Impact of Competition on Nokia: A Business Analysis

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Management
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Introduction:
The impact of the competition in the modern business world is pretty significant with
the increasing number of new organizations entering the market. The increasing intensity of
the market competition is seen to affect the business operations of the existing business
organizations in a significant manner and that affects the growth and the survival of the
existing organizations. The paper is focused in the elaboration of the business environment of
a chosen organization named as Nokia. The selected organization was one of the biggest
name in the telecommunication industry, however, in recent year, the company is seen to face
the detrimental impact of the competition from the part of the market giants of the industry,
specifically Apple. The paper analyses the impact of the market competition and in addition
to that, it also evaluates the macro environmental factors that affect the business operations of
the selected organization. Apart from this, the paper also produces a stakeholder analysis with
a precise focus on the activities that the company is expected to conduct in order to manage
the stakeholders in a better manner. In addition to this, the paper provides an analysis of the
internal factors that affect the business operations of the selected organization.
Overview:
Nokia Corporation is a renowned Finnish multinational company that operates in the
telecommunications, consumer electronics and information technology industry. The chosen
organization was established in the year 1865 by a trio which included Fredrik Idestam, Leo
Mechelin and Eduard Polón (Nokia.com. 2019). The selected organization was headquartered
in Espoo, Finland and had the expertise of serving the customers across the world with the
telecommunications and the consumer electronics products. The chosen organization is
currently headed by Risto Siilasmaa, the chairman of the organization, Rajeev Suri, the
President and the Chief Executive Officer of the organization and Kristian Pullola, the Chief

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Financial Officer of the organization (Nokia.com. 2019). In spite of the operational brilliance
of 102,761 number of employees across the globe, the company has failed to achieve their
desired growth and that is pretty evident with the decrease of the revenue of the company to
22.56 billion Euro in the year 2018 (Nokia.com. 2019). However, the company has achieved
an increased operating income of 1.22 billion Euro in the same year (Nokia.com. 2019).
Due to the inefficient formation of the corporate strategies from the part of the chosen
organization’s senior level management, the organization has lost significant amount of
market share to the competitor organization, Samsung from the introduction of the Android
(Samsung.com 2019). The strategy of applying of the Symbian Operating system from the
part of the selected organization has miserably failed and that affected the financial stability
of the selected organization in a significant manner (Bouwman et al. 2014).
SWOT Analysis:
Strengths:
The selected organization has 142 years of glorifying history as one of the top brands
before the introduction of IOS and Android smartphones. Apart from that, the selected
organization is able to generate a significant amount of fondness amongst the customers as
brand is seen to contribute with the first mobile phones to the customers.
With an expansion of the workforce to 102761 number of employees, the selected
organization is seen achieve the expertise of meeting the demands of the market in an
efficient manner (Nokia.com. 2019). In addition to this, with the business coverage across
130 countries, the chosen organization is able to achieve a significantly strong selling and
distribution network (Nokia.com. 2019).
The company invested more than 1.4 billion US dollars over the years in the aspect of
research and development (Nokia.com. 2019). The company has a significantly efficient

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customer interaction system for the effective identification of the modern trends which has
the potential to help them in the design of the products in accordance to the preferences of the
customers. In addition to this, the longer durability of the products, user friendly interfaces
and the efficient strategies for the global expansions are considered as major strengths of the
selected organization.
Weakness:
The company is seen to suffer from the impact of the heavy weight of the handsets,
the low voice quality in the products, the absence of the stylish designs in their low priced
products. Apart from this, the new E-series is considered to be a flop for the chosen
organization and the absence of the strong products in the portfolio of the selected
organization is considered to put notable constraints in the business operations of the selected
organization (Wang, Hedman and Tuunainen 2016).
Opportunities:
The company has the opportunity of introducing the well designed and stylish
products in their portfolio and adding to that, improvement in the quality of the camera of the
company has the potential to provide notable amount of growth to the chosen organization. In
addition to this, the increased presence of the company in the market of 3G or 4G handsets
will be of great significance for the selected organization.
Threats:
The significant market share of Apple and Samsung is the major reason of the wipe
out that the selected organization faced in the year 2014. In addition to the impact of
competition from the above mentioned market giants, the low cost products of China is seen
to be a major concern for the selected organization. The modern trends of the smart phones
has the potential to affect the business operations of the selected organization.