Top-Rated Free Essay

Pest Analysis for Nokia

Good Essays
Topics: Mobile phone, Nokia
Political

The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot

Economical

Nokia are vital to the Economy in Finland as it currently occupies a third of the market on the Helsinki stock exchange. The organisation is so important to the economy of Finland that the government had to step in when the business, earlier this year Nokia planned job cuts in Finland and with fears of what that would do to the economy the Finnish government stated they were prepared to help find jobs for those who are sacked (Reuters, 2011).

Nokia will also have to be aware of changes in exchange rates, as they operate on a global scale and drastic changes in rates can have a devastating effect on the financial operations of the company if the business do not take appropriate steps to ensure the effects are minimum. The threat of recession on western economy has also had an effect on the interest rates in banks, which means the cost of borrowing money for business activities has increased and Nokia will need to be aware of the changes in interest rate.

Social

With Nokia mainly operating in the Western market it is important for them to fully understand the social factors in these markets and the main factor they need to understand is the culture of the society; which is to have the latest and most up to date phone, is considered a key fashion icon. Consumers are always after the most innovative and best looking Smartphone because in today’s culture people are judge on how fashionable they are by their choice of mobile phone.

The increasing trend in Smartphones means when consumers purchase new mobile phones less and less consumers are choosing the standard mobiles phones over Smartphones because of the social trend in today’s society. Nokia will be aware of this and may now spend the majority of their efforts developing a Smartphone that can compete with their rivals’ products, in order to keep up with the trends of their consumers.

Technological

The technological advances in the industry are vital to the success of any new Smartphone in the market that is continually growing, as the level of competition rises Nokia must ensure that their Smartphones are at the highest level of innovation. With functions such as camera, internet, social networking and email all necessities on Smartphones Nokia will have to think of other functions to help differentiate and stand out from its rivals. As well as function more and more consumers are looking at the software running all the functions as a key indicator of the success and quality of the Smartphone, so Nokia’s alliance with Microsoft for their latest Smartphones seems a very good move as everyone are aware of the technological capabilities of Microsoft and the value they can add to any technological product.

In the past Nokia were the market leaders in innovation in the mobile phone industry, however in recent times they have seemed well off the mark and struggle to compete with their rivals. This is why Nokia must consider their position in the industry and attempt to once again become the market leader by offering a new innovative capability and get to the market before its rivals.

Legal

Intellectual property is the key to any technological business and must be cared for and protected to the fullest amount to ensure the business does not lose out to rivals. Nokia operate in an industry where it is very difficult to have a product that is different to its competitors, when they do release a product with an innovative capability it is vital to protect the rights to it through patents, copyright, trademarks or design to ensure they are not “stolen” by their competitors. Not only are competitors a threat of intellectual, but Nokia must ensure they do not fall victim to counterfeiters who claim to be a Nokia products but are cheap knock-offs.

As Nokia have manufacturing plants in a various countries it is extremely important that they abide by the laws and regulations set by the different countries as the laws will differ depending on the country, these can be employments laws, Health and Safety or even trade restrictions.

Environmental

In today’s culture it is very important for organisations to be seen as environmentally friendly and ethical with its manufacturing, because of the global effect it has on global warming so Nokia must ensure that they operate in an appropriate manner. With mobile phone recycling organisations becoming more and more popular, this demonstrates how important people are regarding it. The main issue with mobile recycling is the disposal of the batteries in the phones as these can become dangerous if not disposed of appropriately.

You May Also Find These Documents Helpful

  • Good Essays

    Pest Analysis of Nokia

    • 592 Words
    • 3 Pages

    PEST Analysis of Nokia PEST analysis identifies the political, economic, social, technological, environmental, and legal factors that of which directly affect a company. Political Factors Political/Legal environment are usually considered as one because they are enforced by the nation’s government. It is vital for Nokia’s operation because different nations with their respective government have different Political/Legal platforms respectively; Nokia operating on global level must abide to…

    • 592 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Pest Analysis on Nokia

    • 803 Words
    • 4 Pages

    Pest Analysis On Nokia - December 2nd, 2010 Nokia Corporation (Finnish pronunciation: [nki]) (OMX:NOK1V, NYSE: NOK, FWB: NOA3) is a Finnish multinationalcommunications corporation that is headquartered in Keilaniemi,Espoo, a city neighbouring Finland's capital Helsinki.[3] Nokia isengaged in the manufacturing of mobile devices and in convergingInternet and communications industries, with over 123,000 employeesin 120 countries, sales in more than 150 countries and global annualrevenue of EUR 41…

    • 803 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Pest Analysis Nokia

    • 2366 Words
    • 10 Pages

    PEST ANALYSIS The market environment is a marketing term and it refers to all of the forces outside of marketing that affect marketing management's ability to build and maintain successful relationships with target customers. Company, its suppliers, distributors, and its competitors are also impacted by what is happening in the world. To succeed therefore, it is necessary to continuously monitor, anticipate, and adapt, to that environment, and wherever possible, shape that environment. The…

    • 2366 Words
    • 10 Pages
    Better Essays
  • Best Essays

    Pest Framework for Nokia

    • 4160 Words
    • 17 Pages

    a closure view on an international well-known organization-Nokia Corporation on highlighting the basic purpose of management including ensuring the organization’s goals are achieved in an efficient and effective manner and perform the following tasks:- A.) PEST Framework. B.) Departmentalized by geographic location. C.) Social Responsibility. 2.0 NOKIA CORPORATION 2.1 Company Background The roots of Nokia go back to the year 1865 with the establishment of a forestry…

    • 4160 Words
    • 17 Pages
    Best Essays
  • Best Essays

    dialogue as premier leaders are the celluler phone manufacturers. I vividly remember the first time a mobile phone, the legendary Nokia 8110, had been welcomed in our family through my father. Although it was Motorola Incorporation that launched the first mobile in 1973 into the market by Martin Cooper, who was working as an engineer for the company at that time, Nokia had managed to astonish people in my country, Turkey, by the 8110. It had all the attention, for a specific period of time, in Turkey…

    • 3029 Words
    • 13 Pages
    Best Essays
  • Better Essays

    Nokia Analysis

    • 921 Words
    • 4 Pages

    Unit 3 Case Study Nokia Analysis Kaplan University School of Business MT460 management Policy and Strategy Professor Bagley February 19, 2013 Nokia Analysis Introduction Nokia is one of the largest telecommunication manufacturer companies in the world. They are recognized globally for their reliable and high quality products. Though they are a pioneer in manufacturing mobile phones and the GSM technology, Nokia’s profitability has been on the decline in recent years. A reduction…

    • 921 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Nokia Analysis

    • 5580 Words
    • 23 Pages

    Nokia will empower everyone to share and make the most of their life by offering irresistible personal experiences. March 2010 The convergence of the mobile, internet and PC are a reality. Consumers want complete solutions not just devices, and technology to be invisible. Consumer relationships are the new unit of value in this converged industry as consumers "consume" services as they are created. Our vision of the future "Connecting people" is now connecting people to what matters - whatever…

    • 5580 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    Nokia Analysis

    • 6417 Words
    • 26 Pages

    Introduction: "Nokia - Connecting People": this slogan is known all over the world. In 2006 Nokia employs 68,041 people in 120 countries. Currently every third mobile phone sold in the world is from Nokia. The Nokia Company is today one of the world's leading high tech companies. Its rapidly growth in the 1990s coincided with a basal structural change of the Finnish economy and industry. In this restructuring process Nokia played an important role. Despite the fact that Nokia is a leading multinational…

    • 6417 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Nokia Analysis

    • 2970 Words
    • 12 Pages

    Nokia is a well known brand in the world of mobile communication and it is the world leader in the industry because of its history, name, reliability and unique products and provision of protected solutions. It is one of the most well-known companies and it has offices all over the world. The main product of Nokia is mobile phones and it also deals in household items. Nokia recognizes its corporate responsibility and states that “in all parts of business it makes corporate responsibility a part of…

    • 2970 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Pest Analysis

    • 535 Words
    • 3 Pages

    PEST analysis PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macroenvironmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market…

    • 535 Words
    • 3 Pages
    Satisfactory Essays