CASE STUDY

CASE ANALYSIS TO BE SUBMITTED ON WEDNESDAY EVENING-THURSDAY MORNING

NO MORE EXTENSIONS!!!!

ETO PO YUNG LINK NA GAGAWIN NATIN (NOKIA COMPANY)

https://www.researchscript.com/wp-content/uploads/2018/07/IJMH050304.pdf?
fbclid=IwAR2Q86xPaD3UCc5A8Gp-Wdudl1N1G97S9fMaUO3_Ob1p9d4xfwVqKE8ceB8

REASONS BEHIND THE FAILURE OF NOKIA: A CASE STUDY OF TELECOM SECTOR

VERON'S GROUP
I. Introduction

Nokia Company From enabling infrastructure for 5G and the Internet of Things to creating
emerging applications in digital health, Nokia serves communications service providers,
governments, large enterprises, and consumers with the industry's most complete end-to-end
portfolio of products, services, and licensing.Nokia is a Finnish multinational communications,
information and technology, and consumer electronics company founded in 1865 in . It was
founded as a pulp mill and had long been associated with rubber and cables, but since the
1990s focuses on large scale telecommunications infrastructures, technology development and
licensing.

II. A Case Analysis Framework

Nokia became behind in the smartphone market due to stiff competition from Samsung and
Apple, as well as a lack of attention to innovation. Even if customers could disregard the
operating system, Nokia's physical features were far behind its key competitors Samsung and
Apple.The key to success was execution.Samsung outperforms Nokia and many other
manufacturers in terms of execution. Samsung's Galaxy S Android phones followed Apple's
strategy by dazzling people with a high-end flagship line. "Samsung has used a very similar
approach with its recognizable brand that people look forward to," Spektor said.This is a flagship
phone. Every year, consumers anticipate the release of a new Galaxy S. It aids in the building of
expectation and the stimulation of consumer desire.

New technology, the need to digitize, and innovation were initially cited as factors for success.
However, Nokia's failure as a corporation on a strategic level arose from its unsustainable
growth rate, loss of agility, and lack of inventive leadership over time.

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 A. Analyze and Record the Current Situation

1. ENVIRONMENT

Nokia’s loss of dominance in the mobile market after 2007 is one of the most significant failures
in modern business history. For Finland, this was an economic catastrophe, when the largest
company in the country lost grip on its core business.

Timeline
● In 2007, Nokia’s mobile division was the leading mobile device manufacturer in the
world, with a market share of about 40% (Cord, 2014).
● In 2011, its market share was only 25%, and the company started software
collaboration with Microsoft.
● In 2013, it was announced that Nokia would be selling its entire mobile business to
Microsoft. By this stage, the company’s market share was only 14%.
● By 2015, the market share was a measly 1%.
● Microsoft, in turn, announced in spring 2016 that it will stop manufacturing mobiles it
inherited from Nokia.
● As of October 29, 2020,Nokia announces the first phase of its new strategy, changes to
operating model and Group Leadership Team.
● The new structure and any resulting new appointments will take effect on January 1,
2021, at which point the roles mentioned above will form Nokia’s new Group Leadership
Team led by President and CEO Pekka Lundmark. These leaders will start developing
business plans for their respective units immediately.
Practically speaking, the company’s mobile phone business crashed from the top position in
the world to complete extinction within about eight years.

2. INDUSTRY

"They didn’t make the leap of faith onto Windows Phone until 2011. Now they are suffering from
their slow response." –Wayne LamBut in 2007

In the past, Nokia was one of the successful leaders in the mobile phone market and their
products are top on selling and Nokia covers a larger market share of mobile phones. When
time passes new players enter into the market with new innovations and ideas. That time Nokia
became a heavy loaded truck who ran on a saturated road where new players enter with new
things.The descriptions of Nokia’s failures are often ideologically charged and
tainted.Nokia have been turned upside down as triumph has turned to disaster.

3. THE FIRM

Nokia’s situation around the year 2008 could simply be described by stating that there was
a paradigmatic change under way in the mobile business. The company had been
successful by making reliable, technologically advanced phones cost-efficiently. However, a

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 significant thing hap- pened in 2007; Apple launched the iPhone. This model was completely
different from any other product on the market at the time. It had a touch-screen and only one
function key. New players overtake Nokia with its new mobile phones with new features, Nokia
is already very big, so they cannot overtake others. Nokia thinks that no one can beat them.
They think wrong and many other reasons which affect Nokia growth and make them a failure.

4. THE MANAGEMENT PROGRAM

Nokia is a company that deals in the production of mobile phones as well as mobile software
that are intended to run on. The current workforce at the company has been facing the
challenge of lack of innovation, and requires a diagnosis and recommendation of the problem
that the company is facing. As the world is moving forward and making major technological
advancements companies like Nokia need to be innovative so as to stay ahead of the pack. The
lack of innovation will lead to other companies taking up a greater share of the mobile phone
industry meaning that Nokia will lose a lot in terms of capital and investment.

B. Analyze and Record Problems and Their Core Elements

Nokia's mobile phone decline cannot be explained by a single, simple explanation: management
decisions, dysfunctional organization structure, growing bureaucracy, and deep internal rivalries
all played a role in Nokia's inability to acknowledge the shift from product-based competition to
platform-based competition.

Here’s the reason behind the failure of Nokia:

1. Nokia moved forward too slowly

Nokia was a pioneer in the smartphone market,literally introducing consumers to the smart
phone with its initial Symbian Series 60 devices in 2002. For the next five years, Symbian
phones had little trouble maintaining a leadership position in the smartphone pack. "They didn’t
make the leap of faith onto Windows Phone until 2011. Now they are suffering from their slow
response." In 2007, Apple introduced its iPhone with its full touch screen and app-based
operating system, the iPhone changed the very definition of what a smartphone should be.Yet
Nokia failed to respond to the iPhone and the shifting consumer demand that came with it.

2. Android paid off (for Samsung) and Windows phone hasn't Yet (for Nokia)

Not only was Samsung speedy, it also bet on multiple platforms, including Android and
Windows Phone and it even had its own homegrown OS, Bada, just in case none of the others
worked out. But in the end, Android paid off. And it paid off handsomely.Nokia, on the other
hand, spent its time focusing on Symbian until the company's recent partnership with Microsoft.

3. Lack of product innovation

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 Nokia’s Windows phone which came in 2011 lacked some basic technology essential to
drive its sales. Nokia’s Lumia series was launched with a bang, but didn’t click. Reasons can be
its design, which wasn’t as attractive as Samsung phones or the iPhone. Today the sale of
phones is dependent on how shiny or trendy it looks. Leave aside the looks, Nokia phones
didn’t have the front camera, which makes it not even 3G enabled. And we are on the threshold
of entering the 4G era. So, Nokia’s latest phones were featuring ready, but not future ready.

4. Failure of Symbian os and wrong deal with windows

The reasons for the collapse of Symbian OS are 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.Finally when the tide turned against the company, 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.

5. Nokia became laggard in smartphone market

Stiff competition from Samsung and Apple, and lack of focus on innovation was the second
big reason for the collapse. Even if users could ignore the OS, the hardware features which
Nokia was rolling out were quite late as compared to its major competitors Samsung and Apple.
Nokia seemed to be lagging in the race. Where Samsung from nowhere entered the race and
focused on innovation as its core competence to gain the market share, Nokia was very late to
realize this fact.

6. Nokia didn’t have panache

The classic Nokia brick phone and the Snake game on it brings back a lot of nostalgia. But
that's a problem. Consumers, especially in developing markets, associate the Nokia name with
a different era of technology. And in today's world, having the newest and shiniest device is what
matters.

7. Failure to implement the right umbrella strategy

For these reasons, Some mobile phone brands surpass Nokia. Nokia's strategy procedures
have deteriorated, resulting in bad strategic decisions. Companies that formerly encouraged
new ideas and experimentation to stimulate expansion have become risk cautious and less
imaginative as a result of their success. Such considerations will be crucial for companies that
want to grow and avoid one of the biggest disruptive threats to their future and own success.

C. Formulate, Evaluate, and Record Alternative Courses of Action

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 Alternative Course of Action

Engage in a new environment. Since the world is progressing and so are the needs, Nokia
needs to learn to step up. Adopt the new operating system. Instead of focusing on the old
system, adopting the Android system will help the business grow instead. Change the Marketing
Strategy. Every marketing needs a new strategy in order to cope up with what the target market
needs.

1.Use Android as your operating system.

Advantages:
1. Any new publication in Android can be done quickly and without any review process.
2. Android is more customizable and allows you to change almost anything.

Disadvantages:
1. Virus-infected applications are also available in the Android Market.
2. Low security and fake apps can be installed to steal your information from unknown
sources.

2.Be a quick thinker and shaker.

Advantages:
1. Capable of making decisions and building cases quickly.
2. Always be on the lookout for what's next.

Disadvantages:
1. It's possible that you'll be too far along to change your mind without undoing a lot of
work.They get way ahead of themselves and end up on the wrong path with
commitment.

3.Reintroduce old models, such as the Nokia 3310, with new features.

Advantages:
1. Process innovations enhance the value of existing products and services.
2. People are naturally interested in future products if they have previously been first.

Disadvantages:
1. End up wasting valuable resources by creating something that will not sell.
2. Businesses risk losing their reputation if their new product is of poor quality.

4.The main goal of the company is to build a business customer base.

Advantages:
1. Increased referrals benefit businesses by lowering advertising costs.When you run a

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 customer-focused business, customer service becomes an integral part of your
company's brand.

Disadvantages:
1. Customers' needs are constantly changing, so your customer-focused business must
have the resources to meet those needs.
2. Customer-focused businesses focus solely on their customers' needs and desires, which
can have a negative impact on a company's creativity.

5.Increase brand promotion.

Advantages:
1. The more frequently a customer sees your brand in the marketplace, the more likely he
will consider purchasing it.
2. Branding assists a company in raising public awareness of its products or services.

Disadvantages:
1. The branding process necessitates a significant investment on the part of the company.
2. Another significant disadvantage of branding is the time it takes to complete. To
establish a better public image, it takes considerable effort and time to create a branding
message and distribute it to a large audience.

D. Select, Implement, and Record the Chosen Alternative Course of Action

This analysis encompasses alternative courses of actions which are: Nokia Should conduct
seminars for their leaders to have visionary skills in order to foresee long-term goals. Nokia
should seek possible investors in order to have a solid foundation on taking a risk for market
share that is measured by the decision matrix through its efficiency, effectiveness and its ease
of implementation.The chosen alternative course of action is then outlined in the plan of action.

1.Use Android as your operating system.

Nokia should think about the most widely used software.Android allows phone manufacturers
to create relatively advanced smartphones without having to worry about software, lowering the
cost of the devices and allowing them to reach a wider audience.Despite having good features,
the iPhone still outperforms other smartphones or Android phones that have been tested to
ensure that they are a reliable device that can be used for a long time.

Because of the cheaper price and high quality of the product, Android has the added benefit
and advantage for this implementation. Nokia will encourage a large number of potential
customers to switch to the new device.

2.Be a quick thinker and shaker.

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 Each powerful business who initiates events and influences people involved in leading change
in organization should be a quick thinker and shaker. Nokia should prefer the workers winning
them over, and shaking them for making improvements. Realizing that being a leading brand
does not always mean remaining such for a long time if you do not keep up with new innovation
and trends.

This flexibility and forward movement are key. Be prepared for a change, and then move boldly
to forge the path that others can follow. The rewards of taking advantage of new steps, that
Nokia able also plans to adapt its external reporting in line with the new model to help investors
assess the value of the different parts of its business.

3.Reintroduce old models, such as the Nokia 3310, with new features.

Sometime in the distant past, there was a telephone like no other. The Nokia 3310 was the
most darling block of all. Reintroducing the old models with new features just like for example
making the Nokia 3310 into a dual sim. The new version of Nokia 3310 will consist of a few
welcome changes. It will have a fresher and slicker look than its predecessor, with its enlarged
color screen and a significantly slimmer frame.

4.The main goal of the company is to build a business customer base.

Nokia will aim to retain a customer base for growing in the market. Finding new and unique
ways to create a partnership with customers. Involving them in the design and delivery of
service and soliciting their ideas and suggestions and addressing their feedback. Nokia should
prioritize these 4 parts to maintain their product main goal, which are product innovation,brand
equity,information technology and stock exchange.

5.Increase brand promotion.

Another alternative for Nokia is to increase their brand promotion and reinforce the brand in
customers' minds. Nokia will be making a brand building process for promoting their brand in
the market.With an effective advertising and promotion strategy, Nokia will try to recall old brand
images in customers' minds. And should set short-term goals quarterly and long-term goals
every three years to ensure effectiveness of their mission and vision.Nowadays people also
identify Nokia easily because of its brand value and image. So Nokia will be able to catch that
and recall its old brand image.

LANUZA'S GROUP
III. Guidelines for an Operational Approach to Case and Problem Analysis
IV. Pitfalls to Avoid in Case Analysis

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
 ENGUAS GROUP
V. Communicating Case Analyses
A. The Written Report
B. The Oral Presentation
VI. Conclusion

This study source was downloaded by 100000854238312 from CourseHero.com on 12-28-2022 20:40:58 GMT -06:00

https://www.coursehero.com/file/122668357/CASE-STUDYdocx/
Powered by TCPDF (www.tcpdf.org)