Hence, the highlight of the above analysis is Nokia weaknesses and threats. It can be seen that the main issues are coming from its former top management competencies to compete with the competitors (Scott, 2011a) and lack of awareness to follow the smartphone market trend (Auchard and Rosendahl, 2016). This resulted in the other process to fail in which the process of product innovation in Nokia affected, where its high investment in Research and Development (R & D) (See Appendix 3) (Statista, 2017) is not balanced with its R & D quality (Scott, 2011c), they still retained its outdated Symbian OS (Scott, 2011b).
This framework shows the comprehensive competencies for being a good leader or manager within the organization to succeed in
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For example, when the middle managers wanted to reported ‘negative information’ to the top manager, they should change the information to be positive to satisfy the top managers and reducing the pressure to be scolded (Vuori and Huy, 2015a). This affected the innovation process of Nokia’s mobile phone where top managers believed that Nokia was fine and did not need to make any changes (Vuori and Huy, 2015b), in this context is Nokia Symbian OS. Vuori and Huy (2015b) did the analysis by interviewing 76 people including top and middle managers as well as ‘external experts’. They also found that the ‘fear’ coming from the top managers to its competitor (Apple) causing them reluctant to change (Vuori and Huy, 2015b). Another finding from Doz and Kosonen (2008) showed that the top management in Nokia mobile phone did not have the ‘leadership unity’ resulted in the loss of ‘strategic agility’ to survive in the ‘agile environment’ where Apple and Samsung coming to the market and have replaced its position.
• Managing Self
I also found some reviews from the former employees of Nokia written in 2013, I can conclude that the top managers were too rigid, lack of flexibility, direction, and poor internal communication resulted in the high-pressure working environment and loss of accountability for the employees (Glassdoor, n.d.) (See Appendix).
• Managing Project
Furthermore, the former CEO(s) of Nokia, Olli-Pekka Kallasvuo and Stephen Elop also admitted that the
So… for me the German backlash was super justified because if all this were not enough, the Nokia authority had failed to explain clearly the reason for the closure of the plant to the employees. No reason!!
Nokia’s Chief Executive Officer (CEO) and other leaders recognized the need to redefine Nokia’s culture and its foundational values to promote global collaboration and speed during the company’s business change (Willigan, 2009). Nokia was of the belief that “values align people’s hearts and emotional energy and define how Nokia employees (‘Nokians’) do business with each other and the rest of the world” (Willigan, 2009, p. 2). In order to achieve its goal of culture and values aligned with new strategy, Nokia successfully engaged its worldwide employees in a social change process which resulted in a new set of corporate values and a more cohesive corporate culture.
The purpose in establishing competencies for leaders should be to better define what functions leaders must perform to make themselves and others in their organizations effective. Many competency definitions include reference to clusters of knowledges, skills, abilities, and traits that lead to successful performance (Newsome, Catano, Day, 2003). Yet competency labels are typically expressed in either process or functional terms. This can lead to confusion as to what competencies actually represent for leadership and organizations. Competency frameworks or models should serve as the roadmap to individual and organizational leader success. The value of competencies
The Swedish telecommunications company Ericsson, one of the “Big Three” mobile handset manufacturers in the 1990s, started to reach difficulty as it entered the new millennium. In 2001, Ericsson’s sales dropped by 52%, recording a $1.39 billion loss which preceded an announcement that would lay off 20% of their workforce. Ericsson found itself losing market share to “Big Three” rivals Nokia and Motorola and eventually even to Siemens. Analysts attributed this downfall to Ericsson’s stagnant phone designs, slow time to market and their inability
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
In 2013 Microsoft has announced a € 5.44 billion acquisition of Nokia’s hardware and services, including mobile phones, equivalent $ 7.2 billion. The deal was completed in the first half of 2014 and was supported by Nokia shareholders. Nokia's human resources operations in 50 countries around the world were available to Microsoft. There were also some factories with design, development, production, marketing and sales of smart devices, universal phones and services
This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it the world leader before the end of the decade...Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future.
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
To effectively regain entry into the markets and remain competitive, the memo emphasizes on the evolution of Nokia and ensure that innovations are delivered to the market in a timely manner. Collaboration among the staff is
* Nokia is a strong competitor like apple, but more dangerous because of its huge power in telecommunications market.
Nokia faces serious challenges in a radically altered mobile phone market. It will need to radically alter its business model and products simply to survive. At this junction, it is unclear if Nokia will ever be able to become a major player in the consumer electronics business again.
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
As the story of Nokia goes toward demise in the late 2000’s , they were a mobile handset industry giant . Their competitors seemingly struggled to make a device a simple , convenient , durable or as easy to use as legendary as the device’s most of us came to use during their reign . Nokia clearly possessed majority of the market share during their time at the top which was span over two decades. Companies such as Motorola were simply being steam rolled year after year. Handset manufacturing became such an integral part of Nokia , that they lost sight concentrating all of their efforts into mostly mobile.
2- SWOT Analysis------------------------------------------------------- 3,4 3- Segmentation, target & position(STP)-------------------------- 5,6 4- Market Strategies of Nokia---------------------------------------- 6 5- Global Market Share (pie charts)------------------------------- 7,8,9 6- Nokia Objectives---------------------------------------------------- 9
For example, in Europe, Nokia’s market share in the European smart phone market has shown a huge decline in the past couple of years. The problem began with the introduction of the Iphone in 2007, which set a new trend in the market. In order to return to the market leadership position, Nokia entered into partnership with Microsoft. Threatened by the rapid lost of market share to rivals, Nokia created series of Smartphones called Nokia Lumia. Nokia bet on these products to regain its lost market share. However two years after the partnership, with 9 Lumia products out in the European market. As Alison Donnelly (2008) points out the situation is already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was losing customers to rivals. The Finnish company had troubles adapting to the market changes, it did not recognize that the Iphone release in 2007 would create a new era into the mobile world. In a fast growing industry, time is a very expensive asset, as every company wants to possess the most innovative technologies and products before its