Nokia is a Finnish multinational company engaged in the manufacturing of mobile devices and the convergence of Internet and communications industries. The company began as a paper mill, and was founded in 1865 by Fredrik Idestam. However, a few years later, it took a cable and rubber company to set up Nokia Corporation and has become one of the largest world technologies leaders in the history (Nokia). However, as we know, in order to exist or have any foothold in any industry, the change to adapt is inevitable. Especially in today's business world, when companies are facing with a rapidly changing business environment, change or die becomes a necessary law. There are some major ...view middle of the document...
ii. Economic Factors
Because of the losing in the market share and failing in satisfying the expectations of customers, Nokia Corporation's economy is now in big trouble. The stock price and profits of the company are continuously going down.
Employment rate partly influence the company. According to Elop, there is a very special relationship among the Finnish government, its citizens and Nokia. The reason is that the firm is a big player with the largest number of employers, it means it creates job for many Finnish and contribute to the economic developing of the country. However, due to economic downsizing and its own economic problem, the company faced to lay off thousands of employers (Cabural, 2012). This is hurting Finland's economy. Moreover, as we know that native Finland are loyal fans and account for the most major number of customers. Hence, as an interaction, when the home country’s economy is decreasing, same thing will occur with Nokia's market. What is more, along with time flying, Nokia does not seem to be the proud of Finnish anymore, and they are getting more concerned about other brands such as Sony Ericsson or Samsung because of their features and good-looking designs.
iii. Socio-cultural factors
It is true that customers’ satisfying is the key of a successful organization. Although Nokia ruled the mobile world and operated as the world’s leading handsets maker around 14 years, it seems Nokia was so complacent about its huge customer base and achievements then had made mistakes on recognizing to adapt to the changes of customers’ desires and preferences. It can be said that lifestyle changes impacted Nokia. Over time, all people want is a smart phone which contains good design, high-resolution camera and video camera, a diverse app store, and so on. Especially, customers want to swipe their fingers and want a touch screen. These changes reduced the market share and dwarfing the number one position of the company, while Nokia was still stubborn, failed to cater to the expectations of consumers and continued loyalty to the product seems to be outmoded.
iv. Technological factors
It is easy to recognize that the changes in information technology and new production processes interacted to Nokia Corporation. The company moved too slowly. In 2002, Nokia introduced its Smartphone with initial Symbian Series 60 devices. However, as the case has shown, the product portfolio of the company seems to have no change look over the last 10 years. The company kept producing phones which were the highest quality, but Symbian software was considered as being aged, out-of-date and sluggish one over time, especially when compared with IOS and Android. Simultaneously, along with the exploding of the Smartphone market, customers tend to be interested in pocket-sized mini-computers rather than feature phones with tedious WAP browsers (Chang, 2012). As a result, most of customers broke their allegiance on Nokia. The market share in...