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Analyzing the causes of change - Essay Example

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Analyzing the causes of change Table of Contents Temporal and PEST environment: Influence on changing business environment 3 Use of multiple cause diagrams: forces of change management 4 References 8 Temporal and PEST environment: Influence on changing business environment The temporal environment includes the business situations that changes with respect to time…
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Analyzing the causes of change

Download file to see previous pages... This led to a position for Nokia which was not so mobile like before. The changes in the political environment included relaxation in the regulatory norms in telecommunication industry which attracted increasing number of foreign players in the telecommunications and mobile handset industry. The increase in the number of competitor and the launch of newly designed handsets in the market posed major challenges for Nokia (Burnes, 2009, p.52). The inclination of the customers towards the camera handsets launched by the competitors of Nokia led to the decline in market share of Nokia. The rise of Nokia to the leadership position in the 1990s created increasing job opportunities and rise in the income level of the people of various economies. The rise of the middle income group was the potential market that was tapped by the competitors of Nokia. The mobile handsets of Nokia were old fashioned that dated 10 years back. The market trends saw the launch of flashy and newly designed handsets with colourful screens and folding patterns (Reiss, 2012, p.39). The changes in the mobile handsets matched with the evolving social trends and demands of the customers. Nokia was unable to keep up with the recent changes in the market for which the market of Nokia declined in the recent years. Even the most loyal Finnish market of Nokia witnessed a decline in share from 93% to 80%. The technological advancements in the telecommunications industry and the increase in market share of LG, Motorola posed major threats to the business of Nokia in the several markets across the world. The mobile phone operators like Vodafone favoured the other mobile handset makers as they desired to provide services on mobile handsets that were updated to the market trends. Nokia did not believe in co-branding while the market trends saw increasing number of joint ventures and co-branding of products in order to meet the demands of customers (SENGUPTA, BHATTACHARYA and SENGUPTA, 2006, p.31). The sharing of technology in the market helped the other market players to tap the customer segments who were looking for changes in the available features of the mobile handsets. These temporal changes in telecommunication device offerings to the market were due to the strategic policy making of the competitors (McLoughlin and Aaker, 2010, p.21). The changes in the political, economic, social and technological environment led to the loss of interest for Nokia among the market segments. Nokia could not identify the changes that took place in the market and failed to undertake strategic policies of change management in a timely manner. All these factors led to the decline in mobility of Nokia in the recent years. Use of multiple cause diagrams: forces of change management The decline in the market share of Blackberry smart-phones could be represented with the help of a multiple cause diagram to determine the factors that led to the changing scenario in the business of Research in Motion (RIM), the makers of Blackberry. The multiple cause diagrams would help the organization to respond to the forces of change and also enables the company in addressing the key variables in order to solve the complex dynamics of prevailing ...Download file to see next pagesRead More
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