Nokia Corporation is a mobile and telecommunications company headquartered in the Espoo metropolitan area of Helsinki, Finland. The company can manage 23 billion euros in revenue as a response to the broad consumer base distributed through 120 countries. In addition to the manufacturing of mobile devices, Nokia also deals with the supply of mobile, fixed, broadband and internet protocol infrastructures that scope about 30% stake of the corporation (Essays UK, 2017). Nokia gets to contribute about 4 percent of the GDP of Finland. As of 2018, Nokia is accredited as the third largest manufacturer of network equipment. This is despite having its mobile and devices section being sold to Microsoft in 2013 to avoid more loses. HMD Global, a company founded by a former Nokia executive, was later to buy the mobile division from Microsoft three years down the line. The following essay therefore seeks to explain how Nokia Corporation understands its targeted consumers buying influences and behaviors.
Nokia has some opportunities in the current market. This is seen where the mobile company can be able to compete with other devices in the ever-growing market (Bhasin, 2018). Nokia attempted to graze all markets by releasing devices with relatively different costs corresponding to certain features. This is seen in the case of the low-end Nokia 2 and the high-end Nokia 8 series of phones as the data given by the popular mobile phone critique website, GSM Arena. This strategy gives Nokia a chance to work through the current market. Also, Nokia has the advantage of having good hardware designs that depict a profound beauty. This blends with the strong brand name that makes the devices highly sought after. YouGov BrandIndex declares that Nokia, with a score of 93, has more brand awareness than iPhone, at 92.3, among the UK consumers (Hobbs, 2017). The embrace of Android as the operating system is also seen to be picking up positive criticism with Nokia devices shipping with the stock version of the operating system.
Nokia's future opportunities are also seen to be rolling in the right direction. Having brought the Nokia 3310 from the past to fit in the current market, the company is somewhat optimistic about its prospects. Nokia Networks is among the developers of the 5G network that is set to incorporate more functionality support such as artificial intelligence. Moreover, in a keynote speech, Rajeev Suri of Nokia was interested in leading the company into the public sector, utilities, energy, and transportation (Hobbs, 2017). As a fulfillment of this sediments, Nokia was to join other tech companies that took on the initiative of managing smart cities (Yanquiling, 2018). This was also a signal that Nokia is ready to deal with the IoT and blockchain market. The service uses a blockchain network working with IoT sensors to monitor the environmental behavior through analysis of the data obtained. The service goes further to detect real-time actions such as illegal construction and the burning of wastes. A broadband connection is also implemented to make the information stored in the public safety databases readily available. As a result, there is an increased situational awareness during emergencies.
Despite the success rates, Nokia faces some threats in the current market. The quality perception of Nokia has fallen to 15.4 points. Putting this value against 72.5 points, which is the combined quality score for Samsung and Apple, brings out a distinction in the preference of the market (Hobbs, 2017). Additionally, the open source licensing of the Android software makes it readily available for installation in a wide range of devices. Some of these devices are low priced, prompting higher purchase rates especially in developing countries. This consequently makes it harder for Nokia to have a practical grasp of the market. The rise of counterfeit phones poses a direct threat too. In the past, such phones have been designed to come in very close resemblance to the original designs (Bhasin, 2018). As a result, the sales of the products of the corporation are negatively affected while the user experience of the brand suffers a misdirected condemnation.
There are potential threats that may disrupt the prospects of Nokia in the future. With an attempt to venture into virtual reality and wearables (Hobbs, 2017), Nokia faces challenges in expressing its interests when compared to other companies. The virtual reality world is already dominated by devices from many other tech companies such as Oculus Rift which significantly focuses on the development of virtual experiences. Seemingly, the future of wearables is weary as other companies such as Apple and Samsung, again, take a good share of the public's interests. The development of the 5G network is currently experiencing distributed criticism from different parties. This is because the system is thought to bring about more health-related complications in human beings, hence the high functionality network is not fully embraced for implementation.
Ideally, Nokia focuses on certain aspects of the demography in their market strategy. This includes the purposeful concentration on the consumers with ages ranging from 19-39 years, in a bid to attract the younger generations (Essays UK, 2017). The focus on specific markets of the world such as Asia is also a depiction of the ethnic target of the corporation as it tries to grow its technological influence. The social class is not a concern for Nokia as it tends to distribute the availability of its devices to as many people as possible (GSM Arena, n.d.). The mobile brand has the deliberate intention of relying on the promotion of its devices rather than advertisements. Additionally, the steps to provide monthly security updates on its software is an indication of care towards the safety and interests of its consumers (Hobbs, 2017).
Conclusively, Nokia has a significant share of the tech market despite the competitive nature of the industry. The right brand name in mobile and telecommunications fields enables the corporation to be of interests to many. As a result, the insights for the market strategy and achievement of goals places the brand at an advantage while competing in the business world.
Bhasin, H. (2018). SWOT Analysis of Nokia. Retrieved from Marketing91: https://www.marketing91.com/swot-nokia/
Essays UK. (2017). Company and Market Analysis of Nokia. Retrieved from https://www.ukessays.com/essays/marketing/company-and-marketing-analysis-of-nokia-marketing-essay,php
GSM Arena. (n.d.). Nokia Phones. Retrieved from https://www.gsmarena.com/nokia-phones-1.php/
Hobbs, T. (2017). Recovered from Marketing Week: https://www.marketingweek.com/2017/08/24/nokia-plan-challenge-apple-samsung/
Yanquiling, R. (2018). How Nokia is Empowering the Future of Smart Cities. Retrieved from Urbanize Hub: https://urbanizehub.com/how-nokia-is-empoering-the-future-of-smart-cities/
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