Sunday, June 17, 2012


PENDING NOKIA DEAL MAY LOSE ITS SPARK
When companies fail to implement strategic and effective plans, they experience what Paul B. Carroll and Chunka Mui explain in their article “Seven Ways to Fail Big”, as a bad business move. Companies join forces with other companies to gain a competitive advantage. Joining forces can be complicated, if not costly. Microsoft ignored signals of Nokia’s possible demise. Per the article, “They jumped into high-growth markets without having any idea about whether they were qualified to operate in them.”
Microsoft and Nokia came to an agreement in the previous year in hopes that a collaboration of the two companies would provide further prospects. Microsoft chose Nokia to build new Windows phone devices and possibly create a niche in the market. Until recently, Nokia had a strong run in the mobile phones business. Now, the company is struggling financially with unexpected losses and possibly eliminating more than 14,000 jobs.
Nokia’s foreseeable issues should have been caught by higher management of Microsoft, which would have prevented Microsoft in the search of finding a new partner. Who is at fault here? Did Microsoft not review the history and current status of Nokia? Or did Nokia provide false hopes to Microsoft?
What can Nokia do to be able to turn this into a growth business again for them?
References:
1.      Carroll, Paul B. and Mui Chunka. “Seven Ways to Fail Big.” Harvard Business Review, September 2008.
2.      Sander, Brice. “Can Nokia Make a Comeback?” Youtube.com. 12 Feb 2011. Web. 17 June 2012.
3.      The Wall Street Journal. “Nokia’s Problems Haunt Microsoft.” 15 June 2012.

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