Steep analysis of nokia

STEEP analysis of NOKIA

Nokia, is an international organization which requires to focus on macro environmental factors. It includes socio-cultural, technological, economic, environmental and political factors. In view of the different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market. To understand the macro environment more this article will study each section in depth.

Socio-cultural

Socio-culture focuses on how Nokia blends in with components in a society; that is culture, social class, lifestyle and demographic and psychological factors making up the society. Nokia operates in a diverse number of culture and all levels of social class simply because different models are frequently released to satisfy all individuals despite their difference in race, nationality, religion, income level or beliefs among each other. Mobile phones can easily adapt to any culture and can be used to support different aspects and existing patterns of Individual’s lifestyle or behavior.

At Nokia, their whole business is based around communication and connecting people. One of Nokia's aims is to make it as easy as possible for their people to be satisfied working with them. Thus, it keeps various stakeholders interests in mind. Nokia develops products and services that encourage communication and learning among people and societies. They are using their strengths - connecting and communicating - to help make a difference. It complements the core business and their vision to be involved with the youth and education issues around the world, preparing young people for their future. The goal is to be a good corporate community member wherever they operate, as a responsible and contributing member of society. Sharing in the belief that prevention is better than cure, they take part in long-term projects aimed at helping young people to create a firm foundation for themselves and to find their place in the world.

Technological

Technology change defines how fast technology advances. Being the predominate medium by which we get things done; technology as a process, in terms of mobile phones defines the way we make contact. The technological advances in the industry are vital to the success of any new Smartphone in the market that is continually growing, as the level of competition rises Nokia must ensure that their Smartphones are at the highest level of innovation. With functions such as camera, internet, social networking and email all necessities on Smartphones Nokia will have to think of other functions to help differentiate and stand out from its rivals. As well as function more and more consumers are looking at the software running all the functions as a key indicator of the success and quality of the Smartphone, so Nokia’s alliance with Microsoft for their latest Smartphones seems a very good move as everyone are aware of the technological capabilities of Microsoft and the value they can add to any technological product.

In the past Nokia were the market leaders in innovation in the mobile phone industry, however in recent times they have seemed well off the mark and struggle to compete with their rivals. This is why Nokia must consider their position in the industry and attempt to once again become the market leader by offering a new innovative capability and get to the market before its rivals. The success of Nokia is based on constant innovation on human technology. By enhancing communication and exploring new ways to exchange information, connecting people, Nokia allow users to get more out of life.

Economic

Economy in tells the production and consumption of goods and services. As far as Nokia is concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products.

On one hand, aspects of international trade is important for Nokia being the global supplier of mobile phones and on the other hand, the knowledge concerning the nation’s economic status (Type of economic system practiced, Inflation rate, level of employment and exchange rate) is equally as important to realize future plans for personal and financial safety together with enhancing entrepreneurship.

With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor.

According to the fact that Russian Federation was collapsed in early 1990s and it clashed with Finnish economics. Nokia also faced problems, and changed its functions from single market and over all products to global market and focusing mobile phone market. During the first half of the year 2001, Nokia continued to perform strongly in the global mobile communications market and was able to strengthen its leading market position. However, the general economic slowdown in the US has recently shown signs of extending to other regions and to the wireless telecommunications industry as a whole.

Environmental

In today’s culture it is very important for organizations to be seen as environmentally friendly and ethical with its manufacturing, because of the global effect it has on global warming so Nokia must ensure that they operate in an appropriate manner. With mobile phone recycling organizations becoming more and more popular, this demonstrates how important people are regarding it. The main issue with mobile recycling is the disposal of the batteries in the phones as these can become dangerous if not disposed of appropriately.

Political

The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. It is important of a company to acquire resources from government, such as economic policy, and science and technology policy. The success of Nokia has obtained the resources from Finnish policies which assist Nokia to advance its products. The Finnish policies are the most important factors of Nokia. To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot.