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Changing Business Environment For The Nokia Company Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 2776 words Published: 1st Jan 2015

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1. Introduction- Nokia:

This project describing the Nokia changing environment for the last five years. Using different tools and models the Nokia company handset explaining and comparing their businesses.

In 20th century Nokia is the world leader in mobile technology and telecommunications. The nokia established in the year 1865 and the engineer named fredrik ides. In 1992 , nokia makes the mobile sector as its core business. It has become the world leader for the century. Now a days, people are utilizing their mobile devices in new ways. The communication between machine to machine is an important part of this evolution. In the year 1998, the nokia is the worlds number one maker of mobile phones and the surpass the telecom company Motorola.

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In these days, the capability of a phone become more important than a personal computer. It always produced high quality and user friendly mobile phones that have made it. To capture the consumers all over the world. The nokia deals with GSM mobiles and now they are into cdma handsets and simultaneously they are concentrating on wireless Bluetooth and wireless technology. They are working on new technologies like the cell phones will be able to get charge by using ambient radio waves.

Definition of Business environment

Business environment encompasses all those factors that affect a company’s operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.

Importance of Business environment

Business and its environment are mutually interrelated.A business enterprise is an open system.It continously interacts with its environment.Business take inputs like raw materials, capital, labour,energy etc from its environment and then transform them into goodsand services and then send them back to the environment.Each and every business organisation to identify oppurtunities, threats, rapid changes and the performance of their company before the competitors realise.



Business environment is mainly showing the strongly by the set of political, economical, social, technological forces. The Nokia company need to Identify their strength, weakness, opportunities, threats to change the customer management. The Nokia main business environment helps to the organization to approach the long-term flexible planning and build stakeholder usage, and the Nokia organization communicate with the related other company that represent the change business environment. In the business environment company need to provide the best option for the Nokia company to maintain their expectations.

“Strategy is the direction and scope of an organization”, The Nokia strategy is giving the different direction to do business long-term. The nokia business scope of the business explaining and competitive in the business and the resources for those the company scope.

Strategic analysis tool example and scope

SWOT analysis explaining the Business issue.

PEST analysis summarizing environmental business operation

Five Forces forces which affect the industry.

Critical Success Factor describing Business must outperform the competition.

Market Segmentation saying similar and dissimilar customer

Competitor Analysis introducing the business competitive position


The Business environment are differentiated into MicroEnvironment, another one is Macro Environment.

2.3 The Micro Environment – NOKIA

This is related to the Micro Environment for the NOKIA Company.

Employees : Nokia company need to find the good suitable perfect staff and should motivate those employees into their business. Nokia company has main competitor like Samsung, Sony Ericson, Apple Handset and due to the best employee support the Nokia business get more increase in the international business.

Customers : Nokia company to give the benefits to the customer to demands the needs of the market essential, and the expectable product. he Famous Nokia company providing the best varieties to the market to consider the business in long time.

Suppliers: The supplier regular raw material providers the business and should find the reasonable suppliers in to the Nokia market.

Nokia company has good supplier to get the raw material on time to maintain their availability and increasing and their creditability.

Raw Materials: The Nokia raw material available easily then production and supply of the product will be increase., so the raw material essential for the production and they Need to maintain the raw material in the Nokia Store Room. The Nokia is getting the raw material from their own place and their own product place.

Shareholders: The Nokia greater business organizations required good stakeholder to increase their growth of the business economy , the customer satisfaction also important factor for the Nokia, The Nokia company giving good share to their own employees and the consumer.

Media: Media are the important for Nokia in their organisation its product the best support of the Nokia media advertisement into the business.

Distribution Channels: The Nokia distribution network strategy always affect the other competitor to communication media to the software.

Competitors : “Cell phone competitors of the businessmen in the same area activity of the business.” The Nokia change business have competitor to provide quality product.

Nokia has the many competitor to control the brand to achieve in the Mobile market.

2.4 NOKIA Macro Environment

The main Macro environmental tool affect the decisions of the managers of any organization. The Political , Economical, Social, Technical, Environmental, Legal factor affecting the business.


Political: The political environment are related to the Mobile business is very high due to the security and privacy. The political influence impact the new technologies. The social and cultural environmental information varies from country to country. This option to support to the country product. Germany , Korea, Chin use to do the good business for the Nokia import and export to different country. The political environment of the company is not same as the different countries and Nokia company can able to do the business in anywhere in UK not possible quickly in eastern countries like Middle east.

Economic: The Nokia organization the economic factor is very important and this impact the business performance, this condition affect the tax rate, interest rate, and the other ratio. If the inflation happen then the employees cant manage the living cost its affect the buyer power for the Nokia. The Company can able to maintain their profit properly. This time Nokia company can get the product price less and should maintain the selling price.

Social: The social trends have close impact with the business, The Mobile phone usine lifestyles of the UK differ from the India, Its affect the business. The population of the family, culture of the family also affect the Business. The social cultural affect the values. If the Nokia culture change then the social factor also modify.

Technological: In everyday life Mobile Technology is very important factor. The internet online transaction is making the good business for Nokia market. Using Internet we can buy sell and view the Nokia product quickly and safely.

Environmental: “Information says a environmental bridge between the organization”, The climate change affect the Nokia business and the environmental condition In New year or Christmas time people buy more Nokia product what they needs. In Christmas season Nokia providing more offer and the customer expected mobiles, iphone and other electronic items The young members expectation of the business make different.

Legal: “Legal factor mainly closely related with the political factor” The common law and the statute law affect the Nokia mobile business in the world. Violence and directly impact the political part and the government need to follow the rule and regulation.













SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios.

SWOT consists the NOKIA current activities of the Strengths and Weakness and then using the external research data to set out the business opportunities and threats that exist in their business.

“The SWOT technique useful to identify the plan for the company achievement. The Nokia Strengths describing the company best benefit, Weaknesses describing company harmful weaknesses, Opportunity describing company helpful Opportunities,

Threats describing company harmful Threats.”

Strengths: The Strength is the internal factor for the company. Its give good strength and help to the company to grow. Nokia has best Brand and images to recognition in the world. The Nokia product distribution is the best global network to do the best business. The Nokia has the recognized brand agreed by the consumer. The Strength of the Nokia has world wide network and distribution channel to supply the best cell phones in the world. The Nokia has many branches in the many countries it make to find the research on new product type to introduce in the market. The strength of the Nokia always more helpful to come up with their products becomes top in the telecommunication technology.

Weaknesses :There is a potnetial threat from Microsoft mobiles introducing into mobile market.sony-Ericsson king of wireless infrastructure.To release anew product into the market it takes more time.Lapsee has opened up sace for smaller competitors.

Opportunities: The external helpful information is called the opportunities.Nokia is building a worldwide supplier network.it is providing value at areasonable lifetime cost.lots of feature loaded phones to act as an offset.There is highest growth markets such as china and latin america.the managing competitive interaction.Nokia is preempting competit ors in critical markets.

Threats : The external harmful facts is called Threats. Nokia has the political impact in some countries to enter into their business. The tax and economical condition affecting sometime in their business.Nokia is having typical competitors like Motorola and others are releasing chaper and mid range models.The biggest threat for the Nokia is ” complacency “.There is always a disruptive technological change.A new technology called 3G will increasing competition between suppliers.There is always a threat with new competitors with different skills and potent brand challenge


Implementing with this tool with nokia the three of porter’s five forces refer to competition from external sources and internal threats are the remainder. Implementing porter’s five forces into Nokia we can easily interlinked the analysis.

This company refers to those forces to the micro environment and to find the ability for the customer to serve their product. Critically Analysing the product value of this company one of the other important forces.

Threat of New Entrants

Nokia may have in the market certain best mobiles and the less price mobile phones; it is less cost compare to other competitive cell phone companies. In Nokia the stock control affect the new entrants

Threat of Substitutes

If any company has threat more then other company easy to capture their market. The economic, technologies, price all concern about in this market. The main consideration is Time and money,

The Nokia has good finance and timely introducing new product in to the current market. It makes to control the threats compare to the other competitors. The Threat of the substitution affect the costs and the industry profitability related with the price and the performance of the company. If demand reduce for the product default the consumer switching into the alternative one.

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Buyer Power

Buyer power always very important, In the last five years keep on increasing in Nokia the buyer power due to their business. If buyer power more the profit would be more and default the price goes down. If any Cell phones are more expensive then the buyer will look in to the different mobile brands to get the same product in the less price. All the best mobile company maintaining the price setting to control the profit war.

The most important determinants of buyer power are the size and the concentration of customers. “Kippenberger (1998) states that it is often useful to distinguish potential buyer power from the buyer’s willingness.” Compare to the previous years recently Nokia considering the high end mobiles, Recently implemented new strategic on new high end mobiles like N900. Ecologically and Ethically the (Nokia)organization getting best buyer power.

Supplier Power

Supplier power little related to the buyer power, this is the ability to charge the customers in the different prices. In the Cell phone business nokia negotiating to the supplier . Due to the competition of the market the price will be getting less and . If demand goes high and product not available then the price also goes high in the mobile business.

Competitive Rivalry

If any company has many competitor and competitor sell in less price then customer look in to that competitor. So the Nokia and the user not getting in the good deal then they can find alternative one


Through my report, I have found out some areas where nokia can concentrate and take over its competitors they should focus on:

PRODUCT COMPETITIVENESS: When the competitors of nokia are manufacturing superior products, the nokia should level the quality,superiorityand high end technology.nokia should also maintain the best price in the market, when it compares with their competitors price.

RESEARCH AND DEVELOPMENT:The cell phone market leader,nokia should come up with new technological innovations and give more importance to research and development.with this nokia can achieve new consumers for new enhanced products.

DEMAND AND SUPPLY:When a new released product is successful then there will be a strong demand so they have to maintain availabilityof that product when the customer s need it.

Nokia should always maintain the efficency,manufacturing, logistics and high quality services and products should be maintained.It should keep more interest on mobile device applications and games.

CUSTOMER SATISFACTION:Nokia’s customer service is always best, but still it should be more responsible to each individual customer.It should introduce with more value added products.Customer satisfaction should be main motto to nokia.


The information regarding nokia and a lot of interesting facts, nokia is the number one leader in mobile phone market.The world mobile phone market share is dominated by nokia.Nokia leads the market with 38.6% stake, beating its nearest competitor samsung which has 16.2% stake.LG and Motorola are tied with 8.3% each.Nokia’s qualities,customer service,features and price range makes it a number one in cell phone market.why the people preffering nokia because of its range of products,user friendliness and durability and the most important customer service.

Due to Global economic crisis, the nokiasales has predicted low for the year 2009 and this crisis resulted sharp fall down in global consumer spending.The duty free cell phones make th nokia sales affected badly.The competitors are more aiming on their product designing, enhancements, and modifications etc.


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