Apparently, any adult that has lived between 1999 through the year 2006 must know Nokia at its prime. As we all know, with the strong rise of smartphones in 2012, Nokia, as a veteran mobile phone manufacturer, has gradually disappeared into mainstream consumer businesses because it can’t keep up with the trend in the market. Basically, people branded Nokia as a loser. There was even news that Nokia was about to close its doors altogether. But in the past two years, as people paid more and more attention to 5g technology, people found that Nokia had become a major telecommunications equipment manufacturer second only to Huawei. The question we are going to answer in this article is how Nokia transformed into a telecommunications equipment giant.
I mean, this is the same Nokia, which was frustrated in the mobile phone market. And now, it has risen in the field of telecommunications equipment? Read along if you want to unravel this.
Nokia transformed into a telecommunications Equipment Giant: 3 Decisions that Helped Nokia Become A Telecom Overlord
In fact, after Nokia withdrew from the mobile phone market, there were three major decisions that helped her come back to life.
First Major Decision: Selling the Mobile Phone Business to Microsoft
From the first time Nokia was ousted from the global mobile phone market in 2012, Nokia has experienced three key decisions that are extremely important for her current corporate development. The main participants in these three decisions are the current Nokia chairman Sari Baldauf, who took over in 2012. He first realized that the mobile phone business represented by the LUMIA series, which has been lingering for many years, did not bring the hope of Nokia’s revival. But instead, became an influence on the enterprise.
If Nokia wants to carry out enterprise transformation, it needs to first get rid of the burden of the mobile phone business. So in 2013, Sari Baldauf and Nokia executives decided to sell the mobile phone business to Microsoft. This will prepare Nokia to go into battle when the enterprise is transformed. This is the future of Nokia. The first important decision.
Second Decision: Nokia Bought Siemens Mobile Networks and Renamed it, Nokia Siemens Networks
After selling the mobile phone business, Nokia must find new business growth points and revenue sources in a timely manner. After multiple discussions within Nokia, personally entering the telecommunications equipment market has become the main direction.
In 2013, Nokia spent nearly 2.2 billion US dollars to acquire a 50% stake in the telecommunications equipment company it jointly established with Siemens: Nokia then Turn Nokia Siemens into a telecommunications equipment manufacturing company under Nokia.
Soon after, Nokia positioned the communication business as the core of Nokia’s new business. After selling the mobile phone business to acquiring the communication business, Nokia completed its phased enterprise transformation by becoming a major communications equipment manufacturer after the failure of the mobile phone business.
The Third Decision: Nokia Acquired Alcatel-Lucent
Apparently, after being fully transformed into a communications equipment manufacturer, Nokia is still facing great pressure, because the newly acquired Nokia Door subsidiary’s product line is still relatively basic.
Nokia Siemens does not have the technology and ability to build a complex communications network, and the market competitiveness is also Not strong, so in 2015 a third major decision concerning Nokia’s future development was made.
Nokia’s acquisition of Alcatel-Lucent for 15.6 billion euros is the vertical area of this success The merger has made Nokia one of the few telecommunications equipment companies in the world that can provide complete network solutions. Such hard power has helped Nokia become the second-largest telecommunications equipment manufacturer after Huawei in the past two years.
Summary of How Nokia Metamorphose Into A Telecom Equipment Giant
It has to be said that it is the sale of the mobile phone business, the acquisition of Nokia Siemens Networks and the acquisition of Alcatel-Lucent, three important decisions that contributed to the success of Nokia’s current corporate transformation.
The former mobile phone king is today’s communications hegemony , Nokia’s perfect transformation not only saved itself, but also provided a very good reference case for many companies on the verge of bankruptcy.