Nokia is a very useful case study. It is a company that can be used by teachers in business schools to demonstrate critical issues in entrepreneurship, brand development and other important aspects of applied economics. Although the study can take in more than a century of history it is still being told and the end may be unexpected.
Many companies flourish under some circumstances and then die when things change. They fail to adapt but persist against the odds until forced to submit. For example, some wagon makers scoffed at the notion of horseless carriages but eventually had to bow to the inevitable. Those that adapted and started to make parts for combustion engines did well.
The motor industry grew quickly and became a symbol of economic strength in countries like America and England. Then there was competition from the East; then the issue of carbon emissions and the unsuitability of fossil fuels. Suddenly, what was a secure industry has become insecure.
The narrative of a company that has faced fearsome threats and made the most of its opportunities is grist to the mill of business school professors. What makes the story still more relevant is the fact that it is ongoing. The company is still strong but facing threats as significant as any that have been met in the evolving business environment of the past century.
However, jungle creatures are like tennis champions. They can never rest on their laurels. Change is constant and the great player, like a great company, will have to face and conquer an unending stream of upcoming challengers. Like a wild animal, or a sportsman, a successful company must be eternally vigilant and competent to survive in a competitive environment.
Frederick Idestam started a paper mill in 1867, taking advantage of Finlands natural water and timber resources. He was joined by Leo Mechelin and this demonstrated the value of cooperation. They made their firm into a public company by using the capital raising advantages of the share market and later diversified into rubber boots when the demand for these products ensured lucrative profits. In the early twentieth century Mechelin foresaw a bright future for the electronics industry and persisted in starting a division that was not at first profitable.
In hindsight it is easy to see the wisdom of going into electronics at the beginning of the twentieth century. But in 1917, with two world wars about to explode and television still in the realms of fantasy it must have taken a high degree of prescience to take the decision that would have such a significant impact on the fortunes of the company. Few people could have imagined a phone without wires attaching it to a wall.
Smart phones and electronic tablets have become the fashionable things to have because they combine the power of the mobile phone with that of the Internet. In this arena there is strong global competition. Research and development is moving very fast. The company is again faced with the challenge to adapt, or die. It has ridden the waves of change from paper and rubber to electronic products. Now the challenge is to merge or collaborate with another company that can help Nokia compete for customers in the market for very smart gadgets that condense most electronic advances of recent times into an artificial brain that can be held in the palm of a hand, like an amazing factotum.
Many companies flourish under some circumstances and then die when things change. They fail to adapt but persist against the odds until forced to submit. For example, some wagon makers scoffed at the notion of horseless carriages but eventually had to bow to the inevitable. Those that adapted and started to make parts for combustion engines did well.
The motor industry grew quickly and became a symbol of economic strength in countries like America and England. Then there was competition from the East; then the issue of carbon emissions and the unsuitability of fossil fuels. Suddenly, what was a secure industry has become insecure.
The narrative of a company that has faced fearsome threats and made the most of its opportunities is grist to the mill of business school professors. What makes the story still more relevant is the fact that it is ongoing. The company is still strong but facing threats as significant as any that have been met in the evolving business environment of the past century.
However, jungle creatures are like tennis champions. They can never rest on their laurels. Change is constant and the great player, like a great company, will have to face and conquer an unending stream of upcoming challengers. Like a wild animal, or a sportsman, a successful company must be eternally vigilant and competent to survive in a competitive environment.
Frederick Idestam started a paper mill in 1867, taking advantage of Finlands natural water and timber resources. He was joined by Leo Mechelin and this demonstrated the value of cooperation. They made their firm into a public company by using the capital raising advantages of the share market and later diversified into rubber boots when the demand for these products ensured lucrative profits. In the early twentieth century Mechelin foresaw a bright future for the electronics industry and persisted in starting a division that was not at first profitable.
In hindsight it is easy to see the wisdom of going into electronics at the beginning of the twentieth century. But in 1917, with two world wars about to explode and television still in the realms of fantasy it must have taken a high degree of prescience to take the decision that would have such a significant impact on the fortunes of the company. Few people could have imagined a phone without wires attaching it to a wall.
Smart phones and electronic tablets have become the fashionable things to have because they combine the power of the mobile phone with that of the Internet. In this arena there is strong global competition. Research and development is moving very fast. The company is again faced with the challenge to adapt, or die. It has ridden the waves of change from paper and rubber to electronic products. Now the challenge is to merge or collaborate with another company that can help Nokia compete for customers in the market for very smart gadgets that condense most electronic advances of recent times into an artificial brain that can be held in the palm of a hand, like an amazing factotum.
About the Author:
The C3 Nokia and the Nokia N9 are samples of the top quality craftsmanship available from the notable cell phone manufacturer. Learn more about specifications and appearance by visiting the website.
No comments:
Post a Comment