Nokia PESTLE Analysis: Strategic Recommendations for Market Challenges

This report presents a PESTLE analysis of Nokia, evaluating the political, economic, social, technological, legal, and environmental factors impacting the company's business environment. The analysis identifies key challenges such as a lack of political support, economic downturns, changing consumer preferences, outdated technology, stringent legal regulations, and environmental concerns related to product disposal and global warming. Recommendations are provided to address these challenges, including increasing product diversity, implementing growth strategies, upgrading research and development, modifying technology to meet customer demands, and improving corporate social responsibility and environmental care. The report emphasizes the need for Nokia to adapt to the rapidly changing mobile phone market and enhance its competitive advantages through strategic adjustments and innovation.

PESTLE Analysis of
Nokia

Introduction
PESTLE is an external study of environment of an organisation which
cover the analysis of political, economic, social, technological, legal
and environmental factors which influence the business of company.
The slides will cover the PESTLE analysis of Nokia where the
impact of external environment will be evaluated and
recommendation will be made to covert these impacts into
opportunities.

PESTLE Analysis

PESTLE Analysis of Nokia
• Political Analysis- The political impacts on Nokia is hard to
ascertain. Nokia faces lack of political support from UK
government, as the company is from small country. Instability in
political environment affects organisation growth and production.
• Economic Factors- Due to European downturn, the organisation has
suffered heavily. Nokia faces hard time in stepping into fast growing
market of UK. Economic disruptions in the country limits the
buying power of consumer which results in deficit and losses.

Cont...
• Social Analysis- Change in taste and preferences of consumer of
UK hurt the market area of Nokia badly. In the era of smart touch
phones and tablets, company sticks to traditional keypad touch
which does not support popular applications like WhatsApp or
Instagram.
• Technological Analysis- Nokia lacks technological development as
the device runs on outdated software and applications. This led to a
condition in which consumer desire to have fully functioning and
user friendly smart phones.

Cont...
• Legal Analysis- As Nokia operates within European Union, its legal
environment is extremely challenging. The company has to follow
all the laws and regulations which are frame by the government.
Laws such as environmental protection or product quality, etc.
influence the marketing structure of the company.
• Environmental Analysis- Nokia is facing an issue of safety and
economically disposing of used products in environmentally
amicable manner. Global warming and depletion of natural resource
is another concern which affects the company image globally.

Recommendations
Nokia faces severe issues and challenges in a radically modified mobile
phones market. It is recommended that the organisation has to increase
its diversity in products and move towards implementing of growth
strategies. The organisation is facing economic crises in UK due to
growth in smartphones in the country. There is huge need to upgrade
the research and development department of the company in order to
gain competitive advantages.

Cont...
More emphasis should be on modification of technology in order to
fulfil the needs and demands of customers. The gradual decrease in
brand value due to lack of corporate social responsibility and lack of
environmental care affects the growth of the company. It is
recommended to change the human resource policies and practices to
cope up with legal and environmental factors.

References
Hinrichs, R., 2013. Risk Management for Nokia. GRIN Verlag.
Paul, S.B., The challengers of an Entrepreneur.
Ropot, J., 2013. Nokia's Marketing Strategy-Analysis and
Recommondations.
Kolios, A., Read, G. and Ioannou, A., 2016. Application of multi-
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