Case Study: Nokia 2010
Table of contents
1. Introduction
1.1. Conceptual Framework and Study Design
2. An overview about Nokia
2.1. Facts and Figures
3. Problems and Causes
3.1. Problems
3.2. Causes of Problems
4. Analysis Tools, applied for Nokia
4.1. Porter Competitor Analysis
4.2. Porter’s Five Forces Analysis
4.3. SWOT Analysis
4.4. Scenario based planning
5. Possible Solutions for Nokia
5.1. Strengthen Nokia’s Research & Development Department
5.2. Find allies in the US American market
5.3. Behave more global
5.4. Realign the Board of Directors
5.5. Replace the CEO
6. Conclusion List of References
Exhibits
Exhibit 1: Nokia’s worldwide market shares in 2012 5
1. Introduction
The basis of this paper is a case study about the Finnish mobile phone giant „Nokia“. The case study was written by Syeda Maseeha Qumer from the IBS Center for Management Research in Hyderabad, India and it covers an analysis of Nokia’s downturn over the last decade due to the company’s failure to adapt to the smartphone market.
In the mid-nineties, when the boom on the mobile phone sector started, Nokia became market leader and held its position from 1998 until now. As the customer’s demands changed quickly in the industry, both the development of new products and the entry of new competitors endanger existing companies. Especially in this industry, the former greatest strengths of a company can turn into disadvantages - this is exactly what the so-called “Icarus Paradox“ describes. Similar to the fall of the Icarus, a figure in Greek mythology, companies may fail if they only concentrate on their core competencies and neglect their environment (Cummings & Wilson, 2003: 267). Cummings & Wilson (2003: 267) state that companies in a highly competitive environment not only need to have the ability for single loop, but also for double loop learning.
Nokia relied upon their strategy to build solid, high quality mobile phones with basic features at
1. Introduction
1.1. Conceptual Framework and Study Design
2. An overview about Nokia
2.1. Facts and Figures
3. Problems and Causes
3.1. Problems
3.2. Causes of Problems
4. Analysis Tools, applied for Nokia
4.1. Porter Competitor Analysis
4.2. Porter’s Five Forces Analysis
4.3. SWOT Analysis
4.4. Scenario based planning
5. Possible Solutions for Nokia
5.1. Strengthen Nokia’s Research & Development Department
5.2. Find allies in the US American market
5.3. Behave more global
5.4. Realign the Board of Directors
5.5. Replace the CEO
6. Conclusion List of References
Exhibits
Exhibit 1: Nokia’s worldwide market shares in 2012 5
1. Introduction
The basis of this paper is a case study about the Finnish mobile phone giant „Nokia“. The case study was written by Syeda Maseeha Qumer from the IBS Center for Management Research in Hyderabad, India and it covers an analysis of Nokia’s downturn over the last decade due to the company’s failure to adapt to the smartphone market.
In the mid-nineties, when the boom on the mobile phone sector started, Nokia became market leader and held its position from 1998 until now. As the customer’s demands changed quickly in the industry, both the development of new products and the entry of new competitors endanger existing companies. Especially in this industry, the former greatest strengths of a company can turn into disadvantages - this is exactly what the so-called “Icarus Paradox“ describes. Similar to the fall of the Icarus, a figure in Greek mythology, companies may fail if they only concentrate on their core competencies and neglect their environment (Cummings & Wilson, 2003: 267). Cummings & Wilson (2003: 267) state that companies in a highly competitive environment not only need to have the ability for single loop, but also for double loop learning.
Nokia relied upon their strategy to build solid, high quality mobile phones with basic features at
References: Cummings, S. & Wilson, D. (2003). Images of Strategy. Boston: Blackwell. Elop, S. (2012). About Nokia. [online] available at: http://www.nokia.com/global/about-nokia/. (Accessed 3rd June 2012). French, W.L Johnson, G., Scholes, K., Whittington, R. (2008): Exploring Corporate Strategy. Edinburgh: Pearson. Lavie, D., Stettner, U March, J.G. (1991). Exploration and Exploitation in Organizational Learning. Organization Science, 2(1): 71-87. Nokia (2012) http://www.nokia.com/global/about-nokia/. (Accessed 3rd June 2012). Palmer, et al Porter, M. (1980). Competitive Strategy. New York: The Free Press. Porter, M. (2008). On Competition. Boston: Harvard Business School Publishing Johnson, G., Scholes, K., Whittington, R Buchholtz, A., Carroll, A. (2008.). Business & Society: Ethics, Sustainability, and Stakeholder Management. 8. Ed., Andover: Cengage Learning Qumer, S comScore (2012). 2012 Mobile Future in Focus [online] available at: http://www.comscore.com/Press_Events/Presentations_Whitepapers/2012/2012_Mobile_Future_in_Focus