Nokia Case Study Essay

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.

Supplier power is the second force; supplier power is high when buyers have few choices from which to buy, and low when their choices are too many. A supplier organization wants to be high and wants buyer power to be low. There are many ways a supplier can decide whether their going to be high power or low power. One way they create high supplier power is they obtain patents and trademarks, to prevent duplication of tools. Netflix has over fifty patents and grants ensuring that other companies will not offer other

- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

Bargaining power of buyer: 46% percent brand loyalty means product is important to customer and he can pay more for the product – had positive effect. Also a large number of customers minimize bargaining leverage.

There are different kinds of markets in different economies/sectors/goods. Accordingly, there are different kinds of output and pricing decisions which take place. Usually, output and pricing decisions are interdependent except for the case of perfectly competitive markets. In perfectly competitive markets, a single firm is so small compared to the market that it cannot affect the prices. In that case, it must take the price as given, and then decide the quantity to be supplied. Price in this market is equal to the marginal cost of production. In monopoly, however, things are different. The monopolist can change the prices, as it is the sole provider of the good and thus has the market power. But here also, if the price increases quantity demanded

Microsoft is a multinational corporation of the United States; It specializes in developing, manufacturing, trading software licenses and supporting a wide range of computer related products and services.. In terms of revenue, Microsoft is the world's largest software maker. It is also called "one of the most valuable companies in the world".

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

Due to the financial downturn and the emergence of new devices in the global handset

1. How was Finland able to move from a sleepy economy to one of the most competitive nations in the world by the end of the 1990’s?

Buyers have more power when they are large-volume buyers, the product is a significant aspect of the buyer's costs or purchases, the products are standard within an industry, there are few switching costs, the buyers earn low profits, potential for backward integration of the buyer group exists, the product is not essential to the buyer's product, and the buyer has full disclosure about supply, demand, prices, and

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product

Buyers in this market are not very weak and powerful. They are few in numbers and can switch to other manufacturers for product quality but number of manufacturers is few and backward integration also seems impossible.