Due to continuous innovation in technologies, cost of production has been reduced drastically and has caused the emergence of new devices in the global handset market and competition among companies have been increased heavily for survival. It has forced companies to change their business strategies. Few big companies acquired small companies to increase their market share, few followed a brand extension strategy by launching new products and hence increased their market penetration. For this reason, an integration between Microsoft and Nokia, two market leaders in their own rights, may create new opportunities to challenge the market.
Both sides had strong incentives to join forces. Nokia had lost significant ground in recent years to smartphone manufacturers, most notably Samsung and Apple, by failing to keep up with innovations such as touch screens.
Nokia, which overtook Motorola in 1998 to take the crown of biggest phone manufacturer of world, lost its prestigious crown after struggling for last 3 years. The 4 costly mistakes that lead to Nokia losing the battle are described in this article. Nokia launched its Symbian 60 series in year 2002 which initially had a good market response but with the introduction of Apple iOS in 2007 and Android in 2008, the OS race was completely taken over by the two giants. The reasons for collapse of Symbian OS is lack of applications and UI (User Interface). After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian OS but it was mostly following the UI of Android and iOS and was not creating something unique. Secondly, the company failed to look into the need of available applications in gaining market share. The company made the biggest mistake to take a leap of faith in Windows in 2011. At that point of time, the company already was in declining condition and trusting Windows which was new in the field to regain its status was the biggest mistake the company made. tiff competition from Samsung and Apple, and lack on focus on innovation was the second big reason of collapse. Even if users could ignore the OS, the the hardware features which Nokia was rolling out were quiet late as compared its major competitors Samsung and Apple.
Personally, I feel motivated when violent imagery and language is used in the memo. This approach is unlikely to backfire because the facts are speaking loudly. First, the once leading Nokia company has lost most of its customer base. Additionally, the management has been reluctant to provide direction in the company. Additionally, the employees can also testify that Nokia has become inferior compared to other competing brands on the market. Some of the employees in Nokia company may be using the competitors’ brands at the time the memo was written. Therefore, the memo pointed out what was obvious in the minds
Nokia now facing hard time. The company which was dominating the market for years now do not any entity in the market. They mainly focused on middle class and lower class people which was the main problem. They should focus on higher class people who can afford better quality phone with better features and application. If they starting doing it again I am sure people will again attracts to Nokia phones and the company will start once again.
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
Nokia’s Chief Executive Officer (CEO) and other leaders recognized the need to redefine Nokia’s culture and its foundational values to promote global collaboration and speed during the company’s business change (Willigan, 2009). Nokia was of the belief that “values align people’s hearts and emotional energy and define how Nokia employees (‘Nokians’) do business with each other and the rest of the world” (Willigan, 2009, p. 2). In order to achieve its goal of culture and values aligned with new strategy, Nokia successfully engaged its worldwide employees in a social change process which resulted in a new set of corporate values and a more cohesive corporate culture.
Nokia has become the world’s number one company in making of cell phones. The products of the company are divided into four divisions: multimedia, mobile phones, networks, and the enterprise solutions. By capturing the
So… for me the German backlash was super justified because if all this were not enough, the Nokia authority had failed to explain clearly the reason for the closure of the plant to the employees. No reason!!
This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it the world leader before the end of the decade...Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future.
The Swedish telecommunications company Ericsson, one of the “Big Three” mobile handset manufacturers in the 1990s, started to reach difficulty as it entered the new millennium. In 2001, Ericsson’s sales dropped by 52%, recording a $1.39 billion loss which preceded an announcement that would lay off 20% of their workforce. Ericsson found itself losing market share to “Big Three” rivals Nokia and Motorola and eventually even to Siemens. Analysts attributed this downfall to Ericsson’s stagnant phone designs, slow time to market and their inability
As it was stated in the introduction, with the smartphone revolution, Nokia failed to understand the future direction of mobile devices. This underestimation of the rising innovation, in terms of global market shares, led to a drastic decline – from 2007 to 2013, the company lost 45.2% of its market shares (Statista, 2014). It is worth mentioning, that in 2004, at Nokia’s Espoo headquarters, researchers have presented a mobile phone prototype, which was able to connect to the internet and it was controlled by a touch-screen (O'Brien, 2010). However, Nokia’s senior management had rejected the idea, stating that it would be an expensive failure to develop it. That allowed American and Asian companies to become leading companies, as they adopted a more innovative idea of the smartphone. Despite the fact that the company started to lose its market shares to competitors, Nokia tried to take the role as strategic innovator by
For example, in Europe, Nokia’s market share in the European smart phone market has shown a huge decline in the past couple of years. The problem began with the introduction of the Iphone in 2007, which set a new trend in the market. In order to return to the market leadership position, Nokia entered into partnership with Microsoft. Threatened by the rapid lost of market share to rivals, Nokia created series of Smartphones called Nokia Lumia. Nokia bet on these products to regain its lost market share. However two years after the partnership, with 9 Lumia products out in the European market. As Alison Donnelly (2008) points out the situation is already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was losing customers to rivals. The Finnish company had troubles adapting to the market changes, it did not recognize that the Iphone release in 2007 would create a new era into the mobile world. In a fast growing industry, time is a very expensive asset, as every company wants to possess the most innovative technologies and products before its