Introduction
Nokia Corporation is one of the major manufacturers of mobile devices and mobile networks all over the world. The corporation “offers a wide range of mobile devices that have features including music, navigation, video, television, imaging, games, and business mobility facilities.” The variety of features that the mobile devices have placed the corporation in a better position and provide a competitive advantage in the business environment.
Explain the possible benefits of environmental scanning and its importance for marketing planners.
Environmental scanning is very important for the survival of any business organization in a competitive market. Environmental scanning refers to the process of “gathering large amounts of information that is used to measure and study the changes in the environment” environmental scanning is very important in business organizations because it is integrated into the business scenario (Choo, 2001).
Environmental scanning is very vital in any business this is because it provides the business organization with the latest information concerning the business environment. This kind of information is very important since it enables the business organization to be firm through the identification of the various issues that may bring in problems in the running of the organization. Information provided is used to develop strategies to help counter the problems and challenges that might have come up in the organizational business environment (Choo, 2001).
Through environmental scanning, it becomes easier for business organizations to understand the different situations in the market. For instance to know whether the business market is saturated or not, whether the products being offered need more innovations to stand the competition in the market or not. It helps to come up with beneficial ideas in the market and that gives the organization a competitive advantage (Choo, 2001).
It becomes possible for business organizations to uncover the various factors that might have a negative impact on the achievement of missions and goals of the organization. For instance, environmental factors may be easily identified and ways to deal with the forces established such that there is no great effect on the performance of the organization. This information is very important and is essential when coming up with strategies for dealing with different forces in the business environment (Choo, 2001).
Environmental scanning can be used by different business organizations to improve their performance in the market. This is through the identification of the sources of challenges and threats and coming up with strategies to counter them. Also, it enables high performance in the business environment because the weak areas are identified and strategies to improve performance are put in place. This results in increased profits in the business organizations. For instance, they know whether the business organization is going in the right direction or not and they identify ways to improve the performance of the business organization hence increased performance and profits (Choo et al, 1993).
Also, it is easy to know what your rivals are doing and through this, it becomes possible to identify new tactics and techniques that can be used to keep a competitive edge over the competitors. When the organization gains a competitive advantage over its rivals it gains a large market share that translates to increased productivity and profits. Environmental scanning apart from the benefits it has also an advantage to the marketing planers. This is because it enables the planers to understand the business environment hence being able to come up with plans that best suit the current situation and that allow the organization to operate freely and effectively in the current business environment (Choo et al, 1993).
Macro, micro, and SWOT analysis planning for Nokia Microenvironment
SWOT analysis planning for Nokia
Analysis of microenvironment, macro environment, and the SWOT analysis of a business organization is very important. This is because it gives the business managers and planners a better opportunity of understanding all the factors that surround the business institution that can have a negative effect on the performance of the organization. The Nokia Company has faced great challenges and threats in its business operations especially emerging from its competitors in the business field.
Strengths
The Nokia Corporation is the leading mobile devices manufacturer and network equipment and it is the largest in the market. This presents the corporation with strength in the business market because being the leading it has a great market share that is usually interpreted into high performance as well as high productivity in the business environment (Nokia: On the road to recovery, 2005).
The Nokia Corporation also enjoys a strong brand in the market that is visible to customers. The strong brand name of the corporation gives it an added advantage since the brand commands a premium for its products in the market. This is the reason you find that Nokia mobile devices are highly trusted in the market more than the other corporations’ devices. This gives the company a competitive advantage over the other mobile devices corporations in the market (Nokia: On the road to recovery, 2005).
According to certain market research carried out the corporation had a global market share of almost 36 percent; Such a great market share means that the corporation is in a better position of achieving great heights of success against the competitors in the business environment. This is one of the major strengths of the Nokia Corporation in the business environment that gives it an edge over its competitors (Nokia: Financials, 2005).
Weaknesses
Currently, Nokia’s market share and revenues have been declining slowly; this is a result of the falling average sales prices. The average sales prices have a great impact on the operations of the corporation since they have resulted into a decline in market share. The corporation should be focused on improving its performance as well as its average sales prices that will result in improvement in performance and market share (Nokia: Financials, 2005).
The corporation has experienced great financial challenges in the first that greatly affected the operations of the corporation. These financial challenges in one way or another caused the corporation a lot and resulted in the corporation undergoing great challenges hence affecting its operations (Nokia: On the road to recovery, 2005).
Threats
The major threat of the Nokia Corporation is the increased competition from many mobile devices corporations that are coming up. On that note, there are many other corporations with similar products that develop competitive strategies that in one way or another challenge the operations of the business. For instance, the Motorola Corporation has brought stiff competition to the Nokia Corporation that has affected the market for Nokia (Nokia: On the road to recovery, 2005).
Opportunities
The Nokia Corporation is utilizing advanced technology to come up with business opportunities that help in attracting more customers to the purchase of its products in the market. The corporation has come up with new products for the customers that include touch screen phones and unlimited mobile music to its customers. This is a new opportunity that the company is utilizing in order to remain competitive in the business environment (Nokia: On the road to recovery, 2005).
The technological advancement is providing new business opportunities to the corporation that include the addition of more advanced devices in the mobile devices as well as maintenance of the high quality of its products in the market. Since the corporation and its products have a good reputation in the market it can utilize it to create more business opportunities especially in regards to the quality of its products and the advancing technology (Nokia: On the road to recovery, 2005).
Though the company has faced challenges in the previous years the corporation in response to this set five top priorities that would enable the company to maintain its position in the competitive marketing environment. The five priorities included areas related to customer relations, product offering, efficiency and effectiveness in the market, demand-supply management, and the company’s ability to offer end-to-end solutions. The corporation has used these factors as opportunities to come up with better business opportunities that will give the corporation a better chance in the competitive business market (Nokia: On the road to recovery, 2005).
Development and maintenance of good customer relations are one of the opportunities that the corporation can utilize to maximize its productivity in the business environment. When there is a good relationship between the corporation and its customers it becomes easier for the customers to associate with the corporation and to develop a brand name. This acts to attract and maintain more customers something that gives the corporation an advantage over the rivals.
Technological advancement is another perfect business opportunity development in the Nokia Corporation. The changing technology presents many opportunities for the mobile devices industry. Product offering also presents another opportunity for the survival of the corporation in the competitive marketing environment. When the corporation is focused on the kinds of products it offers to its customers then it becomes easier for the corporation to come up with products that perfectly satisfy the customer’s needs. Product development through advanced technology can be an opportunity for the corporation’s development in the competitive business environment (Nokia: On the road to recovery, 2005).
Macro environmental analysis
PESTEL Analysis
Political environment
The operations of the corporation take place in a society that operates within a certain political environment. The political environment in one way or another affects the operations of the corporation, this is because when the political environment is stable it means that the business corporation enjoy a more stable environment for doing business but when it is unstable it too affects the operations of the corporation. The trading policies that are set in most of the countries in which the corporation’s products are marketed favor the operations of the corporation (Morison, 2008).
This is because there are certain standards and policies that are set towards mobile devices especially in regards to quality for which the corporation follows. The corporation’s products have developed a brand name of quality and the mobile devices for the corporation are trusted for their high quality as compared to many other mobile devices from other corporations.
Government policies in one way or another affect the operations of many of the mobile corporations in society, At times there are policies that are set that do not favor the operations of the corporation but the corporation comes up with strategies that help in coping with the governmental policies that have a negative impact on the operations of the corporation. The Nokia Corporation has not been highly affected by governmental policies negatively if anything they have worked towards the benefit of the corporation because of the advancement in technology (Morison, 2008).
Economic environment
Generally, the global economy has deteriorated for the last few years this has affected the operations of the corporation in different ways. For instance, the buying power of the customers has been greatly affected something that has also affected generally the operations of the corporation. When customers have no enough finances to spend it means that they will not purchase much of the products hence reducing the productivity of the corporation in general (Morison, 2008).
Also the taxation rates in most of the countries in which the corporation markets its products are usually high and they do not take into account the economic situation that is prevalent at a certain time. This is most cases is the challenge to the corporation since it has to pay the taxes despite the economic situation that is prevalent in the market at that particular time.
Social environment
The social environment has great effects on the performance as well as on the operations of the corporation. The corporation has developed confidence with its customers in the market and because of this the attitudes and opinions of the customers towards the products of the corporation are positive. This has resulted in the high performance of the corporation as well as increased productivity in the business environment against the rivals. The corporation’s brand name is strong and very well known and for that reason, many of the customers are proud to be associated with the corporation’s brand name. Also, the corporation has a higher technological image in the market and for that reason, its products are highly trusted in the market (Morison, 2008).
Technological environment
The corporation has received challenges from rival corporations in regards to the adoption of technology but the corporation has hit back by introducing more technologically advanced mobile devices that provide better services to the customers. For a long time, the corporation has been known for its highly technologically advanced products in the market. The more the technology is advancing the more opportunities it is providing to the corporation (Morison, 2008).
Environmental
The Nokia Corporation has a macro environment that in one way or another has brought both challenges as well as benefits to the operations of the corporation. The competitive environment for the corporation has brought certain challenges to the corporation. The corporation has experienced high competition from other upcoming corporations but together with the high competition presented the corporation has managed to have a competitive edge over its rivals in the business environment (Morison, 2008).
Legal environment
Some certain rules and regulations are set in business society and in the governments under which the corporation operates. The rules and regulations have both positive as well as negative impacts on the operations of the corporation. The corporation has been keen to observe the rules and regulations that are set in different countries where the products of the corporation are marketed (Morison, 2008).
Recommendations for strategic marketing planning for Nokia and your justification for them
Based on the analysis of the corporation carried out the corporation has, by all means, tried to develop strategies that help it in adapting to the different environmental situations. The corporation is well organized and has successfully managed to apply its strategies; this has resulted in high performance in the global market. The organization has also managed to capture a high market share as well as the building of the brand name and image in the global business environment (McNamara, 2008).
For the corporation to keep a competitive edge over its rivals it should be keen to monitor all the technological changes taking place in the business environment in order to adopt strategies that best suit the particular situation. Monitoring of the changes and development of strategies that help in combating the changes helps a great deal in ensuring the corporation’s performance is highest (McNamara, 2008).
For the corporation to develop a good strategic marketing strategy it should take into consideration all the environmental factors affecting the operations of the corporation. From this, it is possible to develop a marketing plan that will suit all the environmental factors and at the same time, it will add value to the operations of the corporation and increase levels of performance and productivity (McNamara, 2008).
The corporation should look into the weaknesses and the threats that are there in the business environment then should come up with strategies that will enable the corporation to convert the threats and weaknesses to business opportunities and strengths for the corporation. This will enable the corporation to succeed in the competitive marketing environment (McNamara, 2008).
The corporation can invest in innovations whereby it will come up with new techniques and strategies for developing products that suit the customer’s needs in the market. Through this, it will be able to maintain a competitive edge over its rivals and at the same time improve the performance of the corporation.
List of references
- Choo C.W, 2001, Environmental scanning as information seeking and organizational learning, University of Toronto, Information research, Vol. 7. No. 1
- Choo, Chun Wei, and Auster, Ethel (1993) “Environmental scanning: acquisition and use of information by managers”, in Annual Review of Information Science and Technology, edited by M. E. Williams. Medford, NJ: Learned Information, Inc.
- McNamara C. 2008, Strategic planning (in nonprofit or for-profit organizations),
- Morison M. 2008, The PEST or PESTLE Analysis. Web.
- “Nokia: Financials”, 2005. Web.
- ”Nokia: On the road to recovery” 2005.