Introduction:

• A company which is fighting for just 1% share in the

smart phone industry today was almost synonymous
to the word mobile phones a few decades back.
• Yes, Nokia was that big.
• For many people, Nokia was their first phone,
especially kids born in the 90s. It became the best-
selling brand and a household name within a
decade. It catered to all the segments of society by
designing different models with varied prices.
How can a company so successful ever fail?
What led to Nokia’s failure?

Let’s find out.

The Rise of Nokia
• From a pulp mill to a telecom giant, Nokia climbed the ladder of success
like no other mobile company.

• In 1992, Nokia launched the world’s first GSM phone: Nokia 1011. In 1998,
the company overtook Motorola and became the best-selling mobile
phone company. Still, the streak of success was far from over. At its peak, in
2007, Nokia’s worldwide market share stood at 49.4%, the highest in the
world. It understood the mobile industry and to this day, no company had
been able to achieve such heights of success.

• However, behind the curtains, something else was brewing. The collapse of
Nokia had already begun, way before 2007. It started from within the top
management, and just like dominoes, one by one, everything went down.
A Timeline of Nokia’s Failure
• Change in The Top Management: In 2006, Jorma Ollila
was replaced by Olli-Pekka Kallasvuo as CEO. The new
management merged Nokia smart phones and basic
phone operations, they focused more on traditional
phones rather than experimenting with new technology.
• The Arrival of New Companies: In 2007, Apple stepped
into the smartphone game and launched the iconic
iPhone. Nokia refused to take Apple as a threat to their
high sales numbers. It also considered Apple phones
inferior as they run on 2G technology while Nokia’s
mobiles ran on 3G technology.
A Timeline of Nokia’s Failure
• In 2008, Google launched the Android Operating System
(OS). By this time, Apple’s iOS was becoming popular and
its sales were steadily increasing. To tackle the threat,
Nokia should have switched to Android, but it didn’t and
continued to make phones with outdated Symbian OS.
• Delay in The Release of New Phones: In 2010, Nokia
announced N97, which would be the first to run Symbian-
3. But the release was delayed and as a consequence, it
failed to compete with Apple and rising Google.
A Timeline of Nokia’s Failure
• In 2010, Olli-Pekka Kallasvuo was fired from
the position of CEO, and Stephen Elop, from
Microsoft, took his place.
• Partnership with Microsoft: In 2011, to
cope up with declining market share Nokia
partnered with Microsoft to make Windows
phone, abandoning old OSs like Symbian and
MeeGo.
A Timeline of Nokia’s Failure
• Acquisition By Microsoft: In 2014, Nokia was
close to being bankrupt. But Microsoft
stepped in and brought Nokia for $ 7.2 billion.
This was considered by many, the last nail in
the coffin.
Reasons for Nokia’s Failure
• Failed to Adapt
• Failed to Innovate
• Failed to Reposition Itself
• Overconfident
• Changed the Organizational Structure
• Had Internal Issues
• Failed to Compete in the Smartphone
• Confusion on What to Market
- Symbian OS vs MeeGo OS
• Failed to Switch to Android
• Decision-Making Was Slow
• Partnered with Microsoft
Aftermath
• To this day, Nokia exists, not as relevant as it was in the
past. Its glory days are long gone, but it is still trying to
regain it by not repeating the mistakes of the past.
• Nokia focused on network equipment through Nokia
Networks, after the sale of its mobile phone division in
2014.
• Nokia Networks has its operations in more than 150
countries, it deals in wireless and fixed network
infrastructure, communications and networks service
platforms, and professional services to operators and
service providers.
• Nokia’s ranking in global telecom infrastructure was 5th in
2018 and it is paving its way to the top.
Conclusion
• In 2016, Microsoft sold the mobile phone
division of Nokia, for $350 million to HMD
Global, which was a company made up of
previous Nokia’s executives.
• In 2017, HMD Global released an Android-based
smartphone under the brand name of Nokia.
• The company’s Android phones were well
received by the audience. Still, it is a long way
from catching up to the current competition.