External Environment Analysis of Nokia N Series

Topics: Mobile phone, Nokia, IPhone Pages: 6 (2070 words) Published: October 7, 2011
Executive Summary
Nokia Nseries, products of Nokia Company, are built with the technology, mainly for communication and entertainment. This report will show some analysis of Nokia Nseries, including, macro environment, competitive situation, company, and SWOT analysis. Macro environment consist of economic, technology, political and legal, and cultural and social environment. Competitive analyses include direct and indirect competitors, Porter’s Five Force, and Competitive advantages. Company analysis contains Nokia’s mission statement, and company resources, and, lastly, the SWOT analysis which is divided into internal and external effects. The results of analysis show that, overall, Nokia Nseries are very strong products which have high competitive advantage over its competitors, but the fast growth in mobile industry significantly affects the sale of Nokia Nseries. The conclusion can also be drawn that the advances in technology play a big role in increasing competition in this market. Introduction

Nokia Nseries are multimedia Smartphone, owned by Nokia corporation. These kind of mobile devices have been launched since 2005 with the purpose mainly for entertainment and communication, and, nowadays, they support many digital multimedia, such as music player, video capture, photography, mobile gaming and internet services. Nokia is one of the world leaders in mobile communication, and is very well known company, producing and selling its products worldwide. Nokia generated a very large profit during 2005 to 2007 period. This can be seemed as the boom of multimedia Smartphone. However, it has been stated that the operating profit of Nokia has been dramatically dropped since 2007. This might be the results of changes in macro environment and an increase in competition. This report will provide overviews of the micro and macro environments which have affected Nokia Company, in particular, the sales of Nokia Nseries. Furthermore, this report will illustrate the analysis of competitive situation, company, and SWOT of Nokia Nseries, as well.

Internal Environment
Nokia Nseries are multipurpose mobile phone, also known as Smartphone, which are built with the technology to provide its customers, not only communication services but also entertainment. The main competitors of Nokia Nseries are other companies that also produce Smartphone, such as Apple, HTC, Samesung, Sony, and Motorola. All of these companies, including Nokia, target its customers, as mostly teenager and business class people. Macro Environment Analysis

Economic environments are simply divided into three factors, regarding change in interest rate, economic condition, and fluctuations of inflation and currencies. Firstly, a change in interest rate has two direct effects on the sale of Nokia Nseries. Since when the interest rate falls, people tend to consume more because of the marginal benefit of saving decrease, and Nokia company also has the opportunity to invest more because the reduction of cost of borrowing funds. In contrast, when the interest rate raise, people will save more, and consume less. Furthermore, an increase in interest rate will lead to a decrease in number of purchasing from customers who normally use credit card to buy a mobile phone, regarding making contracts, because they need to pay more interest. Secondly, from economic theory, during economic recession, people, as well as firms, will spend less and save more because of the awareness of unstable economy, whereas people will have more willingness and confidence to spend when their economy is peaking. This is because Smartphone is a luxury item, that people normally seek a cheaper alternative when they have less consumption power, and, of cause, the high growth economy leads to higher incomes, and, indeed, higher demands of consumption of luxury goods. Lastly, a fluctuation of inflation and currencies has many impacts, in term of exporting and importing. For example, where Nokia...
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