The Failure Of Nokia – A Multinational Leader Of Telecom Industry

Being a multinational leader of telecom industry, Nokia ruled the industry from 1865 till 20th century. In the past 15 years, Nokia faced continuous obstacles due to its competitors and own mistakes, but in 2013 it has made attempts to revive through the help of Microsoft. Although these attempts failed dramatically, Nokia is still not ready to accept its failure and give up.

The rise of Android, which was acknowledged by the brands like Samsung and Sony, has held the base of telecom market and led to the failure of Nokia-the giant of telecom industry. Nokia also lost its huge share in the market, when Apple introduced its iPhone in 2007 (Pai, 2015). Modern technology acts as an unexpected obstacle and Nokia failed to handle the situation on right time. According to Pai (2015), modern technology based phones beat the Nokia and its share price dropped from $40 in 2007 to $2 in 2012. Pai (2015) also state that Nokia tried its best to defeat its rivals and regain its position in the market by introducing Android phones, dual SIM card phones and window based phones, but it failed dramatically. Apart from its rivals, Nokia’s own multiple mistakes led into its failure.

Nokia was not expecting its collapse in 20th century, when it was at its peak in business. According to Doz and Wilson (2018), there was not only a single factor behind the dead loss of Nokia, but multiple small mistakes which can be solved separately. In their book (Ringtone), Doz and Wilson (2018), state that negligibility towards modern technology and touch screen phone was a big mistake of the company. Nokia was expecting that people will not adapt the touch screen culture and they will remain stick to the keypad version phones. This assumption of Nokia went wrong badly and led to Nokia’s downfall. Doz and Wilson (2018) also wrote that internal inability and managerial strategies of the company were also its biggest weaknesses. Nokia failed internally to recognize its mistakes on right time. Wilson (2018) also asserts that big firm Nokia shows its inability to survive, when it sold itself to Microsoft in 2013. Microsoft was also getting failed to revive the giant of telecom industry, Nokia, in 2013.

Reflecting its incapability to do business, Nokia sold itself to Microsoft. After the securing of Nokia's cell phone business by Microsoft, a few Lumia gadgets were uncovered by Microsoft Mobile in September 2014 that still conveyed the Nokia name, including the Lumia 830 and Lumia 735. Irish Times (2015) published that after purchasing Nokia, Microsoft has faced biggest net loss of $7.5 billion and it failed to revive the mobile business of Nokia. Nokia did not do anything wrong but now its business failure is a considerable discussion for business students and teachers ( After its Failure in collaboration with Microsoft, Nokia is now heading towards joining hands with HMD. Nokia still thinks that it can beat its competitors and regain its position in the market and it wants to start its new attempts from its motherland, India.

The world is open for new changes and innovations. Nokia avoided to cope with the telecom industry and faced failure in only few years. Instead of making several small mistakes like Nokia, its rivals adapt the modern technology on right time and beat Nokia. But this giant of telecom industry is again trying to gain the ground with collaboration of HMD. 

16 December 2021
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