The Fading 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

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

It's worth noting there is a consistent downward trend. This has been explained in the reports to be attributed to acquiring of various losses experienced in the last financial year. The levels of profits are more likely to increase in the coming years as the company has embarked on the policies towards an increase in profits in 2016 onwards (Krause and Wilson, 2013).

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

- Plans for a broad strategic partnership with Microsoft to build a new global mobile ecosystem; Windows Phone would serve as Nokia’s primary smartphone platform. - A renewed approach to capture volume and value growth to connect ”the next billion” to the Internet in developing growth markets - Focused investments in next-generation disruptive technologies - A new leadership team and organizational structure

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

Facilities, retail, research and development, networking and operations and support are some of the main divisions of the company's organizational structure. Creating a unique, horizontally delineated management infrastructure for each of these branches makes it easy for everyone in each of these departments to communicate rapidly and freely with others in their line of work.

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.

Nevertheless the net sales of Nokia continued to fall (Statista, 2015) from 38.66 in 2011 to 30.18 billion euros (Appendix B) in 2012, market share overtaken by Android and ios proven these responses unsuccessful.

This paper seeks to analyze an underperforming company, its strategy, the reasons behind underperformance and suitable recommendations for strategic change. As case study Nokia Corporation has been chosen, which has lost its market leadership in the mobile phone industry in the past five years, although it had market leadership for decades.

I Worked with Nokia Solutions Networks as a Project Manager for many years. Acer is one of the largest telecommunication companies in the world. Over the years, the company has emerged from a small local business to become successfully global. Its visionary founder took into account its difficult path as the best way in which the company could prosper towards the acquisition of the global market. As Barrow (2011) contends, one of the factors that has promoted the success of Acer Inc. is the proper financial systems and budget employed in the management of its finances. For example, in 1976, it was founded with a capital of US$25ooo, but has grown steadily to become a multibillionaire company, together with its other close competitors (Barrow, 2011).

The case study provides a brief analysis of what transpired at Nokia and how the strategy implemented by the management team from the period of the 1990s up to the 2010 led to the company losing its market shares at both ends of the mobile phone industry.

In 2009 last quarter Nokia lost its market leader position. Nokia eventually entered into a pact with Microsoft in 2011 to exclusively

Hence, this paper will analyze the organizational issues of Nokia Corporation or Nokia which operates in the Information Technology sector, so as to formulate an effective strategy which can be used to increase its market value and stimulate growth. The company has been experiencing various organizational challenges due to fast evolving technology and a highly competitive global market (Bierema, 2014; Pai, 2015). However, before attempting to provide development strategies for Nokia, it is important to fully identify the current organizational development issue that the company has been facing.

The Nokia Corporation poised as the best company to choose for this assignment given its sacksful flux and innovation in the industry over time and more so, it’s captivating and inspiring history. The long successful journey of this famous corporation started by Fredrik Idestam, a mining engineer The Company kicked off as a paper mill company. With time, they diversified their activities and were involved in many sectors such as rubber boots, tires, telecommunication infrastructure, electronics and cables. Currently, the corporation is best-related to the production and distribution of wireless communication technologies.