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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management especially the newly appointed CEO. No one can have the reasons to deny
the skillset of Stephen Elop but in case of the Nokia it has been seen that having a
popular and skilled person is not always going to be enough to transform a company.
Elop did realise the difficulties Nokia was facing and he also tend to took some big
decisions but it all ended in vain. Further, it has been also seen and find out that the
Nokia’s ultimate fall is being lead out and created by the higher level of the internal
politics (Sackmann, 2021). Thus, the high level of negligence from the management and
the own people of the Nokia are the reasons that weakened Nokia people and thus made
the company increasingly vulnerable to competitive forces. The lack of negligence and
arrogant behaviour of the management of Nokia was seen during the times of
development of their first smartphone Nokia N9 that was believed to give a cutting edge
and tend to be very user friendly. Along with this, a string operating system known as
MeeGO was also lead to grab higher customer attention but at the same time google and
apple inc. makes better strategy and come with more efficient OS. Thus, the CEO of
Nokia made a decision to postponed the release for first smartphone Nokia N9 by two
years that has lead to ineffective strategy and delayed the innovation and placing right
product and right time in a vain and lead to decline of Nokia. It has been seen that during
the time of 2008-2013 when Nokia faced the decline and fall a higher level of fear is tend
to being permeated at all levels (Vrontis and et. al., 2020). The lower rungs and
employees of the organisation turned inward to protect resources, themselves and their
units, giving little away, fearing harm to their personal careers. On the other hand, the top
managers are also tending to be failed to motivate the middle managers through adopting
and using with their heavy-handed approaches. Thus, the ensure management and
workforce of the Nokia tend to be in the dark with what was really going on and not able
to make effective decision and planning that leads to the decline of Nokia.
 Ineffective team collaboration- The another major factor that caused and lead to decline
of a company and firm tend to comprises of the having ineffective communication and
lack of proper workplace collaboration. It has been seen that the Nokia is tend to face
many issues related with effective leadership and management that also hampers the level
of communication and guidance for the employees. Thus issues and challenges related
with higher chaos and confusion at workplace is being faced that is a major cause behind
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the decline of Nokia (Miszczyński, 2019). Beside this, it has been also seen and analysed
that the ineffective communication also hampers the productivity and efficiency level of
the people that is leading and negatively affecting the sales and overall performance level
of the Nokia.
 Lack of innovation- The another major concern that creates decline of a company in
mobile sector is based on lack of regular innovation and upgradation of technology. It has
been seen that the regular innovation and upgradation in technology is being seen and
necessary within mobile sector to meet the needs and expectation level of the customers.
Thus, ineffective innovation and creativity within the mobile design and software of the
Nokia is a major cause and reason of its decline (Srivastava and Kumar, 2021). It has
been seen that the competitors of the Nokia comprising of the Apple, Samsung and many
more are tend to have higher technological development and innovation thus they stated
grabbing a lager target market. Along with this, the inferior software and Operating
system of Nokia that lacks innovation and technological improvements is also a key
factor that caused to the decline of the Nokia. Further, it has been also seen and find out
that the Nokia has tried hard for coming back with its new phones having latest
technology, but those were feature ready, but not future ready that is a main reason
behind its decline. Beside this, it has been also seen and find out that not only flagship
phones but Nokia was also getting hurt in the mid-range segment. Along with this, entry
of so many other brands like Motorola, Xiaomi, HTC, Huawei made Nokia face failure
due to having ineffective innovation and improvement in its technology to meet and cope
with these rising number of competitors who are offering better features phone and
higher value for customers (Singh and Ramdeo, 2020) .
RESEARCH METHODOLOGY
It is the chapter in an investigation which includes research methods for the collection,
analysis, interpretation and evaluation of information & content in a systematic way. There are
particular series of steps which is called research process (Sim and et. al., 2018). Basically, this
is the process which is followed and guided in the design of the existing investigation. The series
of the research process are as follow: formulation of the investigation problem, selection of
research design, choosing method of data collection, specification of selected sample,
accumulation of information, analysis & interpretation of data and presentation of the findings.
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Saunder's Research Onion framework is used by investigator because it gives methods as
per the requirements and needs of the study. This gives layers which include: research
philosophy, research approach, research strategy, research choice, data collection, sampling, data
analysis and so on. This section gives proper justification of the research methods with their
advantages and disadvantages.
Research Philosophy: It is the research method which gives principles and belief for the
evaluation, interpretation and examination of information in a systematic way. This is mainly
categorised into three types which include: epistemology, ontology and axiology. Researcher has
chosen epistemology philosophy as it provides two sub-parts which are: positivism and
interpretivism philosophy. Investigator has shown dependence over interpretivism philosophy as
it is appropriate for evaluating theoretical and qualitative piece of information. Researcher has
selected interpretivism philosophy as it comes under qualitative research methodology and play
an important role in understanding social phenomena and culture (Mohajan, 2018). The main
benefit of using interpretivism philosophy is that it is directly linked with analysing theoretical
data collected about factors that cause success of a firm along with determining the factors which
cause failure of a company in mobile phone segment. Thus, it takes out relevancy of theoretical
piece of information in a systematic manner so that investigation could be completed with great
quality theoretical piece of information (Ebrahimi, 2022).
Research Approach: It is the methodology which directs way to researcher in
investigating and finding out questions of the proposed investigation. For gathering and
analysing information as per the requirement of investigation's topic, there are two forms of
approaches which are: inductive and deductive approach. As per the requirement of current
investigation, inductive approach is selected by investigator because it is more suitable while
collecting and analysing qualitative piece of information in a systematic manner. Inductive
approach is more appropriate as it begins investigation with specific matter and ends with
something more general (Ngozwana, 2018). Thus, this is mainly implemented when researcher
needs qualitative information through qualitative research methods.
Therefore, for the existing investigation inductive approach is used for analysing
information on factors that cause success and failure of the organisation. Basically, it works for
showcasing relationship between factors and success of the whole company (Silverman, 2020).
This approach is essential for the existing study because it also facilitates in understanding the
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experiences and beliefs of people working in the organisation for addressing the determined
research questions. Hence, for drawing out valid conclusion and summary, investigator has taken
assistance of inductive approach rather than deductive approach.
Research Strategy: The other research method used by investigator in the existing
investigation is research strategy. This method provides certain strategies that directly assist an
investigator with the collection of reliable and relevant piece of information. The various kinds
of strategies include: action research, case study, grounded theory, systematic literature review,
interview, survey and many more. Researcher has selected systematic literature review and case
study as the strategies for the existing study. The main motive behind selecting systematic
literature review as the research strategy is that it facilitates in identifying, selecting and critically
appraising investigation for answering clearly formulated and defined research questions. The
main benefit gained by researcher with the assistance of systematic literature review is that
includes critical and reproducible conclusion of the outcomes of the available studies and
publications on a selected topic (Basias and Pollalis, 2018). Thus, systematic literature review
provides number of advantages to researcher which include delivering comprehensive and clear
overview of available publication and evidence on a provided topic. This also helps investigator
to determine gaps in the investigation existing understanding of proposed field.
Investigator has also selected case study as research strategy because it mainly focuses
over investigating a phenomenon within its real-life context. Case studies are generally based
upon detailed information about particular group, event, individual or organisation to evaluate
the causes of underlying issues and principles (Camic, 2021). In the current investigation also
case study has played great importance because this report based upon particular organisation
which is Nokia. Hence, the strategy of case study helped researcher in identifying and collecting
real incidents of the company that contributed in success and failure of the whole organisation.
Therefore, the existing study is based upon case study as well as systematic literature review.
Research Choice: Research choice is the research method which plays quite important
role in the determining kind of information need to be collected for meeting pre-defined aim and
objectives. The choice helps investigator to answer the research problem and question of the
investigation so that purpose of the study could be fulfilled. The choice is categorised into two
significant kinds which are: qualitative and quantitative research. As per the purpose of the
current research, qualitative research choice is chosen because it facilitates in the evaluation and
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analysis of information which is available in theory and in text form. The main motive behind
using qualitative research choice is that it helps in understanding concepts, experiences, thoughts
of individuals etc. (Urcia, 2021). As per the requirement of current study, researcher has used
only secondary qualitative choice in which they do not focus on carrying out raw piece of
information. Hence, they mainly depend upon second-hand qualitative piece of information.
With this choice, researcher focuses over saving limited time of the researcher and taking out
theoretical data about the selected topic. In simpler words, qualitative research choice helps
investigator to carry out insights of the investigation. Hence, these insights assist researcher to
carry out reliable and relevant piece of information.
Data Collection: The other important research method is data collection. This method
helps investigator to accumulate right piece of information so that defined aim and objectives can
be met in a systematic manner. This is classified into two main forms which are: primary and
secondary data collection (Daniel, 2019). Investigator has used secondary data collection method
because it helps investigator to save their limited time and use it in some productive work. In
simpler words, secondary data is information gathered by someone other than actual or real user.
It simply means that the data is available on different platforms and someone evaluates &
analyses it. The secondary sources used in the current study are: books, magazines, journals,
newspapers etc. It is generally unpublished information or published data. Published information
are available in several resources involving: public records, historical & statistical documents,
government publications, technical & trade journals and business documents. On the other hand,
unpublished information involves: letters, diaries, unpublished biographies and many more.
Researcher has experienced certain benefits by using secondary data collection methods which
include: low cost or free, ease of access, time-saving, allow generating new insights from earlier
evaluation and analysis and many more.
Researcher has performed secondary investigation in no time and reanalysing old
information. This has assisted investigator in bringing unexpected new points of view and new
understandings as well as new relevant summary. Secondary information is quite easy to access
because this kind of information is easily available. The internet also plays significant role in
changing the way secondary investigation operates (Mukhalalati and Awaisu, 2019). With the
help of internet, researcher has to simply click with mouse and get access to relevant and
accurate piece of information. The other advantage of secondary research is that it helps
17

investigator to save time as well as efforts. When compared to primary research, secondary
investigation is quite easy and convenient in a systematic way.
Data Analysis: Data analysis is the research method for the evaluation and analysis of
information in a precise way. This is divided into two forms which include: frequency
distribution analysis and thematic analysis (Daniel, 2019). Investigator has chosen thematic
analysis because it is the need of investigation as it includes qualitative piece of information.
Thematic analysis provides flexibility which allows researcher in analysing information in a
precise manner. It is quite quick and easy method for learning and analysing data.
Time Horizon: Time is the component which is quite necessary for completing the study
in a timely manner. This is basically categorised into two types which are: cross-sectional and
longitudinal time horizon (Olaluwoye and et. al., 2022). Researcher has selected cross-sectional
time horizon because it helps in assembling data in real-time so that updated information can be
accumulated in a systematic manner.
Ethical Consideration: Researcher has focused over following certain ethics principles
of qualitative investigation. Researcher has re-identified information before using it in their own
investigation (Blaikie, 2018). Researcher has also focused over using information in such a
manner that it does not result in any distress or damage.
18

ANALYSIS OF DATA
Factors that lead to success of a company
According to the information assembled in the section of literature review it is being
evaluated that there are many factors that play an important role in supporting and contributing
the success of whole organisation. These factors include effective and quick decision-making,
effective communication, great leadership, timely production, great marketing strategies, great
customer service and many more (Karima and Uusiautti, 2018). Nokia is considered as one of
the successful companies because it includes various leaders who are continuously focusing over
creating innovations and inventions in the market of technology.
Leadership: Leadership refers to one of the factors that play quite an important role in
the success of whole organisation because it includes capable people who focus over completing
work with great efficiency and effectiveness. Leaders are the people in an organisation who
direct and channelise every resource of the company towards success and development. The
company Nokia has also focused over maintaining great leadership in their workplaces because
they know leaders are the people who focus over managing every employee in a best possible
manner. One of the greatest leaders of Nokia is Pekka Lundamark has played an important role
for Nokia as they focused over managing resources of the organisation in a best possible manner.
The other leader of Nokia is Stephen Elop who has focused over creating an environment in an
organisation which supports transparency and conducting operations in an honest and open
manner. In simpler words, every leader of the organisation focuses over increasing employee
engagement in the organisation so that employees could be satisfied in the workplace. With the
assistance of effective leadership in an organisation, the procedure of decision-making becomes
quick and instant in the favour of organisation (Luomalahti, 2019). The leaders of Nokia support
the ideas and intentions of employees if they find that these can benefit organisation in a long-
run. Thus, it is determined that leadership is essential in the workplace because for an
organisation every resource is necessary and leadership is the element which focuses over
managing all these resources. Therefore, leadership in Nokia focuses over management of human
resources and aligning every human resource with the goals of the company so that company
could lead towards development and success.
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Regular innovation and creativity: The other significant factor that play major role in the
success of Nokia is regular innovation and creativity. It is identified in the section of literature
review that business environment of every organisation is volatile and dynamic because
preferences of people change, increase in competition and many more. Nokia is an organisation
which focuses over addressing innovative and exclusive ideas of each employees so that
company can move towards success and greater outcomes. Nokia tends to make regular
innovations and creations because in market there is high competition as people have higher
expectations and needs with the gadgets they are using. Nokia comes up with innovations and
creations in their business models so that their models can stand out in the market in comparison
of other brand's products and services (Ding, 2021). The company focuses over effective
planning and strategies so that innovation can be aligned in the organisation. In 2001, Nokia has
come up with camera phone. This has assisted company to grab attention of the customers
because at that time concept of camera phone was new to people. A proper analysis is made by
the company so that regular innovation can become vital strategy and factor for supporting and
leading success of Nokia (Azman, Mohamed and Odzaly, 2020).
6100 series of Nokia has gained spectacular success because this series was mainly based
over innovation. It has sold overall 41 million cellular phones in the year 1998. Innovation and
creativity need completely different cultures and structures in comparison of operative
management and work. Nokia also supports innovations by making continuous routine and
efficiency so that employees could think in a different way and come up with new ideas and
strategies. This needs different values and attitudes in which Nokia gives an environment of
openness to employees where they can easily try out new things continuously, willingness to
work in uncertain condition & take initiative to work in risks, accepting mistakes and many
more. Hence, Nokia builds up a positive innovation culture in which innovations are encouraged
and welcome (Routa, 2020). Measures of promoting a innovation culture are implemented at
several levels which include: raising worker awareness about innovation through measures of
communication, motivating employees through incentives so that employees can put efforts in
promoting innovation, empowering employees for innovation such as training sessions on
innovation and creativity procedure, active involvement of workforce through innovation
competitions, creation of structures and spaces for innovation and many more.
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Effective communication: One of the important factors that play significant role in the
success of an organisation is effective communication. Nokia is an organisation that focuses over
using right communication channel for internal as well as external communication. For every
organisation, internal communication is necessary and essential because each and every
operation commences from there only. Internal level communication includes regular and
effective communication between managers and employees so that collaboration and
coordination can be maintained in the workplace (Lamberg and et. al., 2021). In the workplaces
of Nokia, every set of effective measure is taken which include effective discussion, group
discussion, regular meetings, conveying every small information from higher authorities to
employees working at lower positions and many more. Nokia adopts several new communication
tools and channels so that every information could be conveyed at right time. With this strategy,
chances of errors, chaos and mistakes in the workplace are eliminated so that every operation
could be completed without any barrier and challenge (Baxter, 2019). Thus, with the help of
communication, leaders and managers of Nokia conveys each information to every employee in
the organisation and lead towards fulfilment of company's goal and objectives. In respect of
external environment, Nokia plays quite important role as they use communication tools which
assist in communicating with customers at right time so that their attention could be grabbed and
use for the success of the organisation. An important step to ensure the success of Nokia is
consistent and constant communication of their purpose and vision. For formal communication,
Nokia uses newsletters, e-mails and memos and for informal communication, Nokia uses face-to-
face communications and meetings. This assists an organisation to infuse with a vivid, exciting
and clear vision for future success and growth. Departments conduct discussions, surveys and
meetings so that employees could have clear information about vision and goal of the
organisation.
The leaders of Nokia watches, listens and asks questions from employees. Then these
leaders do something significant so that employees could be directed towards a direction so that
vision could be achieved. Great leaders of Nokia create specific and clear communication to each
employee so that company could attain objectives and targets of the organisation (Simonen,
Herala and Svento, 2020). Vision, goals, objectives and targets of the organisation are attained
through solid communication so that every resource of the organisation can have clear path to
work and operate in a systematic manner. Nokia follows fundamental rule of communication
21

which is giving easy access to each human resource so that right decision can be taken at right
time. People with access to lots of great information assist in attaining goals and targets of the
organisation. Hence, Nokia focuses over clear and specific communication is a keystone of
empowerment, delegation and taking fast actions. All these components assisted in building great
business for Nokia. Great organisations such as Nokia shares as much data as they can legally
with their workforce in an open and straightforward manner. With the assistance of multiple
sources such as newsletters, training, casual conversations, meetings, corporate gatherings and so
on. In these meetings, they constantly focus over vision of the whole organisation so that
employees as well as customers could be satisfied. Thus, Nokia gives all the necessary
information to their people so that they can feel connected as well as engaged.
Strategic and tactical plans: The other important factor that plays important role in the
success of an organisation is strategical and tactical plans. This mainly focuses over making
effective planning so that every operation and activity could be completed with greatest
efficiency and effectiveness. Nokia is an organisation that mainly relies over systematic planning
for ensuring and taking advantage of prevailing opportunity in the targeted market. This also
includes proper analysis and planning to reduce and mitigate every possible risk in prevailing
opportunity (Lamberg, 2019). Nokia which is a mobile company work to make proper strategic
planning so that effective ways could be used and carry out better outcomes, results and achieve
higher success. Nokia continuously invests its time to make strategies so that they do not need to
face any collapsing situation. Nokia focuses over using efficient supply system by making proper
planning and analysis of production and sale procedure. Company has also made proper strategic
planning that has assisted this organisation their headcount by 150%. Thus, planning is the
strategy which helps in identifying all the needed resources as initial stages so that every
operation could be conducted in a smooth manner.
Key aspects that lead to the failure of a company within the mobile phone segment
On the basis of the current investigation, it has been seen and analsysed that there are
various key factors and aspects that lead to the failure or success of a company within the mobile
phone segment. It has been seen that mobile industry is being a very dynamic in nature thus,
continuous innovation along with focusing in the efficiency level of the hardware as well as
continuous improvement in operating system and other software is very important. It has been
seen that before the 2007 the Nokia is tending to be the ferocious as well as giant telecom
22

company that is very popular and well known for its product especially hardware quality and
battery life (Burgelman, 2018). But after the year 2007 in which the IPhone was launched and
Nokia faced an issues in its productivity level based on fault in its battery are tending to be the
some reason that caused and leads to the sudden downfall of the Nokia company. The following
below stated graphs are presenting and reflecting the sudden downfall and failure of Nokia in
terms of both market share and productivity level.
Figure 1: Nokia sold mobile phones, 2021
The above graph is reflecting and presenting the decline in the selling of mobile phone of
Nokia is seen in both emerging markets such as China, Asia Pacific, Middle East, Africa and
Latin America as well as in their total sold volume in exiting marketing (Panigrahi, 2020).
Further, it has been also seen and find out that the decline within the sales level of Nokia is tend
to be much steeper in developed countries (Europe and the United States) where the company
lost 47 percent of its volume from 2008 to 2012 as compared to 22 percent in emerging
economies (Sulphey, 2019).
23

Figure 2: Nokia’s financial performance in terms of revenues and operating profit, 2021
On the basis of the above graph, it has been seen that the market share of the Nokia has
declined significantly that is reflecting a fall within the overall turnover and profit level of the
Nokia. It has been reflected from the above graph that the sales and turnover of the Nokia is
peaked around 40 percent in 2007 as during these years it is up to the introduction of
smartphones, Nokia gained market share on a growing market (Kjellman and et. al., 2020). But
after that, a sudden decline is being seen within the both sales as well as the operating profit level
of Nokia. Further, it has been also seen that the perhaps more important explanation of Nokia’s
problem is related to the decline in Average Selling Price. Thus, if each sold phone generated
110 euros of revenue in 2004, then getting only 45 euros per phone in 2012 is of course a tragedy
for the company depicting the decline in the operating profit of Nokia and show case the failure
of giant mobile company.
The current Study and analysis has provided with the main causes and reasons behind the
decline and failure of the Nokia that has been discussed and evaluated as below:
Resistance to the smartphone evaluation- Based on current study it has been find out
that the Nokia tend to get failed in making the advantage of the Android Bandwagon which is
reflecting the biggest reason for the decline of this company. At the time when the competitors of
the Nokia are focusing on the improving and coming up with the latest version of smartphones
the management of the Nokia tend to be remain stubborn and arrogant towards the its inferior
24

software and hardware. Thus, soon the Samsung and apple has grabbed the target market through
launch of the IPhone and efficient range of Android based mobile phone which are both cost
effective and user friendly. The management of Nokia tend to have a false impression that its
customers would not going to accept the touch screen phones and would remain attracted and
continue the use of the QWERTY keypad layout. Thus, this misapprehension and ineffective
decision among based on resistances towards the evaluation of the smartphone are tend to be
biggest reason behind the downfall of the Nokia (Burgelman, and Thomas, 2018).
Deal with Microsoft- It has been seen that the ill-timed deal with the Microsoft is also a
crucial and main cause behind the downfall of the Nokia as the selling of the shares of Nokia to
Microsoft gives a wrong impression in customers about the internal ability of Nokia company. It
has been seen that the deal of Nokia company with Microsoft leads to an impression within the
target market that Nokia is not able to survive in the dynamic business condition by its own and
has lost its credibility and reputation in the target market which was a major reason behind the
decline of Nokia (Brusoni and et. al., 2020). In 2013, Microsoft tend to paid over $7 billion for
Nokia's handset business which is tend to be in an ill-fated attempt to provide a third alternative
to iPhone and Android handsets with Windows Phone. This, deal was failed miserably, with the
purchased assets from Nokia written off in 2015 based on the fact that both these companies are
having a difference in behaviour and the competitors such as Samsung and apple are already
having better quality product and higher value creation for customers.
Failed marketing strategy- The another major cause and reason behind the failure of
Nokia is tend to be based on the ineffective marketing strategy that leads to a decline within the
overall market share and holding of the Nokia.
25

Figure 3: Nokia's Market Share Holding, 2021
It has been seen that the start-ups and business companies tend to failed because of the
bad marketing strategy and this same happen in the case of Nokia. The company tend to focus
and continue with the traditional form of the marketing and continuous with the unsuccessful
strategy of the umbrella branding which was tend to be the major cause for the failure of the
Nokia (Why did Nokia fail and what can you learn from it?, 2018). It has been seen that because
of the ineffective marketing strategy and lack of transparent and proper communication with the
customers the user trust that was built by Nokia over the several years was gradually started
waning and affected the market holding of Nokia. Along with this, the Nokia also tend to have
an inefficient selling and distribution method as the when Nokia decided to come up with the
fascinating hardware and software innovation it was delayed and the rivals of the Nokia has
already realised that features which causes lacked uniqueness within products of Nokia which is
also a major reason behind its decline (Elmi, 2019).
Ineffective behaviour of management based on overestimation of strength- It has been
seen that the management of Nokia tend to have a feeling of being on the top within the mobile
industry which created a sense of arrogance in its management. Apart from this, the management
of Nokia also tend to make late decision making and believed that they would gain the higher
success level been after the late launch of smartphones as its customers and people would still
flock to stores and purchases the Nokia manufactured phones based on high customer loyalty.
But it tends to be a misconception of the Nokia (Poutanen, 2019). Thus, based on over estimation
of its strength and being overconfident about the quality of products lead Nokia to get stuck with
26

it inferior quality software system that have serval bugs and chunks as compared with Apple and
Samsung which caused the decline of Nokia.
Lack of innovation in the products- The main reason behind the failure of a company
within mobile industry is based on having ineffective innovation and creativity level. It has been
analsysed that the Nokia tend to lack its pace of innovation especially in its software that lacks
exclusivity and advance features as compared with other rivals such as Apple and Samsung. It
has been seen that the coming up with the Nokia Lumia series was tend to be a jump-start
measure, but due to wring tine it even tends to be collapsed due to lack of innovation and
exclusiveness in the feature (Super, 2020). Beside this, it has been also seen and find out that the
unattractive and dull features are also being a vital reason and factor behind the decline of the
Nokia as in the era of 4G, Nokia did not even have 3G-enabled phones. Along with this, it has
been also evaluated that the Nokia was never kept its pace with changing level of the technology
and trends within the mobile industry. Beside this, Nokia was always famous for its hardware
and it didn’t pay much attention to its software line-up and it has also tended to overlooked
technical advancements to avoid the risks associated with bringing innovation to phone. Thus,
lack of innovation is a major cause for the declines of the Nokia as it gives an upper hand and
higher opportunity for competitors such as Samsung and Apple to cater and attract its target
customer causing a decline in the sales and success level of Nokia and finally leads to its failure
(Ahn, Cho and Cho, 2020).
DISCUSSION ON RESEARCH FINDINGS
On the basis of current investigation, a discussion can be made that the mobile industry is
highly dynamic in nature thus, there are various factors and aspects that supports the success or
might lead to the failure of a firm. It has been reviewed that the success of a firm is gently
depended on many key factors such as effective leadership, proper decision making and strategic
planning along with focusing on growth areas (Angri, Mahfoudi and Najid, 2022). Besides this,
it has been also reviewed that people firms out the main resources of every business organisation
thus, energetic leaders and skilled workforce tend to plays crucial role in the success of a firm.
Further, a discussion has been also made that the running a successful business is tend to be a
complex as well as the difficult task within mobile sector that includes effective management
along with proper decision making and management of company resources and asset. Beside
this, it has been seen that having effective leadership is the main factor that lead to the success of
27

a company as it supports proper direction and guidance for employees for timely achievement of
task along with supports better use and channelization of company assets and resources. It has
bene discussed on current study, effective leadership and correct decision making by the
founders and leaders of the Nokia has supported its early growth and success level that makes it
achieve the position of world leading mobile company during the year of 1998. Along with this,
it has been also find out that the effective leadership is vital for success of a firm as helps in
creating an environment in an organisation which supports transparency and conducting
operations in an honest and open manner (Baxter, 2019). Beside this, it has been also discussed
that every leader of the organisation focuses over increasing employee engagement in the
organisation so that employees could be satisfied in the workplace which supports and brings out
higher efficiency and productivity level within a firm. Further, a discussion about the need and
importance of the regular innovation and creativity within the success of a firm has been also
made during current investigation which reflected that innovation is vital to meet the satisfaction
level of customers and also supports higher competitive advantage for a firm. During current
investigation it has been seen that, Nokia tend to emphasis and focus on creating regular
improvement within the hardware and design of its mobile along with supporting more reliable
battery life which made it superiors and better that its customers based on regular innovation
which is biggest factor behind it success during the 90s. The another vital aspect that has been
determined and discussed during current investigation which supports higher company success
comprises of leading and supporting effective communication. It has been find put that effective
communication is vital at the workplace of a firm to reduce and mitigate the risk of chaos and
confusion and ensues a higher collaboration and coordination within the managers and
employees which lead to higher success level of a firm. Beside this, it has been also seen that the
leaders of the Nokia are tend to offer a positive workplace environment where two-way
communication is prevailing to listen and replay to the questions of employees which supports
higher employee engagement and more productivity workforce. Beside this, it has been also
discussed that the strategic and tactical planning is also an effective aspect that supports the
higher success of a firm by the way of effectively grabbing the prevailing opportunity along with
mitigating the risk of prevailing threat to lead higher business success (Camic, 2021).
Along with this, the current study also provided a detailed discussion about the ley aspects
that lead to the failure of the company especially within a mobile phone segment. It has been find
28

out Nokia was tending to be world leading mobile phone company but because of certain miss
conception and other aspects that company faces huger failure and decline. It has been seen that
the until 2007 Nokia is enjoying a success and have effective growth rate but during 2007 Nokia
has faced the issues related with the faulty batteries in more than 46 million all phones that and
hampered its productivity level and also created a negative message and image in the target
market. Beside this, it has been also discussed that the coming up of the IPhone and regular
innovation and technological development made by other competitors such as Apple and
Samsung has also caused and lead to the decline of the Nokia. Beside this, an inappropriate
behaviour of leadership based on wrong decision making and ill-timed launch of innovative
product and services along with making wring deals etc. also contributed and leads to the failure
of Nokia company (Carter, 2022). On the basis of the analysis of cased study reflecting the
reasons of decline of Nokia, it has been discussed that the focusing only in the improvement in
the hardware is reason a decline in mobile segment as customers are more attracted and feel
satisfied with user friendly software and better operating system. Beside this, it has been also
seen and find out that the negligence of management is also a major reason for the failure of the
company within mobile industry as effective leadership and regular guidance is vital to enhance
the productivity and motivation level of employees to ensure the success of a firm. Further,
ineffective team collaboration along with lack of regular innovation are also the vital aspects that
leads to the failure of a company. It has been seen that the ineffective team collaboration leads to
the situation of higher workplace chaos and confusion along with limited ineffective interaction
with employees that hampers their creativity level. Beside this, it has been also seen and
observed that the lack of collaboration in employees also causes and limit the productivity level
of employees. Further, in case of the Nokia it has been also seen and find out that a cultural of
organisational fear started to prevail with Nokia that lead to lack of trustworthiness among
managers and employees which is also tend to be a main reason and cause behind the decline of
the Nokia. Apart from this, lack of regular innovation is the main cause for the decline of Nokia
as when all its rivals are focusing on touch screen smart phones, Nokia tend to continues with
traditional features with limited technological advancement that is main reason behind its decline
within mobile phone market (Ebrahimi, 2022). Further, based on current investigation a
discussion has been also made that the inflexible nature of the decision making comprises of
resistance to adopt change is also a main reason of decline within mobile sector as seen in the
29

case of Nokia who was tend to resist to adopt and come up with smartphone evaluation. Further,
based on current study, it has been also discussed that the ineffective marketing strategy is also a
main reason behind the decline of Nokia as it lost the customer engagement and loyalty level
based on ineffective communication and interaction level.
CONCLUSION AND RECOMMENDATION
Conclusion
on the basis of current investigation, a conclusion can be made that various aspects and
factors are there which lead to failure of a firm. It has been summarised and find out that
ineffective communication and lack of team collaboration is the main reason behind the failure
of a firm as it created a higher level of chaos and conflicts at workplace which negatively
hampers the perductvity and success level. Beside this, it has been also summarized that negative
behaviour of the leaders based on arrogance and rigidity are also the main cause for the decline
of the firm. It has been concluded that rigid behaviour of leaders lacks timely appropriate
decision making along with effective strategy formulation to grab a prevailing marketing
opportunity. Beside this, it has been also summarized that lack of regular innovation is also a
main aspect and reason that causes decline of a firm as it leads to decline within the quality of
product along with does not meet the satisfaction level of customers. Along with this, it has been
also concluded that the lack of innovation also leads to obsolesce of the product within target
market that gives more power and strength to competitors and resulted in form of decline and
failure of a business. Beside this, current study also provided a summarisation about the factors
that leads to the success of business which comprises of effective leadership along with taking
proper strategic decision and tactical planning to effectively grab and exploit the prevailing
business opportunity. Along with this, effective communication level along with higher level of
flexibility and innovation also supports the success of a firm. Finally, it has been summarised
that lack of effective marketing strategy is also a reason for decline of a firm as it case lack of
loyalty and trustworthiness in customers.
Recommendation
On the basis of current investigation, it has been find out that lack of effective leadership
is tend to be a main cause for the decline of a firm. Therefore, making use of an appropriate
leadership style is being highly recommended for business organisation. In case of Nokia,
30

making use of participative nature of leadership is being highly suggested and recommended as it
supports proper involvement of all employees to have improved decision making and strategy
formulation. Along with this, a beer decision and interaction level among teams is also being
supported by participative leadership style that is vital to support’s and leads to higher creativity
level based on better networking and exchange of idea (Baxter, 2019). Further, it has been seen
that the lack of innovation level is also a big issue that leads to the decline of a firm. Thus,
regular training as well as effective development of employees along with enhancing the
flexibility level of firm is also being recommended as it supports higher skill and creativity level
in employees to come up with better ideas that support’s higher innovation level. Beside this,
training also lead to sharping of the skill and competency level of employees to ensure higher
productivity level and delivery of technological improved products to effectively meet the
current market trends and satisfaction level of customers. Beside this, lack of effective
communication and ineffective marketing strategy is also being seen as the main aspects of
failure of a firm. Therefore, making use of digital and social media marketing is also being
recommended as it support’s a cost and time efferent way of interacting with customers in
continuous manner (Camic, 2021). Along with this, digital marketing also leads to effective
promotion and advertising of the goods and services through making use of attractive content in
form of videos and images that attract and cater interest of larger number of customers.
REFLECTION
I am thankful that I received an opportunity to conduct investigation on analysing the
factors that cause success and development of a firm as well as determining factors which
become reason of failure of an organisation. This investigation has facilitated me in determining
factors which directly contribute in the success and development of the organisation. In the
procedure of conducting investigation, I also got chance to identify my own strengths and
weaknesses. I have identified that I am quite good in managing time as I have managed to
complete my whole work in the decided period of time. I have used a strategy of dividing
multiple activities into smaller tasks so that researcher does not waste time in completing bigger
activities. Thus, dividing activities into smaller tasks has assisted me in conducting investigation
as per the decided time period. The other significant strength identified by me while doing this
study is that I am good at solving issues and problems without getting frustrated. Initially, I was
facing issue in identifying right source of to collect information in relation to the proposed topic.
31

However, I have worked with great patience and analysed multiple sources by finding their
relevancy and accuracy so that great piece of information can be assembled for the topic.
While conducting investigation I have come through my certain weaknesses which
include: under-confident in communicating with people and managing multiple work at single
time. For the collection and analysis procedure of investigation, I had to communicate with
different people and this is the area I was lacking. So, with this I have analysed that I need to put
more efforts on improving my communication skill. This can be improved by me by taking part
in interactive sessions and communication skill classes. The other weakness is managing
multiple work at single time as while conducting a study, a researcher has to go through multiple
stages such identification of topic, formation of research aim and objectives, identifying source
to collect data, collecting apt data, analysing assembled data etc. Thus, this weakness was
overcome by me through taking two important work together and with time increasing the
number of work.
While conducting research I was relaxed because I was aware about the necessary
research methods which are necessary for completion of the proposed investigation. This study
has used qualitative research methods for attempting whole work because they help in
accumulation and examination of theoretical piece of information in a systematic way. Under
qualitative research methods, I have used systematic literature review and case study as research
strategies because they help in collecting in-depth information about the proposed topic in a
precise manner. The strategy of case study has helped me in collecting authentic and relevant
information about the chosen topic. This has assisted me in identifying the factors that cause
success and failure of that selected organisation. This study has used secondary research methods
for the collection of appropriate information which include: journals, articles, books,
publications, newspapers, earlier conducted surveys and interviews. All these methods have
helped me in saving time as I did not need to collect any raw information about the proposed
research topic.
REFERENCES
Books and journal
Ahn, S., Cho, C.K. and Cho, T.S., 2020. Performance feedback and organizational learning: the
role of regulatory focus. Management Decision.
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Ali, S. and et. al., 2022. Smartphone-Based Lifelogging: Toward Realization of Personal Big
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Cham.
Angri, I., Mahfoudi, M. and Najid, A., 2022, March. TBER and SINR Evaluation for
Interference Sensitivity Assessment in 5G NR Networks for Bands above 6 GHz. In 2022
2nd International Conference on Innovative Research in Applied Science, Engineering
and Technology (IRASET) (pp. 1-12). IEEE.
Azman, M.H.N., Mohamed, A. and Odzaly, E.E., 2020, March. A Theoretical Study on Project
Delivery and Leadership Style. In Proceedings of the 3rd International Conference on
Networking, Information Systems & Security (pp. 1-8).
Banks-Grasedyck, D., Lippke, E., Oelfin, H., Schwaiger, R. and Seemann, V., 2022. The
Underestimated Success Factor: People. In Successfully Managing S/4HANA
Projects (pp. 125-176). Springer, Cham.
Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology:
Justifying a suitable research methodology. Review of Integrative Business and
Economics Research, 7, pp.91-105.
Baxter, K., 2019. Avoiding the “Nokia Fate” in Catholic Education: The Case of the United
States and the National Catholic Education Association. The review of faith &
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