NOKIA AND THE CELLULAR PHONE INDUSTRY .
The case is situated in the spring of 1994 when Nokia just finished a successful year with an increase of more than 70 % of the profits and forced to many of their competitors to shut down or sell out.
The phone industry was increasing with a presence on more than 90 countries with cellular services.
With the support of the Nordic governments of this area was the first to establish cellular services, with a penetration rate of up to 10% and other countries adapt these technology (like France, Spain and Austria among others). Take in consideration that Germany only had a 2.47% and USA 6% of penetration. The dominant producers were Ericsson (Sweden) a Nokia (Finland) that also produce Infrastructure for cellular services.
The expectation of the market growth were to move from 1993 with a 33 million of subscribers to the predictions in the year 2000 with a 100 to 170 millions of subscribers. But the great uncertainty was the price level, versatility of the product, ease to use and the service of the carriers.
SWOT Analysis.
Strengths.
- Assembling factories into countries of low-wage.
- Flow of communication (all employees involve in the process).
- Adapt to different standards.
- Flexibility of the company.
- Products with added value.
- Brand getting notoriety.
- Fast development into new technological challenges.
- Costumer oriented.
- High knowledge (R&D) and experience.
- Supplier of Infrastructure .
- Choice to expand in all markets.
Weaknesses .
- Process integration was not vertically.
- Problems into establish in distribution channels.
- Organizational defects due to pressure with the employees.
- Image that was a Japanese brand.
Opportunities.
- OEM contracts.
- Alliances and agreements with other companies.
- Agreements with governments.
- Emerging markets (China, India).
- Predictions to increase with new users.
Threats.
- Technology change very quickly.
- High competition.
- Uncertain environment and diversity.