COLLAPSE

OF NOKIA
Communication Barriers that lead
to it’s failure
OBJECTIVES OF THE
STUDY

• Gain a variety of experiences and know basic

understanding about communication lapse which
led to fall of Nokia.
• To identify the problems stems from habits of
communication that favour downfall of industry.
• Develop the ability to evaluate measures for
preventing communication lapse and focus on
future growth of industry.

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NEED OF THE STUDY

• To make sound and effective decisions, as in case of

Nokia there was no effective decision maker, which
lead to communication lapse between employees
and eventually collapse of whole industry.

• A proper understanding of the communication lapse

over the activities of the firm, will result in a smooth
and successful running of the business in the short
run as well as in the long run.

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SCOPE OF THE
STUDY

• If there is proper communication within the

employees of the Nokia then the innovation
process is boosted.
• Learning fast from other companies’
communication failures will help leaders repair,
minimize risks & damages and design better
services & products.

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PROFILE OF THE
STUDY

• Nokia was founded in 1865.

• In October 1998, Nokia became the best-selling
mobile phone brand in the world.
• By the end of 2007, half of all smart phones sold in
the world were Nokias, while Apple’s iPhone had a
mere 5 per cent share of the global market.
• At its peak, employed approx. 102,000 people in over
100 countries and did Business with 130 countries.
• It was a Fortune 500 company with reported
earnings of 23 Billion Euros in 2016.
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RATIONALE OF THE
STUDY

• Nokia was the best-selling mobile phone brand in

the world before its downfall.
• By the end of 2007, half of all smartphones sold in
the world were Nokias’.
• In just six years, the market value of Nokia declined
by about 90%. (Nokia was acquired by Microsoft in
2013.)
• Nokia became a defunct company from a greatly
successful company within a span of 10 years. i.e.,
from first position in 2005 to selling the entire
company by 2013.
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COMMUNICATION
BARRIERS

• Organisational Barrier can be constituted as the

main reason behind the collapse
▹ Too Many Transfer station
▹ Fear of Superiors
▹ Negative Tendencies
▹ Information Overload

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THANKS!
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