Nokia Market Analysis

The roots of Nokia go back to the year 1865 with the judicature 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 workings Ltd, and in 1912, Finnish C fitting Works began operations. Gradually, the ownership of this two companies and Nokia began to deliver into hands of just a few owners. Finally, these three companies were merged to puddle Nokia Corporation in 1967. 1 Nokia Corporation engages in the get of roving devices and ready network equipment, as well as in the provision of related solutions and services world enormous.The fraternity has four main business functions or fragments erratic Phones, Mul whiledia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various agile voice and selective information devices. This segment offers industrious phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multim edia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Strategic Management of Nokia The orthogonal Analysis examines opportunities and threats that exist in the environment and I will be discussing the fallowing. . P. E. S. T Analysis 2. Porters Five Forces/ foodstuff Tr checks 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 attain a come with. In this shimmy Nokia. Political As commercializes argon deregulated, both operators and manufacturers argon 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, battalion know 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 expendr involve (text messaging and phone calls) and charge being such a separate factor. Social The rise of the so-called information society has made telecommunications more and more more important to consumers, both in terms of work and leisure. Users be more aw atomic number 18 of mobile phone handset choice and advancements out-of-pocket to developmentd information availability.Strategic Management of Nokia Technological There piddle been much global advancement in engineering science such as MMS, Bluetooth, WAP, GSM, GPRS, cameras etc. The Asian commercializeplaces atomic number 18 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 demonstrable in Industrial Organization (IO) economics to derive five forces which checker the competitive intensity and therefore attractiveness of a trade. It consists of fallowing factors. Power of fresh Ent rantsIn both commercialize arrival of a cutting harvest-feast is not always welcomed.In mobiles world its not divers(prenominal) a mobile phone or an online service is launched by Nokia it has as 50 percent chance of success. Its like the launch of Nokias N95 Smartphone which was much appreciated by buyers accordingly the launch of N96 Smartphone. Power of Buyers due(p) to recent down fall in the economy, the demand of consumers buying sweet mobiles has come to a halt. Due to which companies bothwhere are persuasion of strategies to increase the demand of their results. Strategic Management of Nokia Threat of SubstituteThere are substitute for everything out in the world.So goes for the mobile, and the services provided by Nokia and the problem lies in consumers switching to the substitute. The main reason is that most people dont like to change to something refreshing because they might ensure it hard to use or switch over. Power of SuppliersIf the suppliers change the price then company in this case Nokia has a direct strike on the pricing of their products. If there are more suppliers then it is light to change from one to another if the first one is not able to provide the services a company needs.Competitive Rivalry byplay is good where there are competitors because it gives more chance to improve and go frontwards of your rivals. Nokia keep their product catalogs up-to-date and keep looking for purify technologies to update its mobile and services. 3. Types of Market There are different types of food marketplaces on which a company makes strategies to fallow and consider before releasing products. Which are discussed as below. MonopolyNokia as a mobile manufacturer has dominated mobiles market with its uplifted end N-series Smartphone to its low end mobiles.It was Nokias intentional outline to keep ahead with the technology to keep customers interested in its products. DuopolyIts a market state when two companies dominate the market . In this market Nokia is challenging HUAWEI technologies in producing 3G technology dongles because at present time there is no other company in the world expect Huawei producing 3G dongles. OligopolyIts a type of market where small numbers of companies in the market collude to take control of the market prices and products. In Nokias case it is colluding with Sony Ericsson and Samsung to make phones which use Nokias mobile operating system (Symbian S60).This eliminates the use of Windows mobile operating system and newly introduced Googles operating system Android. Perfect CompetitionIts a market where all Companies are on a same level. Nokia as a leading manufacturer still have Samsung, Sony Ericsson, Motorola, and LG give a snarly competition with products ranging from every low end user to high end tech loving customer. Internal analysis Strategic Management of Nokia Its a management technique developed by Bruce Henderson for Boston Consulting class in 1970 for assessing the long-term viability or profitability of products and market sectors.Categories include capital cows, dogs, stars, problem child or a question mark companies. 1 job Child/Question markWhen a new product is launched in a promising market but it has a low market share but got potential to be a magician then a Cash cow or if everything fails it could become a Dog. In Nokias case its latest product from N-series Smartphone N96 is struggling to get the market share like its predecessor N95 Smartphone. Cash Cow When a certain products market matures and its demand slows but it has a pear-shaped market share is known as Cash Cow.Nokia has many products that reached their matureness and died away in recent days its high end Smartphone N95 reached its market demand and is slowly dying away because new technology is introduced every day. StarIts a new product when launched has a high market response and its sales rise. Companies like Nokia are in a search of new products which can be tur ned into stars and they invest coin in Problem Child and Dogs to turn them in to a Star and then hope to turn them in to Cash Cow. DogA Dog is a product new or old market shares and sales decline very fast.In mobile industry technology changes very drastically so even a Star with spoilt strategy and marketing can be turned in to a Dog just as easy Strategic Management of Nokia warmheartedness competencies are activities and process performed by a company to keep ahead of the market and its competitors. Business professors Bateman and Snell offer this answer Simply stated, core competence is something a company does especially well relative to its competitors. 4 Competencies of a company are things that are hard to imitate like customer allegiance etc. These Core Competencies change from time to time.In todays market where every company is in a lose Nokia is thinking of new ways to get an edge on its competitors by introducing new services and products that are harder to imitate and trying to give most for consumers money. fig out Analysis Strengths 1. Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. 2. The financial aspect is very hefty in case of Nokia as it has many more profitable businesses. 3. The product being user friendly and have all the accessories one want. 4. Nokia with wide range of products for all classes. . The re-sell value of Nokia phones are high compared to other companys product. Weakness 1. around of the products are not user friendly.2. Some of the weakness includes the price of the product offered by the company. 3. Nokia does not like to undertake change very quickly. 4. The service canters in leash world countries are very few. Opportunity 1. Nokia is also thinking of moving from mobile manufacture to personal computer manufacture. 2. As the standard of living in third world countries has increased the purchasing power of the people has increased as well 3. Nokia ha s to target right customer at right time to gain the most out of the situation. Threats 1. The threats like emerging of other mobile companies in the market. 2. The new mobile operating systems from Google and Microsoft. 3. The biggest threat is not adopting new technology and putting in good use. 9 Conclusion after(prenominal) writing this article I came to a conclusion that in any business successful or a newly established if not managed well and cannot take advantage of its opportunities can come to its knees. So for a business to run successfully have to manage its Competitors and threats that may affect the performance of a business.