managers,headquartered in Espoo,Finland, were remote from global customers, and its maketing and engineering managers were slow to pick up on developing wireless trends,such as customers' desire for digital cameras.
In paricular,they did not appreciate how fast the global market was fragmenting into customers in rich countries like Japan and the United States who wanted sophisticated,broadband-capable smart phones and were prepared to pay high prices for them,and customers in developing countries such as China,India,and those in South America who needed an inexpensive cell phone infrastucture and service,as well as inexpensive cell phones.
In the early 2000s,when the company's sales started to fall and its Janpanese competitors took the lead, Nokia's managers realized they needed to change the way the company operated to quicken Nokia's response to the changing marketplace.Nokia's CEO,Jorma Ollila,announced that in 2004, Nokia would split its activities into four separate product divisions,each of which would focus on developing cell phone software and hardware for a particular market segment.
Three of these were new divisions 1.the mobile phone division,which would primarily design and sell low-cost,low-priced handsets mostly for voice calls 2.the multimedia division,which would design and sell advanced smart phones with features such as gaming and picture taking and which would pursue differentiation and,Nokia managers hoped,premium pricing and 3.the networks division,which would sell the technology necessary to build mobile phone network and create wireless infrastructure in regions and countries around the globe.
Finally,nokia announced it would greatly expand the activities of its enterprise solutions division,which was responsible for developing hardware and software products for corporate customers in search of a wireless corporate