Fall of a Mobile Giant

In the mobile phone history, Nokia once reigned supreme with its robust devices
and iconic brand. However, as the smartphone revolution took hold, Nokia's
fortunes took a sharp turn, leading to a notable decline in its market share and
influence.

What comes in mind when you hear about the word “Nokia” smartphone
right but what else a mobile phone with a long battery life and hard durable
body.

It is only understood by the generation whoever has Nokia phones once or by the
person who have watched memes of Nokia 410. The phone which people think is
unbreakable generally due to its body.

Nevertheless, let me stick to the topic of the assignment what led to the fall of
Nokia, the mobile Giant.

We all know change is the basic law of society society everything changes in a
decade or two .

Be in terms of advertising networking cultural beliefs social lives ,laws everything

changed from time to time.

Those who resist the change are matter of the past .we have many such examples in
the history such as hero cycles or institute which could not adopt to online
education during covid’s many of these institutes are on the edge of closure
because of not changing into online.

The above example shows how important it is too have changed with respect to
time, and society.
Such was the case with Nokia and I am going to show it’s downfall with following
reason.

 Resistance to smartphone Evolution : In the fast-paced world of

technology, companies that fail to adapt to changing trends and consumer
demands can quickly find themselves left behind. Nokia, once synonymous
with mobile phone supremacy, experienced a significant downfall due to its
resistance to smartphone evolution.
 Nokia failed to Take advantage of era: When the others
smartphone companies were busy improving their smartphones
Nokia remained stubborn. Nokia believed that people will not
accept the new touch phones and only remain to keypad phones.
 LKateNokia realised that it had missed the mistake releases own
operating system but it has many bugs and it doesn’t have its own
ecosystem and apple platform like apple and iOS until then
Samsung and apple has made its own strong position in the
market.

Nokia was slow to recognise the capabilities of a smartphone and lost is Microsoft
to apple and Android based phone platform. It lost its market share to them.

 The deal with Microsoft : One of the main reason for the Failure of Nokia is
the ill time or bad time deal with Microsoft it’s sold itself to Microsoft at that
time when the software market was at loss.
 Nokia sales fall at all time low and it told everyone it’s inability to
survive in the market. Actually Nokia deal with Microsoft to launch
windows type platform which struggled to gain attraction from the
market consumer.

And deal benefitted no-one neither Microsoft nor nokia.

  Failed Marketing strategy: Marketing plays a crucial role in shaping a
brand’s Success and perception.
 One of the notable failure in marketing strategy of Nokia is it’s
unsuccessful implementation of Umbrella marketing strategy (a
strategy in which 2 or more product are sold under a unified
name like Samsung galaxy series mobile phone).
 Companies like apple and iPhone are successfully implemented the
strategy and captured the a larger market share, Nokia failed ito follow
it and failed to create a cohesive and recognizable brand strategy.
 Additionally, nokia marketing strategy failed to maintain the trust of its
people in its brand and also their distribution method and inefficient
selling further lead to exit it from mobile industry market.
 And also it has also delayed in timely innovation and till then other
companies had successfully captured the user Market.
 Moving too slow with the industry : Nokia’s failure to keep pace with
changing technology and trends played a significant role in its decline. While
the company had earned a reputation for its hardware, it didn’t prioritize its
software lineup, which proved to be a crucial oversight.

5. Overestimation of strength : Nokia overestimated its brand value. The company

believed that even after the late launch of its smartphones, people would still flock
to stores and purchase Nokia-manufactured phones. This turned out to be a
misconception, as consumer preferences had shifted towards other brands.

The most important thing is a sudden change in organization structure: Nokia

underwent a sudden and significant organizational shift by adopting a matrix
structure driven by enhancing agility within the company. However, this
abrupt change resulted in dissatisfaction among stakeholders, particularly as
key individuals in top management departed from the organization. These
individuals, who had played instrumental roles in establishing Nokia as a
leading company, were no longer part of the decision-making process.
  The shift to a matrix structure also brought about internal challenges, as
stability in top management, a crucial element for organizational
coherence, was disrupted. Over just five years, Nokia experienced two
CEO replacements, preventing employees from fully adapting to new
leadership goals and visions. The frequent changes in leadership created
instability and hindered consistent strategic direction. The lack of
continuity in leadership contributed to employee dissatisfaction and
impacted the overall cohesiveness of the organization. Employees and
other stakeholders found it challenging to align with successive CEOs,
leading to a breakdown in communication and a sense of disconnect
within the company.

6. Failure to adapt and Reposition: Nokia’s downfall can be attributed to its

failure to analyze market trends and adjust its strategy accordingly. The
company neglected the burgeoning smartphone market, ultimately missing a
significant opportunity for growth. Rather than capitalizing on this evolving
landscape, Nokia could have revitalized its position by enhancing its existing
software, such as Symbian. Unfortunately, the lack of strategic foresight and
adaptability led to a missed chance to stay competitive in the dynamic tech
industry.

Conclusion at last : The fall of Nokia can be attributed to a combination of

factors that hindered its ability to adapt, innovate, and stay competitive in the
mobile phone market. The resistance to smartphone evolution, missed
opportunities, ineffective marketing strategies, and the deal with Microsoft all
contributed to its downfall. Ultimately, Nokia’s decline serves as a reminder of
the importance of staying agile, embracing change, and continuously evolving
to meet consumer demands.
Lesson to be learnt from nokia failure: Nokia’s failure highlights the importance
of embracing change, anticipating market trends, and continuously innovating to
meet customer expectations. It underscores the need for effective marketing
strategies, strategic partnerships, and an unwavering commitment to adaptation
and innovation in today’s rapidly evolving business landscape.