Sample Essay on PESTEL Analysis of Nokia

PESTEL Analysis of Nokia

Nokia is one of the leading mobile phone manufacturers in the world today. While this is the case, there are factors, beyond Nokia’s control, which affect its performance. To understand these factors, this essay gives an in-depth analysis of the Company’s Pestel. We shall discuss political, economical, social, Technological, environmental and legal factors.

Political Factors: These refer to rules or regulations imposed by the government. In most cases, businesses have no option but to comply with the rules to operate in such an environment. With Nokia’s recent venture into India’s market, it is needles to mention that it has to follow Indian regulations to operate effectively. Among other things, Nokia must adhere to the minimum wage laws, which dictate what the least paid worker should earn. Additionally, India regulates the number of working hours per day for employees. Thus, Nokia has to stick to the terms and conditions as stipulated by the government. Moreover, Nokia observes health and safety regulations, to avoid industrial actions and maintain good relationship with the government.

Economical Factors: Nokia plays an important role in Finish economy. As a result, the government is keen on its progress. For instance, the government has previously helped former Nokia employees to secure other jobs whenever it lays off some of the workers. The currency exchange rates further affects the performance of Nokia. This is because exchange rates operate globally and their fluctuations always have dire economic effects. Furthermore, a looming financial crisis on western economies is likely to affect Nokia’s performance. Consequently, the cost of borrowing money has gone high.

Social: Nokia mainly operates in Western markets. It has to master social factors that affect market trends. A major component that Nokia has to appreciate is the culture of its target audience. For example, Americans believe in having trending phones on the market. Nokia therefore has to be miles ahead in adjusting to marketing trends. Most consumers prefer attractive Smartphones since the public charges you depending on the type of phone you have. As a result, more and more people choose new phones as compared to standard mobile phones.

Technological: Nokia has the challenge of maintaining its tech standards because of the stiff competition in the market. They need the highest level of innovation. Since all Smartphones have internet, camera and email, Nokia must develop other functions that will differentiate it in the market. Nokia’s recent partnership with Microsoft was a successful move because of the public trust that Ms enjoys in the world.

Legal: Nokia must protect its intellectual property lest it loses it to rivals. The Mobile industry, unlike others, makes it hard for companies to develop unique products. Thus, cases of reproducing other company’s ideas are common. Nokia must curb this by use of patents, copyrights and trademark. Besides competitors, it must handle counterfeiters.

Environmental: Today, Nokia, like any other company, has the obligation to adhere to environmental safety measures and ethics. This is important in dealing with global warming, which has become the world’s common enemy. Nokia must address the issue of disposing its phones and accessories without hurting the environment.


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