Why Nokia Failed & It's Case Study.
August 30, 2020Top 5 Reasons Why Nokia Failed?
#Reason 1:
STEPHEN ELOP (Mastermind behind the failure)
When NOKIA was struggling to survive in the competitive market, at that time the company thought to change the CEO in 2010 September, and Stephen Elop was chosen as the new CEO of the company, that was the biggest mistake of NOKIA to put themselves a step forward toward failure.
Stephen always want to be the no.1 as Steve Ballmer so he decided to leave Microsoft and merge with Nokia and start implementing his decision so he starts manufacturing new mobile phones with the new software developed from Microsoft but Microsoft was not likely to manufacture mobiles they were best in their domain to make windows.
Still, Nokia sticks to this path and unfortunately, they again failed.
Stephen Elop slowly creates a disaster and that disaster results in a company of $70+ billion sold for $7 billion only.
#Reason 2:
STEPHEN ELOP MARKETING STRATEGY
NOKIA + MICROSOFT = BLAST
NOKIA - (Expert in manufacturing hardware) +
MICROSOFT - (Expert in developing Software for windows )
RESULT - (Flopped)
#Reason 3:
SOFTWARE SELECTION
When google and apple were providing a new software Android and IOS for smart mobiles and other companies like Samsung, oppo, Vivo, lava, mi, etc.
Except for Nokia, all were using this android and hope they survive in the market but Nokia still using its own software Symbian OS.
This software was good enough before 2010 but the time has changed and other companies launched many more featured mobiles that people liked and here again, Nokia failed to gain attraction in the market.
Nokia’s CEO never wants the company to make a deal with android because if it does so then NOKIA will be again at its best and will be uncompetitive with other mobile companies, but because of the wrong decision, this becomes another failure reason.
#Reason 4:
DISTRIBUTOR AND RETAILER
When Nokia was at its best in worldwide, the distributor and retailer never get any more advantage for selling Nokia mobiles because the company claims that you are not approaching the customers instead of that customers are demanding on there own for different models so why we give you more benefits.
With time they start losing contact with these retailers and other companies start approaching them with lots of benefits and schemes, therefore this led Nokia toward another failure reason.
#Reason 5:
WEIRD DECISION MAKING
All the new decisions were very good but in case of implementation, they choose the wrong direction which works negatively and results in a big loss.
They failed to build a huge ecosystem as other companies were more compatible with the building ecosystem.
They want to compete in the market but they choose an alone side in which no one was there to compete in the race of mobile technology (they were just following taillights of other).
CONCLUSION:
What it all shows that Nokia does not fail (it created a history, legacy, worldwide record) Nokia did what other never think of but this case study shows Nokia was murdered by Stephen Elop as he was so greedy to be the next CEO of Microsoft, he was so characterless leader in the history of Nokia.
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Written By: Navdeep Rajput
Curated By: Ritesh Kumar
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