An example of ineffective organization can be seen in companies that used to be giants in their industries but failed with time. The reasons for such failures are different, but in general, each case could be prevented with effective management intervention. Nokia was one of the most dominant players in the market of mobile phones. However, in 2010, one decision initiated a long decline of the company, which is no longer a competitor to modern players.
The decision was to invest in the development of Nokia’s operating system called MeeGo while at the same time revamping their old operating system Symbian. The company spent billions of dollars on research and development while switching to Android was available. The years spent on research and development cost Nokia a competitive advantage. By making a more sustainable management decision and developing a strategy of switching to Android, Nokia could have stayed relevant in the market.