Competition Against Nokia Essay

Excerpt from Essay :

External and Internal Environments

Two segments of the general environment that influence the corporation

The technological developments in the market are important to the achievements of any Smart phone company that is constantly expanding. As competition increases, Nokia must make sure that their smart phones are at the highest innovation level. With features such as internet, camera, email, and social networking necessities on smart phones, Nokia will have to think of other features, to help differentiate and separate itself from its competitors. A number of clients look at the software operating all the functions as a key signal of the achievements and quality of the Smart phone. Therefore, Nokia's partnership with Microsoft Company for their newest smart phones seems an excellent move as the market is cognizant of the technical abilities of Microsoft, and the benefit to technological items. Previously, Nokia dominated in the cell phone market (Burn & Ash, 2000), these days they have seemed well off position and battle to contest with their competitors. Nokia must consider their place in the market and make an effort to become the market leader once again. This can be achieved by providing a new impressive ability and getting to the market before its competitors.

The political aspects pertain to the aspects such as government rules or instability and regulations, which the business must follow. Nokia has lately shifted one of its production features to India. Thus, the business must adhere to the policies that are set in India if it has to run in an effective manner. They will have to be aware of a number of things like the maximum working hours for an employee, health and safety regulations and the minimum wage. This is to prevent any negative press or rebel from workers that will eventually harm the popularity of Nokia both temporary and long-term. From the perspective of a foreign government, Nokia must establish an excellent connection with their government. This is because any political uncertainty such as a coalition or a change in government may result in new laws and regulations being applied, which will have an impact on Nokia (Hitt, Ireland & Hoskisson, 2007).

Two forces of competition

Threats of substitute's products: mobile phones are becoming a daily necessity in peoples' lives because of the essential functions that they can do. In addition, these functions are all available in a single device. No other item has the capability for making calls, sending messages, and browsing the web and many more in one system. The concept of being in continuous interaction with someone at anytime and anywhere has made the cell phone a very essential tool for people. On the contrary, a mobile phone can be dissected into the key functions where there are alternatives for features. For instance, the camera feature on a mobile phone can be replaced for a digicam, which can do a better job than the camera in a mobile phone. The risk of a substitute item is very low. This is simply because a cell phone is no more just for making phone calls, but for all the other functions are also required on all mobile phones. Therefore, the only real substitute is to buy all the features of a cell phone in the individual items, which would not be possible to bring all around on a person at the same time. Without mobile phones, consumers will find it very challenging to substitute as it can provide so much to customers all in one system regardless of what the needs of the customer are. Consumers have become addicted to mobile phones and will rarely find a substitute with all the features of a cell phone (Hitt, Ireland & Hoskisson, 2007).

Competitive rivalry: Nokia opponents have moved to androids and Smartphones while Nokia has only just recently launched their first Smartphones, leaving them trailing their opponents such as HTC and Apple. There is minimal difference between the opponents implying any new Smartphones in the marketplace, like Nokia Lumia, will find it hard to try existing THC and iPhone customers to switch. Nokia plays in an industry where the competition is extremely intense with great investment in R&D and marketing to contest with some of the greatest organizations in the world. This year, Nokia's share in the market declined to 30%. It is predicted that the trend of decline will continue because of the rising reputation of the Apple iPhone (Burn & Ash, 2000).

After Nokia's slow move into the Smartphone industry, it has left them trailing their opponents and has just launched their Lumia range. However, it will find it challenging to contend and win over consumers from their Apple iPhones. Competitive rivalry is very great, and Nokia must be aware of the threats that opponents have on their company. This is especially with the growing reputation of the RIM blackberry and Apple iPhone. The biggest threat to Nokia is the competitive rivalry because in the Smartphone industry, they are considerably behind and to increase their share requires extra work in an industry where some of the greatest names in the business play in like Sony and Apple (Hitt, Ireland & Hoskisson, 2007).

What the company might do to improve its ability to address these forces

Competition is intense in the general consumer electronics market. The handset sector remains the most competitive in the world, especially in the mid and high-end range. In the high-end section, the release of iPhone signified a permanent moment for the industry followed soon thereafter by the introduction of the Android spread. For conventional mobile phone producers, the penetration of traditional software organizations added to the already intense competition. In addition, it also created indecisiveness as to how the future of mobile phone business would look like. More lately, especially Apple, Samsung, LG and Android operating system producers have been able to increase their business, putting the conventional organizations under yet more pressure. Furthermore, the income in the high-end range remains great due to the effective difference in both hardware, operating systems, and other softwares (Hitt, Ireland & Hoskisson, 2007).

Nokia can use the Differentiation technique, which is a mixture of broad target scope and differentiation competitive advantage. Differentiation in the marketing mix for the Lumia 920 can be seen in the price and product elements of the marketing mix. Lumia 820 can be differentiated but only in the product part of the marketing mix. However, the cost of the 820 is lower and mid-range in the industry and cannot be differentiated. The smart phone can be differentiated from its competitors in the product part of the marketing mix with their physical and non-physical features. The physical features of the 920 and 820 are the design of the item as well as the multiple colors that are available to clients. The shades can provide personalization for gadgets and distinguish the products from competitors such as Apple and Samsung.

The two organizations often offer their smart phones in only two shades. The gadgets can be differentiated in the non-physical manner trough Nokia's collaboration with Microsoft. The company is first to produce a smart phone running. Microsoft windows software, and at present it is providing more Windows phones than its competitors are. The Lumia 920 can also be differentiated by its impressive technological innovation such as its innovative camera. Nokia 820 and 920 both provide wireless charging, which is a new and impressive offering in the industry.

External threats affecting this corporation and the opportunities available


Nokia is confronting a huge competition in the Smartphone industry from Samsung, HTC, and Motorola. At the high-end costly mobile range, the organization is battling RIM's Blackberry and Apple's iPhone. Nokia has unquestionably assumed the role of a market player and has missed the mark in the Smart phone industry with developing and fixing its strategy. Nokia has turned from Symbian software to Windows application, which puzzled clients and made it difficult for Nokia to deliver its message and build attention in the marketplace. Nokia will have to battle to return to the top again as the Smart phones shift from the client's viewpoint is difficult (Hitt, Ireland & Hoskisson, 2007).

The device is more than just a cell phone: it becomes part of individuals' lives, keeping their private and important information adapted to their personal preferences. Because of the diverse software, it is difficult for customers to transfer their details from one software as Android operating system to other as Apple's IOS. This change may cost customers to lose essential information. Given all this, clients need a very valid reason to replace their operating system. In order for Nokia to recover its lost market share, the organization has to come up with excellent technology, and persuade the clients that their products are the best choice in the marketplace.


The main opportunity for Nokia is in its collaboration with Microsoft Company. Nokia is the leading organization to offer windows phone, this could be sued as a competitive advantage and create new and…

Online Sources Used in Document:

Cite This Essay:

"Competition Against Nokia" (2014, May 04) Retrieved February 19, 2018, from

"Competition Against Nokia" 04 May 2014. Web.19 February. 2018. <>

"Competition Against Nokia", 04 May 2014, Accessed.19 February. 2018,