The Rise And Fall Of Nokia Case Study

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’s market share decline that occurs in 2008.Before 2008, Apple announced fist generation iPhone and then Samsung announced Android OS of smartphone. Because of Apple and Samsung new product, Nokia was clashed. Although

So, that why I chose Nokia Company to do this research and solve the problems that company has. I have two objectives from this research. First, I want to solve the problem that Nokia Company have it in their technology. They should make a new technology for their produce to avoid any problem. The second objective is advancement again to the marketplace and to compete with other companies to be the first company in produce mobile phone like in past.

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

In 2005 the Nokia sales in western countries of Europe and in America were largely poised at certain point, the company was not making any profit in these regions. The North American market creates roundabout 8% of sales for the company, Nokia was losing its grip on Europe, and the market share was dropping in from 42% in 2004 to 38% in 2005. The only opportunity for Nokia in this case was to develop rich market ground in developing countries.

There did another mistake by overestimating the strength of its brand and they believed that we can easily capture the market of the smartphone even it late to the game. So many people says if the Nokia stuck to its own OS instead of using Windows Phone OS it could have succeeded. But the fact is they launched many disappointing mobile phones before they opted Windows Phone OS and the old operating system had already proven too buggy, clunky, and unintuitive to win consumers over. In 2008, Nokia said that it is the most valuable brands in the world, even though it is failed to recognize future trends.

Reason for Nokia failure is on one side that Apple redefined smart phones with touch screen and Blackberry with email, and on the other side, Android proved that software matters more than hardware. Nokia was slow to respond to these trends. In 2008, brands like Samsung, HTC, and Sony found roots to extend their market. Samsung's Android phones are user friendly and budget friendly too. When every

Samsung expanded their market share by building a brand name that people relates with quality and innovation. The Samsung

Nokia is the Finnish communications and the multinational corporation of the information technology that is headquartered in Espoo, Uusimaa, in

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

Partnerships created value in the industry and made significant acquisitions to increase economies of scale, market share, and access to resources. Management believes in the growing acceptance of digital technologies as a single communication standard in the future. Nokia has formed a partnership with AT & T, Siemens and AEG for the promotion of the development of digital telephone and Internet. GSM digital standard was very successful for Nokia on a global level. Nokia has also realized the need for a rapid response to market changes. Production and distribution have been standardized and made flexible to meet the changing needs of the market. At the same Time, Nokia is also focused on creating brand management. Management realized that the mobile phone will become a necessary commodity in the future. The company increased advertising costs, allocation of resources and the creation of brand image throughout the world. This strategy was successful and Nokia have placed among the most revered brands

We can see thanks to the S.W.O.T.T that Nokia has different strength especially the brand name, the experience, it is the founder of the mobile, but also its level of research and development, the quality of the workforce and of the device. But Nokia was not able to use this strength efficiently in the mobile market.

Nokia has a long history of success in the development of high quality mobile phone. Nokia has extensive research and development segments and manufacturing facilities around the world. As a result, Nokia has both established geographic and technological advantages compared to other mobile phone companies. Base of the various demands due to different income level, Nokia developed different phones to help customer communicate and gain access to the internet in different countries.

In cellular industry, Nokia has set the global opportunities to face new challenges and activities of fall behind the competitors of other industries.

The main goal for Nokia is to recover its capitulated marketplace and return to its leadership position in the Smartphone market. The firm generally counts on the partnership alongside Microsoft, and on its Lumia smartphones to accomplish this goal. Nokia additionally selects a marketing strategy to apply for some of the Lumia phones in Europe.