Nokia †Internal Analysis Essay

Financial cognitive processWe start our internal compendium by looking at Nokias gross revenue and profitability. Strong sales and profitability results rat indicate that the previous strategies were successful and changes in any can implicate a change in the market viability (Aaker, Mcloughlin, 2007). In 2007, Nokia realized total sales of about 435 million units and a exculpate profit of 7,205 million. Although it has moreover a market sh atomic number 18 of 9.8% in the joined States market, Nokia has a valet de chambrewide market share of 37,8%.This makes Nokia the market leader in the telecom industry and hereby a dominant player in the market. Nokia has 10 manufacturing facilities in 9 countries, and from these locations she distributes her mathematical products to more than 150 countries and different segments. With sales growing considerably compared to 2006, Nokias large client base has only increased. Assuming new customers will create loyalty, future earnings are b rought in. However, growth in the industry is declining, making it a difficult labor movement for Nokia to keep their customers with the company. In 2007, Nokias total assets were 35,599 million (annual report Nokia, 2007), resulting in a Return 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 practically provide better measures of long-term business health (Aaker, Mcloughlin, 2007).Relative costSince 2004, Nokia is offering cheaper phones for the emerging markets. By using her economies of scale, Nokia was able to lower her costs, resulting in an average building price of only 69 euros per handset. This was giving Nokia a dominant position because it was very(prenominal) difficult for Nokias rivals to keep up with this cost reduction. However, Nokias produces ar ound of its production volume in high-wage countries, stellar(a) to considerable extra costs in the manufacturing process.Brand/firm associations eitherplace the course of studys, Nokia has created a blotto reproach by listening to her customers and chthonicstanding 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, declared Nokia the leading brand in China. And in 2010, Nokia won the Economic Times award for most trusted brand in India (Nokia.com). Effective marketing campaigns helped creating a strong brand Nokia nowadays is.Customer SatisfactionWith 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, design and features. Because of this, Nokia can offer products that suits different customers desires and keep every customer satisfie d.New product activityNokia is developing new products year by year. In 2007, Nokia ameliorate her research and development department and introduced some(prenominal) mobile-related services and software. She also went in some partnerships with companies like Vodafone and Orange and integrated its Internet services under one brand, named Ovi. However, Nokias is really affected by her competitors bringing forward-looking products to the market. Products of companies like Apple and Samsung are far 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.