This company has introduced such products, which were able to high speed internet and they provide online gaming and multimedia functions. This mobile phone company exported its products in Europe, America and in Asia Pacific region. The company spread its business in about countries and it introduced the best possible technology in the beginning with different features of SMS, internet, MMS, camera and video recorders. UKessays, Political Factors As Nokia Mobile Phone Company is large company and it is exporting its products in about countries, so every country has its own rules and regulations to deal with trade of the IT products and mobile phone services.
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Please consider supporting us by disabling your ad blocker. Unfortunately, it has been unable to adapt to changing market conditions created by the introduction of smartphones and the rise of aggressive competitors such as Apple Inc. Recent revenue figures indicate that Nokia is maintaining its market position but not growing.
The troubles affecting Nokia arise from a radical transformation in its business environment. The company is based in the European nation of Finland, but the Finnish government has refused to give it a bailout or special favors. This can both help and hurt the company because it is not associated with a major power, but it might lack the political clout of American- or Chinese-based rivals.
This could force it to move production to higher-cost locations such as the United States. Economic turmoil in Europe has hurt it badly by limiting buying power in its home markets. Unlike Apple, Nokia has had a hard time tapping into the fast-growing Chinese market. Nokia also lacks the vast economic resources available to some of its competitors, such as Google, Apple and Samsung.
In particular, Nokia seems to lack the research and development capabilities that have enabled these companies to develop new devices and tap new markets. One reason why it lacks those capabilities is that Nokia simply does not have the money to finance extensive research and developments efforts like its competitors do. In more recent years, Nokia has had to deal with the popular misconceptions that there are only two brands of smartphone in the market, Apple and Samsung, and only two operating systems: iOS and Android.
This has kept many customers from even considering Nokia products. Technological Factors Affecting Nokia The technological challenges affecting Nokia are at the root of the social factors limiting its business. The development of open sourced operating systems such as Android and the invention of apps radically changed the mobile phone market. Mobile phones were transformed from simple communications devices into handheld computers.
This led to a situation in which customers wanted to perform a wide variety of tasks with phones, including taking photographs, watching streaming video and performing business functions. Nokia has not been able to significantly tap the potentially lucrative market for other kinds of mobile devices such as tablets and wearable technology.
This could greatly reduce its competitive edge in the future. One possible game changer could be that popular Google solutions such as Gmail could be taken off of Android, which could limit its popularity.
Environmental Factors Affecting Nokia Like other electronics manufacturers, Nokia is faced with the problem of safely and economically disposing of its used products in an environmentally-friendly manner. One costly requirement that it could face in the years ahead is laws making electronics manufacturers responsible for the disposal or recycling of used devices, a potentially costly expense, particularly if the devices use lithium batteries. Another environmental concern that could affect Nokia is increased costs for materials and components, particularly lithium for batteries.
Increased demand for lithium for other uses such as electric cars could limit its supply and raise costs. The Future Nokia faces serious challenges in a radically altered mobile phone market. It will need to radically alter its business model and products simply to survive. At this junction, it is unclear if Nokia will ever be able to become a major player in the consumer electronics business again.
SWOT Analysis of Nokia
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. To its success, Nokia surveys its scope of limits in order to isolate prohibited actions, regulations and aid from the government so as to withstand the international trade. Laws of copyright and abuse of phone usage keeps Nokia ahead, it limits any space of intrusion or misuse of their products. As markets are deregulated, both operators and manufacturers are free to act independently of government intervention.
PESTEL Analysis of Nokia
After that, this paper explained the changes of market environment in last decade with competitor analyses. In addition, the author evaluates the market mix of Nokia. Opinions of how well Nokia did in building a strong brand is presented afterwards. Nokia culture issue — resource base inside-out not outside-in renewal 2. It will need to radically alter its business model and products simply to survive. At this junction, it is unclear if Nokia will ever be able to become a major player in the consumer electronics business again. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer.