Strategic Analysis on Nokia

Topics: Nokia, Mobile phone, Smartphone Pages: 16 (5557 words) Published: June 22, 2013
1.0 INTRODUCTION
Company Background:
Nokia always adapting over the past 150 years and it has evolved from a riverside paper mill in south-western Finland to a global telecommunications leader connecting over 1.3 billion people. Nokia has total nine production facilities across the world and the lasted production facility has been established in Vietnam in this year 2012. Nokia has a well establish global network of production facilities for mobile products and network infrastructure. Besides, Nokia has made significant investments into research and development (R&D) and hold the leading innovator position in the industry over the past 20 years and operate several major R&D and software development facilities, with key sites in China, Finland, Germany and the United States. (Nokia sustainability report, 2011) Major Issues in Mobile Phone Industry:

According to Joseph Wilde & Esther de Haan (2006), the critical issues in the Mobile Phone Industry are corporate social responsibility, labor, transparency and stakeholder engagement, compliance with taxation laws and other environmental issues such as the use of toxic substances, environmental footprint, e-waste, raw material extraction, export processing zones, special economic zones and relax regulations. According to Liu (June 2010) From political and legal perspective, Nokia need to build good relationship with the foreign government to prevent being affected from the greater impacts when political instability happened such as change of government or coalition which result in new laws implementation. From economic perspective, Nokia need to aware of drastically changes in rates and trend to prevent devastating effect on Nokia’s financial operations. From social perspective, Nokia must aware to the issues and spend the majority of their efforts to develop products that accepted by the trend and able to compete with their rivals’ products. From technological perspective, Nokia must consider their position in the industry and attempt to once again become the market leader by offering a new innovative capability and get to the market before its rivals. From environment perspective, the main issue with mobile recycling is the disposal of the batteries in the phones which is dangerous if not disposed appropriately. With mobile phone recycling organizations becoming more and more popular, this demonstrates how important people are regarding it. Thus, Nokia must ensure that they operate in an appropriate manner. Problems / Challenges:

As state in Nokia sustainability report, the challenges on impacting people are to re-employ their employees who are affected from personnel reductions previously. Besides, need to bringing internet and information to the next billion and makes known of its Nokia Life Tools in 2011. While, other challenges are rapid expansion on Nokia open sourcing, the making progress of tracing the origins of raw materials, ensuring its mobile products to be more accessible and cooperate with non-governmental organization (NGO) on next generation. Furthermore, the challenges on impacting environment are to introduce new eco hero devices, besides, making public transportation easier to use, adjusting to green energy availability and increase focus on supplier performance. Moreover, other challenges for Nokia is to operating in a fiercely competitive industry that is constant flux which after the transition in 2012. (Nokia sustainability report, 2011) attain a fit and stabilize between the dynamic systems which consist of its individual firm system and the business environment system. To coup with the transition, Nokia need to readily focus on to overcome the challenge in the future disruption such as computing innovation in technology, businesses and processing areas which may influences its corporate position and its sustainability as a top leader in the mobile market. 2.0 SWOT ANALYSIS

Strengths
Strong brand image
As an emerging firm moving...
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