Porters five forces nokia in the us

Porter's Five Forces Model Source Nokia was founded over years ago in Finland, and since then has become a global organisation that operates in over countries worldwide. The micro environment includes the internal factors that are affected by the customers, staff, shareholders and competitors. Threat of new entrants:

Porters five forces nokia in the us

It was found in Finland over years ago and is currently operating in countries worldwide.

Threat of new entrants:

Although, still one of the market leaders in the mobile phones and smartphones industry, recent competition has decreased the market share of Nokia. In order to evaluate the micro-environment that Nokia operates in, its Porter Five Forces Model is done which takes into consideration customers, suppliers, substitutes, rivals and new entrants.

Porters five forces nokia in the us

The analysis is as follows: Threat of New Entrants The threat of new entrants into the mobile phone industry is not very high.

There are a number of reasons for this.

Porters five forces nokia in the us

The first reason is that the technology needed to produce the latest generation of smartphones is very advanced, making it difficult for new entrants to differentiate themselves.

The second reason is that any new entrant will be required to spend a huge capital on research and development, technology, and then marketing in order to become at par and compete with the established players.

The third reason is that companies like Nokia hold major shares of the market making it very difficult for new entrants to grab onto market share. They will need a lot of time or something extraordinarily innovative and new to attract market share.

In the past couple of years, new entrants such as Q Mobile, Xiaomi and OPPO with the help of huge investments and decreased production costs due to economies of scale have been able to enter the market successfully.

So overall for Nokia, this threat of new entrants is high. Bargaining Power of Suppliers Nokia holds a significant amount of bargaining power over its suppliers especially in the case of hardware.

There are a large number of suppliers that are willing to supply the parts required by Nokia for the manufacturing of their products. In case a supplier attempts to bargain with Nokia for higher prices, Nokia can easily switch to other suppliers.

Nokia holds a significant market share in the mobile phone industry making it very attractive for suppliers. Therefore, no hardware supplier would be in a position to bargain with Nokia and be lucky to have such a huge purchaser. Some of the hardware suppliers include Ericsson, and Cisco Systems.

Porter’s Five Forces Analysis of Nokia|Porter Analysis

On the other hand, for their software requirements, Nokia has recently come into an alliance with Microsoft to supply them with their required operating system software.

However, in this case, Nokia is at the lower end. Microsoft has a higher power of bargaining over Nokia as this deal is more beneficial to Nokia than Microsoft.

There are almost no other organizations that can rival Microsoft in software creation ToughNickel, Therefore, Nokia has a moderate threat from the bargaining power of suppliers.

Porter's Five Forces Model

Almost no threat from hardware suppliers but a significant threat from software supplier. Bargaining Power of Buyers Due to extensive growth and development in the mobile phone technology, the bargaining power of the buyers in this industry has increased a lot.

Same is for Nokia. It has become a very competitive market where there are many choices for the buyers; making them very powerful as they can choose to easily go to any of the rivals of Nokia if products are not good enough for them. As Nokia does not make direct sales and relies heavily on intermediaries, electronic shops and carrier stores e.Published: Tue, 09 Jan Samsung was founded by Lee Byung-chul.

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is and in to a was not you i of it the be he his but for are this that by on at they with which she or from had we will have an what been one if would who has her. Nokia was founded over years ago in Finland, and since then has become a global organisation that operates in over countries worldwide and a market leader in mobile telecommunications.

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A "Porter's Five Forces" Analysis of Nokia | ToughNickel