A Critical Analysis of Nokia Corporation Current Problem

Nokia, which overtook Motorola in 1998 to take the crown of biggest phone manufacturer of world, lost its prestigious crown after struggling for last 3 years. The 4 costly mistakes that lead to Nokia losing the battle are described in this article. Nokia launched its Symbian 60 series in year 2002 which initially had a good market response but with the introduction of Apple iOS in 2007 and Android in 2008, the OS race was completely taken over by the two giants. The reasons for collapse of Symbian OS is lack of applications and UI (User Interface). After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian OS but it was mostly following the UI of Android and iOS and was not creating something unique. Secondly, the company failed to look into the need of available applications in gaining market share. The company made the biggest mistake to take a leap of faith in Windows in 2011. At that point of time, the company already was in declining condition and trusting Windows which was new in the field to regain its status was the biggest mistake the company made. tiff competition from Samsung and Apple, and lack on focus on innovation was the second big reason of collapse. Even if users could ignore the OS, the the hardware features which Nokia was rolling out were quiet late as compared its major competitors Samsung and Apple.

The target markets for Nokia is the former Nokia stronghold regions- United Kingdom, UAE, Russia, Indonesia and Germany among others.

Nokia will have to manage this change closely in order to make sure that they are working as efficiently as possible. For this, they would need to communicate well, as this will run through all the stages on the workforce. Elop achieved this primarily with the burning platform, but would need to pursue this through the reinvention. Training is very important when dealing with emerging products because they need to be of a high enough standard in order to gain a market share. Therefore, the workforce have to be well trained so that they understand the tasks that they are given. Nokia must also check on how individuals are coping with the change to prevent

It established in 1871 and it is very old company. It was one of the biggest company in world in that time and it competition with other companies who is produce cell phone. The main product is cell phone. Nokia Company produce a lot types of mobile phone and different from other. There are phones with big screen and other with small screen. Also, they have phone with keyboard and other without it work by the touch. Also, Nokia Company provide other services which are internet services such as applications, music, digital media and messages. Nokia offers digital mapping and navigation

Interdepartmental communication is the communication between different departments in an organization. Each company is set up in specific ways to accomplish their mission and goal, therefore the organizational structure differs for each company. “Organizational structure is the way or methods by which organizational activities are divided, organized and harmonized” (Hadi Shafiee, 2016). The organizational structure determines how information is flow from one level to another within a company. Specific structure is required in an organization in order to have good performance. Organizational structures can either be centralized or decentralized. There are about four different types of organizational structures which are functional structure, divisional structure, matrix structure, line and staff structure and project structure. No matter what organizational structure the company is using, there will be multiple departments and it is important to have an effective communication amongst all departments in order for the operation of the organization to run smoothly.

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

In the second quarter of 2007, Motorola had shipped 35.5 million mobile handsets whereby Nokia shipped 100.8 million handsets. Nokia emerged as a leader in the global mobile phone industry, holding a market share of 38.0 percent, by the 2nd quarter of 2007.

Hierarchical structure enhances operational productivity by giving clarity to workers at all levels of an organization. By paying personality to the authoritative structure, divisions can work more like very much oiled machines, centering time and vitality on beneficial errands. An altogether laid out structure can likewise give a guide to inner advancements, permitting organizations to make strong representative headway tracks for passage level specialists

They created the first GSM telecommunication and make it commercial. It is namely as Nokia Protitype Phone and the first product was Nokia 1011. Eventhough they were still have many competitors like Erricson, Samsung, and Google at the time, Nokia still keep trying to do their best when their falling era. Because of their innovation in GSM Phone, Nokia can get more their market for telecommunication and spread their product to their market. In 1992, Nokia tried to do the agreement with Vodafone and successfully in improving the network roaming for its GSM as the dominant network standardization. In the end of 1990s and in the beginning of 2000s, Nokia is still in the inertia eventhough they have many innovation products on GSM but their competitor like Erricson also created the same mobile for the telecommunication so that they competed each other for controlling the

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet

Most organization have a hierarchical or pyramidal structure, with one person or a group of people at the top, and increasing number of people below them at each successive level. All the people in the organization know what decision they are able to make, who their superior (or boss) is (to whom they report), and who their immediate subordinates are (to whom they can give instructions). This structure is one of the simplest

Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.

While the organization has evolved in size over the years including the layers of management, the management approach remains similar. The President and CEO leads the company. There are four departments that each have a Vice President assigned to it. Each Vice President oversees the department and has a Director to develop it. Each Director has a Manager for administration of daily activities and tasks. The reporting process is essentially a ladder from the bottom to the top and top to bottom.

* Nokia Corporation has the world’s most advanced production technology and is referred as the Mobile Giant with production units in 10 countries round the globe and with a production capacity of 325 million handsets per production unit which tells us that Nokia Corporation will face no difficulty in manufacturing the new mobile phones.

As it was stated in the introduction, with the smartphone revolution, Nokia failed to understand the future direction of mobile devices. This underestimation of the rising innovation, in terms of global market shares, led to a drastic decline – from 2007 to 2013, the company lost 45.2% of its market shares (Statista, 2014). It is worth mentioning, that in 2004, at Nokia’s Espoo headquarters, researchers have presented a mobile phone prototype, which was able to connect to the internet and it was controlled by a touch-screen (O'Brien, 2010). However, Nokia’s senior management had rejected the idea, stating that it would be an expensive failure to develop it. That allowed American and Asian companies to become leading companies, as they adopted a more innovative idea of the smartphone. Despite the fact that the company started to lose its market shares to competitors, Nokia tried to take the role as strategic innovator by