The Rise and Fall of Nokia: A Global Brand’s Strategic Missteps | Bài thảo luận tiếng anh thương mại

BỘ GIÁO DỤC VÀ ĐÀO TẠO
TRƯỜNG ĐẠI HỌC THƯƠNG MẠI KHOA MARKETING ______________________ DISCUSSION REPORT TOPIC
THE RISE AND FALL OF NOKIA: A GLOBAL BRAND’S STRATEGIC MISSTEPS Class:
Tiếng Anh Thương mại 1
Class code: 251_ENTI3311_05 Lecturer:
Ms. Nguyễn Thị Thúy Group: 09 Hanoi - 2025 THANK YOU
In the course of carrying out this topic about global markets, we have received
valuable support that enabled us to achieve the results as of today.
First and foremost, we would like to express our deepest gratitude to our lecturer,
Ms. Nguyen Thi Thuy, for your guidance and insightful suggestions throughout the
research process. We have given our best effort; however, this topic may still contain some inevitable shortcomings.
Therefore, we would be grateful to receive further comments and guidance from you. Thank you very much!
GROUP 9 - Class 251_ENTI3311_05 1
OUTLINE – EFB_Revised
Group 9 – Class ID: TATM1_251_ENTI3311_05 Ordinal Member’s name Note numbers 48 Hoàng Chí Tiên 49 Lê Nguyễn Thu Trang 50 Nguyễn Thu Trang 51 Nguyễn Duy Vũ 52 Lâm Khánh Vy Leader
Topic: The Rise and Fall of Nokia: A Global Brand’s Strategic Missteps I. Introduction:
• Topic introduction: Our group chose Nokia – a brand that once dominated the
global mobile phone market but then declined rapidly.
→ This is a classic case study of both remarkable success and failure caused by strategic missteps.
• Importance of the topic: Studying Nokia is not just about one brand, but about
drawing lessons in strategic management, technological innovation, and market
adaptation for today’s businesses. II. Main Contents:
2.1 Concepts/Definitions:
• Global brand: A brand that has strong influence, recognition, and market share across multiple countries.
• Strategic missteps: Mistakes in management, technology, or business strategy
that prevent a company from keeping up with trends and competition.
→ Nokia is a prime example: strong in hardware but failed to shift towards
software ecosystems and user experience. 2 2.2 Situation:
• Introduction of Nokia:
o Started in 1865 as a pulp and paper company in Finland, later diversified
into technology and telecommunications.
o By the late 1990s, Nokia became the world’s leading mobile phone manufacturer.
→ This foundation paved the way for its “golden era.”
• Rising process: (in this part, mention some localization/glocalization strategies
that Nokia used in order to be globally successful during this period).
o Period 1998–2007: controlled over 40% of the global market share.
o Famous for durable phones, long battery life, and simple interfaces (e.g., Nokia 3310, N-series).
o Became a global icon of quality and set the “standard” in the mobile industry.
→ Success came from strong product quality and effective market expansion strategies. • The Fall of brand:
o Decline began after 2007 with the launch of the iPhone and the rise of Android smartphones.
o Rapid loss of market share and profit, eventually selling its mobile
division to Microsoft in 2014.
→ The collapse happened in less than a decade.
2.3 Reasons behind the fall of Nokia: • External factors:
o The launch of iPhone (2007): Apple brought a new experience with
touchscreen, App Store, and ecosystem. 3
o The rise of Android (Google): An open platform with multiple
manufacturers, creating fierce competition.
o Changing consumer trends: Users shifted from valuing durability and
battery life to demanding apps, internet, and smart experiences. • Internal factors:
o Slow technological innovation: Continued relying on outdated Symbian
OS while competitors advanced.
o Weak leadership and internal conflicts: Management was
conservative and divided, delaying bold decisions.
o Strategic mistake with Microsoft: Ignored Android and chose
Windows Phone, which failed to attract users.
o Loss of customer trust: Later products could not meet expectations,
leading users to switch to Apple and Samsung.
2.4 Solutions / Suggestions: • Lessons learned
o Companies must be flexible and quick to adapt to technological and market changes.
o Customer-centric approach: closely follow shifts in consumer preferences.
o Invest in software ecosystems: in the digital era, software and experience matter as much as hardware.
o Effective leadership and unity: long-term vision and consistent direction are critical.
• Suggestions for current businesses:
o Avoid repeating Nokia’s mistakes: always track emerging trends (AI, IoT, 5G). 4
o Balance between innovation and core brand values: preserve brand
identity while adapting to change.
o Build strategic partnerships wisely: e.g., adopting Android earlier might have helped Nokia survive.
o Diversify strategies to minimize risks instead of relying on a single technology. III. Conclusion:
• In summary, Nokia is a global brand that went from peak success to rapid
decline due to strategic missteps.
• The case highlights the importance of continuous innovation, strategic
leadership, and market responsiveness.
• This is not only the story of one company but also a wake-up call for many
large corporations in today’s fast-changing technological era.
References (các em bổ sung nguồn tài liệu mình dử dụng cho bài này nhé) 5 ASSIGNMENT TASK TABLE Group No. Student ID Name Task evaluation 4.2. Suggestions for current 48 23D121046 Hoàng Chí Tiên 9 businesses & Conclusion Lê Nguyễn Thu
3.2. Internal factors & 4.1. 49 23D121047 9,5 Trang Lessons learned 2.2.1. Introduction of Nguyễn Thu 50 23D121049 Nokia 9 Trang 2.2.2. Rising process 2.3. The fall of brand & 51 23D121102 Nguyễn Duy Vũ 9 3.1. External factors Lâm Khánh Vy I. Introduction & 2.1. 52 23D121103 10 (Leader) Definitions 6 TABLE OF CONTENTS
1. DEFINITIONS .......................................................................................................... 8
1.1. Global Brand ....................................................................................................... 8
1.2. Strategic Missteps ............................................................................................... 8
1.3. Reasons for Strategic Missteps .......................................................................... 8
1.4. Impacts of Strategic Missteps on Business Performance ............................... 9
2. SITUATION .............................................................................................................. 9
2.1. Introduction of Nokia ......................................................................................... 9
2.2. Rising process .................................................................................................... 10
2.2.1. Investment in Research and Development (R&D) .............................. 10
2.2.2. Diverse product segmentation strategy ................................................ 10
2.2.3. Technological innovation ....................................................................... 10
2.2.4. Internationalization and market expansion ......................................... 10
2.3. The Fall of brand .............................................................................................. 11
3. REASONS BEHIND THE FALL OF NOKIA .................................................... 11
3.1. External factors ............................................................................................. 11
3.1.1. The launch of iPhone (2007) .................................................................. 11
3.1.2. The rise of Android (Google) ................................................................. 12
3.1.3. Changing consumer trends ................................................................... 12
3.2. Internal factors .............................................................................................. 12
3.2.1. Slow technological innovation ............................................................... 13
3.2.2. Wrong brand direction .......................................................................... 13
3.2.3. Problems of people and internal management .................................... 14
4. SUGGESTIONS ...................................................................................................... 14
4.1. Lessons learned ................................................................................................. 14
4.2. Suggestions for current businesses ................................................................. 15
CONCLUSION ........................................................................................................... 18
REFERENCES ............................................................................................................ 19 7 MAIN CONTENTS 1. DEFINITIONS 1.1. Global Brand
A global brand is a brand that operates across multiple countries while
maintaining a consistent identity, positioning, and marketing strategy. It emphasizes
uniformity in brand image, messaging, and customer experience worldwide, ensuring
that consumers perceive the brand in a similar way regardless of location. This
consistency allows companies to achieve economies of scale, strengthen global
recognition, and build long-term brand equity.
1.2. Strategic Missteps
Strategic missteps refer to mistakes or errors that occur during the formulation or
execution of a company’s strategy. These errors often emerge from flawed decision-
making, poor strategic design, or ineffective implementation. As a result, the company
fails to achieve its intended goals, loses competitiveness, or creates inefficiencies that
weaken its overall performance. Strategic missteps can manifest in areas such as pricing,
product development, market expansion, or resource allocation.
1.3. Reasons for Strategic Missteps
There are several key reasons why companies make strategic missteps. Firstly,
unclear or unrealistic objectives can misguide organizational direction. Secondly, there
is often a lack of alignment between strategic planning and execution, which undermines
effectiveness. Thirdly, insufficient resources - whether financial, technological, or
human - can prevent proper implementation. Leadership weaknesses, such as a lack of
commitment or accountability, also contribute to failures. Finally, companies frequently
fail to adapt to dynamic external environments, including shifts in consumer demand,
technological advances, or competitive pressures. Together, these factors explain why
many strategies do not achieve their intended results. 8
1.4. Impacts of Strategic Missteps on Business Performance
Strategic missteps can significantly harm a company’s performance in multiple ways.
• Financially: they may lead to decline revenues, increase costs, or reduce profitability.
• Strategically: missteps may cause loss of market share and a weaker competitive
position compared to rivals. Internally, they can result in wasted resources, lower
employee motivation, and reduced organizational commitment.
• Externally: strategic errors often damage corporate reputation and stakeholder
trust. Moreover, correcting missteps usually requires costly restructuring,
rebranding, or investment in new initiatives, further straining business performance. 2. SITUATION
2.1. Introduction of Nokia
Nokia Corporation was founded in 1865 in Finland. The company was officially
known as Nordic Mobile Telephone (NMT). The company name was changed to Nokia in 1871.
They made the first international mobile phone in 1981, which marked the beginning of the mobile era.
The Nokia phone was used in 1991 to make the first GSM call.
In 1992, they launched the Nokia 1101, the first GSM phone that became a hit.
In 1988, Nokia became the world leader in mobile phones.
During the heyday of the Symbian operating system, each new Nokia phone
model sold tens, hundreds of millions of units. In 2000, the company contributed up to
4% of Finland's GDP. At its peak, the brand held 41% of the global market share –
something that is difficult for any phone manufacturer to do today. 9 2.2. Rising process
2.2.1. Investment in Research and Development (R&D)
Nokia is considered one of the typical enterprises in the successful transition from
traditional industry to high technology. Starting from the paper, rubber and electric cable
industry, the company gradually focused on the telecommunications and mobile
equipment sectors. The highlight during this period was the strong investment in
research and development (R&D). According to Bouwman et al. (2014), the number of
Nokia patents increased sharply from about 250 in 1995 to more than 1,000 in the early
2000s. This shows that Nokia's technology base and innovation capacity have been
significantly strengthened thanks to close cooperation with universities and research institutes.
2.2.2. Diverse product segmentation strategy
In parallel, Nokia built a clear and diversified market segmentation strategy.
Instead of focusing on just one customer group, Nokia developed many different product
lines: from low-cost feature phones for the mass market, to high-end devices for
business people and young people who love entertainment. This strategy is based on the
“Mindstyles” and “lifestyle segmentation” models, which help the company classify
customers according to their lifestyle and usage habits. Consumer survey data in Finland
from 2003-2011 shows that Nokia has served the needs of both “basic users” and “early
adopters” well, thereby consolidating its leading position in the global mobile market.
2.2.3. Technological innovation
Third, in terms of technological innovation, Nokia’s patents and inventions have
grown rapidly since the mid-1990s. The company has continually experimented and
introduced new features such as high-resolution cameras, color displays, WiFi
connectivity, NFC, and even tablet prototypes. This is a testament to Nokia’s creativity
and pioneering spirit in shaping the future of mobile technology.
2.2.4. Internationalization and market expansion 10
Finally, Nokia achieved significant success in its internationalization. The
company's mobile phone exports increased by an average of 33% per year from 1996 to
2000, making Nokia one of the fastest growing global corporations. Aggressive
expansion into markets outside Europe, especially Asia and Africa, helped the company
establish a solid global distribution network and cement its leading position as the
world's number one mobile phone manufacturer by the late 1990s. 2.3. The Fall of brand
Decline began after 2007 with the launch of the iPhone and the rise of Android smartphones.
Rapid loss of market share and profit, eventually selling its mobile division to Microsoft in 2014.
• 2013 Announcement: Microsoft agreed to buy Nokia’s Devices & Services unit
for €5.44 billion ($7.2B), aiming to strengthen its smartphone business with
Lumia phones and patent rights.
• 2014 Completion: The deal closed on April 25, 2014, transferring about 25,000-
30,000 employees and Nokia’s phone operations to Microsoft Mobile.
• Strategic Goal: Microsoft hoped to unify hardware and Windows Phone to
compete with Apple and Android.
• Outcome: The plan failed - Windows Phone never gained traction, leading to
billions in write-offs and mass layoffs (over 18,000 job cuts).
• Aftermath: By 2015-2016, Microsoft scaled back phone ambitions, effectively
ending its role as a major handset maker.
→ The collapse happened in less than a decade.
3. REASONS BEHIND THE FALL OF NOKIA 3.1. External factors
3.1.1. The launch of iPhone (2007): Apple brought a new experience with
touchscreen, App Store, and ecosystem.
• Apple introduced the first true smartphone experience: multi-touch screen,
intuitive interface, and integration of hardware, software, and services. 11
• The App Store (2008) transformed phones into platforms for third-party
innovation, creating strong network effects.
• Consumers quickly shifted expectations from durability/voice/text to apps,
internet browsing, and multimedia experiences.
• Nokia, focused on hardware and Symbian, struggled to match the seamless Apple ecosystem.
3.1.2. The rise of Android (Google): An open platform with multiple manufacturers, creating fierce competition.
• Google’s Android was an open-source platform that enabled many manufacturers
(Samsung, HTC, LG, etc.) to enter the smartphone race.
• Android’s flexibility and rapid update cycle created fierce competition,
especially in emerging markets where Nokia once dominated.
• By 2011, Android surpassed both Symbian and iOS in global market share.
3.1.3. Changing consumer trends: Users shifted from valuing durability and battery
life to demanding apps, internet, and smart experiences.
• Early 2000s: Consumers valued durability, long battery life, and physical
keyboards - areas where Nokia excelled.
• Post-2007: Consumer demand shifted toward mobile internet, touchscreens, apps, and entertainment.
• Nokia was slow to pivot, still relying heavily on Symbian, which lacked the
developer ecosystem and user-friendly experience that iOS and Android provided.
• This mismatch between consumer expectations and Nokia’s offerings accelerated its decline. 3.2. Internal factors
Nokia was the leader in the global mobile phone market for 14 years and once
had more than 40% of the market share. However, the company failed in only 5 years.
The main reasons for Nokia’s long decline were internal factors: being conservative -
slow to adapt - and wrong strategies. 12
3.2.1. Slow technological innovation
When iPhone (2007) and Android (2008) appeared, Nokia still kept the keypad
phones and the old Symbian system, instead of investing in a new platform with more
functions. Many other companies started to improve smartphones, but Nokia stayed
behind and did not change. They did not use touchscreen phones and still focused on
QWERTY keypad design. Symbian also made things worse because it delayed the
launch of new phones. Nokia had to develop and test a whole new code for each model.
By 2009, Nokia had 57 different versions of the operating system, and they were not compatible.
Nokia never saw Android as an important step forward, and they did not plan to
use it. The old system had boring functions, and customers were not interested. Some
Nokia products even did not support 3G in the 4G time.
Losing the leading position, Nokia realized they needed to change. They released
new smartphones, but it was too late, because Apple and Samsung already took the top position.
3.2.2. Wrong brand direction
The wrong brand direction came from the conservative and overconfident
thinking of Nokia’s managers. The company believed too much in its brand value. They
thought people would still go to stores and buy Nokia phones, and that they could stay
the leader if they just used better software. This was not true because they did not adapt to the smartphone trend.
When competing with Apple and facing new technology changes, Nokia’s top
managers had to choose between three strategies: cost and volume optimization,
performance maximization, or security maximization. They chose cost optimization.
This made it impossible to reach good performance in software.
Later, Nokia tried to save the brand by working only with Microsoft (choosing
Windows Phone instead of Android) and released the Lumia line. But Lumia was not 13
innovative. Windows Phone had fewer developers, fewer apps, and could not compete
with iOS and Android, which already owned most of the market.
3.2.3. Problems of people and internal management
The analysis above already showed Nokia’s conservative and arrogant managers.
Here we go deeper into the internal problems.
Nokia managers lacked vision for the company’s future. The executives were
afraid to admit the weakness of Symbian. They knew it would take years to build a new
system that could compete with Apple’s iOS. Nokia also hesitated to move to Android
because they thought customers would not switch. In the same way, they did not think
touch-screen smartphones were important. Overconfidence in the brand made Nokia
stand still, without real innovation, and they lost customer trust.
Besides, Nokia’s internal culture also had problems. At that time, fear spread in
the company. Senior managers were afraid of the outside market and of not meeting
quarterly targets. They also lacked technical knowledge, which made them evaluate
technology limits poorly. In contrast, Apple’s top leaders were engineers. Nokia
executives were also afraid of losing investors, suppliers, and customers if they admitted
their weak technology compared to Apple. So instead of focusing on long-term goals,
like building a new operating system, Nokia focused on making short-term devices to
answer market needs. These devices could not follow the new smartphone trend, and Nokia failed. 4. SUGGESTIONS 4.1. Lessons learned
4.1.1. Companies must be flexible and quick to adapt to technological and market changes
The story of Nokia shows us that companies must be ready to change. Especially
in technology, they must always watch the environment and react fast to new changes,
even if it means cutting their current successful products. 14
4.1.2. Customer-centric approach
Companies must always follow customer preferences. Nokia focused too much
on hardware (battery, durability, camera) but ignored the shift in customer needs:
smooth software, user experience, and apps. So companies must watch customer
behavior, predict needs, and adjust products. If they ignore customers, even very good
products will become outdated.
4.1.3. Invest in software ecosystems
Stephen Elop, CEO of Nokia, once admitted: “Our competitors aren’t taking our
market share with devices; they are taking our market share with an entire ecosystem.”
Nokia chose Windows Phone, but it had fewer apps compared to Android and iOS. In
the digital age, software, apps, and developer support can decide if hardware will
survive. Companies must build or join strong ecosystems to keep customers.
4.1.4. Effective leadership and unity
Nokia was damaged by internal conflicts and unclear direction. Leaders could
not unite the company under one clear vision. The lesson here is that leadership and
long-term vision are key for survival. Leaders must be open-minded, not conservative,
and ready to accept industry changes. Without this, even a top company can collapse.
4.2. Suggestions for current businesses
The fall of Nokia is an obvious case study for modern businesses. This company's story
offers many lessons on the importance of keeping up with trends and strategic flexibility.
By analyzing Nokia's mistakes, we can learn valuable lessons that are highly relevant
for today's businesses navigating a rapidly evolving technological landscape.
4.2.1. Always track emerging trends
Nokia was slow to recognize the shift from mobile phones to smartphones. Meanwhile,
competitors like Apple and Samsung were embracing new technologies. For instance,
Apple launched the iPhone with a fully-fledged touch-screen interface and a brand new
operating system, completely changing consumer expectations. Similarly, Google’s
Android quickly gained market share by offering a flexible, open-source platform. 15
The lesson is clear for current businesses: constantly track emerging trends like
Artificial Intelligence (AI), the Internet of Things (IoT), and 5G. Successful companies
like NVIDIA demonstrate this principle perfectly. Originally a gaming graphics card
company, NVIDIA pivoted to become a leader in AI and data centers by recognizing
the need for powerful parallel processing. Their foresight has led to a market
capitalization surpassing $2 trillion in 2024.
4.2.2. Balance between innovation and core brand values
While innovation is essential, it must be balanced with the preservation of core brand
identity. Nokia was a global symbol of reliability and durability, but its failure to
innovate eroded the brand trust they had built over decades. In contrast, Apple has
balanced innovation with its core brand value of premium design and user experience.
Each new iPhone, while incorporating new technologies, maintains a consistent
aesthetic and ease of use that its customers expect. This helped Apple build one of the
world's most loyal customer bases, contributing to its continued success.
4.2.3. Build strategic partnerships wisely
The right partnership can open doors to new markets, provide access to resources, and
foster innovation, helping your business achieve growth that would be difficult to
accomplish alone. The power of strategic partnerships can be seen in the success of
companies like Spotify. Instead of competing directly with hardware giants, Spotify
partnered with a wide range of companies, from Samsung to Tesla, to pre-install its app
on devices. This strategy helped Spotify become the dominant music streaming service
globally, with over 500 million users as of 2024, demonstrating the value of collaboration over isolation.
4.2.4. Diversify strategies to minimize risks
If one asset isn’t performing well, your other assets can help compensate for any losses,
minimizing the negative effects on your investments. Nokia relied too heavily on a
single product, so when the smartphone market exploded, they lacked a diversified 16
portfolio to fall back on. This overconfidence caused great damage to Nokia. In contrast,
companies like Google has a highly diversified strategy. While Google Search remains
their core business, the company has invested heavily in other areas like A.I (Gemini),
self-driving vehicles (Waymo) and cloud computing service (Google Cloud). This
ensures that even if one sector faces a downturn, the company's overall health is not at
risk. The financial reports of Alphabet Inc. show that revenue from Google Cloud, for
example, has grown significantly, reaching over $9 billion in a single quarter in 2024,
and this proves the value of diversified strategies. 17 CONCLUSION
Nokia’s story is one of the most striking examples in modern business history,
showing how a global leader can rise to the top and then fall dramatically. Its success
during the Symbian era - when Nokia held over 40% of the global market share and
contributed significantly to Finland’s GDP - represented the peak of its innovation,
adaptability, and global brand power. However, the rise of Apple’s iPhone and Google’s
Android marked a turning point that Nokia failed to navigate.
Externally, the smartphone revolution shifted consumer expectations from
durability and hardware quality to seamless ecosystems, apps, and user experiences.
Internally, Nokia’s conservatism, overconfidence, and fragmented management
decisions prevented timely innovation and strategic adaptation. Its refusal to adopt
Android, dependence on the outdated Symbian system, and reliance on an ultimately
weak partnership with Microsoft accelerated its decline.
The collapse of Nokia illustrates several essential lessons: companies must
remain agile, prioritize customer needs, invest in software ecosystems, and ensure
strong, visionary leadership. For current businesses, the case serves as a powerful
warning: past achievements cannot guarantee future success. In an era defined by rapid
technological change and shifting consumer preferences, only those companies that
continuously innovate, track emerging trends, and build adaptable strategies can secure long-term survival.
Ultimately, Nokia’s rise and fall is not just the story of one brand, but a timeless
reminder that strategic foresight, adaptability, and customer-centric innovation are the
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