Nokia's Pestel Analysis

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Nokia's Pestel Analysis

By | March 2012
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NOKIA’S PESTEL ANALYSIS

Political: As markets are deregulates both operators and manufacturers are free to act independently of government 
intervention. In Countries like India and China where Partial regulations exist, government 
intervention does take place. That is why, Nokia can sell as much as they want, without restrictions.

Economics: With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor. The competition is very high, what force them to be very innovative and have a strong strategy. They have to be into a continuous relationship with their consumers and into a dynamic personalized offer.

Social: The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. Users are more aware of mobile phone handset choice and advancements due to increased information availability.

Technological: There have been many global advancements in technology such as MMS, Bluetooth, WAP, GSM, GPRS, cameras… The Asian markets are more technologically advanced than their European counterparts, for example in 2002, just 4% of phones had cameras, whereas in Asia 90% did. Nokia focuses on design. A big part of the production process is dedicated to the design to be even more competitive.

Environmental: There is a concern that the use of mobile phones could be damaging to health, with tumors potentially being caused by the waves emitted by the handsets. There is also immense wastage created by unwanted mobile phones that are thrown away as they are non-biodegradable. Nokia tries to find a solution to minimize these secondary effects.

Legal: Difficult to patent mobile phone designs. Technology Infringement causes a lot of legal issues.

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