The Case: Nokia Rising & Falling Read the following case and answer all the following questions? The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in Southwestern Finland by mining engineer Fredrik Idestam Other relative events were the foundation of Finnish Rubber Works Ltd in 1898, and in the year 1912, Finnish Cable Works began operations. After decades of operation, the three companies were merged to form Nokia Corporation in 1967. The world's first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobita. Salore. Televa and Luxor of Sweden. In 1990 with the collapse of the Soviet Socialist Union, Nokia struggled to manage so many different areas. In 1992, Nokia made a long-term strategic decision: to focus on mobile phone manufacturing and telecommunications and sold of its other businesses. With this decision, mobile phone manufacturing became Nokia's core business. The strategy proved a big success, as it motivates Nokia to expand their business worldwide. Due to its focused approach in mobile phone industry and early investment in GSM technologies, by 1998, Nokia became the biggest mobile manufacturer worldwide. According to Nokia "Between 1996 and 2001, Nokia's turnover increased almost fivefold film EUR 6.5 billion to EUR 31 billion." With the evolution of Smartphone, a mobile phone was not just a phone but rather became a subset alternative of computer, camera, GPS navigation, internet terminal, social network device and many more. Smartphone creates a new segment in the mobile phone market and it attracts IT companies as Apple and Google to the mobile phone industry. These rivals change the dimension of competition in mobile phone industry's fast-growing Smartphone segment. According to Gartner Inc., mobile phone sales increased 35 percent in the third quarter of 2010 comparing with the third quarter of 2009. However, at the same time sales of Smartphone increased 96 percent. With this sales increment of smartphones, the quantity of Smartphone sales became 19.3 percent of overall mobile phone sales. While market is expanding Nokia's market share in the mobile phone market declined 28.2 percent from 36.7 percent. It is the lowest