Justification of the selected company

Nokia was selected for this study because it is a large company which failed in an industry whereby it once performed better than its competitors. Previous studies indicate that Nokia commanded half of the global shares in the majority of its segments before it lost in the technology industry.  Notably, the company operated in a business environment that is characterized by constant dynamics, technological strategies and transitions for a considerably long time. Therefore, the process of failure can be easily identified from the progress of the company’ performance over a duration of time, specifically from 2006 to 2011. Nokia’s downfall came after the changing conditions whereby management’s decisions to adapt to the changes were met with utter failure in business performance. Consequentially, it was considered as a source of valuable information to provide knowledge and an understanding of business failure because of the nature of its business environment

Outline of the case study

  1. The aim of this case study

It aims to analyse the root cause of failure of the Nokia company. It involves conducting a systematic multi-level root cause analysis to identify the reasons for Nokia’s downfall in the technology industry.

  1. A brief overview of Nokia’s performance before and after the failure occurred.

The core competence, financial strength, and commanded market share in different markets prior to and after failure (Neelu, 2014, p. 55).

  1. Causes of failure.
  2. a) External factors that are linked to the poor performance of the company in the market.

Macroenvironmental factors. They range from economic factors, political, legal and social demographics and conditions, to technological changes which made its core assets and core activities obsolete.

Micro environmental factors – These comprise of both internal and external stakeholders who include; shareholders, customers, competitors, employees, and suppliers (Jia & Yin, 2015, p. 447).

  1. An illustration of how the failure developed over time

This section explains the market changes and ineffective management strategies over time that caused failure (Yuan-Chen, 2013, p. 2559).

  1. Turnaround strategy

Develop innovative products

Better strategic planning, execution and reporting

  1. Conclusion















Jia, J. & Yin, Y., 2015. Analysis of Nokia’s Decline from Marketing Perspective. Open Journal of Business and Management, Volume 3, pp. 446-452.

Neelu, 2014. A study on Nokia. International Research Journal of Commerce Arts and Science, 5(6), pp. 47-57.

Yuan-Chen, C., 2013. Nokia and strategic agility. African Journal of Business Management, 7(26), pp. 2597-2602.









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