cause
From humble beginnings in 1865 as a timber company, the Nokia conglomerate had by the 1980s become Scandinavia's leading maker of consumer electronics. Focused on the nascent telecoms industry, by 1988 it was the dominant mobile handset producer, with a 13.4% market share of the global market (Motorola in second place held 12.8%, Japan’s NEC had 11.2%).1 Leveraging off its expertise in radio and wireless technology, Nokia was instrumental in developing the 2G digital technology that enabled text messages and voicemail which would become standard throughout Europe. By 2007, Nokia had 38% of the global mobile phone market and 49% of the global smartphone market. Samsung and Motorola were in second and third place in mobile, with 14% and 13% respectively. In smartphones, second-place BlackBerry held a 10% market share. Apple's newly introduced iPhone had just 3%. Three years later, Nokia was on a fast track to oblivion. In 2010, the company issued two profit warnings. The CEO was dismissed, having failed to deliver promised market share gains – Nokia's market share in the US had fallen from 20% to 7% during his tenure. Nokia's market capitalization, which had been close to $250 billion at its peak in 2000, tumbled to around $50 billion in 2010. Its brand image was severely dented, falling from 13 (in 2009) to 43 in a ranking of global brands.
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Diagnosis of the cause of the fall of Nokia.
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