Nokia! A giant in the history of mobile phone industry till 2010. The brand which was used by every 6 out of 10 mobile users in world. In 2013, shares of Finland based phone maker fell more than 11% after Nokia reported its sales fell by 20% to $7.6%.
Everybody is aware about different reason for the fall of Nokia, like not shifting towards android, not introducing features that consumer required, failure to adapt changing industry needs. But there are deep routed reasons for fall of Nokia which we are going analyse in this report. Mobile industry has seen till now two big giant rising and falling, one is Nokia and other is Motorola. Hence this topic has been chosen to analyse reasons for failure in mobile industry by studying recent failure of Nokia.
2. Telecom Industry in India:
Telecommunication services have been widely acknowledged as a vital tool for the socio-economic development of any nation. It is one of the prime support services needed for rapid growth and …show more content…
Its engineers were specialists in building physical devices, but not the programs that were used on the handsets. Whereas its competitors like Apple gave equal importance to both hardware and software aspects and encouraged their employees to work in multidisciplinary departments. Coupled with this, Nokia underestimated the transition of normal cell phones to smartphones. In retrospect this was a classic case of a company being imprisoned by its past success. Even as late as 2007, Nokia had more than fifty per cent of all the profits in the mobile-phone industry and most of those profits were not coming from smartphones. Allocating majority of resources into a high-end, low-volume business of touch-screen smartphone business (as in 2007) would have been deemed highly risky. Nokia’s failure was a result of its institutional reluctance of transition process in the smartphone
Everybody is aware about different reason for the fall of Nokia, like not shifting towards android, not introducing features that consumer required, failure to adapt changing industry needs. But there are deep routed reasons for fall of Nokia which we are going analyse in this report. Mobile industry has seen till now two big giant rising and falling, one is Nokia and other is Motorola. Hence this topic has been chosen to analyse reasons for failure in mobile industry by studying recent failure of Nokia.
2. Telecom Industry in India:
Telecommunication services have been widely acknowledged as a vital tool for the socio-economic development of any nation. It is one of the prime support services needed for rapid growth and …show more content…
Its engineers were specialists in building physical devices, but not the programs that were used on the handsets. Whereas its competitors like Apple gave equal importance to both hardware and software aspects and encouraged their employees to work in multidisciplinary departments. Coupled with this, Nokia underestimated the transition of normal cell phones to smartphones. In retrospect this was a classic case of a company being imprisoned by its past success. Even as late as 2007, Nokia had more than fifty per cent of all the profits in the mobile-phone industry and most of those profits were not coming from smartphones. Allocating majority of resources into a high-end, low-volume business of touch-screen smartphone business (as in 2007) would have been deemed highly risky. Nokia’s failure was a result of its institutional reluctance of transition process in the smartphone