Nokia once dominated the mobile market but failed to adapt to changes in technology and consumer preferences. The document analyzes reasons for Nokia's decline using the OCTAPACE model of organizational culture. Nokia struggled with open communication, internal rivalries slowed innovation, and leadership was too slow to see trends like touchscreens and focus on software over hardware. Nokia also overestimated its brand power and failed to collaborate effectively. The lessons highlight how an inflexible culture prevented Nokia from experimenting and adapting to remain competitive.
Achieve your goals one step at a time through Smart Method (OCTAPACE CASE STUDY
1. OCTAPACE CASE STUDY
Achieve your goals one step at a time
through Smart Method.
A P R E S E N T A T I O N B Y B I B I S A R A H A N D B I N D U S H R E E
2. Introduction
The most important aspect
of organizational culture are
the values it practices. Eight
values may be examined to
develop the profile of an
organizational culture that is
called octapace it
OPENNESS,
CONFRONTATION,
TRUST,
AUTHENTICITY,
PROACTIVELY,
AUTONOMY,
COLLABORATION, AND
EXPERIMENTING.
CHANGE IS
THE ONLY
CONSTANT
3.
4.
5. This case study focuses on the reasons why Nokia
failed after enjoying unrivalled dominance in the
mobile segment for several years in relevance to
octapace model. The ferocious and mighty telecom
giant Nokia was well known for its products'
hardware and battery life.
6. Therefore let’s see some of the reasons responsible for the failure of
Nokia which is as follows:
The mighty firm Nokia sold itself to the Microsoft. This raised many
questions like – was the firm incapable of managing the business or
was it the Nokia management failure.
Nokia was very slow to cope up with the prevailing trends like that of
the touch screen, sending of the emails and the importance of
software with that of the hardware could be some of the reasons of
Nokia downfall.
The emergence of Android which was accepted by the brands like
Samsung, Sony, HTC has gripped the roots of the market tight leading
to the reason why Nokia lost market share.
7. OPENESS
CONFRONTATION
Before being acquired by Microsoft, Nokia struggled to maintain
open communication. According to several accounts, Nokia rarely
communicated openly with employees, which led to distrust
between staff members and management
The disconnect affected operations on a deep level: “Fearing the
reactions of top managers, middle managers remained silent or
provided optimistic, filtered information.”
INTERNAL RIVALRIES:
Another reason that is the cause of the failure of Nokia is the internal
rivalry of the company. Not all the divisions or the management heads
of the company worked in complete coordination. This lack of
coordination created a number of operational issues, including the
delays in the development of codes for Symbian. Such problems did not
impact the company but indirectly contributed to the downfall of the
company.
8. Trust
Authencity
Pro-action
autonomy
Lack Of Innovation In Products
The lack of innovation in its products
only added to Nokia's woes. While
brands like Samsung and Apple
came up with advanced phones every
year, Nokia simply launched the
Windows phone with basic features.
Moving Too Slow With The Industry
Nokia never kept pace with
changing technology and trends.
Nokia was always famous for its
hardware and didn’t pay much
attention to its software line-up.
Initially, the company overlooked
technical advancements to avoid
the risks associated with bringing
innovation to phones.
The user trust Nokia built over the
years was gradually waning. The
company was inefficient in its
selling and distribution methods.
Seeing the mess, Nokia decided to
come up with some fascinating
hardware and software
innovations. However, these were
already released by Nokia's rivals
and lacked uniqueness.
Looking at Nokia’s case, it is easy to
notice a gap between the company’s
leaders and developers. The latter
constituted a capable team that was
quite good at predicting future
trends and pointing them out to the
managers. However, the managers
seem to have preferred the
autocratic leadership style where
they shut down any suggestions that
would contradict or challenge the
company’s vision.
9. Experimentation
Overestimation Of Strength
Nokia overestimated its brand value. The company believed
that even after the late launch of its smartphones, people
would still flock to stores and purchase Nokia-manufactured
phones. A misconception! People still make predictions of
Nokia retaining the market leadership if it uses better
software at its core. However, this is far from the truth as seen
today.
COLLABORATION
Nokia Failure Analysis
One of the reasons for the failure of Nokia is the incorrect deal of
the Nokia with the Windows. The time when Nokia mingled with
the windows, windows was already running through the declining
phase and the thought of Nokia to regain the windows was not at
all proved to be fruitful.