Nokia CEO Elop faces tactical Choice

Author: Li Zhenhao "It is a crucial moment to promote the company's recovery, to ensure the success of the company, we have to build a new management team, so that management has different skills and expertise."　　September 10, Nokia Board chairman Jorma to the outside world announced that Elop will be on September 21 to take over Nokia CEO's important news. The world is speculating about what the first non-Finnish CEO, the former Microsoft executive, will bring to the beleaguered Nokia. "The decision by the Nokia Board to put an end to speculation about Kallasvuo's successor is now focused on whether Elop will change the strategy that Nokia is taking," said an analyst with CCS Insight, a UK telecoms consultancy.　　"The hiring of Elop says Nokia is ready to make changes," said an analyst at IDC, a leading global consultancy.　　A number of changes have taken place, with Nokia's executive vice president for smartphone operations, one of Symbian's most important backers, and Ansi Fanyoki, an analyst at Royal Bank of Scotland, who believes that jochebed is just the beginning and that more Nokia executives may be leaving their posts in the future. The failure strategy of both transformation and share sharing the views of many industry people interviewed by reporters, on the surface, Nokia's trouble is that since 2008, there have been more than 1% per cent income decline in the quarter, since 2009, the global mobile phone market share (especially the smartphone market share)　　And the "double drop" in corporate profit margins, hidden behind these phenomena is that Nokia wants to move to the mobile Internet as soon as possible, and wants to maintain its share of the global handset market.　　Careful industry insiders have found that although Nokia has been publicly moving from mobile phone manufacturers to mobile internet giants since 2007, its layout dates back to the 2006 when Kallasvuo became CEO of Nokia, and for the time being, Nokia's transition came earlier than Apple and Google. The reporter looked at the data found that through a series of acquisitions from 2006 to 2007, Nokia has included maps, navigation, music, media, advertising, including the mainstream mobile internet services into the bag, it has acquired the electronic navigation software developers Gate5, independent music sales platform Loudeye,　　Media-sharing website Twan-go, mobile advertising company Enpocket, digital map supplier Navteq, of which the 8.1 billion dollar acquisition of Navteq is seen as a sign of Nokia's transition to the mobile Internet. In 2006, Nokia spent tens of billions of dollars to buy nearly 30 companies in order to lay out the mobile internet, which excludes the human and financial costs of the Ovi App Store, German telecoms consultants told reporters. However, the investments did not yield much to Nokia, and it did not say that Ovi had a huge application count compared to the App Store and the Android software store, Nokia's free navigation business, based on acquisitions, is no match for Google's peers.　　In addition, Nokia is shutting down the OVI remote file storage services, it can be seen that its application is very immature. The industry, including the consultants, believes that the transition to mobile Internet is right, the key is that Nokia has not been very good for the layout of the economic benefits, which includes the acquisition of the business and Nokia integration problems, but also the issue of Nokia corporate culture. Nokia insiders in China also acknowledge that transformational research and development work has distracted many engineers.　　At the same time, Nokia has slowed down the pace of new handsets for the past two years, and, in order to maintain its market share, Nokia has kept lowering prices-the average price of Nokia handsets has fallen to 61 euros. The change in the CEO of Elop's tactical choice does not mean that Nokia will shift its strategy towards the mobile internet. "As we strive to complete the transformation of the company, his deep background in the software industry and the experience of changing management patterns are a valuable asset." Jorma said, "We firmly believe that Elop has the ability to promote innovation and effective implementation of corporate strategy."　　Elop also said, "We still have to make communication function as a strategic core, my task is to lead the Nokia forward in this change." Thus, the failure of Kallasvuo is a failure to drive innovation and management patterns, a failure of tactics, and "foreign monks" Stephen Elop also faces a tactical choice. "For me, how to determine the market positioning of each mobile platform is the most important," he said. "This involves not only the mobile product itself, but the entire range of mobile platforms, software, and services."