Nokia's Downfall in the Mobile Industry: Alternative Strategies

This report examines the downfall of Nokia within the mobile phone industry, focusing on the company's failure to adapt to the smartphone revolution. It identifies key factors contributing to Nokia's decline, including a lack of forecasting capabilities, overconfidence, reliance on traditional technology, a focus on short-term profitability, and poor internal communication. The report then explores three potential strategic alternatives for Nokia: introducing a similar product line, developing a more innovative and competitive product, and diversifying into alternative sectors such as web services or smart TVs. The chosen alternative is the introduction of a competitive product, leveraging Nokia's existing brand recognition and customer trust. The implementation process involves industry analysis, identifying customer needs, analyzing competitors, developing improved technologies, and introducing the product to the market. The report highlights the importance of market analysis and adapting to industry changes to regain market share.

Nokia Downfall
within the industry
ALTERNATIVES AVAILABLE FOR THE ORGANISATION

Nokia Introduction
 A market leader in the era of the mobile and keypad phones.
 The company played a key role in the introduction of the GSM.’
 The organisation failed to compete within the smartphone
industry and got failed (Holst, 2019).

Nokia Downfall
 Nokia failed to provide its stakeholders with the satisfactory
returns on their investment.
 The ineffectiveness of the leadership led towards the downfall of
the organisation.
 The managers or the leaders failed to identify the changing trend
within the industry and led towards the downfall of the
organisation
(Surowiecki, 2013).

Reasons behind Downfall
 The lack of forecasting capabilities.
 The overconfidence of managers due to the strong market
position within the industry.
 Using traditional and inferior technologies.
 The organisations focus on the short term profitability rather than
focusing on the long term goals and objectives.
 Lack of communication within the organisation(Bouwman,
Carlsson, Carlsson, & Nikou, 2014).

Alternatives available for Nokia
Alternative 1
 Introducing a similar product to remain in the industry.
Alternative 2
 Focus on creating a innovative product having a competitive
position.
Alternative 3
 Focus on alternative products or sector within the industry.

Alternative 1
To regain the trust of the stakeholders within the industry, the
management at Nokia can focus upon introducing a similar product
range
 Analyse the market.
 Identify the leading product range within the market.
 Develop a product having similar specifications.
 Promote the product within the industry and focus on retaining
old or existing customers within the industry.

Alternative 2
 The organisation can also focus upon developing a product that is
better from that of the competitors,
 having upgraded and advanced specifications and quality
 Being able to provide a competitive edge within the industry and
to achieve the strategic goals and objectives.

Alternative 3
 Apart from introducing same or competitive product range within
the industry the organisation can focus on entering into
alternative sector or manufacturing products that have a scope
for market expansion.
 As apart from the smartphones the organisation can focus upon
the web services, or enter into the market of manufacturing
smart TVs, which are currently having a strong growth in terms of
market share (Businesswire, 2018).

Selected Alternative
 Nokia can focus upon the introduction of a competitive product
within the industry, rather than focusing on similar product or
different sector.
 The organisation was a leading organisation in the mobile
industry, and the customers trust in the product quality offered,
therefore offering a competitive product will help the organisation
in retaining its position within the industry.

Implementation Process
 Industry Analysis
 Identification of the customers needs and requirements.
 Analysing the competitors strengths.
 Developing a product that has a better and improved
technologies involved.
 Introducing the product within the market.

 Introducing a competitive product will help the organisation in
regaining its market share.
 Being the organisation already involved in the mobile sector, it
will be easy for the organisation to identify changes and adapt
those changes.

References
 Bouwman, H., Carlsson, C., Carlsson, J., & Nikou, S. (2014). How Nokia
Failed to Nail the Smartphone Market. 25th European Regional
Conference of the International Telecommunications Society .
 Businesswire. (2018, September 17). Global Smart TV Markets 2018-
2025 - Growth Opportunities, Competition and Outlook of Platforms and
Applications Across End User Industries - ResearchAndMarkets.com.
Retrieved from Businesswire:
https://www.businesswire.com/news/home/20180917005678/en/Global-S
mart-TV-Markets-2018-2025---Growth
 Surowiecki, J. (2013, September 03). Where Nokia Went Wrong.
Retrieved from The New Yorker:
https://www.newyorker.com/business/currency/where-nokia-went-wrong
 Holst, A. (2019, June 12). Nokia - Statistics & Facts. Retrieved from
Statista: https://www.statista.com/topics/1183/nokia/