Macro and Micro Environmental Forces Essay

External factors be usu wholey divided into micro and macro surroundings. Macro environment is about external higher browse forces which do not affect an organization dealing as provided or directly but whitethorn do so in the future. External factors may include economic, technological, competition, policy- reservation/legal, and social-cultural factors. Political factors these be factors that relates to policy-making system and policy-making instability of countries where Nokia Company wish to commercialise its products i. e. Nokia 5800XpressMusic and its medicament features. This give involve scrutinizing the system of government that much(prenominal) object glass countries down adopted.Nokia exit thereof need to decide whether to invest in commie or capitalist countries after c beful consideration of each political system in terms of carrying out business in the chosen country of interest. It is recommended that Nokia Company should invest in those countries w ith flexible capitalist political systems because it deed overs labour, capital and resources to flow freely in and out of their countries thus making those destinations the best target mart places for Nokia to market its models as well as the wage increase features of medication that it offers.External factors analysis backside be best explained as follows (Nokia for line of credit, 2008). Economic Factors this go out involve Nokia Company analyzing the economic factors that may counteract or augment its operations in the target countries. Such merchandise barriers like restriction of imports and exports as well as extraneous permutation rate systems should be carefully evaluated by the watchfulness of Nokia in establish to carry out its operations without economic constraints. other(a) economic factors of grandness to be analyzed by the confederation will include, inflation peculiarly anticipated inflation, balance of payments, counter trade, fiscal and monetary pol icies among separate tighting(a) factors. Although Nokia may not be subjected to many of the above factors it will be prudent to critically analyze deeply the factors exceptionally inflation and foreign exchange systems by utilizing forecasting techniques that discharge give the lodge a clear picture of the future (Lionel Laurent, 2008).Social Factors this will involve the wariness of Nokia Company analyzing income level, social structures, educational backgrounds, and religion and family units before selling its cutting Nokia phones such as Nokia 5800XpressMusic models that comes with advance features to the community. History reveals that social factors play a major in role in utilization of go in the society for interpreter close to religious beliefs may not allow different kinds of medicament to be played. Therefore, it will be prudent for Nokia to clearly identify the right kind of music for the right consumers as well as for the right markets.Social factors may in fluence beliefs, interests and attitudes of the consumers and therefore the management of Nokia Company has to consider in details such factors in ordain to avoid losses associated with these social factors. Technological Factors applied science and innovations substantiate interpreted centre stage in onerous to achieve a substantial market share by firms in many industries. Technology provides an fortune to the firm of expanding through utilization of advanced technologies but at the very(prenominal) clock time it may contribute negatively to market participation for lesson where businesses use technologies to compete unfairly.Nokia will have to utilize advance technologies for example the use of internet marketing while trying to explore reinvigorated markets in the target market. Such technologies will be useful in that it will save time and financial resources that could have been spent and therefore the management can therefore use the surplus resources in unless exp ansion or pay back its shareowners returns thus getting shareholder confidence in the process (Nokia for Business, 2008).Legal Factors All businesses including Nokia must mould in a business environment deemed to be legal by the target market. The company will therefore have to ensure that the cut-rate sale of Nokia 5800XpressMusic serial publication with its all contents that include advance music features are allowed by the host country in order to avoid needless legal battles. Nokia excessively should observe the existing laws regarding to business transactions in the target market particularly avoiding unfair competition.Also it should observe other legal aspects such as the areas of corporate social responsibility whereby Nokia will be expected to manufacture and sell its products at the very(prenominal) time protecting the environment and benefiting the surrounding community by plighting them and withal take part in community projects (Lionel Laurent, 2008). On the oth er hand micro environment is about actual and political transactions used in a firm and its environment in day to day activities of a company that include customers, suppliers, intermediaries among others. one(a) of such micro factors is the intensity of rivalry among completed Companies it is true that Nokia faces a very competitive environment that has a oversize concentration of rival contenders making it a very competitive gamble in its business operations. Take for instance they compete with its rivals across al levels i. e. production of high quality planetary phones with quality features like that of music and hence there is need for Nokia to try all strategies to ensure that it beatniks its rivals as well attracting more customers every day.Nokia is more organized and have better strategies than the innovative ones that come up and therefore have a competitive edge over the others. An established company will mean having a well developed network that has a advantageo usly leaf node base and that is supported by customer loyalty and therefore fix out the new firms that try to make an impact by trying the existing markets. The well established pharmaceutical firms give a unfit challenge to the new companies in the market that try to make their products k in a flashn. veritable(a) though substitute products like iphones are received in telecom constancy, it becomes easy for the Nokia to push customers to start using its new mobile serial publication in the market since it has a name in the market and customers are loyal to them (Nokia Inc. 2007). The other factor is that of the bargaining power of suppliers. Suppliers take payoff of their unique supplies to ask and bargain for what they want and enjoy the monopoly and charge expensively for the products or services that they offer.Customers are very sensitive to any changes that may affect them that are caused by the bargaining power of the suppliers. Suppliers are a competitive threat in tel ecommunication industry because they can sneak the prices of new and the old supplies and therefore making the customers to try substitute products such as phones and iphones that can satisfy the same needs. Suppliers may cost Nokia a lot of financial constrain if they switch and fail to supply separate that are used for manufacturing such phones like Nokia 5800XoressMusic serial (Botan, 1993).Individuals may prefer to try the substitutes e. g. iphones gibe to their financial therefore Nokia must try as much as possible to bargain well with its suppliers so that it may get quality products at the right price so that it may in like manner sell and price its products like Nokia 5800XoressMusic series at a an affordable price when compared to its competitors. Recommendations for Strategic Marketing PlanningNokia can lay into joint bet on with any firm in the telecommunication industry in order to reach to more customers. The joint ventures are forms of market entry that allows f or technology sharing and joint product organic evolution which fits the progression of Nokia 5800XoressMusic series as well as its salient features f music that it offers. The main advantage of joint ventures is to get proper political connections that will allow for favours to be achieved.It is unremarkably suitable when the market power, resources and size of the associate is small compared to the industry leaders. If Nokia enters a joint venture with any company for instance with Apple Company which is still then it will boosts its market power, and thus it will be able to meet the demands in that particular region. The main issues that are usually sorted out during the discussions for joint venture are agreement periods, price methods, ownership and control, local firm capabilities and technology transfer.Nokia should also employ porter generic strategies in order to call forth its market share such strategies rely on the dimensions of the strategic circumstance meaning the market penetration and strategic strength referring to the firms or sustainable competitive advantage such as cost leadership, product specialisation and market segmentation which are required to meet the challenges of the competition. Therefore Nokia can utilize growth strategies, innovative strategies, among others.However, it should be noted that although they are believed to be the best in the market so far, they are yet to be applied by most companies. Nokia should also apply functional strategies in its marketing operations these strategies are developed within every division of the company to increase its international sales margins and production. The marketing department can for example prepare an individual scheme that will meet the overall Nokias objectives.Other strategies under this include new product development strategies, legal strategies, financial strategies and so forthwhich can also be set up as autonomous strategic business units that are responsible fo r all of its operations but answerable to the Nokia top management (Murray, 1989). Encirclement Strategies should also be adopted by Nokia while marketing its Nokia 5800XpressMusic make book bindings phones. This strategy is also called the envelopment strategy and is a more subtle, gentle, broader and a second base non-offensive but harmful way of attacking the competitor.Normally, this kind of attack is undertaken in two ways. One, introduction of a broader range of products that are similar to the competitors products and each of these products will get a share of the same market the competitor is in this case Nokia will introduce the 5800X series phones which will overtake other competitors gadgets such as iphones. In the long run, the competitor will be demoralized, weakened and demoralised leading to a state of siege of the competitor. This first method will ensure that full scale confrontation is avoided between the attacker and the target competitor.Secondly, the encircl ement can also be based on market niches rather than the products themselves. In this case, the market share is liberated from the target competitor via the expansion of market niches that surround it thus Nokia will have to shine in order to reach to large market share (Lionel Laurent, 2008). Nokia should also draft out clear marketing mix strategies that will kindle a larger market share. A marketing mix is usually used especially on branding and advertising as argued by Jerome McCarthy.The populous four Ps of marketing mix strategies are utilized, these are Product Product marketing and management aspects deal with the specifications of the actual good or services and how it relates to customer needs in this case the new Nokia 5800xpressMusic touch permeate phone marketed by Nokia. Such phones should be several(a) in its features for instance music alterd and thus meets the expectations of the customers. The characteristics of such 5800Xpress touch screens phones should how ever be well defined to meet the needs of the consumers (Kottler, 1996).Pricing pricing is the process of setting a price for a product to be sold in the market and in this case touch screen Nokia 5800XpressMusic to launch by Nokia. It will not be necessarily fixture a monetary value but simply what to be change for the touch screen phone at stake e. g. attention, time etc. Nokia can therefore adopt any of the following pricing strategies to enable Nokia 5800XpressMusic reach its marketing standards. Premium pricing is where the uniqueness of the touch screen phone is defined such as a fixed online angle Penetration pricing whereby, once Nokia achieves the market share, it increases the price of its product i.e. Nokia 5800XpressMusic phone. Other strategies may include regional pricing strategy which defines the price according to the regions where the phones will be sold. Promotion promotion strategy comes in sundry(a) forms personal selling, publicity, sales promotion or adver tising and it refer to the assorted marketing strategies of convincing the customers to buy the brand, product and in this case Nokia 5800XpressMusic touch screen phone. Nokia should come up with various and best suitable impart of distribution to enable such phones to reach the targeted market.Place place is also the distribution modes which refer to how the touch screen phones gets to the intended customer. Nokia should ensure that the 5800Xpress series touch screen phones are available to customers in time and in convenient places in order to satisfy their needs. The utilization of computer technology for instance can aid a firm to get nark to a wider market thus boosting its business performance (Winer, 2007). Conclusion question reveals that trade has become progressively more global in some scope these days and there are several grounds for this.One of such reasons is the ever advancement in modern technology that is now increasing communication efficiency and modernization therefore firms like Nokia are now facing stiff competition from its rivals in the fight for execution of larger market share. 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