Nokia encountered a problem in mid-2007 when 46 million BL-5C batteries supplied by Matsushita and installed in Nokia phones were found to be defective, causing overheating and explosion issues. Nokia addressed the issue by setting up a website and call center for users to check if their battery was defective and replacing defective batteries free of charge through their customer care centers. However, the battery issues caused a temporary setback in Nokia's market performance, with a decrease in market share and failure of new phone models, resulting in Nokia losing its top position in the global mobile phone market.
2. Introduction.
Nokia corp. is a Finnish multinational
communication and IT corporation.
Headquarter in Keilaniemi, Espoo,
Finland.
Established in 1865 by Fredrik Idestam
and Leo Mechelin.
Principal products are mobile
telephones and portable IT devices.
3. Code of conduct.
Setting the highest standards.
Better communication leads to better life.
High ethics means success.
Environmentally aware.
No tolerance on corruption.
5. Case study.
BL-5C batteries.
In mid 2007 Nokia encountered a
problem.46 million BL-5C batteries made
by Matsushita Battery Industrial Co. ltd
which were assembled in Nokia phones
were found defected. Nokia encountered a
problem of malfunctioning of its handsets
due to faulty batteries.BL-5C batteries
were then used in Nokia’s low end models.
6. Problem.
Mobiles get overheated while charging.
Cases arise of explosion of many handsets
while charging.
46 million handsets with defective BL-5C
batteries were in the market.
These batteries were placed in most of the
Nokia mobile phones.
7. Solution.
Nokia set up a website to detect defected
batteries.
Facility of getting information by
messaging to call centre.
Batteries found defected were replaced by
new batteries.
New batteries were available in Nokia
Customer care.
8. After effect.
Temporary setback in market.
Decrease in market share of Nokia.
New phone models suffered failure.
Lost the 1
st position in global market.
9. Another examples.
In 2004 Kyocera recalled 1,40,000
batteries used in 7135 models.
In 2005 Verizon recalled about 50,000 LG
branded batteries.