This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth. 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.
These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in.
To understand the macro environment more this article will study each section in depth. 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 Nokias pestel analysis 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, 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.
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.
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.
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.
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.Jun 05, · A Porter's 5 forces analysis on Nokia Introduction After conducting a Porter's 5 forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of torosgazete.coms: 3.
After discussing the internal factors of SWOT analysis of Nokia, let’s shift our focus towards external factors: The Microsoft-Nokia deal is a win-win situation for both companies.
The deal possesses great opportunity if both utilize resources in a proper way. V. PESTLE ANALYSIS Political Factors Affecting Nokia The impact of political factors on Nokia is hard to ascertain.
The company is based in the European nation of Finland, but the Finnish government has A Study on Nokias Failure in the Global. Uploaded by. Shailendra Arya. QE July - Europe Report. Uploaded by.
InMobi. Weekly Pulse PESTLE analysis of Nokia points out challenges in an altered mobile phone market. Nokia will need to radically alter its business model simply to survive.
Internal and external market analysis of Nokia. Print Reference this. Disclaimer: This work has been submitted by a student. This is not an example of the work written by our professional academic writers. You can view samples of our professional work here. The SWOT analysis of Nokia discusses the strengths, weaknesses, opportunities and the threats of the mobile handset manufacturer - Nokia.
Till date Nokia is remembered with fondness because it was the first mobile phone for many people and it was very user friendly. It was durable too.