24/7 Wall Street has predicted the demise of the Nokia brand in 2012 . . . if it’s true then one might ask if effective supply chain risk management actually matters

Posted on November 25, 2011


I have to tell you that predicting Nokia’s demise may be a little off the mark… they have a solid manufacturing infrastructure and excellent risk management principles in place that have in the past led to increased customer satisfaction and revenues. Here is a reference article citing an amazing example of how proper planning results in increased profits; Managing Supply Chain Risk: The Nokia and Ericsson Case Study.

It would be interesting to see how you fared with your predictions of demise in years past…

Like a critically acclaimed television series that never catches on with a mass viewing audience leaving both critics and those involved with the show scratching their heads at its cancellation, given the continuing popularity of my post comparing how Nokia as opposed to Ericsson managed a supply chain crisis to realize a 42% increase in profit, predictions of the company’s imminent demise in 2012 are also perplexing.

Yes I know that there are many things that go into making a successful company, and that effective supply chain management is just one albeit important part of the overall equation.  However, I could not help but think that as the fortunes of companies always seem to ebb and flow over extended periods of time . . . one report suggested that 60% of the companies on today’s Fortune 500 list differ from those listed 20 or so years ago, that those with a solid planning foundation will ultimately endure.

Apparently not everyone agrees with this take on corporate lifespan, as illustrated by the following commentary from the 24/7 Wall Street article “Ten Brands That Will Disappear In 2012“;

“Nokia is dead. Shareholders are just waiting for an undertaker. The world’s largest handset company has one asset: Nokia sold 25% of the global total of 428 million units sold in the first quarter. Its problem is that in the industry, the company is viewed as a falling knife. Its market share in the same quarter of 2010 was nearly 31%. The arguments that Nokia will not stay independent are numerous. It has a very modest presence in the rapidly-growing smartphone industry which is dominated by Apple, Research In Motion’s Blackberry, HTC, and Samsung.”

So here is the question, if in fact Nokia is going to take the proverbial dirt nap in 2012 (I apologize for the term but during Thanksgiving AMC ran both the Godfather Part 1 and 2 all day yesterday so I might have gotten a little too caught up in the films’ terminology), how much does effective supply chain risk management actually impact a company’s long-term success?

I look forward to receiving your feedback on both the above question as well as your thoughts regarding Nokia’s predicted demise in 2012.