How and why Nokia failed ?

By | February 19, 2020

How and why Nokia is failed and what are the causes of the downfall of Nokia and the biggest mistakes done by Nokia. In this we know about the whole summary of Nokia failure.

Earlier days of Nokia

Nokia has established in 1865 in Finland this multinational company involved in various businesses like communication, Information technology, and consumer electronics. In this, we learn about the summary of Nokia failure and downfall, Nokia biggest mistakes and what are the solution for Nokia failure.

In the starting days Nokia acquired Mobira telephonic company which is making telecom handset for Nokia at that time. In 1982 the first car phone was launched by the Nokia which was Nokia Mobira senator and the weight of this phone is approx 10 kg and after that, in 1984 Nokia launched “Nokia Mobira Talkman” and this was the first transportable phone at that time and the weight of this phone is 5 Kg and in 1987 Nokia launched Nokia Mobira Cityman which is totally carried from one place to another and the weight of Cityman phone is 800 gm only.

Rise of Nokia

By this Nokia, Mobira Cityman the sales rate of Nokia is got increased and this phone helped Nokia to capture the market & in 1991 the prime minister of Finland Harri Holkeri makes the first GSM call from Nokia and after that in 1992 Nokia launched the handset 1011 and Nokia started spreading his market in Europe and US market and in 1994 Nokia first feature phone is launched Nokia 2100 his expected sale is approx 400,000 units but they sold 2 crore units at that time.

In 1992, Nokia predicts in 1999, there are 40 million handsets industrial growth occurred in the market but in 1999 this market growth size is 250 million handsets, and after that Nokia achieved world-first position and beat Motorola and after that Nokia spread his market in Russia, India, and China.

Successful startups

Between 2003 to 2005 the handset Nokia 1100 and Nokia 1110 captured 70% of market share in the world and after that Nokia increased Manpower, Manufacturing set up, and plant Global presence.

Nokia competitors in the market

And after that the competitors of Nokia increases in the market like Micromax, Samsung, Vivo, Xiaomi, Lava, Intex, etc. And after that Nokia lost his lean manufacturing system in the market and this was also a cause of Nokia downfall or the biggest mistake of Nokia and at the same time Google and Android entered in the market and Samsung and Motorola launched flip phones in the Indian and China markets and after this, the Android version came to China and China became the Hub of mobile phones but Nokia again focused in hardware and 2010 apple is evolving in many countries of the world.

In 2010 apple and Android launched is too many application in the Indian and American markets but Nokia is only focused in Symbian OS and this was a turning point of Nokia in the mobile phone market and became a cause of the downfall of Nokia because Android built his community or ecosystem in the mobile market the different mobile competitors are shifted toward the Android.

CEO Stephen Elop

In September 2010, the Nokia appointed his new CEO Stephen Elop and after that Nokia decided to Bounce back and think for creating a monopoly in a saturated market but this has also become a turning point and cause of Nokia downfall and goes with Microsoft windows but the window is never compatible for mobile apps and everyone is making mobile apps either in apple or in android and Nokia is unable to create an ecosystem in the market and this was also a cause of Nokia downfall or the biggest mistake of Nokia.

And now the owner, developer, and manufacturer comes with Android and these three are dependent on Google and here the apple built ecosystem in the US market, and after this Nokia goes downfall in the mobile market.

The new CEO of the Nokia Stephen Elop was a leader with favorable skills and Unfavourable will. He was the reason behind the downfall of Nokia. According to the article of Forbes 2013, Stephen intentionally wants that Nokia goes for the Microsoft window. Stephen knows that the requirement of the Nokia is Android at that time and Nokia also start is own OS at that time which had the great reviews but Stephen intentionally Elop stop that OS Meego because Elop wants to see him succession like Steve Ballmer (CEO of Microsoft) this intentionally strategy is like Trojan Horse story.

And after that Microsoft bought Nokia in 7 Billion dollars and launched its feature mobile phone in a small developing Asia market but in those markets Huawei and Xiaomi had already created their market they provide a smartphone which is nearly the cost of Nokia featured phone. So Microsoft is unable to capture its market in a small developing Asia market this was like a wrong acquisition.

Entry of Satya Nadella

When the new CEO of Microsoft appointed Satya Nadella he clearly says that he voted against the Nokia acquisition in 2013 and it was the biggest mistake of Microsoft to buy Nokia.

Now its time to know about the comeback of Nokia. In 2016, the former employees of Nokia had created their own company HMD Global and now they are trying to convert the feedback to feed-forward and make changes in the mistakes which Nokia already has done in the past. So they make new business models and business strategies. And they started supporting their distributor and retailers because in the past they gave very less amount of margins to their retailers and distributors and now they are empowering the distribution network.

Also Read : How Jeff Bezos Built Amazon

And now the Nokia is trying to creating their own ecosystem in the market and now the Nokia (HMD Global) is connected with Android & make is hardware from Foxconn. Now they are working in the fly light model means they are not taking a single risk and built no risk models. And also focus on the maximum opportunity market and in 2017 they sold 21 million Nokia phones according to the IDC report and built 400 new distributors and 80,000 new retailers in the market.

Nokia also built after-sale services in more than 300 cities, now they are taking corrective decision for their product and most of the people know that the recall value, old brand equity and old trust value of the Nokia is very high.

The main causes of the downfall or biggest mistake of Nokia in the market are they hired a negative will or employee who was Stephen Elop, Wrong acquisition, they are the slow mover in a market and neglecting the feedback of the customer.

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