Before 1992, Nokia adopted the business tactic that was highly cross-industry and diversified, and had 34 subsidiaries in 10 different industries and 108 areas.
When Nokia was in the situation of full loss in 1992, the company’s board of directors hired Ollila as president of the company. Ollila immediately gave up the diversification tactic, adjusted the business structure drastically, narrowed the scope of operation, abandoned non-core business, and sold 71 enterprises. At last, there were only two groups, mobile phone and network, and Nokia began its professional road from now on. Before 1998, Motorola is the world’s largest mobile phone manufacturer, and Nokia has been in hot pursuit of it. In the 6 years of the implementation of the professional tactic, Nokia’s rate of increase increment has remained at around 50%, becoming the world’s largest mobile communications manufacturers.
Nokia produced the 100,000,000th mobile phone in 1998, and then become the world’s largest mobile phone manufacturers instead of Motorola.