Nokia's loss revelation: Even the boss can't sit still
Source: Internet
Author: User
Nokia, the world's leading company, has lost money. According to earnings reports, Nokia's net sales fell 19.8% Year-on-year, losing as much as $833 million. It is said to be the worst performance of Nokia since its quarterly report, which began in the middle of the 90. The author from the end of last century began to pay attention to Nokia, but also has been using Nokia mobile phones, has used less than seven or eight, is also a loyal user. So it was shocking and sentimental to hear that Nokia was actually losing money. First of all, business is indeed a very difficult thing. Under the condition of market economy, no good enterprise can enter the safe, even Nokia, occupy the global handset market share more than 1/3 of the leading enterprises. All along, the domestic enterprises to the Nokia as a global market share of the leading enterprises to operate as the highest goal, and the economic sector has a "winner takes All" theory. But the reality of Nokia, including the US general company, has repeatedly told us that even the world's biggest boss will not be able to relax. Second, the advantages of products and technology are not immutable, it allows you to maintain a 3-5-year leading edge, or even shorter. For example, Nokia phones, the user initially relish is its stable quality and user-friendly user interface. Especially the latter, almost all the people who have used Nokia mobile phones, will feel convenient, do not have to look at the instructions can also operate. However, in the increasingly globalized technology today, peer technology between the more and more rapid. Today, regardless of the stability of the quality or the friendliness of the interface, the original advantages of these Nokia handsets are gradually disappearing. This is not a setback for Nokia, but the result of other manufacturers ' progress. Products gradually lose their lead, their market dominance will inevitably undergo greater challenges. It turns out that although Nokia still strives to maintain the global market share of around 38%, it has struggled even to adopt the price competition method which is seldom used before, which will inevitably compress its profit space and even step into the dilemma of whether to profit or to share. In addition, in terms of mobile phones, has been reduced from High-tech products to ordinary products. Since it is a common product, its profit margin must return to the downward, thus affecting the profitability of the enterprise. Even worse, the already "oil and water" increasingly thin industry, but also squeezed into other industry giants to "squeeze" aggravating, which makes the competition situation become complex and serious. Here, we have to mention two old propositions again: in the end to a diversified business or professional operation? In the end, whether an industry from the "Sunrise" and into the "sunset"? At present, almost only Nokia is focused on mobile communications, and most companies, such as Samsung and Apple, have a wider product line than Nokia. If Nokia ever gets into trouble, it is bound to reopen the debate over pluralism and specialization. Speaking of "Chaoyang" and "Sunset", I think, on the profit margin, or some. New technology, High-tech products, its profit margins must be higher than the traditional products. Therefore, most of the enterprises that have sprung upis to seize the forefront of technology and products enterprises. Nokia, for example, made a television set in the 90 's, just to give up the TV set and enter the market, although small, but technologically cutting-edge mobile phone field, to create a later myth of Nokia. Obviously, today's Nokia company after the mobile phone products gradually retreated High-tech clothing, it seems that has not found a replacement product, so its face can only be fierce competition "Red Sea", the profit dilution is very natural. Reason, really to find the so-called "blue sea"-the market space to be developed urgently, it is a very difficult matter. I remember 10 years ago to visit the Nokia headquarters found that Nokia has a department specializing in the development of products other than mobile communications. More than 10 years later, it seems that the effect is not obvious. Visible, Nokia had given up the television and resolutely entered the mobile phone field, in addition to the courage, how much is a bit of luck.
The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion;
products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the
content of the page makes you feel confusing, please write us an email, we will handle the problem
within 5 days after receiving your email.
If you find any instances of plagiarism from the community, please send an email to:
info-contact@alibabacloud.com
and provide relevant evidence. A staff member will contact you within 5 working days.