Porters five forces on Nokia

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently

High capital investment for competitor entry into telecommunication industry. Companies in this industry incurred high fixed costs and spend fairly large amount of capital on network equipment and maintain development. Besides, technologies are also considered as barriers for new companies to enter the market.

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

In spite of being a branded and reputed company, there is other several companies which are producing Smartphone like Samsung, L.G., and Sony so on. So there is a tough competition among these company to increase their consumer and sales. One of major threat is that other Smartphone have same operating system ( android) but iPhone has its own operating system(IOS) and cost of the android phone are cheap compare to iPhone. Furthermore, Apple biggest competitor Samsung has large number of phone in competitive prices so most of the customer are interested on other phone, as well as there

However that in 2007 the market of Nokia Company started to decrease and the reasons for that is the new competitions like IPhone from Apple that introduced smartphones, along with Android by Google, and Samsung. Even though Nokia Company results for 2012 were pre much good by having 101982 workers across 120 countries along with sales in more than 150 countries, and the reports for revenue were around 30€ billion. Nokia was announced to be the second largest world for mobiles phone makers in terms of unit sales after Samsung, with having world wide market share 18.0%. However that Nokia Company for current days has 3.2% in smartphones and they lost 40% of their revenue in mobile phone in Q2 for 2013. Nokia was listed in fortune global 500 to be world’s 274 largest companies for 2013 from revenue sides. So Nokia Company has good products, services, and reputations. Knowing that their products are good and have nice services, yet comparing to others like Samsung and Apple they are weak because those provide an outstanding products and services which consist of smartphones. So Nokia want instead of providing a good services and products to become like their competition and provide an outstanding products and

Threats: Nokia phones once dominated the phone market. However, it failed to see the threats from smartphone and the new phone manufacturer, and thus the brand Nokia faced serious strike and almost disappeared until recent.

This report investigates the smartphone industry in the United Kingdom and Germany between 2007 to 2015. I will identify which country is performing the best for the industry and will make a recommendation on which country the business start-up in. I will consider the industry by comparing the companies with the country’s market and state which one had done better. I will explain which PESTL factors influenced the industry for both countries and will explain why the economic recession impacted the industry.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

Since the breakthrough of the initial Apple and Samsung smartphones, both companies have garnered millions of buyers from all around the globe. According to Sam Mattera of Fool, “ Samsung’s Galaxy brand and Apple’s iPhone are ubiquitous. Combined, the firms produced more than one-third of all smartphones sold globally [in the second quarter

Nokia was the world’s largest mobile phone maker for 14 years. The company was once acclaimed for its marketing strategy success for changing mobile phones from just a communication device to everyday fashion accessories. However, in today’s global smartphone market, Nokia has only 3% of the market share and is declining. The company’s decreasing sales was an obvious sign of vulnerability leading to the selloff of its mobile device business to Microsoft in 2013 (Surowiecki, 2013).

Now, individuals have a tendency to have an occupied life because of employment, school and other type of issues each individual face in their personal lives. In this way, they like to have a phone which fulfills their needs to stay in touch and be reachable whenever. Smart phones have conveyed a radical new intending to the term multitasking. Sometime recently, it was difficult to keep joining with colleagues in your office while you were in the market grabbing some essential things. You could never have had a three-way business meeting while you were managing a business customer from home while taking care of your child. Smart phones have empowered us to do different things while doing different task. Due to its convenient, individuals is by all accounts more open to utilizing smart phones as an essential specialized gadget than a computer desktop or home telephone. Besides, it is a productive and tactful

Overall the market has become saturated and is unattractive for new entrants but there is still a huge scope for existing market players like Nokia to capture market share by focusing on rapid innovations and marketability of smart-phones with the use of its pioneer brand image.

As illustrated, failing to capitalize on the growing demand for smartphones, Nokia’s smartphone market share has been on a steady decline for the past 4 years in the smartphone-hungry North American market (Strategy Analytics, 2012).

Technology has changed the world in different sectors. One of the fastest growing industries being the phones. The primary purpose why technology introduced phones were to make communication between people more comfortable. And the fact is that since phones got to the market, everything changed in human life because you would pass information anywhere and anytime to others. Being a fast growing sector phones got modified, more digitalized devices known as smartphones got to the market and since its digital world, of course, none wanted to be left analog. Currently, the most significant number of people in the world own smartphones for various reasons some for fun and others for beneficial purposes like using them for learning. It is true that in the next near few years' smartphones will be the most critical device that people own, and the analysis below will illustrate the reason behind this.