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A PESTEL analysis of Nokia Company - Essay Example

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Summary to essay on topic "A PESTEL analysis of Nokia Company"
In 1967 Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merged to create Nokia Corporation. The newly formed Nokia Corporation…
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Download file "A PESTEL analysis of Nokia Company" to see previous pages... The concluding section will make recommendations for the future based on the PESTEL analysis.
Finland is a stable parliamentary democracy that has been a member of the European Union (EU) since 1995. It provides a remarkably stable home base for Nokia. A succinct overview of Finland as a politico-economic entity is provided by the Encyclopedia of Political Information:
Finland has a highly industrialised,
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largely free-market economy, with per capita output roughly that of the UK.... Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, with exports equaling almost one-third of GDP.
According to the company website it had sales of EUR 10.3 billion and reported an operating profit of of EUR 403 million and earnings per share of EUR 0.14 in the third quarter of 2010.(Nokia, 2010) On the other hand Intomobile greeted this report by noting that while the overall mobile market is expected to grow by 10% Nokia sees its share of that market dropping slightly along with their value share. (Intomobile, 2010) Overall, Nokias economic position is strong but not perfect.
Demand for a firms products and their ability to continue manufacturing them are the key elements in the social element of PESTEL analysis. Nokias core competency, mobile communications, is growing in terms of volume and coverage and, at the same time, innumerable new applications are being developed at an astronomical pace.
In terms of its ability to thrive in a stable social environment Nokia is also ideally positioned. Its home country, Finland, is a stable democracy with a moderate gap between the wealthiest and the poorest citizens and a strong social support network. While not immune to the recent global economic meltdown Finland weathered it well. Additionally, Nokia ...Download file "A PESTEL analysis of Nokia Company" to see next pagesRead More
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