The Giant in the Palm of Your Hand

British Columbia Institution of Technology

CASE #2: Nokia: “The giant in the palm of your hand”

• SWOT

• Competition and Competitors

• Reasons for success: Analysis

• Recommendations

• References

SWOT

STRENGTHS

← Strong brand name

← Leading position on the market

← Dominant player in the smartphone market

← Established and well-maintained chain of suppliers

← Price wise line of products

← Unbeatable quality of products

← World-class research, design and engineering team

← Global relationships with all major phone companies worldwide

WEAKNESSES

← Size of the company limits quick reaction to changes

← Late in developing third-generation (internet-enabled) phones

← Gaps on product portfolio

← Reluctance to produce handsets for specific operators

Opportunities

□ The biggest phone companies are willing to pay to offer its customers Nokia's phones

□ Growing world market for cell phones, especially in developing countries

□ New technology brings new demand for upgrading

□ Being a product of fashion cell phones will continue to be in demand

□ New era of phones will allow to introduce new fresh ideas, which could be sold for good

Threats

▪ The European market for cellular phones with current technology is nearly saturated

▪ Nokia's key customers, Europe's telecommunications companies are in debt

▪ Well-financed existing rivals and new but very determined competitors

▪ European and American economies recession

Competitors...