The cause of Nokia's decline and how to go to the predicament

Source: Internet
Author: User

First, the question

By the time it was three years ago, probably few could have imagined that Nokia, the mobile phone bully, would fall into the current twilight.

First in the third quarter of 2009, the company, known for its outstanding performance, had its first loss in a decade, followed by a 40% per cent plunge in the second car in 2010. In 2011, Nokia announced that it would retire from the German Frankfurt stock Exchange in the first half of 2012. It has since retreated from London, Paris and the Stockholm Stock Exchange. At this point, Nokia's last capital position remains the United States and "home" Finland. In the 2012-year-old brand The Wall Street Journal has chosen to disappear, the telecoms giant, once the world's top-ranked leader, is the first.

So, what is causing the decline of Nokia phones? How should Nokia get out of trouble?

Ii. History of the company

The embryonic era

Nokia's history first began in 1865 years. At that time, the mining engineer Frederick · Edelstein (fredich idestam) established a pulp mill at a river in the town of Tampere, Finland. The factory is located at the junction of Finland and the Russian Empire and produces wood pulp and cardboard with local trees as raw materials.

Industrial Age

  1967 Nokia became a large cross-industry company in Finland, with industries covering paper, chemicals, rubber, cable, pharmaceuticals, natural gas, oil and military, while Nokia began manufacturing mobile phones in the 1960 year.

Pre-telecommunication era

from 1962 year to 70 1982 Nokia (called mobira senator talkman , Is the most advanced products at that time, the product in the Nordic mobile phone network market hit. 20 century 90 bankruptcy for too many industries, and then Nokia's president and senior executives decisively abandoned all other industries and split traditional industries, leaving Nokia's electronics sector alone, By selling all the other traditional industries, Nokia group began a two-year split, and at the moment Nokia made its most important strategic choice in its history.  

Post-Telecommunication era

Only Nokia , the mobile telecoms industry , has been out of bankruptcy for more than 5 years, due to its focus on the development of the traditional mobile phone industry, Nokia features a great user branding effect at the time. 1995 Nokia began its glorious period, its overall mobile phone sales and orders soared, the company's profits reached the company's unprecedented wealth.

Smart phone era

While the global industry is bullish on Nokia, -years1months,Apple officially unveiled its smartphone:"IPhone ", which opens up a new smartphone market landscape, and Apple'sCEOSteve·Steve JobsAnnounce its"re-invented the phone."after that, the global industry has also made a new understanding and definition of smartphones. And the Nokia company has theSymbian OS(Saipan System) is no longer applicable to the market at that time, even if it is a smart phone system is also questioned. -years,Google Inc. has released its smartphone operating system:"Android ", has become a new market change, byIPhoneand theAndroidled smartphone craze became the mainstream of the market, Nokia's continuous theThe first place to occupy the handset market was ended, ranking third, while Nokia .the market share of the smart phone has gone from .years of33%reduced to14%, much lower than Apple and Samsung. Nokia's popularity in its own Finnish market has also plummeted, with market share76%reduced to31%. Nokia has to find a new way out.

Iii. Reasons for failure

Throughout the history of Nokia, Nokia's failure was seen in the era of smartphones. So what mistakes did Nokia make in the era of smartphones?

1. Delay time of delayed response

Nokia is the pioneer in the smartphone market. In 2002, Nokia released a smartphone running the Symbian 60 series platform. Within the next five years, Symbian Systems ' smartphones have taken a leading position in the smartphone world.

By the year 2007, however, Apple has released its iphone. With a full touchscreen interface and an application-based operating system, the iphone rewrites the definition of a smartphone.

But Nokia ignores consumer demand that changes with the user. With the advent of iOS and Android systems, Symbian systems are increasingly unable to keep pace with the times. At the same time, the smartphone market is maturing-more and more mobile phone users want to pursue a better smartphone experience, tired of the boring WAP browser.

(This group summary: Apple has shown the smartphone industry what the real smart phones should be, and Nokia should have responded in a timely fashion, but they didn't respond until 2011, and they are paying the price for their hesitation.) )

2, Android Insights results and Windows Phone has not

Samsung reacted quickly and experimented with a variety of smartphone operating platforms, including Android and Windows phones, and even developed its own Bada operating system, which eventually led to the perfect win for Android.

"Samsung has made a lot of money by choosing Android at the right time," Sbeckt said. Because Samsung has a leading edge in the Android market, they can always rely on the operating system to benefit. ”

Nokia, on the other hand, has focused on the Symbian system before working with Microsoft. But for the first quarter, Nokia's Lumia Windows phone has not been effective.

(Summary of this group: from the contract it seems like a good cooperation, but the right time for cooperation has long been delayed-it should have been done two years ago.) )

3, "both ends" injured

In addition to being sluggish and delaying the timing, Nokia is not involved in the low-end smartphone market. Other smartphone brands, such as HTC, Huawei and ZTE, have been tapping into the low-end smartphone market, such as China.

(This is a summary: they are also being squeezed out by small firms, which may not look very well, but the combined power is enough to pose a threat in the low-end smartphone market.) )

4. Nokia has no gimmicks

Nokia's classic bar and snake games can give consumers a sense of nostalgia, but that's the problem-consumers, especially in emerging markets, will feel that Nokia has become a history. And in today's market, having the latest and most dazzling mobile phones is the most attractive to them.

(This group summary: Nokia is an old brand, there is no too much gimmick to say.) Samsung, as a listed brand, is considered an innovator. Nokia has a legacy of history-they are traditional straight-bar handset makers. Nokia failed to become an innovator, and frankly, they did not make much of an innovation, at least until the Windows Phone phone was developed. )

5, implementation is the key

Samsung is doing better than Nokia and many other vendors are doing. Samsung borrowed from Apple's strategy to conquer consumers with its high-end flagship product, Galaxy S Android phone.

What Apple really does best is their ability to organize the iphone brand. Samsung has also adopted a similar strategy. Every year, consumers are waiting for the launch of the new Galaxy S. Samsung has inspired consumers ' expectations and driven consumer demand.

However, Samsung also has a broad portfolio of smartphones, some of which are priced under $200, to satisfy consumers who do not want to buy high-end handsets. Samsung also has an edge in hardware manufacturing.

(This group summary: Neither Nokia nor Microsoft are weak, they have this capital.) We believe that the cooperation between them will bring a good chemical reaction, and ultimately bring success to the Windows Phone. Before that, however, Nokia must first address some of the necessary enforcement issues. )

Iv. how to get out of the predicament

1. High-level change

Although Nokia introduced Stephen Elop (Stephen Elop) to change the culture of the company and turn it around, Elop is clearly unable to do so now. Given Nokia's downward spiral, Nokia's board should dismiss Elop and find a radical successor. Now, this may be the only thing that can save Nokia.

2. Focus on the international market

When will Nokia finally admit that it cannot win the North American and Western European markets and should focus on international emerging markets? These areas may require Symbian devices and other low-priced Nokia products. This could be part of an overall strategy to give Nokia a chance to turn around.

3. Remember the price

While Nokia's Lumia phone product line has not been very successful, it is important to point out that Nokia Lumia 900 handsets have been doing well by offering high quality performance at a price of $99. Maybe Nokia should consider some things. Now, price and value ratios are a major concern for consumers and business users. Without the right balance, Nokia will not succeed. The Lumia 900 may be just the template that Nokia will use for future releases of handsets.

4. focus more on software

It is often forgotten that Nokia has a strong software development team that has developed high-quality products in the past. This will not solve Nokia's problems directly, but Nokia should probably invest more in software and try to find a powerful platform to fix the vulnerabilities in the business model.

5. Use of Patents

If Nokia has anything to take advantage of, it is certainly Nokia's extensive patent portfolio. From mobile technology to design ideas, Nokia has a large number of patents that many companies, including Apple, Microsoft and rim, are interested in acquiring. Nokia should consider selling or authorizing these patents as soon as possible.

6, remember the industry standards outside the mobile phone

While the smartphone may be Nokia's first priority, Nokia has many opportunities to succeed in the industry in other less glamorous ways. For example, Nokia is taking a smart move with Apple to scramble for the industry standard for the new Nano-sim card. Nokia should look for other new areas in the mobile world that can make itself a key vendor for industry standards.

V. Conclusion

Nokia is making a drastic reform, its strategy is also closely related to the correctness of the results can only wait for time to test, and the vast number of high-tech enterprises in the process of development should pay more attention to the cultivation of enterprise's continuous innovation ability, the rational allocation of internal resources, The correct positioning in the industrial chain and the continuous upgrading of technology, in an attempt to win a wider world market in the sky!

Vi. Reference Documents

1. "China electromechanical Industry"

2. "Accountant"

3, "Wired"

4, "China Science and Technology Network"

The cause of Nokia's decline and how to go to the predicament

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