Restructuring / Turnaround Strategies Case Study

NOKIA: Restructuring Strategies

Abstract:
Since its entry into the new millennium, Nokia, the global leader in digital technologies and telecommunications, has been witnessing stagnating revenues. With the saturation of the European mobile phone market (Nokia's major market) coupled with strong competition from Asian manufacturers like Samsung, LG Electronics and TCL Holdings, Nokia's sales growth is below the global average. Besides, with the consumer preference shifting towards higher end phones with colour screens and imaging capabilities, Nokia is failing to achieve the desired sales volume as it continues producing its utility handsets for the lower end mass markets.

Pedagogical Objectives:

• To discuss the recovery strategies adopted by Nokia to sustain its global leadership in the mobile telecommunications market.

Keywords : Digital telecommunication business; Third generation (3G) mobile phones; Global System for Mobile Communications (GSM); Nokia mobile phones; Nokia networks; Nokia ventures;Restructuring / Turnaround Strategies Case Study; Digital subscriber line networking equipment; High capacity Internet security appliances; Samsung; LG Electronics; TCL Holdings; Ningbo Bird; N-gage; Code division multiple access (CDMA); Sony