Nokia Corporation Strategic Audit Report

Exclusively available on Available only on IvyPanda® • No AI

Table of Contents

TOWS Analysis
SFAS Matrix
References

TOWS Analysis

This is an important tool in the analysis of an organization’s progress. It is usually used in implementing tactics that would result in improved performance of an organization in comparison with the competitors (Hunger, 2007).

Internal Strengths

It has strong research and development policies.
It is known for creativity durability and reliability.
Strong financial position.
It is the biggest mobile phone producer.
Workforce that is efficient and highly diversified.
Most dominant in the world mobile market.
It has one of the world’s biggest distribution networks.

Internal Weaknesses

Profits dropped by 40% in 2010.
It has a weaker presence in the US mobile phone market.
Occupies a very fragile position in Japan.
The closure of E71 and mobile handset distribution in Japan and other Asian countries.
Poor after-sales service in India combined with few service centers.
Mobile phones fetch higher prices as compared to China phones.

External Opportunities

The joint venture with Siemens in which each company had a 50% stake.
The fastest growing market in Asia-pacific.
Market is being driven by-products that are stylish and fashionable.
A very huge demand potential.

SO Strategies

The presence in Germany to be increased by offering reliable products (O1, S1, S8).
Use customer-driven strategies to increase presence in Asian countries (O2, S2, S4, S7).
Use of a new product line and partnerships to penetrate the market (O3, S2, S7).

WO Strategies

Increasing profits through penetration into different markets (O4, W1).
Joint ventures to be used in penetrating the US market (O4, W2).
Partnerships to be used to improve the position in Japan (O2, S5).

External Threats

Huge pressure as a result of pricing.
Consumers face complications in making choices.
Chinese products entered the market overwhelmingly.
Difficulty in product differentiation.

ST Strategies

Reduce overall costs (T1, T3, S2, S8).
Enhance the production of customer-oriented products (T2, T3, S1, S2).
Cost efficient products to be offered (T2, T3, S1, S2).

WT Strategies

Use of the brand image (T2, T4, W2).
Remaining aggressive (T2, W3).
Introduction of periodical discounts (T1, T3, W6).

SFAS Matrix

SFAS is a synonym for Strategic Factors Analysis Summary. It simply presents, in brief, factors that are strategic and which affect the success of an organization. It involves a person who decides to summarize the opportunities, strengths weaknesses, and threats in not more than 10 strategic factors upon which a decision is made (Saylor, 2010). Each factor is presented according to the weight it has in the process of attaining organizational success. The matrix is as shown below (Nokia, 2012).

		Weight	Rating	Weighted Score	Comments
Strengths	Strength of the brand	0.13	5	0.65	The leading brand in mobile handsets in the world. It occupies the 6^thposition in all brands category
	Global positioning	0.13	4	0.52	Realizes significant revenues from many countries in the world
	Outsourced manufacturing	0.13	4	0.52
	Late to convergence devices	0.08	1	0.08
Weaknesses	Social responsibility	0.08	1	0.08	Inconsistencies between the internal position and SOMO report
Opportunities	Market share increase	0.08	4	0.32
	Emerging markets development	0.13	4	0.52	Philippines and China
	New technological developments	0.08	3	0.24	Visa Partnership
Threats	Foreign exchange risk	0.08	2	0.16	Volatile economies
	Product substitutes	0.08	2	0.16	Skype
Total		1.00		3.25

From the table, it is evident that Nokia as a corporation responds to the strategic factors positively than an average firm.

References

Hunger, D. (2007). Essentials of Strategic Management. New Jersey: Prentice Hall.

Nokia (2012). Corporate Responsibility and Nokia’s Supply Chain. Web.

Saylor, M. (2012). The Mobile Wave: How Mobile Intelligence Will Change Everything. Perseus: Vanguard Press.