Question

Could you provide an example of a company that encountered forecasting challenges? Please include the following details in your response:

a) Company name
b) Business sector
c) Description of the forecasting error
d) Consequences of the forecasting mistake

Answer 1

Nokia Corporation encountered forecasting challenges when they failed to predict the shift in market demand from feature phones to smartphones, resulting in a loss of market share and difficulty competing with other companies in the smartphone market.

Step-by-step explanation:

An example of a company that encountered forecasting challenges is Nokia Corporation, a Finnish telecommunications company.

The forecasting error they encountered was not correctly predicting the shift in market demand from feature phones to smartphones.

As a consequence of this forecasting mistake, Nokia lost a significant market share and struggled to compete with companies like Apple and Samsung in the smartphone market.