Learning from Failures

Famous & Finnish ? - The Fall of Great NOKIA

Group 4
Kartikay Goyal A011
Karan Mangwani A012
Ishani Dhariwal A024
Nandini Kedia A027
Tejas Parekh B003
Devansh Patel B004
Radhika Aggarwal B023
Isha Jain B029

Introduction

Nokia was a Finnish communication and IT corporation, founded in 1985. In the initial days they
started as a ground wood pulp mill. Eventually Nokia expanded the business by adding electricity
generation as well. In the beginning of the 20th century Nokia was moved to the town NOKIA near to
Nokianvirta river for their second mill and this is how the company got its name –NOKIA. In this
period Nokia started to produce telegraph and electrical cables. The Nokia company was near
bankruptcy after world war 1 . In order to ensure the continuation of Nokia , rubber works acquired
the business. The new company was involved in a lot of industries such as paper products, cars ,
bicycle tires, communications cables, televisions and other consumer products. 1978, was when Nokia
started to develop a digital phone network. The first mobile network was made in Scandinavia in 1981.
This was initially for car phones. Nokia introduced the 2100 series in 1994 and once it goes on sale
they sell 20 million phones worldwide. In 1998 Nokia became the world leader in the mobile phones
market. In the period 1996 – 2001 Nokia’s turnover increased from €6.5bn to €31bn. Nokia launched
the first mobile phone with a built-in camera in 2001, called the Nokia 7650. After the year, Nokia
launched 3G phones, which was Nokia 6650. 3G technology phones can be used to browse the web,
watch TV , download music and many more things. Around 2004 was the time when Nokia started to
lose its market share to its rivals. After a while Nokia came up with a phone with Symbian OS. But
then Apple came in with the iPhone in 2007, which brought a new definition to Smartphones. Nokia
couldn’t keep up with the iPhone as Nokia was still using Symbian OS. Nokia’s market shares were
falling more downwards after Samsung came with their smartphones. During this period Nokia was
unwilling to challenge itself. In 2011 Nokia came up with a new strategic alliance with Microsoft. The
alliance aimed at changing the Symbian OS to Microsoft for the smartphones. It was proposed the
coalition would make Microsoft's Windows Phone a more grounded competitor against Android and
iOS. Nokia came up with a new line of phones named the LUMIA line. In 2012 the Lumia was sold
above 1 million phones before 26th January 2012. In the second quarter of 2013 it was announced by
Nokia that the sales of the Lumia were 7.4 million which was a record for the Nokia Company. In
2013 Nokia returns to profit after a spell of losses and later in 2014 Microsoft buys Nokia’s handset
business for €5.44bn2

Industry Overview

Market Share of Top 5 mobile phone companies in the year 2012-2013

Company 2013 2012

Samsung 24.5% 23.6%

Nokia 13.8% 19.3%

Apple 8.4% 7.8%

LG 3.8% 3.3%

Huawei 3.0% 2.7%

Others 46.4% 43.3%

SWOT Analysis

Strengths

- Brand Image & Experience : Nokia had built a very good brand image in the market. Nokia is one
of the oldest companies in the world and has experience of around 150 years serving in this industry.
So they gained knowledge and experience about the markets of the world.
- Distribution Network : Nokia had the largest distribution network and had a high reach across the
countries.
- Customer Relations : Nokia had built very strong relations with its customers over the years.
- Wide range of Products : The Nokia’s dominance was also due to the availability of wide array of
products from low to mid-priced devices in the market
- User friendly – The devices offered by Nokia were very user friendly i.e. easy to use and understood
by anyone.
- Durability & Quality : The Nokia devices were very durable and the parts used in the devices were
of good quality.
- Resale Value – Nokia devices had a very high resale value which helped customers gain confidence
while purchasing.

Weaknesses

- After Sales Service – The company had a very poor after sales service and it did not focus on that
area which hindered the image of Nokia. They had very few service centers.
- Low Voice Quality – The quality of voice on a few devices provided by Nokia was very low.
- Slow Reaction to the Competition – They were very slow to take any initiative and come up with
innovative products in the market and face competition.
- Low sensitivity to Industrial Change – They were very less sensitive and responsive to adapt to the
new changes and match up to the expectation of the consumers in the market.
- Poor Design of Smartphones – The designs of Nokia smartphones were not very attractive hence it
did not attract new customers. However its competitors had innovative and newly designed devices.
- Heavy Handsets – The mobile phones of Nokia were heavy compared to its competitors which made
it difficult to use sometimes.
- There was a lack of promotional activities for the lower class people which failed to form a good
image among them.
- Unlike Apple iPhone, Nokia N-series was complex, tough and not user friendly.
- For eg: Due to lack of innovative products in the US, their market share fell from 24.1% in 2002 to
6.5% in 2009.

Opportunities

As the mobile device market was growing rapidly and there was adequate demand for smartphone,
these were the few opportunities for Nokia:

- New Markets – Nokia could expand its business operations and grow by entering into new markets.
- New Handheld devices – They could come up with new devices such as Tablets and Mini Notebooks.
- Design – They should improve the design of their products which would help them compete in the
market. They should come up with stylish handsets as it was preferred by the consumers.
- Camera – They should improve the quality of their camera in order to be more competitive.
- Software – They should add new features and applications to their devices. They should improve
their overall software.
- As Nokia was a very old company and had a good brand image, they could use it as an opportunity
to grow further and expand in the markets.
Threats

- Competition : Strong competition from the other existing smartphone companies was a major threat
to the company as they were not innovating their devices.
- Chinese Market : The mobile phone companies from China were coming up with good quality
devices at a very low and reasonable rate. In Fact they made mobiles which were exact copies of those
from China which was pushing them out of the market.
- iPhone Popularity – The popularity of Apple iPhone was pushing Nokia out of the markets.

Nokia Rise And Fall Timeline

A concise timeline of Nokia’s important moments:

● In October 1998, Nokia became the best-selling mobile phone brand in the world
● Nokia’s operating profit went from $1 billion in 1995 to almost $4 billion by 1999
● The best-selling mobile phone of all time, Nokia 1100, was created in 2003
● In 2007, Apple introduced the iPhone;
● By the end of 2007, half of all smartphones sold all over the world were Nokia's, while
Apple’s iPhone had a mere 5 per cent share of the global market
● In 2010 Nokia launched its “iPhone killer” but failed to match the competition;
● The quality of Nokia’s high-end phones continues to decline
● In just six years, the market value of Nokia declined by about 90%

Nokia’s decline accelerated by 2011 and was acquired by Microsoft in 2013.

Rise of the Company

In 1979, Nokia entered into a joint venture with Salora, the leading Scandinavian color TV
manufacturer, to create a radio telephone company, ‘Mobira Oy.’ Nokia launched the world's first
international cellular system ‘Nordic Mobile Telephone network’, which linked Sweden, Denmark,
Norway, and Finland. Later it also launched the world’s first car-phone ‘Mobira Senator’, which
weighed in at around 10 kg. After a few years Nokia acquired the company and changed its
telecommunications unit name to ‘Nokia-Mobira Oy’. They rose to fame after launching the first
transportable phone which could be used anywhere, just it was 5kg.

Few years later, the company introduced the world's first hand-held mobile telephone, its first compact
phone called ‘Mobira Cityman 900’. The handset weighed comparatively less but cost heavy on the
pocket still it sold like hot cakes.

The phone became iconic and was nicknamed “The Gorba” after the then Soviet Union president
Mikhail Gorbachev used it to make a call from Helsinki to Moscow during a press conference.
The company witnessed a sharp drop in profits owing to severe price competition in the consumer
electronics markets. Leadership changed and divided the company into six major units:
telecommunications, consumer electronics, cables and machinery, data, mobile phones, and basic
industries, while divesting other units like flooring, paper, rubber, and ventilation systems.

In 1990’s, Nokia decided to focus solely on the telecommunications market, and as a result, the
company’s data, power, television, tire, and cable units were sold off in the first few years of the
decade. Later in the next year the company launched its first hand-held GSM phone ‘Nokia 1011’,
having a talk time of 90 minutes and could store up to 99 contacts it was also known as ‘Mobira
Cityman 2000’.

After this explosion in the telecommunication industry, Nokia launched multiple series of phones with
some unique features like the 2100 series of phones, featuring the iconic Nokia Tune ringtone, the
series turned out to be a blockbuster with around 20 million handsets sold worldwide.

In 1996, ‘Nokia 9000’ Communicator was launched. The all-in-one phone, which carried a price tag
of $800, allowed users to send emails, fax, and browse the web, besides offering word processing and
spreadsheet capabilities. Although it created a dedicated following, it wasn't commercially successful.
Following this the company launched the ‘Nokia 8110’ slider phone which was nicknamed "banana
phone".

With the success of its 6110 model, which came with the classic Snake game pre-installed, the
company sold nearly 41 million cellular phones in 1998, which helped the company surpass Motorola
and become the world’s top cellular phone maker in that year.

Over the next couple of years, Nokia launched 2-3 new handsets, each with their own unique features.
One such phone was Nokia 3210 which came in six different color variants with extra ringtones and
games and allowed users to send pre-installed picture messages (like Happy Birthday) via SMS, etc.
with an impressive talk time of 4-5 hours. Around 160 million units of the handsets were sold, making
it one of the most popular and successful phones in history. The company launched Nokia 8810, its
first phone without an external antenna. The flagship was also one of Nokia's first phones with a
chrome slider shell.

With the advancement of wireless technology in the 2000s, Nokia had to face a new set of challenges
and evolve with the changing times. Responding to the changes, the Finnish company started churning
out both multimedia handsets and its low-end devices. In 2001-2002, the company launched three
successful handsets; Nokia 7650 with a built-in camera, Nokia 6650 as the world’s first 3G phone and
Nokia 3650, which was the company’s first phone to feature a video recorder.

In 2003, by selling around 250 million units of the newly launched budget friendly Nokia 1100, the
company made it the best-selling phone as well as the best-selling consumer electronics item in the
world. Also, it turned out to be the company’s billionth phone sold later in 2005.
In 2004, Nokia 7280 - the "lipstick" phone was launched as a part of the company’s "Fashion Phone"
line followed by the launch of the company’s N-series of phones around 2005, with the flagship phone,
N8, being launched later in 2010.

In order to compete with Apple's products and its touch screen phones, Nokia launched its first all
touch screen smartphone in 2008. The company managed to sell around 8 million units of the new
phone, but failed to maintain its popularity as its touch-experience was not at par with Apple.

Nokia Fall Story

A company like Nokia cannot disappear overnight. It was a series of incidents and decisions which
led to Nokia’s downfall.

After the year 2000 Nokia received a series of red signals. The first one was in 2001 when the profit
of the company dropped despite being the top mobile phone maker in the world. At that time it had a
whopping 30% market share which was double of its then competitor Motorola. As it was the king of
the mobile phone market then it could accept anything wrong with its product and hence it did not
make any necessary changes required. Nokia ignored the retailers and distributors as Nokia thought
that they need not be dependent on anybody to sell their mobile phones. This had an adverse impact
on their sales. Nokia also ignored the consumer feedback and customer taste and preference was also
changing. Nokia being Nokia thought that their hardware was best and no one would be able to
compete with them.

Later then in the year 2007 they had to recall a stupendous number of 46 million cell phone batteries.
To add to it the batteries that were defective were all manufactured between 2005 - 2006 which means
that a large number of phones sold in that time frame were defective.

While Nokia was busy developing feature phones Steve Jobs on 29th June 2007 announced the launch
of iPhone and introduced the world to its own series of smartphones, the first one being IPHONE 1.
Early 2008 Nokia’s profit took a big downward plunge of 30% and its sales also dipped by 3.1% while
the sales of iPhone skyrocketed by 330%.

Not very later it had to start reducing its employee strength due to the huge crisis the company was
going through. In 2009 Nokia laid off 1700 employees worldwide. It was then when it began to realize
that the company being lousy and ignorant to changing consumer demands got it into this position as
the consumers were shifting towards Apple, Blackberry and were also influenced by newcomers like
Samsung , HTC and LG.

In 2010, Nokia hired Stephen Elop as CEO of the company to change its destiny. Stephen worked at
Microsoft and Nokia had to pay severance to the former employer to allow him to join. He is a CEO
with great ability but low character. After joining Nokia, he said that Nokia is like a platform on fire.
They jumped into the water or put out the fire to save them. He decided to choose the blue ocean
strategy as to know the simultaneous pursuit of differentiation and low cost for developing new
markets and potential demand. Nokia decided to work with Microsoft to build an operating system
and produce its own hardware to explore and expand their base in the market. This was a strategic
move to make the letters windows phone its primary mobile operating system. Post the partnership
with Microsoft there were rumors that Microsoft is soon going to acquire Nokia but they were then
proved baseless by the CEO. In 2011 Apple overtook the sales of Nokia smartphones in 2011.

Lumia 800 and Lumia 710 smartphones turned out to be a good partnership launched by Nokia and
Microsoft although the former company made it aiming at the higher part of the market , the latter was
interested in targeting the lower end of consumers. The good part was that the company successfully
sold over a million smartphones in just a few months post launch. Although in order to save more
expenses the laying off of the employees continued, they planned to close its oldest factory in Finland
and shifted its manufacturing unit in Asia in early 2012.

Despite decent sales, the new Windows Phone devices couldn’t do much for Nokia in Q1, 2012, when
the company suffered an operating loss of a whopping €1.3 billion. This was followed by another
round of job cuts, affecting around 10,000 employees this time. Later that year, the company launched
Windows Phone 8-powered Lumia 920 flagship, which received mixed reviews - mainly criticized for
its large size and bulkiness. In November 2012, the smartphone became best-selling phone of the week
on Amazon, and also topped Expansys' chart in the UK during the same period - still it never quite
reached the blockbuster sales the company needed to return to profitability.

The window was not mobile friendly. Although knowing that Nokia's Android was needed right now,
Stephen decided to bet on Microsoft. He had a good relationship with Steve Ballmer, who was the
CEO of Microsoft at the time, and hoped to succeed Steve as the CEO of Microsoft. So the connection
between Microsoft and Nokia is necessary for Stephen Elop, but not for Nokia. As Elop was Nokia's
Trojan horse.

Company's wrong decision led to Nokia's failure. People think that Nokia failed because it has not
changed, which is not true at all. Nokia changed, but all changes were contrary to what Android and
iOS did. It used to be a company with a market value of 250 billion US dollars at its peak but lastly
was acquired by Microsoft for 7.2 billion US dollars in 2014, marking the end of the era of mobile
giants.
Why Nokia Failed?
Nokia moved too slowly

Nokia was a pioneer in the smartphone market, literally introducing consumers to the smart phone
with its initial Symbian Series 60 devices in 2002, they were the market leaders. For the next five
years, Symbian phones had little trouble maintaining that leader position in the smartphone industry.

They didn’t enter the Windows Phone market until 2011 and now they are suffering from their slow
response. In 2007, Apple introduced its iPhone with its full touch screen and app-based operating
system, which changed the very definition of what a smartphone should be.

Nokia failed to respond to the iPhone and the shifting consumer demand that came with it. As the
years passed, the Symbian platform aged, and that age really showed when compared to iOS and, later,
Android. Simultaneously, the smartphone market exploded – more and more consumers opted for
pocket-sized mini-computers instead of "feature" phones with tedious WAP browsers.

When Apple came out with the iPhone, it showed the industry how the smartphone could be done right
and in response, Nokia should have responded to the iPhone more quickly. Samsung, on the other
hand, moved quickly into the smartphone market. Samsung had to start from the start, whereas Nokia
had a relatively successful smartphone platform that it just didn't want to give up.

Windows phone hasn't paid for Nokia

Not only was Samsung speedy, it also bet on multiple platforms, including Android and Windows
Phone – and it even had its own homegrown OS, Bada, just in case none of the others worked out. But
in the end, Android paid off.

Samsung chose Android at the right time, and it benefited from the maturation of that platform.
Because Samsung has been the dominant player in the Android space, they've been able to gain a lot
from growing the Android system.

Nokia, on the other hand, spent its time focusing on Symbian until the company's partnership with
Microsoft, but even Nokia's flagship Lumia Windows Phones haven't paid off. It was a good
partnership on paper, but it was too late – over two years after the introduction of the iPhone and
Android picked up market steam.

Nokia didn't innovate with changing time

The classic Nokia brick phone – and the Snake game on it – brings back a lot of nostalgia. But that's
where the problem rises. Consumers, especially in developing markets, associate the Nokia name with
a different era of technology. And in today's world, having the newest and shiniest device with the
latest technology is what matters. Nokia became an older brand. There wasn't anything new to it.
Samsung, as a marketed brand, is perceived as an innovator. Nokia has a legacy baggage – they are
the traditional brick, candy bar phone maker. Nokia didn't market itself as an innovator and it didn’t
do much innovating as well. At least not until it entered the Windows Phone space.
Execution was the key

Where Samsung shines brighter than Nokia, and many other manufacturers, is execution. Samsung
mirrored Apple's game plan by dazzling consumers with a high-end flagship line in its Galaxy S
Android phones.

If we look at what Apple's done really well, it's organizing its phones under the iPhone brand. It's a
memorable, recognizable brand that everyone waits for. Samsung has adopted a very similar approach
with their flagship phone. Every year, consumers know that a new Galaxy S is coming. It helps to
build up anticipation and drive consumer demand. On the other hand, Samsung also has a broad
portfolio of smartphone devices, several costing less than $200 without a contract, which appeals to
customers who don't want or can't afford a high-end phone like the Galaxy S or the iPhone. The
company also has the advantage in its hardware manufacturing process. Unlike other manufacturers,
Samsung has the built-in efficiency of being a vertical company, making their own display, processors,
and so on.

Whereas Nokia's execution has not proved very good for them. Although they changed their
technology and operating system, not until it was too late. And even after that, Nokia was not able to
successfully cater to what customers really wanted. They were in dreams that whatever they will make
will sell but with more options available, the case was totally different and they had to pay for it.

Complacent with its products

As a market leader for over a decade, Nokia didn’t really plan for the future as it seemed a bit
complacent with its products. When Apple launched the iPhone in 2007, the first touch phone, Nokia
was still priding itself in its E-series when the definition of smartphone had undergone a tremendous
change. That was least expected from the pioneer in the smartphone market.

The success of the iPhone didn’t have any significant impact on Nokia, unlike Samsung, which
experimented with off-the-shelf technologies and managed a transition to smartphones much faster
than expected. And Nokia, which had launched its first smart phones through its Symbian series 60 in
2002, remained a pioneer with no better future prospects. Nokia failed to anticipate, understand or
organize itself to deal with the changing times.

Lack of product innovation

While Samsung comes up with new phones every year with a slight modification from the previous
launch, Nokia’s Windows phone which came in 2011 lacked some basic technology essential to drive
its sales. Nokia’s Lumia series was launched with a bang, but customers didn’t like it. Reasons can be
its design, which wasn’t as attractive as Samsung phones or the iPhone. Today the sale of phones is
dependent on how shiny or trendy it looks. Leave aside the looks, Nokia phones didn’t have the front
camera and were not even 3G enabled. And we were on the threshold of entering the 4G era. So,
Nokia’s latest phones were featuring ready, but not future ready.

Failure of Symbian OS and wrong deal with windows

Nokia launched its Symbian 60 series in 2002 which initially had a good market response but with the
introduction of Apple iOS in 2007 and Android in 2008, the OS race was completely taken over by
the two giants. The reasons for the collapse of Symbian OS are lack of applications and User Interface.
After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian
OS but it was mostly following the UI of Android and iOS and was not creating something unique.
Secondly, the company failed to look into the needs of customers in gaining market share.

Finally when the tide turned against the company, the company made the biggest mistake to take a
leap of faith in Windows in 2011. At that point of time, the company already was in declining condition
and trusting Windows, which was new in the field to regain its status, was the biggest mistake the
company made.

The Lumia series could have been a hit for the company had they launched on the Android platform.
All these phones which the company launched were comparable to other competitor devices but OS
was the problem which led to ultimate collapse of the company.

Nokia became laggard in smartphone market

Stiff competition from Samsung and Apple, and lack of focus on innovation was the second big reason
of collapse. Even if users could ignore the OS, the hardware features which Nokia was rolling out
were quiet late as compared its major competitors Samsung and Apple. Nokia seemed to be lagging
in the race. Where Samsung from nowhere entered the race and focused on innovation as its core
competence to gain the market share, Nokia was very late to realize this fact. Samsung did everything
right to focus solely on product innovation and started competing with Apple in all product lines from
smartphones to tablets, but Nokia failed to develop a focused device strategy.

Losing market share on both ends

Nokia not only failed to realize competition from Apple, Samsung, Sony, and Blackberry in high end
smartphones, they also failed to notice the stiff competition in the lower segments of phones. Where
Nokia was losing charm in high end phones, the competition from Micromax, HTC, Huawei and ZTE
squeezed the company’s market share in the lower segment too. This led to double trouble for the
company. The company which used to have epic models like Nokia 1100 suddenly started losing at
lower ends too. Very lately company realized this thing and launched their Asha series but by that
time they had already lost the game.

Failure to implement the right umbrella branding strategy

Apple was the first phone to use the strategy of umbrella branding using iPhone as an umbrella brand
and then building subsequent models each year. Samsung was quick in identifying this concept and
they started building their high end phones with Galaxy S series. Nokia on the other hand used to have
used an umbrella brand in the N series and recently the Lumia series, but they failed to create buzz
among customers which Apple created. Apple very uniquely launches its new model in September
each year and the whole year it builds consumer anticipation which drive demand. But the problem
with Nokia’s umbrella branding is that they didn’t, or couldn’t build anticipation in users.
Learnings from Failures
It can be concluded from the case that Nokia’s failure was a cyclic process. Nokia’s culture of status
led to an atmosphere of shared fear which influenced how employees were interacting with each other.
The human factor was added to the economic and structural factors and together they generated a state
of “temporal myopia” that hindered Nokia’s ability to innovate. Employees stated that top managers
and directors were no longer abiding by Nokia’s core values of Respect, Challenge, Achievement and
Renewal. As customers expect innovation, without it they are bound to switch to competitors. Thus,
Nokia tasted failure.

The key takeaways from this case are:

ALWAYS ACCOUNT FOR WHAT YOUR CUSTOMERS WANT - Nokia failed to adapt to change
and reposition itself in the market. So, here’s one of the lessons from Nokia that you should learn:
never rely solely on your brand’s reputation to retain customers and acquire new ones. Nokia
repeatedly failed by relying on the same inferior technology, despite customer demands.

MARKETING IS AS IMPORTANT AS THE PRODUCT - Another lesson to take away from the
Nokia disaster is that marketing is as important as the product itself. Create a flagship product, but
don’t forget to market it accordingly. Even if you only make small improvements to your product over
time, strategic marketing can still generate excitement for minor upgrades too.

MANAGE THE COMPANY’S RESOURCES - The lack of innovation at Nokia didn’t come solely
from bad leadership decisions and out-of-sync departments. The cell phone maker had experienced
massive, rapid growth. In fact, the business model targeted financial growth and not innovation.
Therefore, when it needed to change, the company didn’t have the resources to sustain innovation.
Nokia didn’t have a vision for the future. Everything was about short-term gains, and nothing prepared
the company for competing in a new field. You can avoid this by managing your resources wisely.
Assess your market position often and explore new directions you could pivot to.

FOCUS ON HIRING THE MOST QUALIFIED PEOPLE - Another aspect of Nokia’s failing was not
having the right people in the right places. Its top management lacked the technical ability to compete
in the new market, and middle management didn’t have the motivation to make specific issues known.
Focus on people who can solve existing problems, and place them in positions with the power to do
something about those problems.

COLLABORATIVE LEADERSHIP – A leader must learn how to listen to customers, partners and
employees properly. Also, innovation should be encouraged at all levels.

HIGH EMOTIONAL INTELLIGENCE – As organizations are a mix of all generations, it is

mandatory for the leaders to be emotionally intelligent. They should be mindful and understand their
employees’ emotions.
TAKE RESPONSIBILITY FOR ACTIONS – We learn from this case that leaders should take
responsibility for their actions irrespective of the nature of consequences it has. They must take charge
for bad decisions, failed innovations and lost market share despite the danger of losing their status,
role and bonuses. They should learn from their mistakes and realign their energy into making repairs
and reconstructing the organization.

HR SHOULD BE A MITIGATOR – The HR department should work as a business partner and

mitigator rather than a mere department. It will be beneficial in situations where the top management
is inefficient and going through turbulence as HR can support the middle managers to challenge the
senior managers for the benefit of the organization.

PROPER REGULATION OF COMPANY CULTURE – Company culture should never be taken

lightly. It starts at the top but grows at the bottom. Leaders must embody the company’s values and
be role models for their employees.

DON’T GET TOO COMFORTABLE WITH WHAT YOU HAVE – Nokia failed because it got
comfortable in the market. It did not take the entrance of new competition in the market as an issue.
Thus, one should never get too comfortable and always push themselves to innovate.

RECOGNISE MISTAKES – Failure is a process and not an instant phenomenon. Nokia failed to
recognize the disruption Apple’s iPhone was going to cause. Thus, we learn that it is important to
recognize mistakes in the process and rectify them rather than facing the final consequences.

Lastly, as renowned economist Hyman Minsky puts it:

“Stability breeds instability. The more stable things become and the longer things are stable, the more
unstable they will be when the crisis hits.”