Today I would like to speak about one of the greatest manufacturer of mobile devices in the world, an amazing company called Nokia. Everything goes fine in Nokia Corp. despite various problems in USA market place. Here I would like to discuss it. I added my personal point of view on their problems from my previous University work concerning international operations of Nokia. I was also thinking there about some changes in their strategical planning.
"Nokia is celebrated and successful manufacturer of mobile devices who undertakes all the challenges of international business. Nokia sold in 2010 about 432 million of their production all over the world. It is very successful company in Europe and many other countries and regions partly. Unfortunately, everything is not as good as it might be. Nokia still has big holes in U.S. market place. This fact is connected with many factors affecting Nokia’s business.
Firstly, I would like to mention that U.S. market is a big area in which Nokia has greatest competitor Apple, which won U.S. market with Iphone. CNN News writes that Nokia takes only 7.8% of the U.S. handset market. America is a country that Nokia has historically been unable to play nice with. Unlike wireless providers abroad, carriers here like to exercise some control over the look and feel of the devices running on their networks. Other device manufacturers are willing to collaborate, but Nokia has been unwavering in its insistence on having complete control over both the hardware and software of its phones. More to the point Nokias shares in America are falling down that is why they lose their money and market at all. Americans say that they do not need Nokia at all and they hope that it can survive without North America. They do not really think that Nokia is so great. Actually, I suppose that they do not believe in Nokia at all according to the local news.
Secondly, I would like to say here that Nokia has some other problems when expanding to U.S. market. The New York Times and Bloomberg Businessweek newspapers writes that Nokias problems are that Americans are not focusing on Nokias strategy of quality and design them need functionality and interest. According to a research North America is not a very good market for Nokia and this company need to expand somewhere else but not there as Apple took everything.
Thirdly, according to the material of newspapers I would like to give some advices to Nokia Corporation. On my point of view Nokia is a great company which had and has a great potential to expand in North America. But it needs some changes. They should first of all change their advertising expansion in America in a way that people will like it more than Iphone. Nokia needs to focus on functionality and touch screens which Americans like so much. There should be a good solution against U.S. consumers as it is the main problem of Nokia. Nokia can improve this by enriching the experience. Accommodate superusers with high configurability, but cater to new and moderate users by offering in-line explanations and examples of functionality. Nokia needs to follow the Google recruitment model – reach out to the best and brightest and keep them at all costs. U.S. market is complicated and Nokia executives need to cut through the thick middle layer and solicit honest feedback from the beleaguered troops. One more crazy idea is that Nokia might in cooperation with Apple create something new and this new brand will bring some success to Nokia.
To draw a line I would like to say that potential of Nokia is rather huge and it should completely change its strategy in a vision of development. Its sells are enormous but unfortunately not in America. It got a good sector as a greatest manufacturer of mobile devices but when getting profit they forgot about the development of Apple and actually it became the greatest competitor of Nokia. But let’s see what will happen in future. I believe that new strategy in February will help them to undertake these problems".
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ReplyDeleteTo tell the truth Nokia has a lot of problems nowadays.
ReplyDeleteThe first and the most important one nowadays is it's mobile OS called Symbian. Everyone knows nowadays that it is too old to compete with such monsters as iOS from Apple and Android OS from Google.
It is too difficult for Ovi Store to compete with the Application Stores of these two giant companies.
Secondly, I think, Nokia spent too much useful attention on the patent war against Apple. It would be much better if the company had created revolutionary technologies that it really needs nowadays. Moreover that's a real reason why these two companies would never cooperate.
Thirdly, as I already know from conversations with local fins, though they are really proud of their famous mobile phone company, they don't consider working in Nokia prestigious. They complain the company doesn't provide it's employees with the promised salary, for example.
What is more, I don't remember the times when Nokia has ever been popular in the United States. Such companies as Motorola, Samsung, HTC and, of course, Apple, are gaining more and more popularity here.
Some people complain about Nokia's primary design nowadays - lot's of the companies' products look similar (I mean even comparing design of the same top model N8 to any cheapest budget class mobile phone).
On the other hand, Nokia has always been a leader in the sphere of cheapest mobile phones. But as we know, the strategy of the company has changed during the last few years. Each mobile phone company's privileged status depends on its top models. And as we can see nowadays, the primary Nokia's famous top model - Nokia N8 - is a bit cheaper if we compare it's price to the competitors' products.
So, Nokia hopes, that if the top models would become cheaper and more affordable, it is a good idea to raise the cost of the budget class mobile phones (5-7%). In other words Nokia hopes to replace the sum, lost on not already high as before top models' sells. Let's wish the company not to loose the grand prize as the "most affordable phones producer", because such competitors in the budget class as Samsung make the most affordable mobile phones nowadays.
Moreover, I heard that Nokia is creating a new OS for mobile gadgets and tablets cooperating with some famous company, unfortunately I don't remember which one.
I think that Nokia has to change the design a little as well. May be it would be a good idea to create such unusual mobile phones as this Nokia X5-01? http://tinyurl.com/6dc3f6h
Finally, let's hope Nokia won't loose the company's famous good quality but it still needs innovations to survive nowadays just like a human needs air to breathe.
Excellent points, from IT side. Innovations are their problems, as I have mentioned earlier.
ReplyDeleteNice post tbh.
ReplyDeleteNokia is striving towards better competition today with its "brand new" Symbian 3 OS along with the hopes that Symbian 4 will have some competitive advantage to go against Android and iOS. From my point of view, new top-tier models such as N8, E7 can bring the company back to the competition, but still there is a common thing about Nokia - the company has never aimed to provide customers with high-end smarthphones and such kinda devices, Nokia phones are supposed to do what they are ment to do - make calls & last long.
And yeah, as Rade mentioned, Ovi Store is not even close to be as good as Android Market for eg., but as said above, with Symbian 3 and 4, things are getting better comparing to the Symbian S60 era.