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The Fall of Nokia?s Strategic Decisions on its Loss of Market Dominance
Subject area: Science,Engineering and Technology · Area of research: Technology
Abstract
Over the years, the response to the changing environment in technology has shifted, with software taking precedence over hardware as the main competitive element in the market. In 2010, the tables shifted for the worst; it only took six years for Nokia to lose over 90% of its market value, and the company never recovered. Nokia's demise was precipitated by strategic decisions made by its management in response to the loss of market dominance. Nokia's strategy and development over a lengthy period of growth, market leadership, and actions are at fault. Nokia should have invested more in a research and development strategy for innovation that focuses on four fundamental dimensions: technological progress, customer satisfaction, learning, and motivation, in order to sustain their high standards. Nokia should also endeavor to leverage the benefits of any developments while minimizing any negative consequences for its operations and management. Nokia's research and development approach should be more innovation-focused. The company's strategy is to undertake a few high-risk trials and examine the outcomes before deciding whether or not to pursue that specific innovation.
Keywords
Nokia, Innovation, Strategy, Management, Research and Development
References
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How to cite this paper
@article{1703440,
author = {Nikoli Franceska E. Joven},
title = {The Fall of Nokia?s Strategic Decisions on its Loss of Market Dominance},
journal = {Iconic Research And Engineering Journals},
year = {2022},
volume = {5},
number = {11},
pages = {122-125},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/17034401.pdf},
abstract = {Over the years, the response to the changing environment in technology has shifted, with software taking precedence over hardware as the main competitive element in the market. In 2010, the tables shifted for the worst; it only took six years for Nokia to lose over 90% of its market value, and the company never recovered. Nokia's demise was precipitated by strategic decisions made by its management in response to the loss of market dominance. Nokia's strategy and development over a lengthy period of growth, market leadership, and actions are at fault. Nokia should have invested more in a research and development strategy for innovation that focuses on four fundamental dimensions: technological progress, customer satisfaction, learning, and motivation, in order to sustain their high standards. Nokia should also endeavor to leverage the benefits of any developments while minimizing any negative consequences for its operations and management. Nokia's research and development approach should be more innovation-focused. The company's strategy is to undertake a few high-risk trials and examine the outcomes before deciding whether or not to pursue that specific innovation.},
keywords = {Nokia, Innovation, Strategy, Management, Research and Development},
month = {May},
}