Case Study Of The Collapse Of Nokia

There came a time where it shut down its manufacturing plants in most of the countries. If they had put more focus on collecting the data and analyzed it, they could have sustained the markets. Although there were other internal problems like organizational failure, unwillingness to adapt to change, internal politics, one of the main reasons was the lack of proper data analysis which proved to be a major blow in company's profits. In 2017, finally Nokia used Android OS in their phones and is still trying to stay in the

Nokia Corporation is a Finnish multinational corporation. Nokia focuses on fixed and wireless telecommunications products, with employees in 120 countries, selling products in more than 150 countries around the globe.

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

They will focus on Nokia’s key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.

Nokia, a company which was founded in 1865, set up wood pulp mills to rubber, cable, forestry, electronics and power generation. Upon entering the telecommunications equipment market in the 1960s, it concentrated in the producing radio transmission equipment. It started making phones in the 1980s and in 1991 the first GSM call was made with a Nokia phone and it supplied these GSM networks to other countries in Europe. But In the early 1990s investments in all industries except telecommunication operations were being divested, which led to Nokia being the world leader in the mobile phones industry for nearly a decade, one of its most popular phone being, the Nokia 3310, termed as “indestructible” by comedy website 9gag.com. Nokia

One of the reasons were the management’s reluctance to change due to the risk involved in software changing. Nokia underestimated the importance of the transition to smartphones, after all, most of their profits earned in the mobile phone industry in 2007 were not coming from smartphones segment. Allocating a lot of resources into a high-end, low-volume business would have seemed risky. Therefore, Nokia’s failure resulted from an institutional reluctance to transit into a new era. Another mistake that Nokia committed was to overestimate the strength of its brand, believing that they would be able to catch up in the smartphone competition even if they were late. Nokia continued to insist that its superior hardware designs would win over

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

As mentioned above, major mobile phone manufacturers have come together, developing the Symbian OS as a barrier to entry to Microsoft. In that sense, with the major companies holding bulk of the market share, they stand to gain many

We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.

Lumia has been a very popular phone from Microsoft, but in a recent decision, Microsoft has decided to pull back the development of the entire Lumia line. Now there are several reasons that this decision has been made. A few of these reasons include the ever growing and continued increase of Windows 10 mobile. Microsoft is making some major changes and improvements to the Windows 10 mobile, when it came to the Lumia, they did not see too many reasons to keep the phone. Another reason may be that without the Lumia, the OEM partners have some more room to create new hardware. There is also a possibility that Microsoft did not want to be known for the Lumia, and instead, they prefer to make something completely different that will build Microsoft a much better reputation.

The alliance between Nokia and Microsoft provides many benefits to both organizations. Nokia’s Chief Executive Officer (CEO) Stephen Elop initiates the alliance with Microsoft in order to grow after Nokia was losing market share to Google and Apple. The alliance was also appealed to Microsoft, since they were looking into the future of the smartphone industry and there particular industry. The current standing was that Nokia was still the market leader, even though they were losing ground to the competition due to the aging technology. At the time of the alliance was announced it is clear that both firms needed each other. Microsoft brought capital to inject into the alliance and technological advancements, while Nokia brought market share and brand reputations.

Nokia which is headquarters is located in Finland is a global telecommunications equipment manufacturer (Kwong & Wong, 2011). Stephen Elop the new CEO of Nokia announced a new mobile strategy to adopt Microsoft’s new but unproven Windows phone as its primary smart phone operating system (Kwong & Wong, 2011). The day of his big proclamation the stock market to a 14 cent dive. Vertu was the luxury mobile phone that was founded by Frank Nuovo in the 1990’s.

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.

In spite of the decrease in market share, Nokia has much room to grow with their newfound alliance with Microsoft (Microsoft News Center, 2011). The collaboration with Microsoft will be used as a leverage to entice students with the Windows 8 OS platform. Furthermore, an improved management to meet consumer demands, and increased promotional campaigns to increase brand awareness.

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