Strategic marketing Essay Example
4.3 Key findings
The marketing plan of Nokia for a long time has succeeded because of the strong management team. The management succeeded in making decisions that enabled the company to gain competitive advantage. However the management was too conservative and did not design strategies which will enable the company to compete with competitors like Samsung like introducing smart Nokia phones which have features preferred by customers like Samsung did thus the company’s revenue decreased by 28.95% in the year 2012 (Nokia.com, 2013).
The corporate culture also gave Nokia a competitive advantage. The company used to employ people with professional skills who promoted the quality of products and services offered to customers. The company did selective recruitment, better employee compensation and it enabled employees to improve their skills through training and development. These motivated the employees thus they became creative and innovative and manufactured quality products. Through the corporate culture, the Nokia Company has managed to attract and retain best qualified skills in the organization (Nokia, 2006).
Also the company both internal and external environment has enabled it to excel in the market. The world is stable and this has favored the operations of the company by expanding to global business. The company attracted and maintained many customers thus gained competitive advantage. However Samsung has also marketed its products globally thus high competition leading to decreased market share of Nokia. Nokia also provides quality products like Smartphone to meet the customers’ demands hence sold more. The company managed to operate globally because of the international trade agreements between countries, hence the company acquired large geographical market (Nokia, 2006).
In addition, Nokia has been favored by pricing strategy but not any more. The business environment has changed and there is high competition hence competitors have lowered their prices and Nokia has been forced to lower their prices too, leading to low revenue. Nokia has the bargaining power than the suppliers because of its reputation which ensures there is variety of suppliers at appropriate costs. As the competition goes high, each company wants to lower the prices to attract the customers therefore Nokia is not an exception it had to lower the prices so that it can be able to able to maintain the customers (Nokia.com, 2013).
The financial position of Nokia also enabled it to excel in the market. For instance, in the year 2012 the company had a revenue of €30,176 million. The company motivated its employees through financial incentives and the employees became motivated producing quality products and also maintained the skills (Nokia.com, 2013). However with the competition from Samsung the revenues have decreased so the company has to review its marketing plans. Therefore Nokia for a long time has maintained its huge financial position.
Nokia gained competitive advantage through its market position by having many customers thus the company had huge revenues than Samsung. The company also performed better in the market because of the quality and variety of products it offered to customers. However the management was too conservative thus the marketing strategies became incompetent leading to decrease in sales.
SWOT analysis of Nokia
There are strengths, weaknesses, opportunities and threats that Nokia Company faces. The strengths of Nokia in clued the strong management team which was able to make viable decisions. Also the company offered quality and variety products than the competitors hence had large market share this increased the sales of the company.
The Nokia Company has some weaknesses which include the management which is conservative and did not focus well to understand the future competition hence it lost some customers to Samsung and lost market share by 3% in the year 2012. Another weakness is that the company had poor logistics problem. The company used middlemen to distribute the products which increased the prices of the products hence lost the competitive advantage through high prices of the products (Al Hasan, 2013).
The opportunities of Nokia include the changes in the customer preferences. The company has the opportunity to manufacture phones which are multipurpose to meet the customer’s demands like the smart phones. Finally, the threats of the company include high competition from the Samsung Company. Another threat is the high changing level of technology. This poses a threat because the products become outdated very fast because of the changing technology hence some inventory cannot be sold (Nokia, 2006). The SWOT analysis of Nokia Company discussed above is shown in the diagram below;
Al Hasan, Noman, “Situation Analysis of Nokia”, 2013. http://www.slideshare.net/nomanalhasan/situation-analysis-of-nokia (Accessed September 13, 2013).
Nokia, “Nokia CR Report 2006 Making a Human Connection”, 2006. http://i.nokia.com/blob/view/-/225526/data/2/-/nokia-cr-2006-pdf.pdf (Accessed September, 2, 2013).
Nokia.com, “Nokia Website” , 2013. http://www.nokia.com/global/ (Accessed September 13, 2013).
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