Case Nokia and Ericsson

Case Nokia and Ericsson - Nokia and Ericsson This case was...

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Nokia and Ericsson This case was written by Dr Helen Peck, Senior Lecturer, Resilience Centre, Cranfield University, Shrivenham, Swindon, SN6 8LA. England. © Copyright Cranfield University, March 2003. All rights reserved. In March 2000 worldwide demand for mobile telephones was booming. Two of the international market leaders were Finnish electronics company Nokia and its Swedish rival Ericsson. This is the tale of how an ‘Act of God’ half a world away would set off a train of events that would eventually displace one from the market forever. The story starts on the evening of March 17 th 2000, with a thunderstorm over Albuquerque, in central New Mexico. A lightening bolt hit a power line, which caused a fluctuation in the power supply, resulting in a fire in a local semiconductor plant owned by Dutch firm Phillips Electronics NV. Accounts vary about precisely what happened next, though reports suggest that the fire was brought under control in minutes. Eight treys containing enough silicon wafers for thousands of mobile phones were destroyed in the furnace 1 . The damage to the factory from smoke and water was much more
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Case Nokia and Ericsson - Nokia and Ericsson This case was...

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