Situation Analysis: SWOT Analysis For Nokia Corporation

Strategic Evaluation – Situation Analysis

SWOT Analysis for Nokia Corporation

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. It is a widely used technique which allows quick creation of an overview of a company’s strategic situation. According to (Phillip, et al., 2009, p.101), it is a way to monitor company’s internal and external environment, it is the overall evaluation of the strengths, weaknesses, opportunities and threats. This analysis is based on assumptions and it has a powerful for strategies to be successfully designed in an organisation or company setting. SWOT analysis is sub-divided into two sections; one that focuses on internal resources which are also regarded as favourable factors that

Decline in products development: Developments in its other products have dropped because of constant competition from its competitors.

2. High price: Nokia offers a range of quality products but at a high price. Justification comes in that the costs which the company invests in but it is a concern or a weakness on the market level because the products are not affordable for middle or lower class people. Also as compared to other china mobile handsets, Nokia prices are quiet higher

3. Problems when developing new products: In September 2002 it introduced colour screen mobile phone but one of its competitor(Samsung) had already introduced them, this was a weakness because people has already familiarised themselves with those which were introduced by their competitors.

4. Weak Presence: Nokia’s presence in some countries is very weak, in US its presence is very low and same also applies in Japan where its position is very weak which forced them to withdraw supplier of handsets because of tough market competition and this has resulted in lower profit overall sales.

Opportunities

1. Technology demands: With the fast growing aspects of technology, people wanting stylish handsets and the ever growing in demand in developing countries; Nokia has the potential of expanding on the global market and also increasing its market share and

Growth in demand of other services: Growing demand in the WLL network has cause a great deal of pressure and is causing a drop in the sales at Nokia for it produces phones with less CDMA because some of their competitors such as Apple iOS, Blackberry RIM and Google Android have already looked into this and have started producing products which support this type of network.

PEST Analysis for Nokia Corporation

PEST is an acronym for Political, Economic, Social and Technological, it is used to assess these four external factors in relation to a business situation, as explained in http://pestleanalysis.com/pest-analysis/. According to (Cadle & Yeates, 2008), it is a popular method for examining the external factors that affect an organization now or may affect it in the future time period within which strategic options are to be considered.

Political Factors: Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate.

Economic Factors: Economic factors affect the purchasing power of potential customers and the firm 's cost of capital.

Social Factors: Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential