Nokia and the Global Mobile Phone Industry
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTR167 |
Electronic Format: Rs.
400;
Courier (within India):Rs. 25 Extra
Themes Innovation |
Market Adaptation
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| Case Length |
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12 Pages |
| Period |
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1999-05 |
| Organization |
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Nokia |
| Pub Date |
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2005 |
| Teaching Note |
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Available |
| Countries
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Global |
| Industry |
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Consumer Electronics |
Abstract:
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In the late 1990s, Nokia overtook then leader Motorola to emerge as a behemoth
in the global mobile phone industry. Nokia's dominance continued into the first
few years of the 2000s, but it suddenly came under threat in 2003-2004, when
smaller Asian vendors started making their presence felt with better products at
lower prices.
The company's problems also had internal causes and analysts said one of the
reasons could be that it had become too complacent with its success and lost its
agility in reading and responding to market signals.
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This case study discusses the various
problems Nokia faced in 2003-2004, including the company's
tardiness in introducing the clamshell phones that had become
very popular and its resistance to manufacturing operator
specific handsets. It also discusses the efforts Nokia made to
recover its market once it realized that its performance was
slipping. The case concludes with an analysis of the challenges
the company faced in the future and the various options ahead of
it.
Issues:
» To understand the difficulties faced by an erstwhile giant in the global
mobile phone industry in 2003-2004.
» To appreciate the importance of innovation in a dynamic and volatile industry.
» To analyze the effect of changing market conditions on companies.
» To appreciate the importance of keeping abreast with changing market
conditions and adapting to them speedily.
» To examine future challenges that the company faced and the various options
available to it.
Contents:
Keywords:
Nokia, Global Mobile Phone Industry, Jorma Ollila, Motorola,
Sony Ericsson, GSM, Yrjo Neuvo, Microsoft Corp, Samsung, LG, N-Gage, Vodafone,
RAZR V3, Sony PSP, Nintendo, Engineer Set, Global Handset, Segerberg Engineer, Finland, Nokias, Finnish Rubber Works Ltd, FRW, Mobile Phones, First Mobile, Microsoft, Clamshell Phones
Nokia and the Global Mobile Phone Industry
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