Business Case

Nokia is involved in manufacture of mobile phones and its accessories. The Company’s business segment is divided into four which includes: 1) Mobile Phones, 2) Multimedia, 3) Networks and 4) Enterprise Solution. The first segment is to provide data device and mobile voice. It provides hand phones which based on EDGE/GSM, CDMA and 3G/WSDMA cellular technologies.

There are many different models and types of analysis to identify company’s strength and weaknesses or to create future framework for further development.

The PESTEL analysis provides a significant framework for companies to identify their stage and at the same time to improve specific tactics to reduce the risk in the market environment. PESTEL stand for Political, Economic, Social, Technological, Environmental and Legal. These factors are used to describe an analysis that is used to determine the risks and opportunities in particular market.

Political factors: these factors are directly related with government because if company wants to stay stable in the market or if they want to enter to new markets government will be the first partner whom they need to deal with. In Nokia’s case it very important because it is multinational company and every nation has their different rules. To achieve success they are dealing with government instability, rules and regulations such as quotas (limit to imported goods), tariff and tax charges by working “hand to hand” with authorities to get more benefit. E.g. Nokia moved one of its main manufacturing plants to India, when they are inside the country they started to follow to the rules and regulations which are set by the government such as Health and Safety regulations in order to operate as efficiently and effectively. One of the main reasons for entering Indian market was its doubled mobile phone users “from 50 million to 100 million” and there is a demand for simple cheap mobile phones and the Nokia at the result of competition