Nokia †Internal Analysis Essay

fiscal performanceWe show up our internal analysis by sounding at Nokias sales and profitability. rugged sales and profitability results can insinuate that the previous strategies were successful and transports in every can implicate a change in the marketplace viability (Aaker, Mcloughlin, 2007). In 2007, Nokia realize total sales of about 435 million units and a net profit of 7,205 million. Although it has that a market sh be of 9.8% in the United States market, Nokia has a world blanket(a) market share of 37,8%.This makes Nokia the market leader in the telecom perseverance and hereby a dominant player in the market. Nokia has 10 manufacturing facilities in 9 countries, and from these locations she distributes her intersections to more than cl countries and different segments. With sales growing easily compared to 2006, Nokias large node derriere has only increased. Assuming new nodes allow create loyalty, future earnings are brought in. However, growth in the indus try is declining, make it a operose task for Nokia to hold their customers with the company. In 2007, Nokias total assets were 35,599 million (annual report Nokia, 2007), resulting in a cede On Assets (ROA) of 7,205/35,599 = 20.24%.Nonfinancial performanceFinancial performance measures are primarily a reflection of the short-term business results. Because of this, nonfinancial performance measures must also be considered. Nonfinancial performance measures often bring home the bacon better measures of long-term business health (Aaker, Mcloughlin, 2007).Relative embodysSince 2004, Nokia is offering cheaper phones for the emerge markets. By using her economies of scale, Nokia was able to pooh-pooh her costs, resulting in an average building worth of only 69 euros per handset. This was giving Nokia a dominant position because it was very difficult for Nokias rivals to go for up with this cost reduction. However, Nokias produces most of its production pot in high-wage countri es, leading to considerable redundant costs in the manufacturing process.Brand/ unwaveringly associationsOver the forms, Nokia has created a beefed-up brand by listening to her customers and understanding customer needs. Nokia is often associated with high quality phones and this isnt going unnoticed. In 2011, Superbrands, the worlds leading independent arbiter of brands, stated Nokia the leading brand in China. And in 2010, Nokia won the Economic Times stage for most trusted brand in India (Nokia.com). Effective marketing campaigns helped creating a strong brand Nokia nowadays is.Customer delightWith sales increasing year by year, Nokia managed to create a large customer base which is expanding every year. Nokia produces a wide range of phones with great differences in price, designing and features. Because of this, Nokia can offer products that suits different customers desires and watch over every customer satisfied.New product activityNokia is developing new products yea r by year. In 2007, Nokia improved her question and development department and introduced some mobile-related work and software. She also went in some partnerships with companies like Vodafone and Orange and integrated its Internet go under one brand, named Ovi. However, Nokias is in truth affected by her competitors bringing advanced products to the market. Products of companies like Apple and Samsung are far-off ahead of Nokia in some fields, which weakens Nokias position in the market. In an industry with a declining growth, it is very hard for Nokia to keep up with these innovations.