Question

discuss the reasons behind nokia's failure in the market?

Answer 1

Resons behind nokia's failure in the market are-

Higher Cut throat competition- Mobile phone industry witnessed lots of competition when companies like Samsung, Blackberry, Apple etc started serving same targets. In this race Nokia left behind because it was failed to improve the service and quality.

Consumer's perception- Once Nokia was the most reputed brand that even today we recognize it as one of the best manufacturing company. But we as a customer can't change our perception about it.

Lack of strategic planning-Apple and Samsung are excellent game planners which Nokia failed to be one. Both Apple and Samsung releases their newer versions time to time.Everytime new feature is added on its launch which enhances consumer's interest.But Nokia never created such scenarios which led it to collapse.

Lack of repositioning-Company failed to take timely decision about its repositioning. Even many of us still don't aware of symbian and we consider Apple as first smartphone manufacturer.

No adaptation to change-Mobile phone industry has very agile for latest technology. Though nokia was the first one to introduce symbian but it didn't manage to go with the pace of the technological advancements in the industry.

Excessive reliance of being first mover in mobile industry- In 2000, when symbian was introduced it was considered as excellent move but company was excessively reliant over this only which benefitted Apple when they introduced iPhones in 2007, Nokia was spoiled.

Lack of innovation-Due to the excessive success rate in the era 1996-200 company started overlooking the innovation and the introduction of new smartphones in the industry ruined it completely.

Lack of vision-Nokia faced this problem which results in the situation where its its employees didn't where they are heading.Company started capitalizing short term growths and they were satisfied which led new companies to make their ways.

Brand strength over estimation-Company collapsed due to its brand strength is overestimated by the management.

Complacent Human resources- Due to the excessive success rate of the company, employees attitude changed and they stopped focussing on their work.All this results in decline of the efficiency.