Marketing Environment – PEST Analysis
Nokia also has to follow EU regulations regarding the way there workers condition is like, tight controls over the use of visual display units on word processors and computers this was due to the known problems it had workers eyesight. The political choice as to if the UK signs up to the Single European Currency are having an impact on UK businesses as Nokia would benefit from this because it would pay much less or no tax in many EU members areas e.g.
Nokia has its main factory in Sweden and it exports its products from there too all parts of Europe and the world if Nokia exports its products to Great Britain they would pay less tax as it is a EU member meanwhile when they want to export to Switzerland which is not a member of the EU they would have to pay higher tax this would result in Nokia increasing the recommended retail price in Switzerland meanwhile in Great Britain it would be cheaper to buy for customers and so the results are more revenue for Nokia.
Economical All businesses are affected by economical factors nationally and internationally. Within the UK the type of the economy make out how a buyer may act within society. Whether an economy is in a boom, recession or recovery will also affect the customer’s confidence. Economies around the world also have an impact on UK businesses; cheaper labour abroad affects the competitiveness of UK products nationally and globally. A big company such as the one I am working with has to be aware of economic conditions to ensure they use strategies and tactics that protect their business.
Within society there is family, friends, and media that affect our attitude, interest and opinions. These make out who we are as people and the way we behave and what we buy. Population changes also have a direct impact on all companies so if Nokia make a mass promotion on a phone in a area which has a few people such as a little town they would not benefit as much as if they promote there new phone in a very highly populated area such as London as there are much more people willing to buy in London and there product will reach more people. As society changes, as behaviours change organisations must be able to offer products and services that aim at people’s lifestyle and behaviour so Nokia have to meet the demands of peoples attitudes e.g.
Nokia introduced a special edition Nokia football kit before and during the football world cup as people are in the footballing mood at that time they also added free pictures on there phone of football stars such as David Beckham and Ronaldo this proved very successful as it was introduced in the perfect time. Nokia also bring in special edition phones aimed at children when there is a new film out they introduced the facia for it such as Lion King 2 facia and Finding Nemo.
Changes in technology are changing the way business operates. The Internet is having a huge impact on the marketing mix strategy of organisations. Customers can now shop 24 hours a day easily from their homes thus Nokia has introduced internet shopping where you can buy there phones conveniently from there main site www.nokia.com and has also introduced many sister sites dedicated to providing current Nokia owners polyphonic ring tones, wallpapers and applications for a minimal amount of money paid by the customer for prescription. This technological advancement means a faster exchange of information beneficial for businesses as they can react quickly to changes within their business.
The speed of technological change is so fast that in the phone industry the average life of a phone is approximately 6 months. Technology will continue to grow organisations that continue to ignore this will face losing out so that’s why I have to do my phone to the best possible specifications available for me to use as people expect from my established company a new technology or a very unique design that’s attractive to the people I am aiming the phone for.