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Case analysis of Nokia in 2010-Szu-Han Wang Introduction Nokia was formed 140 years ago in Finland and now the company has become the leading mobile manufacturer in more than 120 countries across the globe. The paper presents the detailed analysis of the internal and external business environment of the Nokia Company. Macro environment: Macro environment reflects those factors that are in direct control of the business. PEST analysis completely evaluates the macro environment for Nokia. PEST analysis corresponds to the political, economic, social and technological factors responsible for making any changes to the business. Political Mobile phone market is facing licensing issues like 3G/4G and new regulations. There are great security regulations. Nokia have to work within market regulations and maintain the flexibility to achieve higher network access. Economic The recent recession has adversely affected the consumer buying power thus lowering the overall sales. Another important economic factor affecting the Nokia economically is the higher costs of raw materials. These costs affect the overall costs of the products. Social Consumer is the king and its preferences can alter the selling pattern of any products. Nokia should consider the consumer demands and preferences and must include them into its products. Technological There is change of industry standards and operational frameworks. Nokia must work with telecom infrastructure providers to explore new markets. Micro Environment Five forces analysis Micro environment is the internal factors affecting the company performance. Porter’s five forces analysis presents the best model for evaluating the micro environment. Threats of new entrants Mobile phone industry in well established and threat for entry of new entrant is

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