Section A, Group 2

Finland And Nokia Case Study Analysis

This presentation studies porter’s concept of 5 forces as it pertains to the competition in the wireless industry, Nokia, manufacturer of mobiles phone.

This demonstrates how forces such as threat of new entrants, threat of substitute product, and bargaining power of suppliers, competitive rivalry and bargaining power of the buyer apply to Nokia.

Porter’s 5 Step Analysis

Rivalry Among Existing

Competitors

Bargaining Power Of Suppliers

Threat of new entrant

s

Threat Of

Substitute

Products /Services

Bargaining Power of Buyers

Threat of new entrants - Medium

Microsoft announcing the entry in the mobile market

New emerging players from Asia

Nokia brand is very strong

Nokia has a large number of patents

Bargaining power of suppliers - Low

High level of backward integration for semiconductor items

The suppliers produce the specialized items

Existence of long term strategies with the vendors

Risk sharing with vendors lead to a high level of trust

Product Substitutes - Low

Pager is outdated

PDA is a threat

Landlines do not provide mobility

3G Products are being developed by Nokia as well

Power of buyers- Medium

Strong company image in the global market

Needs Buyers Forward Integration . End users are not directly purchasing handset from Nokia,

instead they purchased from the service provider or dealers.

A large number of buyers are loyal to the brand.

Buyers choice is rich.

Intensity Among Rivalry - High

• High Growth Intensive Industry.

• Capital Investment is High.

• Numerous brands are well establishing in the market.

• Strong competition from Motorola and Sony Ericsson.

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