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Nortel Networks Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Nortel Networks Corporation

Nortel Networks supplies end-to-end networking products and solutions for telecommunications providers, cable operators, enterprise communications and other related service providers. The company is engaged in the design, development, engineering and marketing of networking solutions, including hardware and software products and services worldwide. It is headquartered in Ontario, Canada and employs about 32,500 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leading market position
  • Strong R&D capabilities
  • Wide product portfolio

Weaknesses

  • Weak operating performance
  • Poor credit ratings

External

Opportunities

  • Expanding in Asia
  • Growing demand for broadband services
  • Growing UC solutions market

Threats

  • Transfer of manufacturing facilities
  • Telecom consolidation
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