INTERNATIONAL BUSINESS ENVIRONMENT

International Business Environment: Nokia



Table of Contents

Part 13

Introduction3

Part 24

A.COMPETITIVE POSITION4

Technology4

Sales4

Human Resources (Core competence)5

SWOT Analysis5

Strengths5

Weakness5

Opportunities6

Threats6

Conclusion6

B.ATTRACTIVENESS OF THE MARKET7

Nokia Chosen foreign markets7

PESTLE Analysis7

Political Environmental7

Economic Environments7

Socio-cultural environment for Nokia in Hanoi, Vietnam8

Technological Environment Factors affecting Nokia in Vietnam8

Porter Diamond9

Factor Condition9

Demand Conditions9

Rivalry9

Support Industry9

C.MARKET ENTRY STRATEGY10

Competitive Strategy10

FDI10

Joint Ventures11

Mergers & Acquisitions11

Export & Import11

Conclusion12

International Business Environment: Nokia

Part 1

Introduction

Nokia is a mobile technology manufacturer headquartered in Espoo, Finland with 2010 revenue of $43Billion. A pioneer in manufacturing mobile phones and the GSM technology, Nokia's profitability has been on the decline in recent years. A reduction of market share in N. America of 35% in March 2008 to 8.1% in April 2010 highlights Nokia's decline. This led its Board of Directors to replace its CEO with Stephen Elop.

The mobile phone trade has grown and developed into a new marketing trend globally, over the past years. The market depicts exemplary conditions for this niche and growth figures have progressed exceptionally, since the beginning of the mid 1990s-2012. There are varied mobile phone brands in the marketplace, one of which is Nokia, which has experienced bumpy ride during the recent years. Nokia's market share for its global device was 31% in 2010, but this was lowered during the first quarter of the fiscal year 2011, to 30%.

With rivalry companies such as Apple and Samsung, Nokia presently stands in a difficult position. This context primarily focuses on Nokia and its overall activities in the Chinese market. Considering past situations in the marketplace, where new and emerging entrants heighten the level of competition, the mobile phones developed brandishes varied designs and functionalities. China and East Asia prominently secures a conveying role in this exceptional development. China embraces an elevated potential for the mobile market and its growing economy (Lindholm et al., 2003).

Part 2

COMPETITIVE POSITION

Technology

Nokia is in a solid position to regain market possession and enter new markets such as African markets, as the global leader of manufacturing mobile phones. It needs to focus its attention by making mobile phones that would compete with Apple, Android powered smart phones. In addition, it needs to increase advertising and marketing strategies. Nokia was successful in hiring Stephen Elop. This move was strategic and Nokia has teamed up with windows to create Nokia smart phones that operate off the Windows OS platform. Nokia also needs to increase the robustness of its OVI online store and work with 3rd party software developers to increase the amount of relevant apps. If this is implemented successfully, Nokia will be able to compete with Apple and Android because it already has a vast global customer base that enjoys its products. In addition, Nokia's Symbian OS, which powers its smart phones, needs to be made better and functional. According to Kai Nyman, Nokia's former chief architect for enterprise domain strategy, opportunities presented themselves for major overhauls to Symbian, which were all turned down by upper management (Steinbock 2001).

Sales

The company operates across 120 nations with 122,000 employees. The sales figures are renowned for the company as they are function in ...