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RingtoneExploring the Rise and Fall of Nokia in Mobile Phones$
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Yves Doz and Keeley Wilson

Print publication date: 2017

Print ISBN-13: 9780198777199

Published to Oxford Scholarship Online: November 2017

DOI: 10.1093/oso/9780198777199.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 04 April 2020

A Rising Star

A Rising Star

(p.55) 4 A Rising Star

Keeley Wilson

Oxford University Press

Nokia scaled up remarkably quickly in the 1990s, faster than any producer of a complicated product ever had before. However, by 1995 Nokia had lost control of its supply chain, going through what it refers to as a “logistics crisis.” This chapter reviews and analyzes the factors that allowed extremely fast growth, and also discusses how Nokia was able to recover from the logistics crisis by bringing greater discipline to how Nokia Mobile Phones was run and greater sophistication to supply chain management. Nokia also created a New Venture organization with a mission to search for a “third leg,” beyond the successful Mobile Phones and Networks businesses. The chapter analyzes how these developments enabled the continuation of extraordinarily rapid growth through the late 1990s, but also sowed the seeds of later difficulties.

Keywords:   logistics crisis, third leg, new ventures, management reorganization, market segmentation, management information system, innovation, rapid growth, mobile data

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