Nokia had a very successful and long journey that raised it back to the establishment of the brand in 1865. For many years, the company has been evolving into a top player in the multinational corporation consumer electronics and information technology sector.
Let us now understand the financial, strategic, and SWOT analysis of Nokia in detail.
About Nokia
Nokia has headquarters in Finland and after 1990 the company started focusing on developing large-scale telecom infrastructure along with offering licensing services and cutting-edge technology.
For almost a decade Nokia had been the top leader in the smartphone and mobile phone industry across the globe. But, unfortunately, due to some wrong steps taken on its part, the market share of Nokia experienced a sharp fall with the passing of time.
Nokia is the top force in the 5G revolution and has operations in more than 100 countries. Nokia is a leader in terms of wireless technology and its mission is to provide the best telecom solutions to customers.
Nokia at a Glance
| Founders | Fredrik Idestam
Leo Mechelin Eduard Polón |
| Key People | Sari Baldauf (chairwoman)
Pekka Lundmark (president & CEO) |
| Year of Establishment | 12 May 1865 |
| Annual Revenue (as of FY23) | €22.26 billion |
| Total assets (as of FY23) | €39.86 billion |
| Total Equity (as of FY23) | €20.63 billion |
| Origin | Espoo, Finland |
| Total no. of employees | 86,689 |
SWOT Analysis of Nokia
The SWOT analysis of Nokia will revolve around the four major factors which are strengths, weaknesses, plus points, threats, and opportunities in detail.
Strengths of Nokia
Here are the strengths of Nokia –
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Strong brand position
Nokia is very famous for its customer loyalty and brand position in the market specifically in emerging countries. The products of Nokia are reliable, durable, and offer the ultimate simplicity making it the favorite of people worldwide.
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Industry expansion
Nokia has expanded itself into different industries like consumer durables, laptops, televisions, air conditioning, headphones, and much more. This helps companies gain a significant market capitalization.
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Worldwide presence
Nokia is operating in more than 100 countries which helps it bring a wide range of revenue and reduces its reliance on a specific market.
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R&D & manufacturing capacities
Nokia has largely invested in recession development facilities to make sure that they are different from the competitors. Moreover, the company has taken a huge step by financing in the production segment. This ensures that the organization can observe the quality and economic status of the products.
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Resale value and sleek products
The smartphones and mobile phones of Nokia have a great resale value because of the brand equity. They are also durable and that makes them most in demand. The smartphones and mobile phones of Nokia have a very user-friendly interface and are simple to operate.
Weaknesses of Nokia
These are the weaknesses of Nokia –
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Limited market share
Nokia found it very difficult to compete against huge brands like Samsung, Apple, etc. in the mobile industry. Nokia tried to retain its past success with Android-related devices but has gained less popularity so far.
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Systematic decisions
Nokia’s strategic collaboration with Microsoft and implementation of its Windows mobile has not been a very successful game in the competitive age. However, there is always a positive side to every failure that the company might implement in the future.
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Lack of presence & response
The presence of Nokia products is very limited in major countries which affects the growth potential of the company. But still, Nokia takes new opportunities every time and expands its strength in the market.
Nokia took the smartphone market trend very slowly and gradually it started growing. This slow response with the right efforts made it less responsive to the customers.
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Reliance on telecom infra
Nokia has expanded its footprints in 5G telecommunications infrastructure. This might be a beneficial aspect for the company but is more susceptible to certain changes in the sector.
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Lack of invention & high price
Recently Nokia has not been able to innovate in the mobile phone market when compared to its competitors. This made the company suffer in terms of market share. The rivals launched more inventor’ products that harmed the company’s business.
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Large popularity drop
Nokia is one side brand that has dropped a lot of popularity worldwide. It happened because the company made a decision to neglect the customer market and also because of lost a huge market share in the smartphone industry.
Opportunities for Nokia
The opportunities for Nokia include the following –
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High brand equity
The popularity of Nokia is decreasing. But by launching enhanced products and investing usually in brand recall campaigns Nokia is again in the industry which will increase the brand equity.
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IoT & Cloud Computing
The IoT industry expands rapidly in the future and Nokia is at the forefront after development. This comes up with great opportunities for Nokia which also benefits from the profit to make its place in the space.
The cloud computing market is to see a strong search for growth in the coming future. Nokia should be ahead of this competition and benefit significantly.
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Patent licensing and data centers
Nokia has a very broad portfolio of patents which they can easily license out to various organizations. It will be an effective method to yield a giant part of earnings.
Today companies move a lot of operations to the cloud system. There is a massive need for data center infrastructure. Therefore, Nokia can make use of its experts to seize a big stake of the market.
Threats to Nokia
The threats to Nokia are mentioned below. Nokia should be aware of these threats in detail.
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Intense competition
Nokia has severe competition in the telecom industry from the top players like Samsung, Ericsson, etc. It also competes with them in terms of better services. All these competitors are transforming their strategies and putting a lot of effort into making sure that they’re up to date with market fluctuations.
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Tech disturbances
Nokia has confronted a major description in the recent past that has given it a failure. Therefore, it is very important for the company to stay abreast of the industry trends and be ready to adopt new technology. This will help in reducing potential connected with revenue loss or market.
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Cyber security threat
Being a technology giant it is very essential for Nokia to take essential strategies that will protect itself from major cyber attacks. These attacks can cause revenue loss as well as data loss to the company. It is the most important factor the company should incorporate in its work operations.
Top Competitors of Nokia
The top 5 competitors of Nokia include –
- Huawei: It is a huge global provider of telecom equipment and consumer electronics while competing directly with Nokia in 5G technology.
- Ericsson: It is also a tough competitor to Nokia in the telecom infrastructure market.
- Samsung: Samsung is also a direct competitor of Nokia in the network infra sector and offers advanced 5G solutions.
- Cisco Systems: Cisco Systems is a global leader and direct competitor of Nokia in the enterprise solutions and network infra market.
- ZTE: It is a Chinese MNC telecom company competing with Nokia in network solutions.
Conclusion
Nokia has been a popular brand connected with mobile phones for more than a decade and has a great reputation in the industry. Even today amid a lot of challenges and threats, the company is one of the top leaders in the mobile phone market. By converting weaknesses and threats into opportunities and strengths the company can succeed exponentially in the competitive market.