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Organizational Behavior & Management - Essay
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Added on 2021-04-19
Organizational Behavior & Management - Essay
Added on 2021-04-19
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Running Head: Organizational Behavior & ManagementAPPLE & NOKIAOrganizational Behavior& ManagementEssay
Organizational Behavior & ManagementP a g e | 1EssayNokia was one of the largest mobile phone manufacturers of the world before selling off its business first to Microsoft at 7 Billion USD, and then to HMD for an undisclosed amount. Nokia was doing extremely well in the 80s, 90s, until the mid-2000’s when things started falling off the plate for Nokiaand it stumbled like a pack of cards(Laamanen, Lamberg & Vaara, 2016). A lot of articles and journalshave been written on what exactly went wrong with Nokia, how a company which was at the Zenith of success can dig a hole so deep in earth that it could never make a comeback from its failures. By 2007 Nokia was manufacturing more than 65% of the mobile phones sold on the planet earth with its Symbian mobile operating system and was a clear market leader in the mobile space (Sumanthi, 2017). Nokia was selling huge number of mobile phones globally due to its strong body type, longer battery life, industry experience, quality products, pricing strategy and attractive designs. It was the era post 2007 which saw the evolution of Application for Mobile phones which changed the entire ecosystem of the mobile phone industry. A lot of players started emerging out of nowhere; companies like Samsung, Micromax, Oppo, Intex, Huawei and many other started giving a tough fight to Nokia. The single largest trouble with the Nokia was its inability to design an operating system which could work well with the mobile application and have a seamless integration with the mobile phone. This is touted as the biggest reason which led to the bankruptcy of Nokia and emergence of other players in the Industry (Rooij, 2015).During the era of Nokia, Apple was to be found nowhere, the company was doing its best to make products which customers would buy instinctively, but were really not able to match up to the standards of Nokia, Nokia was clearly leading the way. But, in the year 2007, Apple suddenly came in
Organizational Behavior & ManagementP a g e | 2the market with its revolutionary I-phones and created a disruption in the entire market phone industry. People were seen to be standing in long queues to buy an I-phone and suddenly the wind turned the direction towards Apple, and the tech world was just talking about three things: Apple, Steve Jobs & IPhones. By first quarter of 2013 Apple had captured almost 40% of the US smartphone market and over 50% of the operating profit in the global handset industry. If figures have to be believed, Apple was selling 5X phones in comparison to sale of Nokia’s Lumia phones. It was just a matter of time Apple and other players like Samsung, Sony, Micromax, oppo and MI took over, which was the moment of death for Nokia. Ios and Android by then has taken over the mobile operating software and killed Symbian and the nearly extinct Blackberry. Apple was smart to realize that it was not just the mobile phones, but it was the software which should be leveraged to create experience for the customers. Nokia has been criticized a lot by a number of Tech Bloggers, enthusiasts, industry experts and by some of its own senior leaders, the tone of the message was clear, Nokia’s management predicted the change in the smartphone market, but really could not come together as a team and work towards the changing landscape(Hernes & Bytniewski, 2017). The company acknowledged first in 2004, in one of its media release, that the smart phone market is up for a revolution and Nokia would be leading from the front. However, nothing was done to embrace the change, on the contrary, the company refused to build partnership with emerging players who wanted Nokia’s expertise in their mobile phone business. It was the inability of the company to come together and develop software which would be in sync with the needs of the customer, and would have ensured sustainability for Nokia. It was the leadership which did not believe what was happening; they were in a state of shock and did not believe how every company, other than Nokia would move ahead in the race (Yun, Won & Park, 2016). In comparison to Nokia, team at Apple under the leadership was really looking strong. The team at Apple was playing the game by fundamentals, by analysing the
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