Alarm Bells Ringing: Nokia in 2010

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Case Details:

Case Code : BSTR386
Case Length : 20 Pages
Period : 2009-2010
Pub Date : 2011
Teaching Note :Not Available
Organization : Nokia Corporation
Industry : Mobile Phone
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Market leader in trouble

In September 2010, Stephen Elop (Elop) joined Nokia Corporations (Nokia) as the President and CEO. Elop, former head of Microsoft’s Business Division3 (MBD), was brought in to fix the numerous problems faced by the world's leading mobile phone company. His tasks included the onerous job of reversing not only Nokia’s eroding market share in the high-end smartphone segment but also its slumping profits. "My role, as the leader of Nokia, is to lead this team through this period of change, take the organization through a period of disruption. My job is to create an environment where those opportunities are properly captured, to ultimately ensure we are meeting the needs of our customers, while delivering superior financial result,"4 said Elop.

The Finland-based Nokia had a presence in over 160 countries as of 2010. Though it was the world’s largest mobile phone maker with a market share of 35% in the first quarter of 2010, Nokia had been losing market share consistently in the high-end mobile phone market.

Market leader in trouble cont.. - Next Page>>

1] Mikael Ricknäs, "Nokia on Long Comeback Trail after Smartphone Misses,", July 2, 2010.
2] Gartner, Inc. is an IT research and advisory firm.
3] The Microsoft Business Division develops Microsoft's line of Office software that includes Microsoft Office Applications.
4] Rafe Blandford, "Stephen Elop Replaces Olli-Pekka Kallasvuo as Nokia's CEO,", September 10, 2010.


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