Table of ContentsIntroductionThe RiseThe FallCurrent SituationIndustryOrganizationMarketProgramIntroductionNokia, one of the most widely recognized and on average universally loved companies to have ever graced the face of this land. When someone says the name Nokia, we may think of a phone, but we may also think of something a little more abstract. And even more deeply, it can remind us of brighter times and good memories. Most of our very first phones were Nokia and that may be the case for many. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayNokia was the company that could do no wrong, until of course it finally did. What is the story behind this company? And how could a company so successful, so influential and so pioneering fall through the cracks to become a shoal of what it once was, before finally evaporating into the shadow of Microsoft. Nokia's history dates back to 1865, when a mining engineer, Frédéric Ida, set up his first wooden pot factory in southern Finland. A few years later, he opened a second mill on the banks of the virtual Nokian River. This river inspired the name of his company Nokia. Soon, Nokia expanded into other industries such as rubber, cables, tires, televisions, boots and much more. So it's safe to say that the early days of Nokia were a completely different company than the one we know. During the 1960s, the Cold War period influenced all European countries as well as some American countries. Thus, the Finnish government wanted military research into radiotelephone communications to help its country realize the full potential of reliable military communication. Nokia won the contract thanks to its expertise developed in the field of communication, which later developed into a civilian radio-telephone network that spanned the entire country in the early 1970s. Jorma Ollila, a former banker of Citibank, took over from Nokia as CEO in 1992. He decided to cut all extra revenue from the company and focus directly on securing Mobile during Nokia's golden period, which would shape the future of the company for the next decade and a half. Nokia has turned its attention to emerging markets which include India, China, Russia and many other countries. Nokia has divided its strategy into four divisions: feature phones, mobile phones, enterprise solutions and networks. With this market share of Nokia, 40% of GSM handsets and 5% -7% of CDMA terminals. Indeed, Nokia led the industry for over a decade, leading them to think they could do no wrong. The Fall All of a sudden, in 2007, Steve Jobs (co-founder of Apple Inc) released the iPhone and started the touchscreen smartphone revolution. Seeing this revolutionary idea, Nokia also joined the race, but failed to realize that people were interested in apps and a good interface rather than just hardware. While 60% of phones sold worldwide were sold by Nokia, sales fell to 10% in just two years. And in 2013, they laid off more than 25,000 employees and closed most of their production facilities. Until they were finally acquired by Microsoft later that year. The company that had valuations of over $50 billion was sold for just $7 billion. Current situationEnvironment: PESTLEPESTEL analysis is a simple and effective tool used in situation analysis to identify the main external forces (at the macro-environment level) that could affect an organization. These forces can create both opportunities and threats for an organization. To make these factors easier to analyze, we can categorize them using the PESTLE model. This classification distinguishes the following factors: Political environment The impact of political factors on Nokia is difficult to determine. The company is based in Finland, a European country, but the Finnish government has refused to grant it a bailout or special favors. This forced Nokia into an uneasy alliance with Microsoft, which has since collapsed. Unlike some tech companies, Nokia lacks strong government support because it is based in a small country. Economic environmentNokia has suffered heavily from the European slowdown in recent years. Economic disruption in Europe has seriously harmed it by limiting its purchasing power in its domestic markets. Unlike Apple, Nokia has struggled to penetrate the fast-growing Chinese market. Nokia also does not have the vast economic resources that some of its competitors, such as Google, Apple and Samsung, have. Social and Cultural Environment The main cultural factor that hurt Nokia was the global adoption of smartphones and the increasing use of applications. Apple's popular association with smartphones in some countries like the United States has deeply dented Nokia's market by creating a generation of customers who only buy one brand. In recent years, Nokia has had to deal with widespread misconceptions that there are only two smartphone brands on the market, Apple and Samsung, and only two operating systems: iOS and Android. Technological environmentThe technological challenges that Nokia faces are at the root of the social factors limiting its activity. Mobile phones have evolved from simple communication devices to handheld computers. This led to a situation where customers wanted to perform a wide variety of tasks with their phones, including taking photos, streaming videos, and performing business functions. Nokia has not been able to significantly tap into the potentially profitable market for other types of mobile devices such as tablets and wearable technologies. Legal environment Nokia's legal environment is extremely difficult because it operates within the European Union. Regulators there have been investigating Google's use of Android as part of a possible antitrust case. EU action against Google could lead to radical changes in Nokia's market, such as splitting Android into a separate company. Environmental FactorsLike other electronics manufacturers, Nokia faces the problem of safe and economical disposal of its used products in an environmentally friendly manner. . One costly requirement it could face in coming years is laws making electronics manufacturers responsible for disposing or recycling used devices, a potentially costly expense, particularly if the devices use lithium batteries . IndustryNokia is doing its best to recover from a very difficult situation. The tragic loss of market share in the industry was the biggest fall ever for a technology company. Through a licensing agreement, HMD Global Oy, under the HMD brand, a Finnish mobile phone company now produces Nokia phones. THE..