International Business strategy - NOKIA on global market Essay

International Business strategy - NOKIA on global market - Essay Example Every company is gearing up to develop new applications in their Smartphone offering which ultimately decreases scope of creating differentiation for customers. Mobile industry review has pointed out companies need to customize their offering with Android OS in order to fulfil demand of customers. High buyer power has forced companies to adopt technological innovation in Smartphone in order to achieve product differentiation. Threat of Substitutes Fixed line telephones can be classified as direct substitute for mobile phones. For example, fixed line phones play important role in big organizations in comparison to mobile phones. It can be inferred that threat of substitutes becoming lower due to mobile phone’s multi application and wider geographic coverage. Mobile manufacturing companies need to adopt more technological innovations in their offering in order to increase acceptance in big organizations and decrease threat from substitutes further. ... Some companies are using Android operating system for their Smartphone’s while others are focusing on windows phone. Fixed costs associated with smart phone market are high due to requirement of investing in latest technologies. Hence it can be concluded that market rivalry is high. Global Smartphone market condition can be explained in the following manner. (Source: Deloitte, 2012) The diagram is showing that Global mobile phone market is dominated by Android OS while Apple iPhone OS is the second largest contributor. Companies are banking on Android OS to develop new products. Mobile manufactures try to establish equilibrium between Smartphone and features. The market segregation can be explained in the following manner: (Source: Deloitte, 2012) In future Companies will face specific threat from counterfeit products. Mobile manufacturers complemented by low resorce capabilities tend to imititate features and design of Smartphone manufacturered by reputed companies such as No kia, Samsung and Apple. Impact of such threat will increase in future. For example, small companies in copycats has counterfeited Nokia X6 product and launched in the market. Picture of counterfeited Nokia X6 can be used to analyze extent of counterfeiting in telecommunication industry. (Source: Delaney, 2012) Companies need to take strict legal action against counterfeits in order to maintain not only market share but brand image among customers. PEST Analysis- Nokia Political Factors Companies needs to follow respective government rule of different countries in order achieve sustainable business growth and demographic advantage (Zikmund and Babin, 2006, pp. 12-15). Global economy is complemented by