Nokia Failed, Why?
- 1. Background 1. Nokia was leading the company for 14 years. – Phenomenon 2. Most popular phone across the world. 3. Used by almost all class of people. 4. 1st Launched in 1992 5. 1994, launched Nokia 2100, goes on to sell 20 million, target was 40,00,000 6. From 1996 to 2011, it turned out in EUR 6.5 B to EUR 30 B
- 3. Causes 1.Moved slowly. 1. Apple came in 2007. Wanted to make an agreement with Nokia, Nokia refused. 2. Android came on 2009, yet ignored to convert into this
- 4. Didn’t Believe in changes 1. Refused to use Apple’s touch screen 2. Believed that user will refuse touch very soon
- 5. Ignored the Competitors 1. Samsung was building phones for Symbian, Android and their own os BADA. 2. Busy in developing their own softwars. 3. HTC, Huawei took the advantage and occupied the lower market of china.
- 6. No Innovation 1. Dependent on their old snake games. 2. No gradual waiting in customers while everyone knew Samsung would launche a new version of Galaxy with something new for example.
- 7. Wrong Leader 1. Hiring a CEO who didn’t work for them. 2. Didn’t concentrated of Competition. 3. Forced to sell windows phones to market while Android and iOS was accepting
- 8. What wrong leader cost to them 1. Elop Joined nokia in 2010. 2. In the next 3 years 1. Revenue fell 40% 2. Profit failed 95% 3. Smartphone share market collapse from 34% to 3.4% 4. Rating went from AAA to Junk.