The Decline And Fall Of Nokia

''The Decline and Fall of Nokia'' is a company profile book detailing the collapse of the mobile phone company Nokia. The author is David J. Cord, an American expatriate living in Finland. This is a nonfiction book from the period when Nokia was the leader in handset sales, to when it exited the smartphone business almost entirely, with the acquisition and abandonment of Windows Phone operating system by Microsoft with the desperate sale of its handset division to them. The debacle and strategic mistakes leading to this cost both companies dearly: Microsoft took a 7 Billion dollar write-down, and Nokia suffered a 90% loss in Market capitalization. Nokia has since licensed its brand to HMD Global for its phones, and has gone back to communications infrastructure, patent licensing, and via its maintenance of Bell Labs, advanced adaptive fiberoptic, machine learning, radio networks, as it continues on its 160-year old journey in communications and transport.

Summary

The book covers the history of the company Nokia from 2006 to 2013, during the upheaval in the mobile device industry caused by newcomers Apple, Google and low-cost competitors. To a lesser extent it also covers Nokia Solutions and Networks, then a joint venture called Nokia Siemens Networks, during the same period.

The main focus of the book is Nokia's decline in the mobile device industry, which culminated in the sale of the handset division to Microsoft. According to the book major reasons for Nokia's decline include a pervasive bureaucracy leading to an inability to act, destructive internal competition and the failure to realize the importance of lifestyle products like the iPhone. Other factors include the company's weakness in North America and the botched attempt to move out of hardware into services with Ovi (Nokia). The book refutes the idea that Nokia was unable to innovate, saying that incompetent middle management hampered attempts to bring innovations to market.

Cord spreads the blame for Nokia's fall onto former CEO Olli-Pekka Kallasvuo, and the company's faulty organisational structure. According to the book, the reason Nokia declined to switch to Android was because Samsung was much stronger and executives were afraid to compete against them in that ecosystem.

The author discusses a theory that skewed decision making during the tenure as CEO of Stephen Elop was due to his conscious desire to do deals specially favorable to his former employer of Microsoft; Cord admits that Elop’s actions appear suspicious, but maintains that they were all logical at the time in the eyes of subordinate Nokia executives who agreed with the decisions

Development

After the completion of the author’s first book in 2012, '' Mohamed 2.0: Disruption Manifesto'', his Finnish publisher asked him to write a book about Nokia. Cord initially declined, because he was working on a novel and thought the time wasn’t right to write about the company. When his novel was completed he began work on ''The Decline and Fall of Nokia''.

Reception

The book generated considerable attention from the press as it claims Sun Microsystems' co-founder Scott McNealy had been offered the job of Nokia CEO in 2010 but declined. The board of directors next looked to promote long-time Nokia executive Anssi Vanjoki, but were stymied by major American investors, including Morgan Stanley, who demanded an outsider be chosen. The board’s third choice, according to the book, was Stephen Elop of Microsoft. Scott McNealy issued a statement, doubting that he was the "dream candidate" to succeed Kallasvuo and that he was never offered the job.

The process of choosing the CEO in 2010 had previously been wrapped in secrecy, so there was much speculation about Cord’s sources of information. One publication wondered if long-time chairman of the board Jorma Ollila had been the leak.

References

External links

Finnish publisher’s official site

American marketer’s official site

{{DEFAULTSORT:Decline and Fall of Nokia
Books about computer and internet companies
2014 non-fiction books
Nokia