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Because of this issue, the company’s employees never knew where they are heading. Nokia’s demise is a prime example of what other industries can learn from and react to innovation coming from outside the industry. Nokia’s demise from being the world’s best mobile phone company to losing it all by 2013 has become a case study discussed by teachers and students in business management classes. This is the major contributing managerial problem which led to the problem of declining market share of Nokia (Smith, Collins and Clark, 2005).Another major area of problem as identified from the case analysis of Nokia is that the company has recently introduced a series of Nokia Lumia phones which is basically a type of windows phone. But in the case of Nokia, such a scenario wasn’t created, and this actually led Nokia to collapse.This success can be considered as the main culprit of the failure of Nokia. Case Study of a Failed M&A—The Role of Environment in Microsoft's Acquisition of Nokia Finland was proud of their homegrown company, Nokia. However, with the introduction of the smart phone era, the company is racing to roll out the competitive products, as its share prices have collapsed significantly. Nokia did not consider this factor and had to face failure.This Nokia case study has explicitly explained the importance of some of the theoretical concepts that would be taught to business students. Nokia’s technology isn’t a root cause of its current crisis. It is vital to discuss Nokia as a success story. The analysis of the case of Nokia suggests that all these aspects are mostly lacking in respect to the company, as the managers were not able to introduce the new concepts into their products, the R&D team failed to utilise the key findings in introducing new products into the market and finally, the management’s approach also seems to be highly laggard, as despite introducing new and innovative smart phones, the management has undertaken decisions to take back their approach from introducing new and highly advanced smart phones to other small range of phones (Panne, Beers and Kleinknecht, 2003).The analysis of the case leads to the identification of another major significant issue as faced by Nokia is the timely introduction of new products into the market. If the company have introduced all such innovations in its product offerings to its customer for the first time, it would have better position throughout the entire mobile industry.In this report, a critical investigation of the management issues as faced by Nokia from the analysis of a case study has been performed, and the investigation revealed significant number of issues that are faced by the organisation behind its core problem of declining market shares.

With such a high growth rate, all the resources of the company were devoted to keeping the supply chain intact.In 2013, Nokia was at the brink of bankruptcy. Such problems did not impact the company but indirectly contributed to the downfall of the company.Considering the previous image of Nokia, it was essential that a timely decision about repositioning was to be taken. With such a thought process, you won’t be able to attain long-term success, and it would definitely not help you in achieving your goals in the best possible way.This excessive growth over the period led to the management of the company to choose between innovation and growth financing. Comparison.

These smartphones got affordable for the users, and ultimately, the entire cult of society shifted to them. This gave way to the new companies and competitors to enter and serve the market.