Nokia Market Analysis

Topics: Mobile phone, Nokia, Strategic management Pages: 5 (1675 words) Published: July 21, 2013 important

Abstract : The roots of Nokia go back to the year 1865 with the establishment of a forestry industry enterprise in South-Western Finland by mining engineer Fredrick Idestam. While in the year 1898, witnessed the foundation of Finnish Rubber Works Ltd, and in 1912, Finnish Cable Works began operations. Gradually, the ownership of this two companies and Nokia began to shift into hands of just a few owners. Finally, these three companies were merged to form Nokia Corporation in 1967. [1] Nokia Corporation engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company has four main business functions or segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Strategic Management of Nokia The External Analysis examines opportunities and threats that exist in the environment and I will be discussing the fallowing. 1. P.E.S.T Analysis 2. Porter’s Five Forces/Market Trends 3. Types of Market 1. P.E.S.T Analysis: PEST identifies the political, economic, social, technological, environmental, and legal factors that of which directly affect a company. In this case Nokia.Political – As markets are deregulated, 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. Economic – 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. 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. Strategic Management of Nokia Technological – There have been much global advancement in technology such as MMS, Bluetooth, WAP, GSM, GPRS, cameras etc. 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.

It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. It consists of fallowing factors. Power of New Entrants:In any market arrival of a new product is not always welcomed. In mobiles world it’s not different a mobile phone or an online service is launched by Nokia it has as 50 percent chance of success. It’s like the launch of Nokia’s N95 Smartphone which was much appreciated by buyers then the launch of N96 Smartphone. Power of Buyers:Due to recent down fall in...
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