Nokia Technology Company Student

NOKIA TECHNOLOGY COMPANY 3 Nokia Technology Company Student's Name

Nokia Technology Company is one of the oldest and most renowned mobile manufacturers in the world. Although the company's performance has slightly been impacted by global trends and increasing competition from companies such as Samsung and Apple, it still maintains its position as one of the world's most iconic mobile phone companies. Nokia Corporation was established in 1865 in Espoo, Finland ("Nokia," n.d.). The company managed to achieve considerable growth and expansion over the years due to implementing the right strategies. As of 2018, the Nokia corporation was employing approximately people sourced from about 100 countries (Kapko, 2021).

The company had operations in 130 countries around the world. Nokia also reported annual sales of around 23 billion pounds. Nokia technology started as a pulp mill before moving into the rubber and cable industries. It was not until the 1990s when the company ventured into large-scale telecommunication infrastructure (Wang, Hedman, & Tuunainen, 2016). The company focused on technology development and licensing, contributing immensely to the mobile telephony sector.

Over the years, the company has managed to release different Nokia phone brands, most of which were revolutionary. In 2014, Nokia sold its mobile phone business to Microsoft, creating Microsoft mobile (Wang et al., 2016). The sale of its mobile business enabled the company to focus more on its telecommunications infrastructure business and improve the internet of things technologies (IoT). The company further diversified into other areas such as virtual reality and digital health (Wang et al., 2016). Despite exploring new horizons in technology, the company was still struggling to make profits.

Its dwindling profits forced the company to lay off hundreds of employees and close various operations in different countries. In 2016, Nokia announced the return of the Nokia brand after reviewing opportunities in the mobile phone industry (Simon, 2016). A licensing arrangement with HMD Global facilitated the return of the Nokia mobile phone. The company's success over the years and its resilience can be attributed to its mission and vision. Nokia's mission statement is to connect people.

The company's vision states that Nokia aims to create a new world, transforming a large planet into a small village. Its goal is to foster global communication and connectivity among people ("Nokia," n.d.). Nokia's culture is driven by values such as respect, challenge, achievement, and renewal ("Nokia," n.d.). These core principles serve as an anchor, helping Nokia sustain positive performance even during economic hardships. Despite setbacks, Nokia has historically overcome challenges and demonstrates resilience and adaptability.

However, Nokia faces several challenges in maintaining its competitiveness. The decline in business performance in 2020 resulted in layoffs of over 6,000 employees, about 6.4% of its workforce, with additional layoffs in 2019 (Kapko, 2021). These layoffs are part of a strategic turnaround plan initiated by CEO Pekka Lundmark, aimed at restructuring and revitalizing the company. Poor leadership and insufficient innovation have been identified as key factors responsible for the decline, as previous management failed to adapt to the rapidly evolving mobile technology landscape ("Kapko," 2021).

Furthermore, Nokia's inability to produce competitive innovations has impacted its market share, allowing competitors like Samsung and Apple to dominate. The company undertook workforce reduction initiatives, including cutting down on senior management and relocating employees to different business units to reduce costs (Kapko, 2021). These strategic moves reflect a broader effort by Nokia to streamline operations and regain market relevance but underline the importance of visionary leadership and innovation.

To reclaim its standing in the competitive tech industry, Nokia must focus on attracting young, innovative leaders with proven track records in technology development. Embracing technological innovation, investing in research and development, and adopting competitive strategies similar to those of Apple and Samsung are essential steps. Strategic partnerships, diversification into emerging sectors such as 5G, artificial intelligence, and virtual reality can also catalyze growth and innovation (Wang, Hedman, & Tuunainen, 2016).

In conclusion, Nokia's history is characterized by resilience, innovation, and strategic adaptation. Despite recent setbacks, the company's culture and core values, along with a renewed focus on innovation and leadership, can potentially enable it to regain market share and remain relevant in the ever-evolving technology landscape. To achieve sustainable growth, Nokia must prioritize leadership development, technological innovation, and strategic market positioning.

References

• Kapko, M. (2021, March 6). Nokia slashed more than 6,000 jobs in 2020. SDX Central. Retrieved from
• Wang, J., Hedman, J., & Tuunainen, V. K. (2016). Path creation, path dependence and breaking away from the path: Re-examining the case of nokia. Journal of Theoretical and Applied Electronic Commerce Research, 11(2), 16-27. doi:
• Simon, J. P. (2016). How to catch a unicorn? an exploration of the universe of tech companies with high market capitalization. Communications & Strategies, (104), 99-116,127.
• Nokia. (n.d.). About us. Retrieved from