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SWOT Analysis of Nokia
Michael R. Franco
MGT450: Strategic Planning for Organizations
Professor Conni Whitten
University of Arizona Global Campus
August 16, 2021
SWOT Analysis of Nokia
Nokia is a popular Finnish information technology company that was once the world’s leading vendor of mobile phones. However, several challenges have hampered their progress, making them lose to close competitors such as Apple. These challenges include strategic planning, level of bureaucracy and competition. This paper develops a SWOT analysis specific to the outcome of the challenges affecting the organization.
Strengths
Strengths demonstrate the aspects of the organization that differentiates it from its competitors (Kenton, 2021). The key strength for Nokia is its brand name. Nokia has established itself as a company whose products are innovative, reliable and durable. This strength can help the company in overcoming the increasing competition in the industry. Either it’s the threat of a new entrant or substitute product, Nokia is well-placed to continue being influential due to its brand name.
Weaknesses
Weaknesses are the factors hindering the organization from achieving its maximum potential (Kenton, 2021). They are areas that need improvement so that the business can remain competitive. A major weakness for Nokia is the misalignment between the organization’s leadership style and its core objectives (Dambrans, 2014). This has made the organization directionless, further exaggerating the negative outcomes lack of proper strategic planning. Strategic planning focuses on the energy, resources, and operations of the organization. Therefore, if the organization is directionless, developing a strategic plan becomes a challenge. Moreover, following the strategic plan becomes a challenge as the organizational leadership style does not conform to the concepts developed in the strategic plan.
Opportunities.
Opportunities are external factors that favor the organization to acquire and retain a competitive advantage (Kenton, 2021). The acquisition from Microsoft has presented the biggest opportunity for Nokia. The deal offers a win-win situation as both organizations can share resources to improve their range of products and provide their products at affordable prices. In addition, the acquisition offers a chance for Nokia to utilize Microsoft’s resources and knowledge on softening bureaucracy at the organization. Making decisions has been a huge challenge as there is no central body responsible for the process. As a result, it has become difficult for Nokia to learn the needs and preferences of its customers and employees. Therefore, they can outsource the services to the Microsoft team to help in learning the tasks. Moreover, ironing out the bureaucracy challenge at the organization would help improve the strategic planning process and make implementing the strategies easier.
Threats
These are factors with potential harm to the organization. These factors can negatively affect the production and yield of the organization if countermeasures are not embraced at the right time (Kenton, 2021). The biggest threat for Nokia is the deteriorating economic conditions that have negatively affected its customers’ spending behavior. Nokia will be required to restructure their current strategic plan to ensure that they include aspects of pricing and production. It would help them to be aligned to the market conditions to ensure that they don’t become losers on any occasion. Reviewing their pricing structure would also help position themselves against their competitors. They can find a way to offer quality products at an affordable price.
Conclusion
The developed SWOT analysis specific to the challenges facing Nokia has shown that there is a potential for overcoming the challenges and finding a way to sustain the market in the long term.
References
Dambrans, K. (2014). SWOT Analysis of Nokia. PESTLE Analysis. Retrieved 14 August 2021, from https://pestleanalysis.com/swot-analysis-nokia/.
Kenton, W. (2021). How SWOT (Strength, Weakness, Opportunity, and Threat) Analysis Works. Investopedia. Retrieved 14 August 2021, from https://www.investopedia.com/terms/s/swot.asp.
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