Nokia Micro- And Macroenvironments

The company I want to discuss is on of the leading world wide mobile phone company - Nokia. The reason I decided to focus on this company is that I think they are very successful, strong and well know brand on the market. I am they loyal customer and I was never disappointed by choosing their products, which make me trust them.

I. Micro- and Macroenvironments

All companies have to struggle with problems that they cannot control, we call them micro- and macro- environments. To the most problematic ones for Nokia are:

1. Microenvironments:

* Power of Buyers - Nokia is a leader on the market, they have a big competition that is not staying far behind. Thanks to that customers have much more choice and demands.

* Individual skills - Nokia have to remember that not every person is able to use advance technology such as computers and mobile phones, also technology grows different in every country.

2. Macroenvironments:

* Political - EU Legislations - Mobile phones are working by emission radio waves. Company have to remember about keeping norms regarding to safety, power and volume of emission.

* Economics - Tax level, exchange and inflation rates can give an idea for company how much they product will cost in specific countries. Unemployment and personal saving can tell company which product they will buy more or less and how often. Countries with big unemployment and small personal saving will rater look for lower price phones. Economics environments have also a big influence when choosing a country for a factory. To bring the price lower company will look for the country where labor is not expensive and (or) country will give them encouraging tax discounts.

May 2006

Networks Technology Customization and Mobile Devices and Enhancements

Logistics Centre

China United States Brazil

Finland China

India Finland

Germany

Great Britain

Hungary

India

Mexico

South Korea

* Sociological - one of the aspects of sociological environments is culture - religion. When observing Nokia strategy you can see that there is no adherence to any religion or political party. This is good and planned

move. When you reaching a global market, you have to remember that your target will have different believes, culture, and submitting with one of them my cost company losing a customers. Life style is also one of the very important environment for the company. Depending on how people live in this times and what needs, want and abilities they have, can tell Nokia to who they want to send the particular line of they product.

* Technologies - To hold a leader position they have to research all the time for new solutions and technologies, also most of our phones have now access to internet and what stand behind it - viruses. Company have to make sure that they customers are safe. Nokia don't have direct contact with customers, most of they sales are made through mobile phones operators. To be attractive to operators they have to make them sure that they sim-lock security is modern and well design to minimize illegal taking them off.

II. SWOT

Opportunities:

* Economies - because of growing income per person, customers will increase amount that that they want to exchange for Nokia products.

* Demographic changes - a lot of young couples now are deciding to start they families late and having one or two children, which mean that they will have more money to spend on modern technologies.

* Market - people are looking for products that are safe for our planet. Nokia is very pro- Green Market.

* Technologies - 3G will be next big hit on the market, after big hits like SMS and MMS. Nokia already made new line of phones with 3G function.

Threats:

* Competitive activity - SonyErikson will soon introduce new line of 3G phones.

* Demographic changes - because of growing tendency to starting late and small families, in the future there will be less potential customers.

* EU will make new legislations regarding to emission of electromagnetic fields.

Strengths:

* Leader on market in mobile phones

* Cooperation with many strong companies, universities, researching institutions on new technologies.

* Good distributions,

* Phones are very available for customers.

* Many