Nokia †Internal Analysis Essay

Financial proceedingWe arrive our internal analysis by looking at Nokias gross revenue and profitability. Strong sales and profitability results can indicate that the previous strategies were in(predicate) and changes in either can implicate a change in the commercialise viability (Aaker, Mcloughlin, 2007). In 2007, Nokia realized total sales of about 435 billion units and a net profit of 7,205 gazillion. Although it has only a market contend of 9.8% in the United States market, Nokia has a worldwide market share of 37,8%.This makes Nokia the market leader in the telecom manufacturing and hereby a rife player in the market. Nokia has 10 manufacturing facilities in 9 countries, and from these locations she distributes her products to more than one hundred fifty countries and different segments. With sales growing considerably compared to 2006, Nokias large client base has only increased. Assuming new nodes will create loyalty, rising earnings are brought in. However, gro wth in the industry is declining, making it a difficult task 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 often provide better measures of long-term business wellness (Aaker, Mcloughlin, 2007).Relative costsSince 2004, Nokia is offering cheaper phones for the emerging markets. By using her economies of scale, Nokia was fit 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 difficult for Nokias rivals to keep up with this cost reduction. However, Nokias produces most of its production mint in high-wage countries, l eading to considerable extra costs in the manufacturing process. provoker/firm associationsOver the years, Nokia has created a strong brand by sense of hearing to her customers and understanding customer needs. Nokia is often associated with high quality phones and this isnt pass 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 clock award for most trusted brand in India (Nokia.com). Effective market 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 satisfied.New product activityNokia is developing new products year by year. In 2007, No kia improved her research and development department and introduced some mobile-related operate and software. She also went in some partnerships with companies like Vodafone and Orange and integrated its cyberspace services under one brand, named Ovi. However, Nokias is really affected by her competitors bringing innovative 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.