When Nokia phones were first introduced, they needed a lot of promoting and advertising because they were not recognized enough to sell based on their quality and offers to their consumers, so this is where Nokia spent the biggest quantity of money promoting their goods and establishing their brand as a leader in the communications market.

These refer to government policies, regulations and legal issues in the country of operation. For example, employment laws, taxation policy and government stability. Political decisions can impact on many important areas for business such as the education of the workforce, the nation health and the quality of the economy infrastructure such as the road and rail system.

Legal constraints, such as 3G, must be considered because many businesses plan to make a profit so they may be tempted to misinform their customers about pricing, products’ quality and the availability of their goods. Also, they may try to cut expenses by using lower quality materials in their products, such as weaker resources for Nokia cases and batteries. Also some companies may set out their waste in ways that harm the environment without ensuring high standards of hygiene and safety in the workplace. Including, outlet stores, which are illegal and can cause legal problems for companies.

In 2000, the UK Government started to accept bids from thirteen companies who wanted to run a licence to sell next-generation mobile phones. It raised £22.47, a neat sum to anybody.

Some businesses see profits as more valuable than a strong ethical code and this can run behavior and business conduct. Some unethical practices are illegal and companies can not become involved in them. However there are also some practices that are legal by law but are considered highly unethical by the consuming public. Companies who take on in these practices can lose a lot of market share if they are caught. For example, cosmetic testing on animals is legal, but some of the general public aren’t happy about it and boycott. Because of this companies, companies must be very cautious about how they conduct themselves.

In the communications market, technology is most probably the most important factor that companies like Nokia have to take into account. They must keep up to date with all the newest technological advances, such as camera and video phones, if they intend to obtain the biggest market share and keep ahead of their competitors, such as Sony and Panasonic.