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A BRIEF BACKGROUND ABOUT THE CASE

ABOUT THE • Founded in 1865 at Espoo on the banks of river Nokia, Finland
COMPANY • Started as wood pulp and a paper mill organization.
• Merged with Finnish Cable works , which manufactured cable
wires, Telephone and radio transmission equipment.
• Entered the Mobile handset business in 1987 and helped establish
GSM throughout Europe as standard network for cellular
companies.
• In 1992 divested multiple businesses such as data, chemicals and
forestry divisions and focus on mobile phones and network
equipment.

HIGHLIGHTS ISSUES FACED


• Established GSM and made it a • Unable to change with the changing
standard operating network demand of the market.
• Became the second largest • Wasn’t allowed to get into the Open
manufacturer of phones behind Handset Alliance of Google, HTC and
Motorola in 1992 Samsung which led to formation of
• In 1994, Became the first Finnish Android platform standards
company to be listed on the NYSE. • Was already loosing ground in Asia
• Achieved market dominance 2003 due to the emergence of low cost
onwards after overtaking Motorola competitors
as the largest manufacturer in 1998. • As company grew it became
• Sold more than 100 models of hierarchical and decision making
phones in more than 150 countries bureaucratic.

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