Nokia: Business Interest vs. German Pressure

Q1 – Nokia

Nokia. The trend in mobile hardest industry has been changing. The industry has recorded increased competition b rival companies such as Apple Inc., Samsung, Sony Eriksson and Nokia. As a result of the increased competition, mobile phone consumers have a wide range of choice meaning that companies have to invest a lot in research and development to keep up with new trends. Creativity and innovation has become more important. Companies have to produce handsets that meet the needs of more technologically savvy consumers. The trend has been more complicated by the fact that traditional such as United States and Europe are almost saturated. Mobile phone companies have to compete in emerging markets such as Africa, Asia and Middle East. On the other hand, rising cost of production amidst declining prices has complicated the nature f the mobile industry.

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The company also erred in timing. The closure came in at a time when Germany was about to hold elections in several state. For sure, politicians must have blown the closure out of proportion.


The damage occasioned by the closure is had to control but the company can engage in calculated public relations to redeem its image. The management must come clear to explain the facts leading to the closure in a more subtle manner. In some instance, apologizing for the wrong move and giving employees a soft landing can lessen the ill feeling.