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DOWNFALL OF NOKIA

Summary
When we first heard of mobile phones, Nokia was the first brand on the market.
Nokia remained in the market for a decade, releasing new phone models on a regular
basis. It catered to all socioeconomic groups by offering phones in various price
ranges. People in their twenties and thirties are the most able to relate. With such a
legendary legacy, it's difficult to believe that Nokia is no longer relevant in the cell
phone industry.

In the early days of its success, Nokia emerged as one of the most successful
mobile phone manufacturers. Nokia was the best-selling cell phone brand in the world
in October 1998. It had a 50% market share in the cell phone market by 2007. The
company's wide acceptance in the consumer market was due to its young and
energetic leadership. New technology, the desire to digitize, and innovation were
initially cited as reasons for success.

Behind the closed doors, though, something else was brewing. Nokia's demise
had already started well before 2007. It began with top management, and like
dominoes, everything came crashing down one by one. Nokia's failure as an
organization on a strategic level was caused by its rapid growth rate, loss of agility,
and lack of creative leadership over time.

Reasons behind the failure

 Nokia did not adapt to change

The cell phone industry experienced rapid technological development. Traditional
phones evolved into smartphones, but Nokia remained unchanged. While rivals began
to pour in highly advanced smartphones, Nokia continued to produce the old version
of the phone. When Nokia finally realized their mistake, it was too late; people had
already moved on to Android and Apple's phones.

 High competition in the industry

With too many firms targeting the same target market, the cell phone industry
gradually became saturated. Leading players such as Apple, Samsung, Blackberry,
and Nokia were all vying for the target market. Nokia did not improve its service in
this competition, and as a result, it lost to the other players on the market. However,
Nokia failed to investigate the situation in a timely manner, and as a result, the lower
end market was lost as well, demonstrating why Nokia failed in the market.

 Lack of strategic plan

Apple and Samsung were able to grasp the excellent game plan that Nokia was
unable to grasp. A flagship product has been created by Apple and Samsung. The
anticipation of a new product with new features being released will increase customer
interest in the product, and this is exactly what is happening. Even though the mobile
market is saturated, the introduction of a new version of the phone still generates
public interest. However, such a situation was not established in the case of Nokia,
which resulted in the company's demise.
 Lack of innovation
Nokia was the first to market with 3G phones, camera phones, and a slew of other
cutting-edge technologies. It came to realize in the early 2000s that staying relevant
and pushing the boundaries of technology required innovation. However, as demand
for their phones increased, they shifted their attention to manufacturing in order to
meet those demands.It emphasized mass production over innovation, and as a result,
companies such as Samsung, Apple, HTC, and others began to gain market share with
their innovative and simple operating systems.

 Changed the organizational structure and had internal issues

Nokia made the switch to a matrix structure. It was a drastic change that upset
many stakeholders and led to the departure of top executives. The people who had
aided Nokia in becoming the greatest company in the world were no longer with
them. Many of the company's departments were not adequately communicating with
one another. Internal rivalries in top management arose as a result of the lack of
teamwork. This is one of the reasons for their company's negative impact from
internal communication.

Write your insights/reactions about it’s downfall.

The events surrounding Nokia have clearly demonstrated the importance of some
theoretical concepts that should be taught to students. According to these ideas, the
right kind of structure in the company, environmental analysis, and competition are
some of the most common considerations that should be addressed when running a
company in order for it to be profitable and sustainable.

What I learned from Nokia's demise is that failure is rarely an immediate

occurrence. Failure is always the final phase in a process that starts with a mistake.
And it's frequently the extent of the first error that goes unnoticed. Failure, like
progress, is the product of a series of events. The second point to remember is that
complacency kills slowly but surely. Nokia became more of a maintainer and
multiplier, while innovation comes only from re-invention, and Nokia waited far too
long to make the next major bold change. Finally, competition is always present, and
keeping a close eye on it is important. If you lose sight of it, your rivals will have an
opportunity to invest in research and development and gain a competitive advantage.

Nokia continues to exist today, but it is no longer as relevant as it once was. Its
glory days are long gone, but it is still attempting to reclaim them by not making past
mistakes. Nothing is permanent, as they say, and whatever goes up must come down.
However, that doesn’t take away the fact that Nokia remains a huge part of mobile
phone history that will never be forgotten.