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Dissecting nokia s business model



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This kind of report is definitely conducted to analyse and examine the change supervision of Nokia, one of the best mobile manufacture. The survey will go throughout the information with the Nokia of the background and history. The problems of falling lurking behind in the world competition are also talked about. From these problems, is it doesn’t time for Nokia to taking care of their transform process. Nokia implemented the change on the important aspects of the business by the path of the new CEO.

Background from the organisation

Nokia Company or Nokia is a recognized Finish variable industrial firm, founded in 1865 by a single daily news mill operation (Bennett and Pohjanpalo, 2017). Since the telephony began, Nokia started to take on the telecommunication world. So when Europe deregulated the market, Nokia made a decision to made the mobile and telecommunications his or her core organization with a large number of successes in history such as the initially fully-digital local telephone exchange, first car phone, initially GSM (Global system to get mobile communications) call ¦ (Schrempf, 2011). By 98, Nokia was the world leading brand in mobile phone devices for decades. The ambition of the innovation head had been proven more plainly by innovating and broadening their business. joining which includes giant corporations like Siemens, Microsoft ¦ With the vision of changing the way persons and issues communicate and connect, jogging by thousands of people across above 100 countries, Nokia Organization was a great iconic type of a successful enterprise in their perfect era.

Impetus for the change

According to Aubry ain., driven causes. In this case, the problems Nokia encountered can also be broken into 2 types: internal and external forces. At that time, Nokia were facing the world advancement competition with new companies. Technology is one of the fastest growing factors in this modern day world (Hallingby, 2016). Many great enhancements and achievements were offered to improve your life, especially in the mobile and telecommunications. With the appearance of smartphones, competition in the market started to be more intense between the system manufacturers. In 2007, Apple introduced their particular first multi-touch smartphones with unique systems (OS)and a mobile program named App-store later. Will no longer after that, Android os OS as well was created together with the Play shop platform. These new OSs with its platforms were the brand new revolutions during those times and clients started to adopt it. By 2010, these two dominated the market. Because the largest mobile devices manufacturer, Nokia believed all of the new products they introduced had been the latest technology and ignored the presence of Apple and Android os OS. Yet , they don’t plan that this emergence had led to the change with the demand and behaviour of customers. Nokia product sales kept falling and lost their first-ranking in the industry (Violeta and Camelia, 2016). To get the internals forces, Nokia got a fantastic history as being a Finnish enterprise, especially their top managing. With the persons from the same background and era, the lifestyle and leadership in the company became traditional, lack of superb innovations and their bureaucratic tradition in the speedy changing globe (Violeta and Camelia, 2016). Nokia sales kept falling and dropped their first-ranking in the industry because of their conservative together with the growth of technology.

Analysis and evaluation with the change process/program

Organisational change refers to a long range effort to further improve an organisation’s problem-solving capacities and its capacity to cope with within its external environment by making use of change agent (ĐuriÅ¡ić-Bojanović, 2016). According to Dittrich and Duysters (2007), Nokia moved through a lot of organisational alterations since all their establishment. And one of the current major enhancements made on this enterprise was all their devices and services partnership with Microsoft company, the American technology ‘giant’. The alter process at that time was critical for Nokia once their income and market share continually declined. Before going with all the deal, Nokia appointed Sophie Elop as their CEO to drive the company through the hard time.

To examine this transform process, the Kurt Lewin’s change model will be used through this part. The[desktop] includes three stages: Unfreezing, Changing and Refreezing (Medley Akan, 2008). The reason of using this module is because this is a planned change when ever Nokia got a change agent, Elop as being a CEO determined and prepared the method for the organisation.


Unfreezing is the very first step of the method. This is the time intended for the business to prepare pertaining to the change by starting to recognise the forces for the change and also against it. Influenced forces make the group users become disappointed with the circumstances of the organisation and prepare for the change time. However , there are some hurdles forces to improve when it restrains the transform process (Maon, Lindgreen Swaen, 2009). Inside the Nokia case, applying the Lewin’s push field model is the ideal overview to understand the current express of the company. Figure 1 will show this analysis.

Determine 1: Lewin’s Forces Discipline module in the Nokia circumstance

From this module, it can be clear to see that driven pushes outweigh the restraining forces which means transform was seriously needed for Nokia. The large sum of issues that Nokia was facing made their business struggling and it had been the time intended for Nokia searching for a way to progress, improving their particular effectiveness inside the mobile devices market. For restraining forces, they are the problems against the change process occurred in the organisation. To commence the change, Nokia and the supervision had to decrease the change level of resistance. Change method could not go on without a modify agent. Transform agent is actually a leader of change that can be internal or external in the company (Zbieg, Batorski Zak, 2016). As the first non-Finish leader in the organisation record, Elop served a change agent and rapidly started the change process by given a burning platform memo openly showing to his employees about the serious strategic challenge they will facing. The memo also referred to as everyone to contribute all their opinions to attempt change. This is a great maneuver of Elop to get over the resistance when staff were aware of their particular new CEO and the enterprise current condition. Later, employees were discovered about the process of change. This is the summary of Elop idiota:

“We dropped behind, we all missed big trends, and lost period. At that time, we all thought we were making the right decisions, but , with the good thing about hindsight, we now find themselves years at the rear of.

“There is powerful heat originating from our competition, more rapidly than we at any time expected. Apple disrupted the market by redefining the smart phone and getting developers to a closed, although very strong ecosystem. inch

“The Shenzhen region of China is capable to produce telephones at an unbelievable pace. By simply some accounts, this ecosystem now makes more than one third of the mobile phones sold throughout the world ” currently taking share coming from us in emerging markets. “

“Our competitors usually are taking the market share with devices, they may be taking each of our market share with an entire ecosystem. “

“We poured gasoline on our own burning system. I believe we have lacked responsibility and command to align and direct the organization through these types of disruptive moments. We had a number of misses. All of us haven’t recently been delivering creativity fast enough. We’re not really collaborating inside. ” (Anthony, 2012).


The mid-step in Lewin version is changing or shifting. It is the coming back applying and implementing the plans, the actions pertaining to change. The change tools in this stage covers many aspects of the organisation.

Business tactical

Times later following your memo, Elop announced the modern strategy for Nokia when switching its current OS to Microsoft’s Windows and they became the collaboration in cellular and services. Partnership is among the tools in organisational change. It will match well in all areas of those organisations and allow all of them being mutually beneficial (Schuster Holtbrugge, 2014). This partnership was a big surprise for everybody internal and external of Nokia along with Microsoft. Complicated and considering the big change did happen to everyone involved in the change. However , as a decision maker, Elop believed the joint was the opportunity for those to work together, provide more improvements and making a differentiation on the market. The two merged their talents in portable and companies. Nokia Maps, for example , would be at the heart of key Microsoft company assets just like Bing and AdCenter, and Nokias application and articles store would be integrated into Ms Marketplace. Because the new goals, a new ecosystem of mobile phones was expected to be a revolution and achievement for two in a near future (Carter, 2011).

Company structure

After the relationship agreement, Elop started restructure Nokia. He chose to delayered management composition, bringing a flatter person to the organisation. The new supervision layer will probably be called since the Management team instead of Executive Table. Delayering is about removing levels of management of the organisation in a high competitive environment (Pai, 2015). In this instance, it is important to acquire delayering while the change tool because Nokia initial structure was complicated and slow in making decision. The new changed would help them to increase the efficiency and efficiency. Elop likewise changed the operational structure of the portable and companies division by dividing that into two core devices which are intelligent devices and mobiles telephones. These products have their individual responsibility for their performance concentrating the full consumer experience. The divisions were small in dimensions and enabled faster response in focusing on markets which were vastly distinct with respect to feature demand and usage. There are some more products also formed to support and collaborate the core products towards the goals (Eddy, 2011).

Human Resources

When appointing the new CEO, Nokia acquired made the first transfer term of leadership. A great outsider just like Elop could bring a fresh atmosphere towards the organisation and shake up just how Nokia undertaking their organization. Later, with an improved organisational structure, Elop putting in some new faces in the leadership tasks to help him drive the organization such as Get married to McDowell in Mobile Phones, Jo Harlow in Smart Products (Eddy, 2011).

In the effort of cutting price budget, Elop chose to delayer the organisation and close some features in the world. This also means that thousands of people would be layoff. Also to do this process right in preventing the disappointment and furious, Elop and team tried to produce a program that help and guide these employees after and before the layoffs process. Later, they released the Connect program which will assists them to depart the employees by multiple ways (McKinset Quaterly, 2016).


The last stage of Lewin change style is refreezing which is regarding change scaling down and fresh strategies getting standard practice. Rewarding will be in place if the organisation reached the desired scenario (Baldomir Hood, 2016). Following the major alter process in the organisation, Nokia’s market share began to recover and soon their Window Cellular replaced Blackberry as the 3rd ecosystem available in the market. However , the team kept acquiring more activities to focus its product providing, product competitiveness and increasing the profit seriously.


From the past part, it is usually seen the change plan was big for Nokia when impacting on all facets of the enterprise from ways to humans. Changing was expected to help Nokia get more opportunities to gain back their market share and improve the income, bringing new range and differentiation can be. However , the true outcomes weren’t completely just like the expectations. In order to achieve the better results, it is recommended that Nokia will need to realise and apply the change before. At the time intended for change, it absolutely was late to process when Apple and Android had been taking the dominance in the market reveal. If Nokia realise all their problems earlier, they could have time to make more carefully and substantially. Next, when ever having fresh and non-traditional leader in the organisation, especially CEO situation, Nokia should certainly acknowledge and inform their people sharper. They must explain what the benefits and effects are expected by having a non-Finish CEO just like Elop to bring to the company. The more confident thing workers see, the less level of resistance of vary from them ().


Nokia was the most famous cellular device firm in the operate. But during time, Nokia stick to it is old classic way when the world and competitors held changing and creating new trends. As the consequences, that they lost their market share and profit chop down rapidly. That they started modify. However , the basic principles of the transform process was not effectively slow by the business. Nokia endeavors for reviving its current state and get back to the mobile industry failed as a result of lacking good plan and stakeholder involvement. This is a lesson to get Nokia and various organisations when ever going for alter which always have to be prepared and incorporate by simply everyone in the organisation to advance forwards.

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