Nokia was once the global leader in mobile phones but failed to keep up with rapid innovation from competitors. It clung to its Symbian operating system for too long as Android and iOS grew popular. While other manufacturers adopted new OS's, Nokia only switched to Windows which failed to attract customers. As a result, Nokia's market share, revenues, and profits dramatically declined. Its strategic missteps and inability to deliver compelling new technologies led to its downfall as the top mobile phone company.

1. By
Krishna
FAILURE OF NOKIA

2. ABOUT NOKIA :
• In 1871 Fredrik Idestam opened his second mill on Nokianvirta river which gave the
name Nokia Ab in 1871.
• Nokia began with making paper – incidentally one of the first communication
technologies.
• In 1898, Eduard Polón founds the Finnish
• Rubber Works, which later becomes Nokia’s rubber business, making everything from
galoshes to tires.
• In 1912, Arvid Wickström sets up the Finnish Cable Works, the foundation of Nokia’s
cable and electronics business.
• In 1963, starts developing radio telephones for the army and emergency services –
• Nokia’s first foray into telecommunications
• And by 1987, Nokia is the third largest TV
• manufacturer in Europe.

3. • The Mobile Era
• Nokia sets the ball rolling in 1979, creating radio telephone company
Mobira Oy as a joint venture with leading Finnish TV maker Salora
• Then in 1981, the Nordic Mobile Telephone (NMT) service, the world’s
first international cellular network and the first to allow international
roaming, is launched.
• In 1984, Nokia launches the Mobira Talkman portable car phone.
Resembling a military field telephone, it’s a fairly cumbersome piece of kit
– but it’s a start.
• In 1987, GSM (Global System for Mobile communications) is adopted as
the European standard for digital mobile technology. With its high-quality
voice calls, international roaming and support for text messages, GSM
ignites a global mobile revolution.

4. NOKIA IN NEW AGE:
• In 1992, Nokia launches its first digital handheld GSM phone, the
Nokia 1011.
• In 1994, Nokia launches the 2100 series, the first phones to
feature the Nokia Tune ringtone
• The Nokia 2100 series goes on to sell 20 million phones
worldwide. Nokia’s target was 400,000.
• By 1998, Nokia is the world leader in mobile phones.
• Between 1996 and 2001, Nokia’s turnover increases almost
fivefold from EUR 6.5 billion to EUR 31 billion.

5. • Nokia- The leader in mobile technology
• In 1999, Nokia launches the Nokia 7110, a phone capable of rudimentary
web-based functions, including email.
• Then in November 2001 Nokia launches its first phone with a built- in
camera, the Nokia 7650, and in September 2002 its first video capture
phone, the Nokia 3650.
• In 2002 nokia 6650 is launched with the 3g technology.
• In 2005, Nokia sold its billionth phone – a Nokia 1100 – in
• Nigeria, and global mobile phone subscriptions passed 2 billion. Two years
later, Nokia is recognized as the 5th most valued brand in the world.

6. COMPETITION
• While it was not totally unexpected, what caught Nokia
off- guard is the rate at which competitors where
innovating new technology.
• Since the launch of the iPhone/Android phones, Nokia
failed to keep up with the industry. While other kept
proceeding ahead aggressively by ‘hook or crook’.

7. • If analyzed through the Technology Lens, Nokia primarily
failed to innovate attractive technology and features.
• For example, though Nokia had touchscreen phones, it did not
attract customers as much as compared to Apple iPhones.
• The software being developed were using old development
models and newer concepts such as User Experience and User
Interface were being neglected.
• Nokia was clinging onto Symbian OS for too long. It had
reached its peak.

8. WRONG DECISIONS
• While the entire smartphone OS industry was evolving,
manufacturers moved on and adopted various operating systems like
Android, Windows, Bada, Meego, et cetera, Nokia decided to stick
to Windows OS only.
• As Android and iOS became more popular, Nokia and its windows
phones failed to attract any attention.
• Though the new technologies developed by Nokia were ground
breaking, they were not promising enough.

9. RESULTS
• During the 3 years Elop was Nokia CEO, Nokia revenues fell 40%,
Nokia profits fell 95%, Nokia market share collapsed in
smartphones from 34% to 3.4%
• Nokia's credit rating went from AAA to junk, Nokia's share price
dropped 60% in value and Nokia's market capitalization lost a
minimum of $13 Billion in value.
• The Financial Times calculated that Nokia shareholders ended up
paying Elop a bonus of 1 million Euros for every 1.5 Billion in market
capital that Elop was able to destroy while Nokia CEO

10. CONCLUSION
• From Technology perspective, Nokia did not deliver as per
expectations based on previous performance
• From the Strategy perspective, though Nokia did eventually
come up with nice lucrative products, it lost in the race against
time due to poor strategies and sly competition.
• From the organizational and people perspective, the new
CEO’s attitude and competency proved to be fatal for the
company.
• The entire Rubik of Organization , people and strategy failed
to deliver for Nokia.