Strategic Strategy Of Nokia

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.

Nokia will have to manage this change closely in order to make sure that they are working as efficiently as possible. For this, they would need to communicate well, as this will run through all the stages on the workforce. Elop achieved this primarily with the burning platform, but would need to pursue this through the reinvention. Training is very important when dealing with emerging products because they need to be of a high enough standard in order to gain a market share. Therefore, the workforce have to be well trained so that they understand the tasks that they are given. Nokia must also check on how individuals are coping with the change to prevent

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.

Threats: Nokia phones once dominated the phone market. However, it failed to see the threats from smartphone and the new phone manufacturer, and thus the brand Nokia faced serious strike and almost disappeared until recent.

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

Just reported in a November 2014 article, Nokia Sees Segmental Sales Growth, Lift Networks’ Margin Forecast, it is noted that the company is “Striving to rebuild around its telecommunication network equipment business and expects sales growth in all segments for the year 2015” (Williamsville, 2014). The financial health of the company has improved so much that Williamsville (2014) further states that “The Company also lifted the long term margin forecast for its Networks segment to 8 percent to 11 percent from the previous estimate of 5 percent to 10 percent.”

They will focus on Nokia’s key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.

This was also coupled with start up companies in China being able to produce similar handsets for fractions of the cost. Nokia was delivering a smart phone too late , while earlier competitors move in directly after apple , A lack of innovation . The Nokia smart phones seemed to be a copy of an android phone which , intern , seemed to be copies of an iPhone except Nokia only managed to offer a vastly better camera . This was a great step up in compact technology however, the industry had no need , nor was it ready for it , as apps like Facebook weren't ready for it , other social media apps like instagram weren't mainstream yet. So the fantastic photos you could take on a Nokia were restricted to view on the phone itself or via a slow transfer process from the phone to the computer , then onto the internet , which could take hours . Customers lost faith in the company as it had been imploding for a few years and in 2010 turning in only catastrophic losses for

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet

The main reasons behind the plummet of Nokia were due to lack of data concerning their competitors. The top level association had no data concerning how their competitor’s rank was that is IPhone. A researcher shouted Vuori said that top level association of Nokia got the wrong believed concerning the pace of progress that their competitor had and were managed to trust that the procedure that they were acting was adequate plenty to address to the menace that their competitor poses. So it is clearly described that due to their one unclear data they were drop dead. Journalist D. Bhatt (2001, page 68) quarels that “To capitalise on vision, an

Nokia faces serious challenges in a radically altered mobile phone market. It will need to radically alter its business model and products simply to survive. At this junction, it is unclear if Nokia will ever be able to become a major player in the consumer electronics business again.

The Investment decision to acquire a company like Nokia that has already been losing its shine among the customers for making no major improvement to tackle the competitor, creates serious doubts among the shareholders and the customers of the Microsoft. On any given day, a company would obviously prefer quick profits from their investments. By buying out Nokia, Microsoft clearly suggests that it is looking to broadening the business towards making its own mobile phone. Now what is the opportunity cost for the customer to buying a Windows smart phone? The good thing that happened from the acquisition is that the consumers have three major choices of Operating system to buy from. The opportunity cost of buying a NokiaWindows smartphone is the foregone cost of buying either an Android or iOS smart phone. The question is that to what extent the customers would prefer Windows smart phones over the likes of Android and iOS smart phones.

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product

According to the financial data in third quarter of Nokia, it remarked a decline trend in overall business profitability. The consensus could be mostly caused by huge market investments and fast rate to expand the trade chain. The table below presents the financial statements during 2007 and 2008.

* A major weakness of Nokia Corporation is that it has been dependent on the same Symbian operating system for more than a decade and now days Symbian based mobile phones are experiencing a decline in the global market share (44.6% - 34.6%) which is a major threat to the organization as it greatly relies on the Symbian Software.