How Nokia failed to nail the Smartphone market

In this paper we will discuss Nokia's struggle to find a sustainable approach to the Smartphone market. The findings are based on (i) a review of Nokia's history, and specifically on how Nokia dealt with introducing new, more or less smart handsets, (ii) on interviews with managers from Nokia and (iii) on data collected on mobile phone usage in 2003 -2011 in Finland. We contribute to insights on how a company with an active innovation policy, product launch and market segmentation strategy failed to maintain its dominance on the mobile handset market.

[1]  Mokter Hossain,et al.  Open Innovation Mill: Utilization of Nokia's Non-Core Ideas , 2012 .

[2]  H. Tikkanen,et al.  Strategic management of business model transformation: lessons from Nokia , 2011 .

[3]  Martti Häikiö Nokia: The Inside Story , 2002 .

[4]  J. Marshall Open Innovation: The New Imperative for Creating and Profiting from Technology , 2004 .

[5]  Kathryn Graziano The innovator's dilemma: When new technologies cause great firms to fail , 1998 .

[6]  Clayton M. Christensen The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail , 2013 .

[7]  Juha-Antti Lamberg,et al.  Corporate Business Model Transformation and Inter-Organizational Cognition : The Case of Nokia , 2013 .

[8]  Christer Carlsson,et al.  Trends in mobile services in Finland 2004‐2006: from ringtones to mobile internet , 2008 .

[9]  Christopher Palmberg Technological systems and competent procurers—the transformation of Nokia and the Finnish telecom industry revisited? , 2002 .

[10]  D. Steinbock Winning Across Global Markets: How Nokia Creates Strategic Advantage in a Fast-Changing World , 2010 .

[11]  Dan Steinbock,et al.  The Nokia Revolution : The Story of an Extraordinary Company That Transformed an Industry , 2001 .

[12]  Mark de Reuver,et al.  Mobile customer segmentation based on smartphone measurement , 2014, Telematics Informatics.

[13]  Pirkko Walden,et al.  An attitude-based latent class segmentation analysis of mobile phone users , 2014, Telematics Informatics.

[14]  Pekka Abrahamsson,et al.  Agile methods rapidly replacing traditional methods at Nokia: A survey of opinions on agile transformation , 2011, Inf. Softw. Technol..

[15]  Jan Bosch Software Product Families in Nokia , 2005, SPLC.

[16]  Pekka Ketola,et al.  Integrating Usability with Concurrent Engineering in Mobile Phone Development , 2002 .

[17]  Harri Kiljander,et al.  Evolution and usability of mobile phone interaction styles , 2004 .

[18]  Peter Galvin,et al.  Alliance patterns during industry life cycle emergence: the case of Ericsson and Nokia , 2006 .

[19]  Harry Bouwman,et al.  Consumer lifestyles: alternative adoption patterns for advanced mobile services , 2012, Int. J. Mob. Commun..

[20]  Pirkko Walden,et al.  Reconsidering the actual and future use of mobile services , 2009, Inf. Syst. E Bus. Manag..

[21]  Christer Carlsson,et al.  Adoption of 3G+ services in Finland , 2006, Int. J. Mob. Commun..

[22]  Heli Koski,et al.  New product development and firm value in mobile handset production , 2010, Inf. Econ. Policy.

[23]  Raine Hermans,et al.  Nokia in the Finnish Innovation System , 2002 .

[24]  W. A. Smit,et al.  Strategy of synthesis , 1998 .

[25]  Pirkko Walden,et al.  Barriers and drivers in the adoption of current and future mobile services in Finland , 2007, Telematics Informatics.

[26]  Turkka Keinonen,et al.  Mobile Usability: How Nokia Changed the Face of the Mobile Phone , 2003 .

[27]  Bob de Wit,et al.  Strategy Synthesis: Resolving Strategy Paradoxes to Create Competitive Advantage , 1999 .