Overcoming emerging challenges can be a strenuous task for any organization. As a company grows and improves its outputs, it is bound to encounter numerous obstacles, ranging from leadership issues to insufficient development resources. To promote advancement and ensure that the established goals are achieved, it becomes necessary to create a relevant strategy that addresses such problems and attempts to mitigate them (Abraham, 2012). Recently, the Nokia Corporation has been suggested to experience growth challenges related to its position in the market and the occupied shares, with its potential to enhance the current outputs decreasing steadily (Fletcher, 2021). The present paper focuses on the technological growth issues encountered by Nokia due to the conversion failure in North America, outlining how this challenge might negatively impact the enterprise’s strategy.
Nokia is a well-known company in the field of technology, often recognized as one of the contemporary tech giants. The corporation’s history began in 1865, and since then, Nokia has evolved into a large-scale enterprise proficient in the production of various electronic and technological devices for mass consumption (Our History, n.d.). Even though Nokia was not originally involved in this industry, it has performed successfully for the last decades, becoming a highly-appraised device distributor. The firm’s mission is to create technology that helps the world act together while following the four strategic values (Nokia’s Strategy 2021, n.d.). These values are grounded in Nokia’s commitment to be a trusted partner in network communication, focus on establishing technology leadership in business, utilizing cloud and other novel business models, and engaging in long-term research (Nokia’s Strategy 2021, n.d.). Finally, the purpose of the corporation is to deliver critical networks through technology leadership and trusted partnerships (Nokia’s Strategy 2021, n.d.). These statements clarify the enterprise’s intention to lead the technological industry, becoming an excellent distributor in this area.
Nokia’s leadership has recently seen tremendous changes, with the organization’s CEO attempting to restructure the corporation’s activities. Nokia is now led by the Board of Directors with Pekka Lundmark as the President and CEO and is controlled by external and external audits, as well as the general meeting of shareholders (Leadership and Governance, n.d.). In addition, the CEO collaborates with the Group Leadership Team To ensure that appropriate operative management is conducted (Leadership and Governance, n.d.). Such distinctions allow Nokia to distinguish between the relevant tasks and responsibilities, delegating the necessary assignments to particular teams while maintaining an appropriate management structure. Together with the CEO, these departments overlook the development strategies and control the activities performed.
In the contemporary age, Nokia’s most significant competitors are the remaining leaders of the technological and electronic device industry. Such companies as Apple, Blackberry, Sony, and Ericsson are the primary corporations whose growth might negatively impact Nokia and decrease its productivity in the international market. Although Nokia still retains up to 40% of the global market, recent events show that its position is highly fragile and exceptionally dependent on the success of its technological endeavors (Lamberg et al., 2021). As such, the firm is reported to struggle with the introduction of 5G networks in the North American market, which significantly decreased its competitiveness compared to other enterprises in this sphere.
As novel technologies continue to develop, Nokia is forced to follow such advancements and incorporate them into its strategic growth initiatives. The modern transfer from 4G to 5G networks has become a considerable challenge for the organization, as numerous other competitors began to switch to the more developed 5G network (Whitelock, 2021). Nevertheless, Nokia failed to grasp a tremendous portion of its target market in North America by not completing the 5G coverage of this geographical area, leading to devastating losses in this segment (Fletcher, 2021). As a result, the company’s leaders are now anticipating a large decrease in the mobile networks area of operations, which might also lead to diminished profits in the upcoming year (Fletcher, 2021). Considering that the North American sector comprises 35% of Nokia’s total net sales, it will be crucial for the enterprise to create a strategy for overcoming this issue and generating revenue from other available sources. As other tech giants continue to provide 5G coverage to their clients successfully, Nokia might experience dramatic challenges connected to profitability and future growth, with the 5G obstacle decreasing the company’s development potential.
To conclude, the issue of 5G network coverage currently faced by the Nokia corporation was discussed in detail in this paper, highlighting how this complication might impede the corporation’s growth and competitive power. Although Nokia possesses a rich history of success in the technological sphere, its current position on the market appears to be rather weakened by the failure to provide North America with 5G network accessibility. As the network service continues to develop, with the majority of the clients transferring to the new method of communication, Nokia might experience substantial trouble in sustaining its position as a tech giant. To overcome this complication and promote its growth in the upcoming year, the enterprise should consider developing an appropriate advancement strategy.
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