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The Rise of Finland's Nokia

In: Business and Management

Submitted By tinacaymo
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The Rise of Finland’s Nokia
Case Study No. 4
By: Maria Cristina C. Caymo, PhD-M Student

FACTS:

The case deals with the rise of the Nokia Corporation, from the relatively small country Finland, to global leader in the mobile phone market. The original Nokia Company was founded in 1865 to produce paper from wood pulp. In 1967, three companies, Nokia, Finnish Rubber Works and Finnish Cable Works in Finland merged to form the Nokia Corporation. The new company operated in many sectors and produced a wide range of products including paper, tyres, Wellington boots, cables, televisions, computers, electrical generators, and chemicals. The case study focuses on how did this company became the world’s largest manufacturer of mobile phones with nearly 40% of global market share.

The case study also attributes this achievement on how trade and investment patterns and Finnish and global policies promoting market openness and free trade have affected the innovation process in Finland’s (mobile) telecom equipment industry. The study illustrates how regulatory, trade and investment policy choices have helped – alongside other key policies – provide the right framework conditions for innovation in this country of 5.2 million people. In addition, it examines how the private sector, and more particularly Nokia, has taken advantage of those conditions to enhance its innovation capacity.

ISSUE:

In the 1980s, Nordic nations cooperated to move out of an investment-driven economy into an innovation- driven one. Such was their proactive effort in response to the following emerging issues faced by their economy:

a) Slowdown of global telecommunication.

b) Overall growth rates were also on the way out with the major export markets weakening.

c) The telecommunication cluster was at its peak and was also...

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