The Rise and Fall of Nokia Lisa Duke Julian Birkinshaw 2011
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“Nokia, once the biggest mobile phone maker in the world, is in the middle of a crisis. In 2011, Nokia lost more market share in the second half of the year than all other global mobile phone makers combined, and its stock price is in freefall, down 68% in the past 12 months. Nokia’s crisis is much bigger than a single product, and Nokia needs to understand the causes of its decline in order to reverse the slide.” The title was taken from an article in The
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I was asked to write a case study for my professor in the management school at [University]. In my paper, I had to discuss the rise and fall of Nokia and its impact on the mobile phone industry. I chose this case study not only because it was a highly innovative business, but also because it was noteworthy because it failed to achieve its ambitions in a challenging business environment. One of the key factors that contributed to Nokia’s success was its agility and adaptability. This company had the capacity to change its business model
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Nokia, founded in the year 1983, was a leading mobile phone company in the world at the turn of the century. In 2011, it was in dire straits after a series of catastrophic missteps that had destroyed its brand and market value. The Nokia name was synonymous with high-quality phones for people who were willing to pay a premium. Despite being one of the most successful phone brands of all time, Nokia had lost its way. It had stopped developing phones
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In my personal experience, The Rise and Fall of Nokia Lisa Duke Julian Birkinshaw 2011 was a major turning point in the company’s history. After a series of financial losses and product failures, the mobile phone industry was faced with a crisis of confidence. 2011 was the year of crisis for the mobile phone industry. We had lost our leader, and our business was in a state of collapse. We were facing a dilemma. Should we continue with the same strategy and tactics or should we take a bold
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In 1993 Nokia was a world’s leading phone company. It’s a Finnish company with headquarters in Espoo, Finland. Nokia was known for making high-quality phones and laptops. In 2001, when it bought the mobile division of Psion it became the second largest mobile company in the world with 10% market share. That’s how Nokia became “mobile phone company”. But in 2001, when Nokia lost its mobile phone market share to competitors Apple iPhone
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Nokia’s turnaround story in the late 2000s is a great success story for the BCG Matrix, which describes the relationship between market potential (or opportunity) and customer demand (opportunity cost). Nokia took its cue from this model, which showed that for any given market potential, there was a minimum value of customer demand. This minimum value, or opportunity cost, is the highest level of market demand below which no competitor could afford to take over Nokia. Nokia used the power of its technology to deliver
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Nokia’s success story is an important example of how a company can develop a new product and market, go public, and succeed without having much experience. At the time, Nokia’s strategy looked like this: 1. Build a brand. At first, Nokia built a good image by selling inexpensive mobile phones to emerging markets. 2. Invest in R&D. As Nokia was becoming profitable, Nokia began investing in R&D and expanding its product portfolio. you can try here 3.