Managing change: Nokia case - Lab Report Example

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The following research is being carried out to evaluate and demonstrate the brief overview of the telecommunications industry and the challenges it faced. The paper will also present culture-excellence approach, organizational learning and potential sources of resistance…
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Managing change: Nokia case
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Download file to see previous pages The paper tells that the industry of telecommunications is going through a fast deregulation and disturbance due to technology in the existing services. In numerous markets worldwide, governments are annulling the monopolistic guidelines owing to which the current big players are witnessing a fresh variety of competitors. The telecommunication market involves customers who are residential, big corporate as well as small businesses. In case of the market for residential customers, the competitors are strongly reliant on the price in order to give a boost to their foundation of customers. The success factor is reliant on reputation, branding and investment in nimble arrangement of management as well as on billing solutions. The observable fact of mobile phones is exceptional in the past in the markets of telecommunication as well as consumer electronics. People became quite accustomed to the mobile phones in just a decade’s time. Owing to this adoption the annual production of handsets globally, was expected to surpass 450 million in terms of numbers in the year 2003. This was approximately three times of the volume of the PC and television markets. Growth was accelerated by the impressive development in the field of technology for mobile phones with regard to performing business activities as well as in the sizes. As an outcome, mobile phones are transformed by the users in two years averagely in comparison to other appliances. As a result, around 80% of the purchases of mobile phones stand for alternate handsets. (Antoine 2003). The mobile handset industry is facing severe challenges in the global market in terms of new competitors. Technology is also becoming outdated rapidly because of the introduction of fresh products. Moreover, there is growing stress on margin owing to severe competition along with accessibility of alternates that have increased which subsequently boosted the bargaining power of the buyers. Mobile phone handsets are progressively becoming sophisticated and highly superior devices. It now includes memory, applications, microprocessors, operating systems and core capabilities like keypads and screens of LCD. There is a big demand for applications along with functions from the mobile industry which is giving birth to the need of rapid innovation. In such a situation of difficulty, it becomes almost unattainable for any manufacturer of mobile handsets to hold on to the principal expertise in the industry where the technologies are developing so swiftly (Anderson and Jonsson 2005). The swift change in the technology of mobile phones made some organizations in the industry sell off their upstream or the downstream businesses so as to concentrate on the actions in the process of value chain that are considered as the core competencies. But Nokia and few others did not give in to the change and continued to possess. However, they had started to de-couple the upstream and even the downstream functions whenever they identified the requirement to preserve competitiveness. In this phase there were houses of reference plans that appeared who were expert in putting together the software elements with the hardware elements and also an operating system and developed an experienced and recognized resolution system that could be utilized in constructing a mobile phone. Such firms started to certify their developed designs to the Original Device Manufacturers (ODMs) as well as to the Original Equipment Manufacturers (OEMs) and also worked strongly together with the customers in order to lessen the risks associated with manufacturing along with apparent design. But once again Nokia was practically the single company who did not adapt to the modifications and remained as the sole manufacturer ...Download file to see next pagesRead More
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