Nokia, once a dominant force in the mobile phone market, faced a series of challenges that led to its decline:
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Acquisition by Microsoft: In 2014, Microsoft acquired Nokias Devices and Services division, effectively bringing an end to Nokias reign as a standalone mobile phone manufacturer. The partnership aimed to integrate Nokias hardware with Microsofts software to create a more competitive smartphone ecosystem. However, despite this effort, Nokia continued to lose market share to competitors, particularly Android-based smartphones and iPhones.
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Mismanagement and Late Adoption of Smartphones: Nokia belatedly switched to Android in 2014, but the damage had been done. The company suffered from organizational fear, temperamental leaders, and frightened middle managers, which affected its ability to adapt to the changing market.
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Operating System Choice: Nokia chose to use the Symbian operating system on its smartphones, while other manufacturers were using more popular operating systems such as Android and iOS. This made it difficult for Nokia to attract developers to create apps for its platform.
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Competition and Lack of Innovation: Nokia faced intense competition from other smartphone manufacturers such as Samsung and Apple, which had more advanced technology and better marketing strategies. Additionally, Nokia failed to innovate as quickly as its competitors, leading to its products becoming outdated and less attractive to consumers.
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Sale to Microsoft: The sale of its mobile phone division to Microsoft had a negative impact on the brand as the customers were not familiar with the new owners and the products changed significantly.
Despite these challenges, Nokia is still operating today. By 2016, Microsoft had sold the remnants of Nokia to a partnership between Foxconn and HMD Global, and Nokia earned a seat on the market once again. The company has taken aggressive steps to revitalize itself, evident through its hiring of software experts, testing of new products, and seeking of sales partners.
