Nokia’s decline in mobile phones cannot be explained by a single, simple answer: management decisions, dysfunctional organisational structures, growing bureaucracy and deep internal rivalries all played a part in preventing Nokia from recognising the shift from product-based competition to one based on platforms.
But its story exemplifies a common trait we see in mature, successful companies: Success breeds conservatism and over confidence which, over time, results in a decline of the strategy processes leading to poor strategic decisions.
More on this very good perspective from INSEAD KNOWLEDGE can be found HERE.
