Nokia’s downfall from market leader with a 40% market share to bankruptcy within a few years is one of the best-known cautionary tales about perils of business disruption. Yet, less well-known is how well Nokia reinvented itself after hitting rock-bottom in 2012. It is now a key player in the telecommunications network space. This reinvention was possible due to a shift in the company’s corporate strategy between 2012 and 2017, the period when it grew five-fold. The first thing Nokia did during this reinvention process was weed out the culture of fear that had gripped the company since long. The overtly emotional decision-making was now tweaked with added emotional safety. The mistakes of the past were acknowledged and a break was taken from the earlier strategies. The story of Nokia can be repeated in any company, but the important lesson here is to not be stoic when working with an obsolete strategy.

Source:https://knowledge.insead.edu/strategy/how-nokia-bounced-back-with-the-help-of-the-board-10211

Uploaded Date:23 October 2018