Strategic Management

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Environmental and Social factors:

It is a culture in the Western Market to use the most updated version of mobile phones, which is also considered as most important key fashion in Western culture. It is very important to Nokia to Understand this social factors to trade in Western Countries’, But the Company not really gave an attention on this. The Mobile phone consumers are more on smartphones instead of standard phones. Nokia never take much efforts on developing a smartphone to fulfill the customers need.

Technological:

Nokia has launched Symbian series in the year of 2002 which was responded very good in the market and this has been turned around when Apple introduced IOS in 2007 and Android in 2008. The Symbian OS has been collapsed by existence of this two giants and due to lack of application and User Interface. The Company has failed to look into the technological changes happened and lost most of its customers in 2011.Therefore technology advances in the industry of telecommunication are vital to the success of Company like Nokia for continues growing.

Legal

This is one of the most important factor for Nokia as the Company is running the business globally, therefore its very important for the company to understand the global legal issues. Recently the Company had cut it expenditure by using low quality materials in their product that was illegal and this was raised as a concern to Nokia and it made the Company to lose little market in the country.

Industry analysis – 5forces

Industry analysis is very important to understand the current performance of a Company, below are the Industrial analysis that has been conducted to analyses the current Performance of Nokia, Porter’s five forces analysis has been conducted as belos:

Power of New Entrants: The threat of entry for this industry is low for Nokia as the Company’s N95 and N96 has been much appreciated by its users. But the entrance of Iphone and Android had much good system compared to Symbian system that has been used by Nokia, which lead the

the mobiles world it’s not different a mobile phone or an online service is launched by Nokia it has as 50 percent chance of success. It’s like the launch of Nokia’s N95 Smartphone which was much appreciated by buyers then the launch of N96 Smartphone.

Power of Buyers: Due to recent down fall in the economy, the demand of consumers buying new mobiles has come to a halt. Due to which companies everywhere are thinking of strategies to increase the demand of their products.

Threat of Substitute: There are substitute for everything out in the world. So goes for the mobile, and the services provided by Nokia but the problem lies in consumers switching to the substitute. The main reason is that most people don’t like to change to something new because they might find it hard to use or switch over.

Power of Suppliers: If the suppliers change the price then company in this case Nokia has a direct impact on the pricing of their products. If there are more suppliers then it is easy to change from one to another if the first one is not able to provide the services a company needs.

Competitive Rivalry: Business is good where there are competitors because it gives more chance to improve and go ahead of your rivals. Nokia keep their product catalogs up-to-date and keep looking for better technology