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The Rise and Fall of Nokia – Case Solution

The Rise and Fall of Nokia case study deas with the plight of the mobile device manufacturer over the years. Since its inception, the company was known in the mobile market and mobile manufacturing industry. Over the years, it was a strong market player in the telecommunications (telecom) industry. However, the release of other phone models by other manufacturers greatly impacted the company, something Nokia did not foresee. This case study looks into how the company could have possibly avoided the negative impact of the rise of the competition.

​Juan Alcacer, Tarun Khanna, Christine Snively Harvard Business Review ( 714428-PDF-ENG ) January 06, 2014

Case questions answered:

• What do you understand to be the primary strategic decisions, positive or negative, made by the management of Nokia?
• For each item identified in number 1, what were the drivers that led them to make the decisions?
• Did the decision have a positive or a negative outcome?
• In the case of a positive outcome, provide an explanation as to why this was the case. For a negative outcome, identify what you would have done differently.

Not the questions you were looking for? Submit your own questions & get answers .

The Rise and Fall of Nokia Case Answers

1. what do you understand to be the primary strategic decisions, positive or negative, made by the management of nokia.

In the 1970s, Nokia started developing its own computers and released Mikro. More than a decade later, the company acquired the Swedish consumer electronics company Luxor AB.

In 2011, Nokia dropped its in-house operating system, Symbian, for Microsoft’s Windows Mobile OS. Around two years later, the company announced the sale of its Devise and Services business to Microsoft for $7.2 billion. This action marked an end to Nokia’s once-great handset business.

During the years 1977-1988, Nokia conducted a series of mergers and acquisitions. In 1992, the company divested its data, forestry, and chemical businesses and launched the first mass-produced digital phones.

2. For each item identified in number 1, what were the drivers that led them to make the decisions?

Nokia started developing its own computers to get into the computer market. The company also acquired Luxor AB to grow its exports of wireless telecom networking terminals.

The move of Nokia to drop Symbian for Microsoft’s Windows Mobile OS was due to its complexity and Symbian’s difficult and unfriendly code structure. It took 22 months for a phone using that OS to be developed.

Eventually, Nokia sold its Devise and Services business to Microsoft to…

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The Rise and Fall of Nokia

By julian birkinshaw , lisa duke.

The case describes Nokia’s spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company’s handset business being sold to Microsoft in 2010.During the successful period of growth (roughly 1990 through to 2006), Nokia’s focus on design and functionality gained it a worldwide reputation. It was acknowledged as the first smartphone manufacturer. Through the early-mid 2000s it was the undisputed leader in the global mobile phone business. The case traces the first signs of trouble and the company’s subsequent decline over the period 2005 to 2010. Pressure in the early 2000s from low-end competitors led to early signs of problems. Then of course the game changed in 2007 with Apple’s iPhone and a year later with phones powered by Google’s Android operating system from HTC, Samsung and others. Nokia was initially dismissive of these new offerings but its proprietary OS, Symbian, was ageing badly and its App store (Ovi) was no match for Apple’s. In September 2010 it was announced that American Stephen Elop, formerly of Microsoft, would become CEO. Not long afterwards a partnership with Microsoft was signed which subsequently led to Nokia’s handset business being sold to Microsoft.

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• Understand why good companies go bad; in other words, see how the assets that enable companies to succeed can also be liabilities when the market turns against them.
• Provide insight into the nature of disruption in an established industry and why incumbent firms struggle to adapt.
• Examine the different paths companies should take to respond to disruptive forces.
• Understand the leadership challenge for executives when their performance starts to decline2. To understand the dynamics of change in a fast-changing industry.
• Identify strategies companies can use to adapt quickly to disruptive changes.

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Nokia’s Supply Chain Management Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Nokia’s Supply Chain Management

Nokia's Supply Chain Management

QUESTION 1:

The case study is about the supply chain management and the risks faced by the management of the Nokia Company. The company is roughly a decade old and the growth that it has witnessed over the time is phenomenal. However, the market share of the company has squeezed in the recent period as it has lost its market share and customer base to Samsung.

It is still one of the most dominant mobile phones manufacturers in the industry. The company was the leading organization in the cell phone manufacturing industry and the most dominant organization by market capitalization in the late 1990’s. This profitability and the dominance of the company in the telecommunications industry were solely due to the strategic and timely decisions of the management and the board of the organization to invest in the new technologies and innovations that were emerging throughout the world.

This policy of the management of the company transformed the organization as it started to set its foot in the electronics and communication industry. The product base of the company was also enhanced due to this decision of the board, the shareholders and the management that was in charge for running the operations of the organizations affairs.

The company introduced its first ever cell phone in the markets in early 1980’s after acquiring the skills and expertise of this latest innovation and technology however, in the last decade of the 20th century the business operations of the company did take a hit as the trading routes of the company became a conflict zone and resulted in the fall of the Soviet Union.

The company rebuilt its trade inn routes and introduced procedures and strategies to further avoid incidents and halts like this and by the end of the century, it had already established its global dominance in the markets all over the world. The revenues generated by the company were roughly $20 billion dollars and almost 75% of that came from the direct sales of the cell phone of the company and the rest were gained through the network services that the company provided. The case study is about an incident that transpired at the royal Philips Electronics Plant also known as Philips, which is situated in New Mexico City. The company is the key supplier of parts like chips for Nokia and Ericsson that are used in the production of handsets of the company and the issue involves a fire incident that transpired at the factory premises. The fire was put out by the factory workers and the employees however; the damage had already been done.

The incident was reported very swiftly to the management of the organizations.The organizational structure of Nokia is very impressive and the chain of command is very effective. The company had already gone through such a phase in the past therefore, the management of the organization had subsequent strategies that they could deploy to oversee and face the crisis as they were likely to suffer with idle time issues otherwise due to lack of inventory of chips, which are necessary for the production of the cell phones.

It was because of this reason that the operations and the revenues of the company were not affected due to the fire incident and the company was able to hold its supply line during the crises because its supply chain was not centralized. The management of the company had also developed the risk management strategies that assisted it during the crises. Supply Chain Management Case Solution

On the other hand, Ericsson had a centralized supply chain structure and the chain of command of the company was not at all effective. Although the supplier called and informed a technician of the company, however the upper brass of the management of the company was unaware of the fire issue at the factory. The initial expectations of Philips were that the plant will be in a working condition in a few days and the management of the Ericsson Company was relying on it as their supply chain was centralized and they did not had any other alternative.

It later turned out that the clean rooms of the plant were severely damaged and a considerable damage to the inventories had also been done to the inventories kept there. The plant was shut for several weeks and the launching of the new cell phone had to be delayed by the company and this led to huge losses for the Ericsson as they lost a considerable market share to their competitor, Nokia...........................

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The Rise and Fall of Nokia (Abridged)

• The Rise and Fall of Nokia  By: Juan Alcácer
• The Rise and Fall of Nokia  By: Juan Alcacer, Tarun Khanna and Christine Snively
• The Rise and Fall of Nokia (Abridged)  By: Juan Alcácer and Tarun Khanna

• May 4, 2023

The rise and fall of Nokia - lessons from failure

Updated: May 8, 2023

One of the pivotal moments in life as we know it today was the emergence of cellular phones. The emergence of this sector gave rise to a plethora of brands, such as Apple, Redmi, Samsung, and the brand that was leading them all - Nokia. But sadly, what was a behemoth then is now just a footnote.

The once iconic cell phone that we saw in the hands of almost every adult, also named the Best selling Mobile Phone Brand in the world (October 1998), is now rarely even spoken about. So what went wrong? What resulted in Nokia’s downfall? Let’s explore the Nokia case study and find out what factors caused its tragic “from success to failure” story.

The following are the major factors that accounted for Nokia’s downfall:

Resistance to the only constant- Change: With the rapid pace of change, especially in technology, Nokia’s resistance didn’t help their brand. It kept producing older versions of its phones as compared to its competitors, who kept upgrading their phones. As a result, their market shifted to these newer, more affordable ones.

No strategic plan: Nokia’s rivals, such as Apple and Samsung, had a successful marketing strategy that kept their customers and potential ones interested and on the lookout for their new products. They both used the umbrella branding strategy (such as Samsung with their Galaxy series) that kept users hooked. Seeing this, Nokia tried to release its own line of hardware and software, but it already existed in the market because of its competitors.

Innovation: As the demand for their phones increased, Nokia focused most of its resources on its manufacturing rather than its innovation. Even with the release of their Nokia Lumia phone, they provided the most basic features with the dullest visuals compared to their competitors.

Overestimated strength: Nokia’s management believed that their market would wait for them and buy their phones regardless of what they produced and hence, didn’t focus much on what their competitors put out. They got stuck with outdated hardware and buggy software which resulted in Nokia’s downfall.

Check out these links to know more about the rise and fall of Nokia:

https://www.doersempire.com/why-nokia-failed/#:~:text=Initially%2C%20the%20new%20technology%2C%20urge,company%20on%20the%20strategic%20level -The history, fall and what we can learn from it.

https://www.feedough.com/why-did-nokia-fail/ -The rise, timeline of Nokia’s failure and its reasons.

https://startuptalky.com/reasons-why-nokia-failed/ -Reasons for Nokia’s failure and FAQs.

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Nokia case study

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ramanajaneyulu pokathota

Nokia was a synonym for the mobile phone industry for a long time; however, when it came into the era of smart phones, the former leader was under an awkward situation. Nokia sold its mobile phone business to Microsoft on September 3, 2013. A company following Kodak with the legendary color failed in the impact of the new technology revolution. This was a typical case of the subversion of an industry; therefore, the author believed that it was necessary to analyze the process. This paper studied Nokia's decline mainly from the three parts. First of all, looking back Nokia's development process from the glory to the decline, it can be divided into three stages: the transition period, the peak period and the decline period, followed by analyzing the reasons of its decline from three parts: Nokia executives' grasp for the market, the company's business strategy and business cooperation, and finally analyzing its inspiration for modern enterprises from the marketing perspective.

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The Real Cause of Nokia’s Crisis

• Michael Schrage

Nokia’s technology isn’t a root cause of its current crisis. Don’t blame its engineers and designers either. The company still knows how to innovate. There’s a simpler and more strategic explanation for why this once-perennial market leader became second-rate. Nokia ignored America. The company simply refused to compete energetically, ingeniously and respectfully in the U.S. […]

Nokia’s technology isn’t a root cause of its current crisis. Don’t blame its engineers and designers either. The company still knows how to innovate . There’s a simpler and more strategic explanation for why this once-perennial market leader became second-rate.

• MS Michael Schrage , a research fellow at MIT Sloan School’s Center for Digital Business, is the author of the books Serious Play (HBR Press), Who Do You Want Your Customers to Become? (HBR Press) and The Innovator’s Hypothesis (MIT Press).

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Discusses all the IFE, EFE matrices and value chain

Assess the main strategic actions taken by each NOKIA CEO. What actions created enduring sources of competitive advantage? What actions (or lack of actions) contributed to NOKIA’s fast decline? Please be sure to cover the following dimensions of strategy: products, vertical scope, horizontal scope, geographic scope, technology, organizational structure.

How did NOKIA manage its ecosystem (consisting of operators in the early years and app and software developers more recently)? What would you have done differently?

What decisions would you have made differently and when? Why?

What were the external factors that enabled NOKIA to establish market leadership in the mobile phone business? How did each CEO react to these external factors? Did NOKIA have any influence on these external factors? How could NOKIA have better prepared itself for the Smartphone era?

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Nokia Case Study Questions And Answers Case Solution & Analysis

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