Presentation on Macro environmental factors affected to the company NOKIA in U.K.

Presented To Pooja mam

Presented By Manish Kumar lodha

Global 2. Technological & natural 3. Social & Cultural 4. Demographic 5. Poltical & government 6. Legal
1.

The political factors can have a direct impact on the way business operates. Decisions made by government can affect the mobile industry of UK. For instance, the introduction of the 3G phones from the mobile industry. The government decided to auction off the licence needed by the mobile operators to offer a full range of mobile phone services. The mobile operators are able to offer the 3G technology, only then would there be a demand for the mobile companies to supply the 3G compatible phones

The mobile phones industry is also affected by economical factors nationally and globally. If the UK economy is in a boom, this will have an positive affect on consumer confidence and behaviour encouraging more sales of mobile phones. Economic factors affect the purchasing power of a potential buyer of mobile phones. The mobile phone is a complementary good that has a joint demand with mobile operators. The mobile network plays an important role in determining the consumer gets from a mobile phone.

The changes in technology play a vital role in the mobile phones industry. The mobile phone, itself is a production of a technological advancement. Thus, firms in the industry, in order to gain a competitive edge over other firms have to continuously investment in research and development and develop technology that will be operational on mobile phones. For instance, High bandwidth with potentials for video conferencing on phone is a third generation advanced on mobile phones. In UK, mobile operators such as 3 have facilitated the technology and Vodafone has also bought the licence for operating the 3G phones from the government. Market analysts would say that this has opened a new dimensional market for customers now and this would make mobile phones companies develop new phones based on the 3G technology to promote future sales.

The UK economy achieving sustained economic growth and increasing employment levels have had a positive impact on the social behaviour of consumers. Mobile phone, once viewed as a luxury good, is nowadays seen as a prerequisite. It has become as a fashionable necessity in UK and a survey carried out by OFTEL showed that more than 2/3 of UK households run active mobile phones.[2] This social trend from consumers has boosted the mobile industry and as a result, many retail shops have opened on high streets (or in the form of internet buying), has led to a continuous increase in consumer spending of UK citizens.