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3.2
S A MS U N G NOKIA APPLE
Core Strategy Mapping Capabilities Joint Venture Joined Microsoft Moved to Microsoft
ANALYSIS OF THE PRESENT CRISIS
And Identifying the change triggers
In the third quarter of 2007, Nokia's market share was 48.7 percent. By the third quarter of
2013 the company's market share had slipped to just 3.5 percent - Statista, The Statistics
Portal.
Currently Using First Phone
7% 13%
79.3 %
Windows
iOS Android
Mobile OS
iOS is popular for its great Android is regarded as Windows mobile OS is not
touch sensitive interface most user friendly, much appreciated by users
and smoothness of universal and easy to use and they use it just
application running with nice use of colored because they come with
themes Nokia
Microsofts Acquisition of
Nokia
And the reactions
4%
Monopoly
The Finnish phone maker
launched phones with
innovative features and
Rise of touch-based different form factors to
quickly respond to the
modern smartphones markets needs, which led it to
Nokia failed to respond to become the largest handset
growing touch based manufacturer in the world
smartphones while HTC,
iPhone took the full advantage
Market disruption
brought by the Apple
iPhone
In January 2007, Apple launched
the iPhone, a revolutionary
smartphone that packs with a large
capacitive touch screen that
supports multi-touch gestures.
Bureaucracy
An ex-manager in Nokia estimated
that Nokia used to have over 300
Vice Presidents and Senior Vice
Presidents around the globe
Sources of Resistance to Change
Losing job
Fear of employee Changes in job role
Uncertainty avoidance
Cultural difference Masculine vs. Feminine
Markets Resistance
Stage Interpretation
Denial is a defensive response. It is the conscious or unconscious
Denial refusal to accept facts, information or reality relating to the
situation.
When people deal with emotional upset they can get angry with
Anger
themselves or with other people.
February-March 2011
Thousand of
employees walked out
of office Users: Can I reuse the apps I
Protest from consumer purchase in my Symbian phone on
Bad comments on my windows phone
Nokia Facebook page
Anger Nokia : no
Developer: can I use QT to write
Emotional Response
Bargaining
Lumia phones lunched
February 11 ,2011 in Q4 2011:
announcement Users : I like the
Users: So now fluidity and the great
Switch to these Lumia
windows phone camera on the Lumia
devices are out. phone! I will buy
Abandon Let me try them
Symbian one.
out and see how Profitable Q4 2012
Shock I feel
Acceptanc
Test e
Depressio
Denial n
Initially, some consumes Nokia share price dropped
and even some employees significantly
did not believe the change Many long time Nokia users and
was true developers are disappointed and
Time switched to android
EVALUATING NOKIAS STRATEGY CHANGE
KOLB AND FROHMANS CHANGE MODEL
Termination
Conclusions and Recommendations
Camera innovations