In the year 1998, Nokia became the world’s number one mobile maker by giving a tough competition to the telecom company Motorola. It produced high-quality and user-friendly mobile phones, with its efforts concentrating on wireless Bluetooth and wireless technology.
The company’s products were further divided into four major categories: mobile phones (data devices for business and personal use and wireless voice), multimedia (mobile gaming devices and home satellite systems), networks (wireless switching), and enterprise solutions (wireless systems for business). Nokia was the best in the market and its products were considered to have value for money. It was the best until the launch of the first iPhone. Later, Samsung realized the power of Google Android and began the transition to Android OS.
Nokia had failed to adopt this environmental change and truly capitalize on the market. Nokia started losing its customers and failed to attract them. Later, to have more market share, Samsung launched a variety of smartphone segments with different prices and also launched tablets to attract customers.
By the first quarter of 2012, Samsung became the world’s number one mobile maker and Nokia was completely out of the market.

Questions

1. Which environmental factors played a major role in losing business for Nokia?

2. What strategy should Nokia come up with to return to the phone market?

Critical Thinking Questions

How open-minded are you to the ideas of other team members?

What are the steps that you have taken to get the work done by your subordinates?

Give an example of how social factors have influenced businesses.

How do you keep yourself and your team motivated as a manager?