How Can Nokia Keep Its Leading Position in the Telecommunications Market - Research Paper Example

According to Peter and Donnelly (1991), the situational analysis should focus on the most critical and relevant environmental conditions or changes in them that affect the success or failure of the marketing plan. Similar understanding from the article of Cohen (2001) described that situational analysis should contain a vast amount of information and, as the term indicated, should be an analysis of the situation that the proposed product or service should be faced with. Kerin (2001) also described that relevant background data on the market, product, competition, distribution, and macro-environment should be presented in this section.

Nokia is the world leader in mobile manufacturing. Backed by its experience, innovation, user-friendliness, and secure solutions, Nokia has become the leading supplier of mobile phones and a major supplier of mobile, fixed and IP networks. Nokia has production in eight countries and sales offices in forty-two countries. Products are sold in more than 130 markets. As the same as other huge organization, to be a successful Nokia must function in more than one country.  The mobile phone industry is currently estimated to be the world's largest consumer electronics industry measured by unit sales.

The infinite opportunities lead to a number of new players in the market. Competitors are coming from all kinds of business backgrounds. Currently, even computer manufacturers like Acer and software producers like Microsoft are using their own brand to develop another product line for the mobile market. Even automobile manufacturers like Mitsubishi are putting themselves in the battle. The base technique in producing mobile phone is much easier than designing an automobile, with all profits that could be made, the choice is easy.

  The competitors are Motorola, Samsung, Sony Ericsson, and LG. The assessable entry barriers of the mobile industry led to great competition in a mobile industry.  The bargaining power of buyers is getting higher in the mobile market because the selection base for customers is broad. Designing cutting edge technologies and functions are the most critical factors to alter the decision of the customers. In fact, all brands of mobile phones in the market are containing their own sustainable competitive functionality.

For instance, Nokia launched the first mobile, which contained FM radio, while Siemens launched the first mobile, which could download MP3 from the web. In the past experience, such mini functions could really alter the decision of consumers. So far Nokia is the leading manufacturer of mobile technology.