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Political Factors Affecting Nokia The impact of political factors on Nokia is hard to ascertain. The company is based in the European nation of Finland, but the Finnish government has refused to give it a bailout or special favors.[1] This forced Nokia into an uneasy alliance with Microsoft (NASDAQ: MSF) that has since fallen apart.[2] Unlike some tech companies, Nokia lacks strong government support because it is based in a small country. This can both help and hurt the company because it is not associated with a major power, but it might lack the political clout of American- or Chinese-based rivals. Don't get caught plagiarizing Political unrest or other changes in China could disrupt production and limit Nokia’s manufacturing capabilities in that country. This could force it to move production to higher-cost locations such as the United States. Economic Factors Affecting Nokia Nokia suffered heavily from the European downturn of recent years. Economic turmoil in Europe has hurt it badly by limiting buying power in its home markets. Unlike Apple, Nokia has had a hard time tapping into the fast-growing Chinese market. Nokia also lacks the vast economic resources available to some of its competitors, such as Google, Apple and Samsung. In particular, Nokia seems to lack the research and development capabilities that have enabled these companies to develop new devices and tap new markets. One reason why it lacks those capabilities is that Nokia simply does not have the money to finance extensive research and developments efforts like its competitors do. Social/Cultural Factors Affecting Nokia The major cultural factor that has hurt Nokia has been the widespread adoption of smartphones and the growing use of apps. Many of the most popular apps, such as WhatsApp, are designed for more popular operating systems such as Google’s Android

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