Nokia Looks for a CEO and a Strategy

Posted Jul 20th 2010 3:45PM by Tom Taulli
Filed under: Management, Nokia Corp. (NOK)

Over the last three years, the shares of Nokia (NOK) have gone from $40 to $8.90, with the market cap at only $33 billion. Keep in mind that Apple (AAPL) has $23 billion in cash. Yes, the company could easily buy the former mobile superpower.

But why? Nokia's track record has been abysmal. And yes, finally it appears that the company is looking for a new CEO to replace Olli-Pekka Kallasvuo.

But it won't be easy. Apple as well as RIMM (RIMM) have continued to eat into the smartphone market. Consider that Nokia's share has plunged from 68.5% to 44.3% since 2007.

True, erosion of a dominant market position is natural. But the fact remains that Nokia has been too slow.

So, interestingly enough, the sentiment is that Nokia needs a innovative Silicon-Valley type as its leader. But this may be missing the mark. Actually, Nokia has deep technology resources.

Instead, the company needs a leader who can move a lumbering global organization and be able to make quick decisions that are followed-up on. In other words, Nokia should look for someone like Mark Hurd, who is a top-notch operator who was able to allow Hewlett-Packard (HPQ) to realize its true potential. Of course, the problem is that such an executive is a very rare breed.

Tom Taulli is also the author of several books, including the Complete M&A Handbook. He can be reached at his website.

Tags: aapl, nokia, olli-pekka Kallasvuo, Olli-pekkaKallasvuo