Nokia's Mobile Phone Segment: Analyzing Success and Failure Factors

This project analyzes the factors that contribute to the success and failure of companies in the mobile phone segment, using Nokia as a case study. The study reviews Nokia's history, from its peak performance to its decline, attributing the failure to factors such as ineffective management, bureaucracy, and poor strategic decisions. The research employs a secondary data analysis approach, utilizing online articles and journals to evaluate the factors leading to success, such as effective leadership, innovation, and customer service, as well as the factors contributing to failure, including lack of innovation, slow adaptation to market changes, and internal organizational issues. The project concludes with recommendations for mitigating the risk of failure in the mobile phone industry.

Major
Project/Dissertation
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Abstract
The current project is based on the topic of, to analysis the factors that causes success of a
firm along with determining the factors which causes failure of a company in mobile phone
segment. It has been seen and observed that the mobile phone segment is tend to be highly
dynamic in nature along with regular upgradation of the technology that leads to many factors
and reasons which causes and leads to success or failure of a firm. The current study is based on
Nokia company with is a renowned name in mobile phone segment but because of certain factors
this gain company faces higher decline and failure. Further, current study is based on analysis of
only secondary sources of data as it supports a more time and cost efficient way of investigation.
Review of data would be made with the online articles and journals that has bene systematically
analysed under the heading of literature review along with proper analysis of data is also made.
Beside this, a valid discussion on findings and conclusion has been also included in current
project along with significant recommendation to reduce and mitigate the risk of failure within
mobile phone segment.
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Table of Contents
Abstract............................................................................................................................................2
Topic: LESSONS FROM NOKIA’S FALL....................................................................................4
INTRODUCTION...........................................................................................................................4
Overview of the project..........................................................................................................4
Background of the organisation..............................................................................................4
Research aim and objectives..................................................................................................5
Rationale and significance for selection of topic...................................................................5
Research questions.................................................................................................................5
Structure of the project...........................................................................................................6
Scope and limitation...............................................................................................................6
LITERATURE REVIEW................................................................................................................7
To evaluate about the factors that lead to success of a company...........................................7
To analysis about the key aspects that lead to the failure of a company within the mobile
phone segment......................................................................................................................10
RESEARCH METHODOLOGY...................................................................................................14
ANALYSIS OF DATA.................................................................................................................19
Factors that lead to success of a company............................................................................19
Key aspects that lead to the failure of a company within the mobile phone segment..........22
DISCUSSION ON RESEARCH FINDINGS................................................................................27
CONCLUSION AND RECOMMENDATION.............................................................................30
Conclusion............................................................................................................................30
Recommendation..................................................................................................................30
REFLECTION...............................................................................................................................31
REFERENCES..............................................................................................................................32
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Topic: LESSONS FROM NOKIA’S FALL
INTRODUCTION
Overview of the project
It has been seen that running a business in a successful manner and ensuring its long term
sustainability is a difficult and complex task as there are many factors and risk that tend to affect
the performance and smooth running of a business. Thus, the current project is aim and focused
at the determining about the some of the key aspects and facts that leads to the failure of an
organisation within mobile phone segment (Mohan, 2022). It has been seen that the main mission
and core aim of every business organisation is to maintain and ensure its long term success and
mitigate all possible threats and obstacles such as the lack of focus, ineffective management, lack
of motivation in employees, etc. Therefore, current study has been conducted and lead out to
review and analysis about the key factors that lead to success of the company along with
determining about the factors that leads to the failure of the firms in the mobile phone segment.
Background of the organisation
The organisation selected for undertaking current project is Nokia which is tend to be a
Finnish multinational telecommunication, consumer electronics and information technology
company which was founded on 1865. The main headquarter of Nokia is tend to be situated in
Espoo, Finland and they tend to become very active in the field of the computer industry during
the times of 1950 and 1960s. Further, a rapid and significant growth is being seen within Nokia
during the rimes of 1996 to 2001 when it has a fivefold surged in its revenue from €6.5 billion to
€31 billion which was tend to reflect the peak performance of Nokia. Along with this, Nokia tend
to have a larger workforce of around 92000 people and its currently operating in more than 100
countries of world with a revenue of more than €23 billion (Magnani, 2022). Thus, Nokia tend to
be one of the most popular mobile brand of all time but recently a decline in the production level
is being seen by the Nokia which tend to be based on many reasons including the proper
managerial decisions along with higher level of politics in organisation that leads to growing
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issue of bureaucracy which resulted in form of decline of Nokia comply. Thus, the current study
is undertaken on Nokia company to review about the factors that caused failure of a company in
mobile phone segment.
Research aim and objectives
Research aim
The main aim of current project is, “To analysis the factors that causes success of a firm
along with determining the factors which causes failure of a company in mobile phone segment.”
A research project on Nokia.
Research objectives
The main objectives set out for current project are listed as below:
 To evaluate about the factors that lead to success of a company.
 To analysis about the key aspects that lead to the failure of a company within the mobile
phone segment.
Rationale and significance for selection of topic
The selection of current topic tends to be rationale as it supports a better discussion and
analysis of the failure that are the main reason and causes of failure of a company. It has been
seen that running a successful business is a complex and difficult task that includes effective
management along with proper decision making and management of company resources and
asset. Along with this, the selection and undertaking of current project is also rationale as it
supports better review of the key factors that are vital and important for the success of the firm
(Ali and et. al., 2022). It has been seen and reviewed that Nokia is among one of the most
popular and successful mobile company but due to certain factors and reasons this company
faces a sudden failure and lack of productivity. Thus, it is significant and rational to look out for
the reasons and factors that supports the success of a company along with reviewing the key
aspects that leads to failure of a mobile company. Beside this, the undertaking of current project
is also rationale and important from the personal view point of researcher and also meets the
educational perspective of researcher thus supports better creation of knowledge and
understanding level. Along with this, the undertaking of the current project also leads to an
improvement of the skill and competency level within in researcher based on better managerial
and research skills which makes it more rationale and reflecting significance of undertaking
current project.
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Research questions
 What are some of the factors that led to the company's success?
 What caused the company's failure in the mobile phones segment?
Structure of the project
The structure of current project includes and comprises of following main chapters and
section:
Introduction - In this part, a brief overview of the study along with research aim objectives
and questions are provided. It also includes rationale of the study along with some limitations of
study due to which the outcomes of study may impacted.
Literature Review - This section involves review of different literatures in which the
viewpoints of different authors are compared on the themes associated with the topic. It forms
the main part of dissertation in which information from various sources are gathered so that
researcher will be able to draw valid conclusion of study.
Research Methodology - It consists of different methodologies which help researcher in
performing the research study systematically and accomplish its aim. It is also a crucial part of
study as with the assistance of different methodologies, investigator will be able to conduct study
systematically in proper and structured manner. The current research project would be based on
use of only secondary source of data that would be analsysed through applying thematic analysis
and systematic literature review.
Data Analysis - In this part, data is analysed and the findings are discussed which further
help researcher to draw conclusion of the study.
Conclusion and Recommendations - This part provides summary based on the overall
report. It also includes some recommendations which are providing on the basis of findings of
the study to organisation. It provides conclusion of overall dissertation which involves summary
of entire project.
Reflection- It tends to provide information about the personal learning and own experience
of researcher that are gained while undertaking current project. Thus, the main focus and purpose
of reflection in to gain higher underdoing level based on won experience through reviewing the
faced challenges as well as analysing the steps taken to overcome these challenges.
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Scope and limitation
The current study is tending to have a wide scope as it presents an in-depth and detailed
review of the factors that leads to failure of a company within mobile sector. Thus, current
project tends to have a better future implication and use for the mobile company to ensure better
success and mitigate the risk of failure by the way of the leading analysis of the factors that
supports higher success along with analysis of factors that causes failure so that it can be
overcome in a timely manner. Beside this, the limitation of the current study comprises of
limited access to the resources along with time constraints. It has been seen that selecting and
analysing the suitable set of data is a complex and time consuming process that is a biggest face
within current issues. Besides this, ensuring and considering all the set ethical consideration is
also difficult that lead to limitation related with maintaining the authenticity and reliability of
facts.
LITERATURE REVIEW
It tends to forms and comprises of a vital set of every dissertation that is related and
associated with the systematic analysis and review of the pre-existing set of data. Undertaking of
the literature review tend to supports and leads out better base for the investigation by the way of
the supporting the review of the already exiting and pre-collected facts that leads to better review
of the set topic and objective (Burgelman, 2018). The current literature review is tending to be
based on the topic of the factors that lead to success of a company along with the key aspects that
lead to the failure of a company within the mobile phone segment. The use of the online set of
the articles as well as the journal and other set of the pre-existing literature is being used to
review and analysis about the selected topic a discussion and evaluation of which is tend to be
provided and listed as below:
To evaluate about the factors that lead to success of a company
As per the view point of the Angri, I., Mahfoudi, M. and Najid, A., 2022, it has been seen
and evaluated that the various factors are there which supports and contributes in the success of a
company. These sector comprises of better leadership, effective decision making, efficient
communication, effective production together with supports from the great marketing and
customer services. It has been that the Nokia is a very successful as well as productivity
company that is driven and supported by the energetic leaders along with use of innovative
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technology and keeping proper pace with the dynamic and growing business environment. A
discussion and review of the key factors that lead to success of a company are discussed and
evaluated below in context of the Nokia company:
Leadership- These comprises and consists of the capable people who are able to focus and
leads to the big picture and higher success and productivity of the firm by the way of the
effectively directing and channelizing all the business resources. Beside this, it is also necessary
and vital that the leaders of the firm should not be lost on the trenches along with consuming and
leading with the putting out of the fires together with gridding their own axe which plays a vital
role in the success of the firm. In context of Nokia it has been that the many successful and
effective leaders such as the Pekka Lundmark who is tend to be a Finnish business executive,
and the President and CEO of Nokia plays a vital role in its success by the way of proper use of
resources. Beside this, the leaders such as the Stephen Elop tend to also plays a vital role within
the success of the Nokia by the way of the Operate in an openly and honestly manner along with
having proper directly and with transparency (Sulphey, 2019). Beside this, the leaders of the
Nokia tend to also focus on the Willingly engagement of all employees in a respectful debate,
and then affirmatively support the decisions that arise which brings in more creative and
improved decision making to support higher success of the Nokia. Along with this, it has been
seen and assumed that the leaders of the Nokia tend to supports the best of intentions in the
actions of others along with the compete and respectfully to win in external way and internally,
partner to achieve the best balance of outcomes that leads to the higher and improved success of
the firm (Sackmann, 2021).
Strategic and tactical plans- Another vital factor that plays an effective role within the
success of a firm tend to includes and comprises of company up with effective planning at right
time. It is essential to have a systematic planning to ensure the grapping of the prevailing
opportunity in the target market along with having proper plans to mitigate and eliminate the
possible risk. Within Nokia, it has been seen and evaluated that the this mobile company tend to
have proper strategic planning and effective timely ideas to come up with effective ways that
supports better results and higher success (Panigrahi, 2020). It has been seen and analysed that
many effective ways and planning is being undertake by the Nokia that tend to supports and
leads to better success for instances when Nokia was facing the verge of collapsing due to its
immense success the company responded and come up with the effective planning and strategic
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decisions making by developing a more efficient supply system, which further helped the Nokia
comment to scale up its production and sale much faster than its competitors. Beside this, it has
been also seen and find out that between the years of the 1996 and 2000, the Nokia company also
tend to saw an increase in Nokia mobile by the way of the halving of the headcounts by 150%,
that is supported and brings out by the effective planning and strategic plan that supported its
revenue over the same duration was 503%.
Regular innovation and creativity- It has been seen that the business environment of all
business companies are tend to be dynamic in nature and also comprises of the high level of
competition level. Thus, at this time it become important and vital for the business organisation
to come up with and have innovative and exclusive ideas that supports higher business success
and improved results. The Nokia tend to allows focus on having regular innovation and coming
up with effective business ideas and mobile models that meets the expectation and needs of the
customer’s. Along with this, it has been seen that the effective planning and tactic strategic
related with the coming up with the Nokia's first camera phone in 2001 along with the
implication and leading of the its second-generation smartphone, the innovative 7650, as well as
the world's first smartphone, the Communicator, in 1996. Thus, an analysis can be made that the
strategy of coming up with regular innovation is also a vital factor and strategy that supports and
leads to success of Nokia (Kjellman and et. al., 2020). Beside this, it has been also seen that the
spectacular success of Nokia's 6100 series is also based on continuous innovation that is
reflecting that the company sold nearly 41 million cellular phones in 1998. Beside this, the
strategy of the coming of the innovative and creative set of the business products based on
regular quality improvement is also an effective and vital strategy that has helped the Nokia to
surpass Motorola and become the world's top cellular phone maker during the year pf the 1998s.
Thus, based on the regular innovation and creativity level the Nokia has established the
successful its competitive advantage through its highly valued products, services and innovation.
Effective communication- The one of the factor that plays a vital role within the success of
a firm tend to comprises and includes of the having effective set of communication both at
internal and external manner. It has been seen that having effective communication in internal
manner tend to includes and comprises effective and regular interaction among the employees
and managers that supports higher coordination and collaboration at workplace which is vital and
essential for the success of a firm. Within in Nokia, all set of the effective measures such as
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regular meetings, effective discussion and interaction along with making use of the clear lines of
internal communication has been made that ensures effective coordination (Burgelman, and
Thomas, 2018). Along with this, effective internal communication within Nokia also tends to
reduce the chances of chaos and conflicts at workplace that also enhance and increase the level
of the success of the firm. Further, it has been also seen and analysed that the external
communication is also vital and essentially rehired for the success of a firm as it supports better
communication with the customers and attract and cater a larger number of the customers.
Finding correct growth area- It has been reviewed and analysed that the dedicated
employees and efficient top management has supported the higher growth and success of the
Nokia company. It has been also seen that the Nokia tend to have an effective strategic planning
that supports finding correct area that supports higher growth and success level. It has been seen
and find out that the Nokia's transition based on effective growth decision such as to have a
primary focus on telecommunications that began in the 1990s is a vital step that supported the
growth of the company (Brusoni and et. al., 2020). Along with this, during the first GSM call
that was made in 1991 using Nokia equipment had supported and lead to the rapid success.
Along with this, the finding of the correct growth area by the top management of the Nokia that
consists of the efforts of this company in 1995 that is focused on effectively managing the core
existing area leads to its improved success within the mobile phone sector that had allowed
Nokia to become the best-selling mobile phone brand in the world during the times of 1998.
Along with this, it has been seen and elated that the Nokia venture and functions tend to be based
on the visionary venture that believes in making absorption and effective decisions that supports
the better results based on use of the new technology and regular innovation that supports higher
growth and success level for the Nokia. Thus, based on effective strategic planning and focus on
correct growth areas has led to a higher success and rise of the Nokia. This is reflected from the
fact that the operating profit of Nokia went from $1 billion in 1995 to almost $4 billion by 1999
along with the fact that Nokia was among the bestselling mobile phone of all time during the
year of 2003 when it created the Nokia 1100 which was very successful (Elmi, 2019).
To analysis about the key aspects that lead to the failure of a company within the mobile phone
segment
According to the view point of the Ben Barr, 2020, it has been analsysed that the Nokia
tend to be always been a classis mobile phone that is having a legendary status and reliability but
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due to certain factors the prominent position of the Nokia went to a loss to almost nothing. It has
been seen and reviewed that the downfall of the Nokia tends to started from the 2007-2013
which was mainly based on the three main reasons which is provided as below:
 In 2007, Nokia had to make a recall of around 46 million cell phones based on the
issue of the faulty batteries. Thus, this resulted in form of major decline in the
productivity level along with also created a negative market image that is vital reason
for the decline of the Nokia (6 Reasons Why Nokia failed After Enjoying Unrivaled
Dominance, 2021).
 Along with this, during the 2007, the arrival of Steve jobs and the introduction of the
iPhone was also a major cause and reason behind the decline of Nokia which was
seriously underestimated by the Nokia in terms of quality level. It has been also seen
that the launch of the IPhone has hard hit the success and growth of the Nokia by the
way of causing and leading out a drop in its profit and productivity level by the 30%
during the year 2008 along with issues of mass layoffs that is reflecting the decline
of the Nokia.
 Beside this, the third the main reason that caused and lead to the decline and failure
of the Nokia tend to base on the poor decision making as well as the ineffective
management style. It has been observed that the arrogance originated behaviour of
the leaders of the Nokia has installed a higher level of organisational fear and brings
into its lower management level. Thus, after the 2008 that management of the Nokia
tend to have the organisational fear which was started to reflected at the grounded
level as the culture of the temperamental leaders and frightened middle managers
started prevailing with the Nokia (Poutanen, 2019). Beside this, it has been also seen
and analysed that the middle management has started having a feeling of being
scared from the telling the truth to the board of directors and top management from
the fear of being getting fired. While, the top managers tend to have afraid and
scared from the dynamic change within the external environment and not able to
meet their quarterly targets. Along with this, the Executives of the Nokia tend to be
afraid of the fact that the publicly acknowledge the inferiority of Symbian, Nokia’s
operating system. On the other hand, the top executives of the Nokia are afraid of the
losing investors, there suppliers as well as the customers if they acknowledged that
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their technological aspects and software are tend to be inferior as compared to Apple.
Thus, a system and cycle of lying of top management to modelled management has
started as they felt that telling the truth about the inferior OS was useless as it would
take several years to develop better operating system that could compete with Apple.
Along with this, the rising level of the internal politics has also weekend the
management if the Nokia thus it become more vulnerable to competitive forces
which was a major reason for its decline (Super, 2020).
Thus, based on the above discussion, it has been analysed that the Change in the culture of
Nokia that tend to be based in atmosphere of shared fear created by the issues in the battery and
other inferior quality software is the main reason of the decline of Nokia. Along with this,
ineffective management and the stated of the temporal myopia which hindered the ability of
innovation along with lack of proper employee’s coordination are also leading to the Failure of
the Nokia. However, with respect to the view point of the Shubham Sachdeva, October 18, 2018,
the key aspects and factors that lead to the failure of the Nokia company within the mobile phone
segment are listed and discussed as below:
 Focusing only on hardware- In starting time and during the 90s the Nokia was tend to be
popular for its quality in terms of its hardware and design of its mobile set. But, Nokia
always lacks in focusing in the software of the mobile as there are only a few customers
who supports for the quality level of the android and IOS of Nokia. Further, the link of
the Nokia with the Microsoft is tend to an ineffective deal and it leads to huge loss for
both the tech giants. It has bene seen that this deal with the Microsoft is tend to very ill-
timed and it sold itself to Microsoft when the software behemoth was fraught with huge
losses (Ahn, Cho and Cho, 2020). This decision making and act of Nokia has created a
negative image and reflected the inability of the Nokia to survive on its own. Thus, this
gives an upper hand for the competitors such as Apple and Samsung to make and gain the
significant strides in innovation and technology development to grab a larger number of
market share. Thus, Microsoft’s acquisition of Nokia is considered to be one of the
biggest blunders and wasn't fruitful for either side based on wrong time and inferior use
of the software and technology.
 Negligence of management- One of the main concern and reason for the decline of the
Nokia is tend to be based on the having the arrogant and negligent behaviour of its
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