Nokia emerged from Finland to steer the mobile revolution in a decade. It quickly became one of the foremost well-known and valued brands among all countries as well as in North India. Nokia had a worldwide market share of over 40% in mobile phones at its peak. While its rise to the highest was quick, so was its fall, which culminated within the sale of its mobile division to Microsoft in 2013.
Before any of those businesses joined the mobile industry, Nokia had begun to crumble from within. In current times of rapid technical innovation, market change, and increasing complexity, studying Nokia’s story can help your organisation establish or retain a leadership position in its field.
Nokia collapsed in 2007
Nokia’s loss of dominance within the mobile market after 2007 is one of the foremost significant failures in modern business history. For Finland, this was an economic catastrophe, when the world’s largest mobile & Technology company lost its grip in the market.
In 2011, its market share was only 25%, and the corporation started software collaboration with Microsoft. After that in 2013, it had been announced that Nokia would be selling its entire mobile business to Microsoft.
Practically speaking, the Nokia mobile phone business crashed from top in the world to extinction within eight years of its business.
The company and its new leadership adopted bad Marketing Ideas, non-testified approaches and bad management of the company led to its extinction. This generation of managers believes in a rational mindset supported by a bureaucratic organisational form. Leaning on a superior technological competence within the mobile sector, Nokia was capable of ultimately becoming the market leader.
However, in 2007, with two major companies, Apple and Google, joining the tech business, the established rules of competitive dynamics were irrevocably changed. Focus shifted to software and applications. Nokia’s risk-averse and closed organisational culture couldn’t respond during a situation where an open look for new innovations and a cooperative internal working model where needed. An analysis of the event of Nokia’s organisational psyche following the emergence of a replacement generation of managers and executives highlights the role of local beliefs in using philosophical wisdom in critical circumstances. Nokia and its leadership weren’t ready to abandon the outmoded habits and structures, as these had become integrated with the very identity of the corporation.
Every mobile company should take a page from Nokia’s
Nokia’s decline in mobile phones can’t be explained by one simple answer: Management decisions, dysfunctional organisational structures, growing bureaucracy and deep internal rivalries all played a part in Nokia’s defaming and extinction from the technology market.
Nokia could have adapted the Android OS to regain its value in the technology market. Also, understanding the benefits of teamwork and adapting innovation for better results could have benefited them in retaining their market position.
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