Nokia Corporation Strategic Audit Report

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Updated: Feb 24th, 2024

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).

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Internal Strengths

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

Internal Weaknesses

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

External Opportunities

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

SO Strategies

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

WO Strategies

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

External Threats

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

ST Strategies

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

WT Strategies

  1. Use of the brand image (T2, T4, W2).
  2. Remaining aggressive (T2, W3).
  3. 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).

WeightRatingWeighted ScoreComments
StrengthsStrength of the brand0.1350.65The leading brand in mobile handsets in the world. It occupies the 6thposition in all brands category
Global positioning0.1340.52Realizes significant revenues from many countries in the world
Outsourced manufacturing0.1340.52
Late to convergence devices0.0810.08
WeaknessesSocial responsibility0.0810.08Inconsistencies between the internal position and SOMO report
OpportunitiesMarket share increase0.0840.32
Emerging markets development0.1340.52Philippines and China
New technological developments0.0830.24Visa Partnership
ThreatsForeign exchange risk0.0820.16Volatile economies
Product substitutes0.0820.16Skype
Total1.003.25

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.

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