Question

Discuss what were the reasons behind Nakia's failure in the market?

Answer 1

Nokia emerged as a successful manufacturer and slowly become the best selling mobile phone in the world. The company was enjoyed a 50% share in the market. But the share dropped into less than 5% in the market during 2013. The reason behind the failure of Nokia is
1) The advancement in the field of technology occurs rapidly. As technology improves customers may be encouraged to move to the nee updations. But Nokia did not adopt any changes according to technological advancement.

2) The improvements and updations made by other company especially the introduction of iPhones spoiled the advantage of Nokia.

3) There are several mobile phone industries in the market. So the competition in the market id very high. Every company tries to catch the target market by throwing innovations but Nokia failed to make innovations and capture the target market.

4. The perception of the market didn't change with its technological upgrade. For most of the customers, they were just a company that provided basic keypad phones to a certain era.

5. It lacked the strategy of repositioning the brand image in the present era and didn't focus on the smartphone market.

6. Lack of strategic planning to sustain in the market.

7. Due to its excessive growth from 1996 to 2000, the company's resources were more dedicated to its supply chain. Which lead the company to lack concentration in other sectors.

8. Even though the company earned an excessive growth rate, it lacked to think about what the customers really needed. They lacked innovation to survive in the market.

9. The entity wasn't ready to cope up with the sudden change in the organizational structure.

10. The company lacked internal coordination which created many operational issues.