The fall of Nokia Corporation’s Mobile Phone Business
Nokia Corporation is a multinational company that was established in 1865. The Finland-based company deals in a wide range of products including consumer electronics, Information Technology (IT), and telecommunications (Sulphey, 2019). Since its establishment, Nokia has grown to be one of the leading companies in the world. However, despite its progresses, Nokia has been facing a myriad of challenges that led to the failure of its mobile telephony business.
In the past decades, Nokia was one of the topmost and successful mobile phone manufacturing and distributing companies. Nokia’s mobile phones were adored in the market because of their exceptional quality that guaranteed clients the value for their money (Fakhrutdinova, Fakhrutdinov, Kolesnikova & Yurieva, 2015). However, from the early 2000s, the company’s fortunes started dwindling. The company’s mobile telephone business began performing dismally (Vuori & Huy, 2016). The sales volumes declined to the extent that the business could not be sustainable any more (Jia & Yin, 2015). This was attributed to many factors such as stiffening competition in the market, tough economic times in Finland and beyond, and poor adaptability of the company to latest technological trends in the market (Ciesielska, 2018). Such factors made Nokia to succumb to a competition from more innovative companies like Samsung and Microsoft (Chao & Kavadias, 2017). Indeed, the fall of Nokia’s mobile business was a great challenge both to the company and Finland as well (Laamanen, Lamberg & Vaara, 2016).
In conclusion, Nokia is largely-successful. However its mobile telephony business is no longer viable because it is virtually dead (Millar, Millar & Choi, 2010). This is attributed to many factors discussed in this paper (Mehta, 2016). However, the misfortune was quite bad especially to Finland that could not get the revenues that it was receiving from Nokia. Nokia accounted for at least 4% of the country’s Gross Domestic Product (GDP) (Peltonen, 2019). Meaning, its economy suffered a great deal.
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