Professional Documents
Culture Documents
Five Forces Model
Five Forces Model
the factors affecting its sector. The analysis focuses on measuring the company’s position based
on forces like threat of new entrants, threat of substitutes, bargaining power of buyers,
bargaining power of suppliers and competitive rivalry.
Nokia Five Forces analysis helps to analyze its current position in the market based on multiple
internal and external factors like competitors, customers, suppliers (vendors and partners),
financial strength, future scope & alternate solutions.
Let us start the Nokia Porter Five Forces Analysis:
In this article:
Image: pixabay
Threat of Substitutes:
Below are the threats of substitute products of Porter’s Five Forces analysis of Nokia:
The substitute in the mobile phone industry for companies including Nokia is not many
as mobile has become a regular body part of an individual and it is very difficult to
spend a day without the mobiles.
Also, the pressing need of the hour to be in constant touch cannot be offered by any
other devices In the market. Internet calling and social media platforms have been
another source of communication, but they are widely accessed through mobiles by the
larger part of population. There are some devices like a watch with a calling feature or
smart glasses, but they are not able to replace mobile phones. There can be a better
and more advanced form of phones in the market, but no substitute seems to replace
them in the foreseeable future. Hence the threat of substitutes is less. Some obsolete &
older methods of communication like letters, postcards, telephone booths etc. are also
substitutes to mobile communication.
Competitive Rivalry:
The impact of key competitors in the Nokia Porter Five Forces Analysis is as follows:
There is intense competition in the mobile phone industry for Nokia, with very big
players like Apple, Samsung, HTC, Xiaomi bombarding the market with newer and
innovative products in a shorter duration of time. Also, the R&D Expenditure of the firms
is huge to tap into every possibility of innovation and offer a newer set of features to the
customer at competitive prices. The rest matches the price and features of the
competitors within a shorter period in order to retain the customer base. The
differentiation level in the products is very low, and customers can easily switch to the
product base of competitors if they find something unique. Nokia is one of the largest
players in the industry with a decent market share.
Also, bigger players' extreme marketing wars and customer acquisition tactics make the
market highly competitive.
To conclude, the above Nokia Porter Five Forces Analysis highlights the various
elements which impact its competitive environment. This understanding helps to
evaluate the various external business factors for any company.
This article has been researched & authored by the Content & Research Team. It has
been reviewed & published by the MBA Skool Team. The content on MBA Skool has
been created for educational & academic purpose only.
Browse analysis of more brands and companies similar to Nokia Porter Five Forces
Analysis. This section covers many brands and companies.