Nokia’s downfall is attributed to its silo mentality, a mindset that hinders information sharing and collaboration within an organisation. Silos were deeply rooted in Nokia’s culture, leading to a lack of cooperation and communication between departments. This resulted in slow decision-making processes, stifled innovation, and a failure to adapt to market changes.

Nokia’s failure to recognise the threat posed by the iPhone and Android smartphones is a prime example of its silo mentality. Despite having the technology to compete, Nokia’s internal divisions prevented it from effectively responding to these market disruptors.

Nokia’s silo mentality also led to a lack of accountability. With each department focused on its own goals, there was no collective responsibility for the company’s overall performance. This lack of shared responsibility contributed to Nokia’s inability to reverse its declining fortunes.

Lastly, Nokia’s silo mentality fostered a fear of failure within the company. This fear prevented employees from taking risks, stifling innovation and hindering Nokia’s ability to compete in the rapidly evolving mobile phone market.

In conclusion, Nokia’s silo mentality played a significant role in its downfall. The lack of collaboration, slow decision-making, lack of accountability, and fear of failure all contributed to Nokia’s inability to adapt to a changing market.

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