Pest Analysis

Topics: Nokia, Mobile phone, Smartphone Pages: 7 (1919 words) Published: March 22, 2011
Foreign direct investment
Export-import policy

Market Share
Impact of Interim Budget 2009
Budget Impact:

As a best Interactive medium:
Tomaintain socialrelationship:
Forbusiness purpose:
For interacting internationally:

GSM: Global System for Mobile
CDMA: Code Division Multiple Access
Zeroth´ Generation (OG)
TheFi rstGeneration (1G)
2G handset
3G handset
Smart phones

PEST Analysis
The tale encompassing the sales of radio spectrum, especially for the next generation of mobile phones has been one of unpredictable results including widely varying fortunes. In 2000, the UK Government began to accept bids from 13 companies who wanted to operate a licence to sell next-generation mobile phones. Undeniably, this raised the hopes of other Governments, diminishing their doubts and making it more believable that they too could be in line for a windfall. It raised £22.47bn, a tidy sum to anybody. However, the companies began to balk from paying the rather huge sums of money for the licences. The only way in which Governments were offered some form of guarantee to make money was to begin in setting a price in advance and thus award the licences on merit through that of a beauty contest. The UK auction was structured so that each rival bid was designed to be a certain percentage higher than the previous bid. This inevitably resulted in the size of bids spiralling sky high at a rate of over 150 rounds of bidding. In this way, the politics of the situation has made the Government billions of pounds. Economic

Table 1 below shows the amount each European county paid to operate a licence to sell 3G mobile phones. 3G Government Licence Top Prices
UK: £22.4bn France: £6.32bn US: £11.24bn Germany: £30.4bn Italy: £7.5bn Netherlands: £1.68bn Poland: £1.9bn Sweden: £26,000 Switzerland: £80m Belgium: £300m Australia: £500m Spain: £12m Table 1 3G Government Licence Prices

Source: BBC, ( Downloaded 10th April 2003 Scramble for Licences "The cost of the licences is a bigger issue than people expected," Tim Sheedy, Senior Mobile Analyst with IDC. "Everyone had an idea what the infrastructure costs would be, because they've already built the GSM infrastructure. But the licence costs have come as a major shock." Tim Sheedy IDC 23rd August 2000

Figure 2 Camera Wireless Phones to be Sold World Wide 2003
Source: Downloaded on 10th April 2003 The most recent Strategy Analytics Wireless Device, Strategies report, revealed that "Vodafone's J-Phone of Japan Leads 18 Million Unit Camera Phone Market”, by David Kerr Downloaded on 10th April 2003). The report also concluded that 18 million embedded-camera phones were sold globally during 2002. 13 Million Of those were sold in Japan alone. Figure 2 depicts the global phone sales against period. It is interesting to note that the market has been almost doubling every six months. Other crucial results from this Strategy Analytics Global Wireless Practice Standpoint conclude that Nokia...
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