor HMD Global and created a buzz.

Pricing factor was given very much importance for market penetration, whether the phones should be priced in terms of penetration pricing or skimming pricing was to be taken care of or else there is a risk of losing customers.

Nokia has undergone penetration pricing strategy instead of skimming by keeping the prices of mobile phones under certain ranges. Here in India, a large section of people are mainly of middle class or upper middle class and this strategy can grab as many potential customers as possible and can regain its old customers and attract new customers.

This will lead to an increase in their market share. Customers if already having a phone with them can go for purchasing of a Nokia phone as being affordable at a good cost.

They won’t have a problem in buying an another phone and thus can use two phones instead of using one as well there by increasing the standard or lifestyle of customers.

Nokia recently announced its Q2 2017 earnings on July 27,2017 which showed that there has been a delivery of strong profitability in the second quarter, robust gross margins and continued top line improvement in Networks.

Networks are expected to perform in line with the market. Catalysts are seen in US, China and Japan that point to a commencement of meaningful roll-outs in 2019.