Professional Documents
Culture Documents
ANJU DONY(M150011MS)
DEEPAK VENUGOPAL(M150002MS)
MARIA FRANCIS(M150032MS)
PRAJNA S(M150025MS)
Year 2006:
Year 2007:
June 29
Apple launches iPhone 3s.
Redefines smart phone and challenges category leaders
like BlackBerry and Nokia.
Year 2008
March
Micromax sets up handset business in India.
September
Samsung launches Omnia.
Becomes dominant in touch
screen phones globally.
Year 2009
June
Android enters Indian market with HTC Magic at Rs 29,990.
Year 2010
June
Samsung launched Galaxy S in India at Rs 31,500, its first
smart phone.
Later, Galaxy-3 (Rs 12,300) & Galaxy-5 (Rs 10,200).
Samsung's smart phone sales surge.
August 30
Nokia launches C1 & C2—dual SIM phones.
Nokia market share in India for 2010 (Jan-Sept),
according to IDC, crashes to 32.9%
Year 2011
February
Nokia announces Microsoft patnership, but it takes 8-9 months
to unveil products.
December
Nokia's Lumia 800 (Rs 29,000)
Lumia 710 (Rs 19,000) launched.
Samsung's cheapest Galaxy at `7,830; strengthens position in
the low-end smartphone space.
Year 2012
January
Nokia fights back. Launches first Asha, 200 for Rs 4,400. It is its
first QWERTY dual-SIM device. Strong product, but dual-sim
market is past its peak.
June
Full-Touch Asha 305 launched. Nokia claims it's largest-selling
smartphone; but rivals and some tracking agencies don't
consider Asha a smartphone.
September
Nokia Market share is 22.2 % and 19.2% in smartphones.
November
iPhone 5 launched.
December
Samsung's India Galaxy sales count crosses 1 crore.
Year 2013
Nokia's market share dwindles down to 7-9% as per IDC Asia
Pacific Mobile Tracker in Q4 2012.
March
Lumia 520 (Rs 10,000) launched but Samsung, Micromax move
ahead.
Apple redefined smart phones with touch screen and
Blackberry with email. Android proved that software matters
more than hardware.
7% 13%
79.3 %
Windows Mobile OS
iOS Android
4%
23.9 24.6
22
18.7 19.1
13.9
8.3 7.5
3.2
Monopoly
The Finnish phone maker
launched phones with
Rise of touch-based innovative features and
different form factors to
modern smartphones quickly respond to the market’s
Nokia failed to respond to
growing touch based needs, which led it to become
smartphones while HTC, the largest handset
iPhone took the full manufacturer in the world
advantage
Market disruption
brought by the Apple
iPhone
In January 2007,
Apple launched the
iPhone, a
revolutionary
smartphone that
Bureaucracy packs with a large
An ex-manager in Nokia estimated capacitive touch
that Nokia used to have over 300
Vice Presidents and Senior Vice screen that supports
Presidents around the globe
multi-touch gestures.
Inside the Resistance to Outside the
organization: organization :
Employees’ resistance Change Markets’ resistance
1.Cultural Effect
Nokia was a Finnish company. Finnish culture does not
promote uncertainity. The employees were not comfortable
with the appointment of a non- finnish CEO. This had
happened first time in the history of the company. Cultural
difference made it difficult for everyone to adjust.
2. Giving up old projects fully
Before 2011, Nokia paired with Intel’s Linux based platform
Memo and Moblin to develop MeeGo. With the new CEO
joining, this project was earlier on hold and later shelved.
Employees had been working on this project and had
invested time and effort. The sudden change was not
welcomed by the employees.
3.New strategy developed without employees concerns
The speed of changes was also a problem. Appointing a
new non-finnish CEO and projects changing,
collaborating companies chaning. In all this,
employees opinion and concerns were over shadowed.
Statements from employees say that MeeGo was a very
feasible project, however, it was cancelled.
4.Waste of existing knowledge
Employees were working on MeeGo and had the
needed expertise. With change in projects, there was a
waste of the knowledge that the programmers already
had. Also new projects and work required the
company to invest in training for new skill.
5. Holding employees responsible
for failure
The CEO’s letter was not
supporting nor calming for the
employees who were in this
turmoil of changes. Elop’s letter
indicated that employees were
themselves the reason for the
downturn of the company.`
• Losing job
Fear of employee • Changes in job role
• Uncertainty avoidance
Cultural difference • Masculine vs. Feminine
• Alliance of Nokia and Microsoft
Customer’s • Embracing Windows as operating
resistance platform
Anger
Bargaining
Shock Acceptance
Test
Depression
Denial
Time
Awareness The incumbent management
of Nokia would need to be
Desire
aware of what the
Knowledge consequences.
Ability Need to have long term
Reinforcement thinking rather than short
term thinking.
Data Driven Decision
making is required to get the
list of expectations and
a clear vision of where to
lead.
Nokia believe that working
Awareness
with Microsoft, have help
Desire them to excel by leveraging
Knowledge their expertise in hardware
Ability
optimization, software
customization, and language
Reinforcement support.
Choosing another platform.
Searching a new market to re-
establish the brand.
Awareness Knowledge of market trends,
Desire
shift in user preferences and a
need to offer affordable devices
Knowledge in various markets.
Ability Nokia need to lift their
Reinforcement platform with strategic alliance
with Microsoft.
Need to explore better
platforms.
Offering employee development
Awareness plan such as skills training and
supervisory skills can increase
Desire
the ability of workers.
Knowledge
Nokia can leverage the expertise
Ability of Microsoft in talent
Reinforcement management and employee
performance management.
Microsoft will provide developer
tools, making it easier for
application developers to
leverage Nokia in global scale.
Awareness Monitor progress, encourage
and direct employees.
Desire
Schedule regular meetings to
Knowledge
discuss how things are going.
Ability Review any quantity and quality
Reinforcement measures that are relevant.
The higher management needs
to setup mechanisms to keep the
change in place.
Nokia needs a change, at this present day of all
innovative ideas. There are various models used to
implement change and strategy effectively within an
organization. Most commonly used is Kurt Lewin's
model of change also known as three-step model. Kurt
Lewin's model of change demonstrates planned
change approach. Change at Nokia will be planned
change process developed to get long term effects and
can be mapped with Kurt Lewin's model of change, as
follows;
The advantage you have yesterday, will be replaced by
the trends of tomorrow. You don’t have to do anything
wrong, as long as your competitors catch the wave and
do it RIGHT, you can lose out and fail
Nokia spent a huge sum in R&D but failed to convert
that research into technology that customers wanted
to buy
Step1: Unfreezing: This is the first step in Lewin's
model of change. It seeks to destabilize (unfreeze) the
statusquo.
There was a need for change in the strategy,
organizational structure and operations in Nokia.
The main change that was required was in technology.
So Nokia basicaly had to sell the idea of a necessary
change to it’s employees
Step2: Transition or Change: This is the second step in
Lewin's model of change. It involves identifying and
evaluating various types of changes and implementing
the necessary change
According to Kurt Lewin, once the status quo is
unfrozen, a successful change strategy needs to be
implemented, which reduces the resistance.
Change in Nokia – Training employees was the change
implemented but it was late and inadequate
Step3: Refreezing: "This is third step in Lewin's model
of change. It seeks to stabilize new behaviours.
After implementation of new strategies, people start
becoming more attuned to new ways of doing things
and these are indications that they are accepting new
strategy. In the meanwhile there is need to stabilize
the environment and to refreeze state.
In Nokia, Stephen Elop ensured that the changes
implemented were stabilized till achieving long term
results/benefits
Nokia needs a change, at this present day of all
innovative ideas. There are various models used to
implement change and strategy effectively within an
organization.
Most commonly used is Kurt Lewin's model of change
also known as three-step model.
Kurt Lewin's model of change demonstrates planned
change approach. Change at Nokia will be planned
change process developed to get long term effects and
can be mapped with Kurt Lewin's model of change, as
follows;
Thank you