PEST Analysis of Nokia | Business Teacher
Nokia is a Finnish multinational communications company. Nokia produce mobile electronic devices, mainly mobile phones. Finland is a small country that has
good political environment and will not get involved in the international political disputes. Finland maintains good international relations with other
countries of the world.
Besides, Finland is a member of the European Union, so Nokia can get a lot of political interests from the policies of the European Union. Since the
establishment of the single European market, Nokia enjoy the low trade barriers and foreign direct investment to other European countries. In addition, the
establishment of Euro dollar also helps Nokia to reduce financial risk.
For example, Nokia was producing 315 million mobile phones in emerging economies, $ 120 million in Germany and Finland in 2007. Because of German
production, production in Western Europe not only stand in Finland’s 85 million mobile phones which including Nokia’s high-end E-series and N-series that
manufactured at Salo. Besides, economic development agency of German has signed a $ 128 million of subsidies with Nokia which requires the problems the
effectiveness of European government support for foreign investment preferential policies. Nokia has invested a $ 87 million plant in Romania in 2008 to
create 500 jobs and finally employing 3500.
Nokia must comply with the ground rules and regulation of different markets around the world when operating globally. Nokia had do research of the scope of
limits to stop the illegal actions, regulations and aid from the government to resist international trade before entering to a new market. The goal of the
national quota restrictions on imported goods, the embargo, customs duties and tax charges, subsidies and patents more than a certain technology or
equipment is decided by the host government, Therefore Nokia work together with the authorities in order to obtain the greatest advantage market. Nokia had
applied for laws of copyright to avoid misuse of their products.
With the liberalization of the market, operators and manufacturers are independent to act of the government’s intervention. In some countries part of the
regulations exists that does require government intervention such as India and China. Chinese market is a stable political environment. This is the largest
population of a country’s accession to the World Trade Organization in 2001, and the open-door policy announced by the government to encourage foreign
companies to invest in. Overall, the current political factors is an opportunities for Nokia.
Economic system is crucial for Nokia because it can control the production, how the products should be produced and target market that uses the end
products. Besides, Nokia mobile phone is important for a global supplier of various aspects of international trade. It is important that Nokia has the
knowledge about the economy condition of host country such as inflation rate, currency exchange rate, to improve the venture to achieve personal and
financial security with future plans.
With the continuous improvement of the income, people have more income, so that consumers have more selective with their choice of mobile phone, looking
into the design, function and features of the mobile phone rather than the basic of user needs. The price of the mobile phone is no longer a key factor
when consumer selecting the phone.
Due to the popularity of mobile phones, mobile phone is not just a simple communication tool, but become a partner in the day-to-day life and work friends.
All level of social class use different model of mobile phones frequently to meet their personal needs, despite their differences in nationality, race,
beliefs, religion or income level between among each others. Mobile phones now become a fashion element or decoration so that Nokia had launched more and
more fashion phone such as Lumia series mobile phone. Mobile phones are more and more important because can show personal identity and communicate with
each other even it can show each person’s life. For example, Nokia has been advertising on social network such as Facebook and Twitter. Consumers can see
the ongoing promotional activities that Nokia has produced on such social networking service .Moreover, Nokia has also established a website to help
consumers read about the feature articles, and help them to acquire knowledge about Nokia products.
Nokia success is based on the of human technology innovation. Nokia enhance communication, explore new ways to exchange information, connection and
allowing users to get more out of life. Technological progress in the industry is very important in increasing the success of any new Smartphone in the
market, as increase in the intensity of competition. Nokia must ensure that their Smartphone is at the highest level of innovation. Camera, Internet,
social networking and e-mail functions, all necessities Smartphone that Nokia will have to consider other features to help differentiate and stand out from
In addition, Nokia had launch Lumia Smartphone that powered by Windows 8 with unique camera technology, exclusive Live Tiles and design features. Lumia
Smartphone comes with unique lens that can take a series of photos with a single click, combine smiles, edit images and enhance in an instant to create
that perfect shot that never took place. Nokia City Lens can discover all cities have to offer around the user, just by looking through camera display.
Besides, Lumia Windows Phone 8 Smartphone comes with full-versions of Microsoft Office, Outlook and Internet Explorer 10. So user can create and edit
Microsoft PowerPoint, Excel and Word documents that make user easier to browse. Lumia Smartphone can also sync all work files on user PC and phone by using
SkyDrive and share documents by using SharePoint or Office 365 servers. By using the Live Tiles, user can access to apps, contacts, Facebook, emails and
tweets on homescreen. The tiles update in real-time when anything new happens so stay up-to-date with everything.