Pestel Analysis of Nokia
The purpose of this assignment is to evaluate various attributes that influence business aspects and profitability of a company. The anticipated outcome from this assignment is to understand PEST(E) analysis and Michael Porters Five Forces model and evaluate macro economic and industrys micro economic factors that can affect business situation. The topic chosen to apply the above Industry analysis methods is “Nokias Smart Phone Business” which is also my currently employed area.
Nokia is a manufacturer of mobile phone handsets securing major global market share and aiming to offer wide array of services like music, digital maps, games messaging, etc. to its consumers. It has established itself as a leading brand globally and caters a wide range of mobile phones for all its global major consumer segments. The Smart Phone market is a recently emerged segment and rapidly growing, with lucrative profit margins enjoyed by industry leaders in the past and attracting new entrants into the industry while experiencing fierce competition and pushing Nokia to re frame its competitive strategy for sustaining its leadership and market share. While other smart phones branding companies just either develop OS, design or manufacture phone hardware or contribute to the ecosystem with OS licensing to hardware manufacturers, its Nokia the only pure telecommunication company which does all of the activities under its own brand and subsidiaries.
This assignment focuses on external attributes at industry stratum which fits to apply PEST(E) and Micheal Porters Five Forces analysis to evaluate and picture current situation of Nokias Smart Phone business.