SWOT Analysis of Nokia

Introduction Nokia was founded in 1865, is head delineateed in Finland, mainly engaged in the production of erratic communication products multinational, is the worlds third largest mobile mobilize manufacturer. February 2011, Nokia and Microsoft entered into a strategic altogetheriance and the depth of cooperation.Over the past few years, Nokia sh atomic number 18s have gradually from London, Frankfurt, Paris and capital of Sweden stock market delisting. February 9, 2012, due to poor management, Nokia announced layoffs in three mobile phone manufacturing lay 4000. April 11, 2012, due to huge losses for several quarters, Nokia shares plunged 17 percent, the market value has shrunk $ 5 one thousand million a day, to fall back to 1997 levels. In the September 3, 2013 Microsoft officially announced a $ 3.79 billion euros erudition of Nokia mobile phone business, to 1.65 billion euros while the acquisition of its patent portfolio, which means that Microsofts acquisition of Nokias b usiness and assets of the expenses totaled 5.44 billion euros (about $ 7.17 billion).Nokia failed because of its long-term monopoly in the mobile phone market, resulting in a slack, underestimate the enemy emotions enterprise bureaucracy has become popular, gradually lost self, lost the incentive to innovate. And in the mobile phone pains has switch overd, especially later the popularity of 3G mobile Internet revolution brought, Nokia has not been able to face changing market to get in the right judgments.Political factorsLegal constraints, much(prenominal) as 3G, must be considered because many businesses plan to coiffure a take in so they may be tempted to misinform their customers about pricing, products quality and the availability of their goods. Also, they may try to morsel up expenses by using lower quality materials in their products, such as weaker resources for Nokia cases and batteries. Also some companies may set out their waste in ways that harm the environme nt without ensuring high standards of hygiene and gumshoe in the workplace.Including, outlet stores, which are illegal and can cause legal problems for companies. In 2000, the UK Government started to swallow bids from thirteen companies who wanted to run a licence to sell next-generation mobile phones. It raised 22.47, a tidy sum to anybody. However, the companies began to refuse paying the huge amount of money for the licences. The UK auction was structured so that each(prenominal) challenger bid was planned to be a certain percentage higher thanthe previous bid. This perchance resulted in the size of bids strengthening sky high at a rate of over cl rounds of bidding.Economic factors Current economic indications, such as ex reposition, inflation rates, unemployment, gross national product can taper companies how to determine their policies. The other substantial factor is the global economic situation for an international company such as Nokia. Considering the last two years of global handset devise market, there is a downswing in the sales.The global economic recession and the related domestic economic crises are the most significant factors of shrink mobile phone industry. So its natural result is decrease of Nokias mobile phone sales. tally to a resource firm, named Gartner, worldwide mobile phone sales decreased 8.6 % in the first quarter of 2009 compared with first quarter of 2008. Nokias market share dropped to 36.2 per cent to 39.1 per cent in the last quarter of 2008 (Gartner, 2009).Technological factors Nokia is not a company without a sense of crisis .Instead, Nokia has long recognized the existence of the crisis . IPhone, launched in 2007, Nokia was first proposed in the global work shift of the Internet strategy. Of all the mobile phone manufacturers , Nokia is the first high profile v determinationors lack restructuring .At the time, Nokias transformation direction can be attributed to Ovi this has now been forgotten by many names. Conc ept Ovi by Nokia on August 29, 2007 and the company in addition announced a comprehensive restructuring strategy .In response to industry changes , the Nokia Ovi store via software programs , music , maps , mail, and N-Gage mobile gaming platform , five major business transformation to fully support the Nokia Mobile Internet .In order to conform to Internet trends , Nokia also the first to make a lot of free move. For example in January 2010 , Nokia announced that its worldwide smart phone base on balls and driving navigation will all free. You know, a well-known high German navigation, Baidu navigation , etc., until the end of last month , was determined to totally free.But Nokia seek self- transformation and the result is a failure. Some vociferate it summed up the lack of mobile Internet genes, some say lack of execution , also say that Nokias big company disease dragged its own transformation . Anyway, Nokia does not rely on their own efforts to turn things around .IBM not so computerDecember 8, 2004, Lenovo Group in Beijing announced $ 650 million in funds and stock worth $ 600 million (total value of about 10 billion yuan) won including Think brands, including IBM PC business (PC Division). Completed, IBM Lenovo Group holds 18.5% of shares, while Lenovo Group Lenovo Holdings will occupy about 45% of the shares. According to the agreement, Lenovo also within five years, IBMs brand. If successfully completed the acquisition of Lenovo, Lenovo will then become the worlds second exactly to Dell, Hewlett-Packard after the third-largest PC vendor.Lenovos acquisition of IBMs personal computer business before, its revenue was 30 billion U.S. dollars, after the merger is completed, the business volume reached $ 13 billion, so the companys foreign operations accounted for more than 75% of all business proportion, legal risk has changed greatly . Another example was a very well-known Chinese enterprises in mergers and acquisitions, foreign workers paid after termination of the contract is almost equivalent to the original acquisition cost of all the funds.ConclusionChange management generally is difficult but no undoable. With a world shut in every day. not only international blue-chip companies are forced to critically evaluate and. if necessary, change their business model, but also their organizational structure or their corporate culture. Most failed change projects underestimated or simply did not take into account the human factor.To avoid this failure the assistance of change experts or change agents (in most cases professional consultants) should be sought. Not only that most employees have no or little experience in the field of change management. In most cases people are used to their environment and emotionally unwilling to change.