Conflict and Negotiations

Management
Assignment # 1
Summary of Case Study

Dated: 2nd April, 2023

Submitted to: Dr Sarmad
Submitted by: Maheen Nadeem
Session: MBA 1.5 Years (Weekend)
Semester: 2nd
 Case Study:

A Bomb in Your Pocket? Crisis Leadership at Nokia India (A)

A BOMB IN YOUR
POCKET? CRISIS
LEADERSHIP AT
NOKIA INDIA
(A
A BOMB IN YOUR
POCKET? CRISIS
LEADERSHIP AT
NOKIA INDIA
(A
A BOMB IN YOUR
POCKET? CRISIS
LEADERSHIP AT
NOKIA INDIA
(A
A BOMB IN YOUR
POCKET? CRISIS
LEADERSHIP AT
NOKIA INDIA
(A
This is a case study about Nokia India's response to a crisis involving faulty batteries in their
mobile phones. The crisis began when Nokia issued a global product advisory warning about a
batch of BL-5C batteries, manufactured by Matsushita, that were found to be overheating while
being charged. The Indian media sensationalized the advisory, leading to panic among Nokia
mobile phone users in India.
D. Shivakumar, the managing director of Nokia India, had to cut short his visit to Nokia's
headquarters in Finland and return to Delhi to deal with the crisis. Poonam Kaul, the director of
communications at Nokia India, was in constant communication with Shivakumar, keeping him
updated on the situation. The media coverage and public reaction posed a significant threat to
Nokia's brand image and market leadership in India.
Nokia Corporation, based in Finland, was a global telecommunications leader and one of the top
brands in the mobile phone industry. In 2007, Nokia had a 40% global market share, with China
and India being its two largest markets. In India, Nokia had established itself as a leader with a
market share of 70-76% and had a strong presence through its marketing, customer care centers,
and manufacturing facilities.
The Indian mobile phone industry was experiencing rapid growth, with the subscriber base
doubling annually and reaching 261 million in 2007. Nokia entered the Indian market in 1995
and had been successful in capturing a significant market share through its products and services.
As the crisis unfolded, Nokia India's communication team worked to address the media frenzy
and public concerns. They appointed a media spokesperson, Devinder Kishore, who interacted
with the press and provided clarifications. Nokia also developed an alternative battery checking
and replacement solution using SMS (texting), which was popular among Indian customers. This
allowed customers to send their battery numbers via SMS to check if their batteries were
defective and initiate the replacement process.
Shivakumar and the crisis team planned and executed strategies to manage the crisis effectively.
They realized the importance of local execution and worked on logistics to ensure an adequate
supply of replacement batteries. The situation was challenging, and Nokia's brand image and
future in India were at stake.
The passage ends with Shivakumar's arrival at Nokia's office in Delhi, where he joined the crisis
planning meeting and discussed the developments, including the SMS solution. The team
acknowledged the urgency of the situation and the need for immediate action.

To address the crisis and protect Nokia's brand image and market leadership in India, the
following leadership approach and solutions can be considered:
1. Transparent and proactive communication: The leadership should adopt a transparent
approach and communicate openly with the media, customers, and stakeholders. They
should provide accurate information about the product advisory, addressing the concerns
and clarifying the difference between an advisory and a recall. This approach helps build
trust and credibility with the stakeholders.
2. Empathetic and responsive leadership: The leadership should demonstrate empathy
towards the customers who are concerned about their safety. They should show a genuine
understanding of the situation and provide prompt responses to customer queries and
concerns. This empathetic approach helps in managing panic and instills confidence in
the brand.
3. Crisis management team formation: As mentioned in the passage, a crisis management
team was set up. The leadership should ensure that this team comprises key stakeholders
from various departments, including communications, technical, operations, and
customer service. The team should be responsible for coordinating efforts, making
strategic decisions, and executing plans to address the crisis effectively.
4. Collaboration with local teams: Given the unique characteristics of the Indian market, it
is crucial for the leadership to collaborate closely with local teams in India. They should
empower the local teams to come up with solutions that are tailored to the Indian
 customers' preferences and behaviors. This approach ensures that the company
understands and meets the specific needs of the market.
5. Rapid response and solution implementation: The leadership should work with urgency
to address the issue. As mentioned in the passage, the technical team suggested an
alternative solution using SMS, which would provide immediate responses to customers
regarding the battery's status. The leadership should support and expedite the
implementation of such solutions to alleviate customer concerns and provide a seamless
battery replacement process.
6. Media management and spokesperson: The leadership should appoint a designated
spokesperson, preferably someone who can communicate fluently in the local language,
to address the media. This spokesperson should provide accurate information, dispel
myths, and manage media relations effectively. It is crucial to ensure that the media
receives timely updates and correct information to prevent the spread of sensationalized
or misleading stories.
7. Post-crisis evaluation and improvement: Once the crisis is resolved, the leadership should
conduct a thorough evaluation of the incident and the company's response. They should
identify areas for improvement, such as communication strategies, crisis management
protocols, and customer support processes. This evaluation will help the company learn
from the crisis and enhance its preparedness for future challenges.
By adopting these leadership approaches and implementing the suggested solutions, Nokia can
effectively address the crisis, rebuild trust with its customers, and safeguard its brand image and
market leadership in India.