SWOT Analysis of Nokia

Introduction Nokia was founded in 1865, is headquartered in Finland, mainly engaged in the production of rambling chat products multinational, is the worlds third largest energetic r totallyy manufacturer. February 2011, Nokia and Microsoft entered into a strategic alliance and the knowledge of cooperation.Over the past few years, Nokia sh atomic number 18s have gradually from London, Frankfurt, Paris and Stockholm lineage market delisting. February 9, 2012, due to poor management, Nokia announced layoffs in three fluid phone manufacturing plant 4000. April 11, 2012, due to capacious losses for several quarters, Nokia shares plunged 17 perpenny, the market value has shrunk $ 5 billion a day, to fall pricker to 1997 levels. In the September 3, 2013 Microsoft officially announced a $ 3.79 billion euros accomplishment of Nokia supple phone line of descent, to 1.65 billion euros while the acquisition of its patent portfolio, which government agency that Microsofts acquisitio n of Nokias line and assets of the expenses totaled 5.44 billion euros ( al more or less $ 7.17 billion).Nokia failed because of its long-term monopoly in the industrious phone market, resulting in a slack, underestimate the enemy emotions enterprise bureaucratism has become popular, gradually lost self, lost the incentive to innovate. And in the unsettled phone industry has changed, especially aft(prenominal) the popularity of 3G mobile Internet rotation brought, Nokia has not been able to face changing market to hold the skilful judgments.Political factorsLegal constraints, such as 3G, must be considered because many businesses plan to make a profit so they may be tempted to misinform their customers about pricing, products quality and the availability of their goods. Also, they may try to cut expenses by apply lower quality materials in their products, such as weaker resources for Nokia cases and batteries. Also just about companies may set out their waste in ways that s cathe the environment without ensuring postgraduate standards of hygiene and safety in the workplace.Including, outlet stores, which are illegal and laughing declination cause legal problems for companies. In 2000, the UK Government started to pass judgment bids from thirteen companies who wanted to run a licence to sell next-generation mobile phones. It raised 22.47, a neat 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 contest bid was planned to be a certain percentage higher(prenominal) thanthe previous bid. This unexpectedly resulted in the size of bids strengthening sky high at a rate of over 150 rounds of bidding.Economic factors Current sparing indications, such as exchange, inflation rates, unemployment, gross national product elicit orient companies how to determine their policies. The other significant factor is the global scotch situation for an internationalistic beau monde such as Nokia. Considering the last cardinal years of global handset devise market, there is a downturn in the sales.The global stinting 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. According to a resource firm, named Gartner, worldwide mobile phone sales decreased 8.6 % in the original 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 switch of the Internet strategy. Of all the mobile phone manufacturers , Nokia is the first high profile vendors need restructuring .At the time, Nokias transformation direction can be attributed to Ovi this has now been forgotten by many names. Concept Ovi by Nokia on August 29, 2007 and the company as well as announced a plenary restructuring strategy .In response to industry changes , the Nokia Ovi store via software programs , music , maps , mail, and N-Gage mobile gaming platform , fivesome major business transformation to to the full 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 walking and driving water travel leave behind all free. You know, a well-known high German sailplaning, 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 call 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 trust on their own efforts to turn things around .IBM not so computerDecember 8, 2004, Lenovo company in Beijing announced $ 650 million in cash and stock worth $ 600 million (total value of about 10 billion yuan) win 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 sulphur only 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 mickle 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 ent erprises in mergers and acquisitions, foreign workers paid after termination of the contract is almost equivalent to the original acquisition woo of all the funds.ConclusionChange management generally is difficult but no undoable. With a world closing in every day. not only international blue-chip companies are forced to critically reassess and. if necessary, change their business model, but also their organizational structure or their corporate culture. around failed change projects underestimated or simply did not take into account the human beings 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 disinclined to change.