NOKIA

CORPORATION,
Organizational
Change and
Developement
 Problem Statement

History of Nokia
Outline
Proposed Changed Initiative

People involved in Change

Impact of the Initiative

Fail to pursue high performance

Recommendations
The Problem Statement

What were the reasons behind Nokia’s Downfall?

 Nokia is a Finnish
telecommunications, consumer
electronics, and information
technology company founded in 1865
which by 1998, had overtaken
History of Nokia Motorola to become the world’s
largest mobile phone brand. The
Nokia brand is now controlled by
HMD Global – a company founded by
former Nokia employees that
released a line of smartphones in
2017. The company’s failure to keep
up with software-based iOS and
Android operating systems made it
lose its market leader position.
 Nokia is perhaps best known for its
mobile phones which dominated
the industry before the invention
of the smartphone. Not only were
What it was Nokia products built to last with
long battery life, they were also a
known for ? fashion statement.

In 1998, Nokia overtook Motorola to

become the world’s largest mobile
phone brand. Nine years later, it
amassed a staggering 51% of the
total global market share.
 In the early 2000s, Nokia was the
world's largest mobile phone
manufacturer, with a market
share of over 40% . The
The Rise of Nokia company's success was due in
part to its ability to anticipate and
respond to changing market
trends. Nokia was the first
company to introduce a mobile
phone with an integrated
antenna, and it was also an early
adopter of color screens and
cameras in mobile phones.
The Decline of Nokia:
Nokia was a well-established Finnish company that dominated the mobile phone
market in the early 2000s. By 2013, however, Nokia's market share had declined
dramatically, and the company was struggling to stay afloat. Despite its early
success, Nokia's market share began to decline in the late 2000s. By 2013, Nokia's
market share had fallen to just 3% (Statista, 2021). There were several factors that
contributed to Nokia's decline, including a failure to respond to changing market
trends and increased competition from other companies.

One of the key factors that contributed to Nokia's decline was its failure to respond
to the rise of smartphones. In 2007, Apple introduced the iPhone, which
revolutionized the mobile phone market. The iPhone's innovative design and user
interface set a new standard for mobile phones, and other companies quickly
followed suit. While Nokia had some early success with its own smartphone
offerings, such as the N95, the company was slow to adopt touchscreens and other
 Founding and Early Success Nokia, founded in
1865 in Finland, began as a pulp mill and evolved
into a diverse business with interests in various
industries. However, it gained global recognition
for its focus into mobile phones and
telecommunications equipment in the late 20th

Proposed century. Nokia became the world’s leading

mobile phone manufacturer, known for its

Change Initiative durability and innovation.

Dominance in Mobile Phones During the late

1990s and early 2000s, Nokia dominated the
mobile phone market, capturing huge market
share. Iconic phones like the Nokia 3310 became
cultural symbols of the era, known for their
reliability and long battery life.

Challenges from Competitors Nokia faced

increasing competition from companies like
Apple and Samsung, which introduced
smartphones with touchscreens and advanced
 Strategic Partnership with Microsoft In 2011,
Nokia announced a strategic partnership with
Microsoft to use the Windows Phone operating
system in its smartphones, effectively
discontinuing its Symbian platform. This move
aimed to revive Nokia’s smartphone business by
Different Aspect and leveraging Microsoft’s software expertise.

their Description Decline in Market Share Despite the

partnership, Nokia continued to lose market
share to competitors, particularly Android-based
smartphones and iPhones. The transition to
Windows Phone faced challenges, and the
ecosystem struggled to gain traction.

Acquisition by Microsoft In 2014, Microsoft

acquired Nokia’s Devices and Services division,
effectively bringing an end to Nokia’s reign as a
standalone mobile phone manufacturer. The
acquisition aimed to integrate Nokia’s hardware
with Microsoft’s software to create a more
Impact on initiative on people, processed and products

Rise in Sale

The company invested in comprehensive training programs to equip

employees with the necessary skills and knowledge to thrive in the new
environment this leads to increase in the sale of their products.

Quality of products

Nokia empowered employees to take ownership of the change,

encouraging them to contribute ideas and participate in
decision-making which ensures the better quality of products and
development.
Failed to pursue high performance
Failed to compete with other smartphones: Nokia’s inability to adapt quickly,
coupled with challenges in hardware, software, and operating system choices,
ultimately led to its downfall. Meanwhile apple's iphone disrupted the market and
gained popularity leaving nokia struggling to keep up.

Start of Downfall of nokia: Not adapting to the environment: Nokia remained

focused on feature phones while the world shifted to smartphones.

Microsoft offer: Nokia lost market dominance and had to sell its handset business
to Microsoft.

Poor marketing strategies.

Adapting too slowly to industry trends.

Recommendations
● Strategic Foresight: Continuously scan the industry landscape to identify
emerging trends and opportunities, and adapt the market’s strategy
accordingly.
● Talent development: Invest in upskilling and reskilling initiatives to ensure
the workforce remains adaptable and equipped to navigate future challenges.
● Innovation: Continuous creativity and innovation is necessary for the
sustainability
● Continuous Improvement: Compare with market trends and make changes
accordingly leads towards the development and success of any organization.
● Market leadership: Investment in upleading technologies to make a position
in market
● Customer Satisfaction: To satisfy the customer need and customer retention
foresights the company’s success.
Conclusion
Reasons for the Fall of Nokia

1. Hindered its ability to adapt, innovate and stay competitive in the mobile
phone market.
2. Resistance to smartphone evolution, missed opportunities.
3. Ineffective marketing strategies and deal with Microsoft all contributed to its
downfall.

What We Can Learn from Nokia's Failure: One of the key takeaways is the
importance of being able to anticipate and respond to changing market trends.
Nokia's early success was due in part to its ability to innovate and stay ahead of its
competitors. However, as the market changed and smartphones became more
popular, Nokia was slow to adapt, and this ultimately led to the company's decline.
Another lesson that can be learned from Nokia's failure is the importance of being
willing to take risk. A third lesson that can be learned from Nokia's failure is the
importance of innovation and adaptation.