This document analyzes Porter's five forces model as it applies to competition in the wireless industry for Nokia, a mobile phone manufacturer. It discusses how each of the five forces - the threat of new entrants, threat of substitute products, bargaining power of suppliers, competitive rivalry, and bargaining power of buyers - affects Nokia. The document determines that the threat of new entrants and competitive rivalry among existing competitors is high for Nokia, while the threat of substitute products and bargaining power of suppliers is low.

1. Section A, Group 2

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

3.  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.

5. Threat of
new
entrants
Rivalry
Among
Bargaining Power Bargaining Power
Existing
Of Suppliers of Buyers
Competitors
Threat Of
Substitute
Products
/Services

6. 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

7. 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

8. Product Substitutes - Low
Pager is outdated
PDA is a threat
Landlines do not provide mobility
3G Products are being developed by Nokia as well

9. 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.

10. 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.