Why Nokia failed? (Case Study)

Why Nokia failed? (Case Study)

Why Nokia Failed? Cause of Nokia’s Failure

Nokia was once dominating the mobile industry and was the first brand in the market when we heard of mobile phones. We all are very familiar with Nokia, especially if the 90s kids.

More than a decade, Nokia ruled the industry and introduced a variety of models. It covered all segments of society from upper to lower. Like we still mock our friends that why don’t you purchase  3310”.

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Nokia 3310

With this glorified past, what happened to Nokia now? What went wrong with the company? Why all other mobile companies took over Nokia?

Nokia did not adapt to change

Nokia was the initiator of smartphones but when all the traditional mobile phones changed to smartphones Nokia didn’t change accordingly. It kept on producing traditional mobile phones while all other competitors took the place of Nokia.

 That is why Nokia failed because it could not cope with the advanced world.

Launch of iPhone

Back in 2007, when the first iPhone was launched. It was a huge downfall for Nokia. iPhone was new and shiny and everybody wanted it and still do. It implemented something important that is a touch screen and changed the mobile industry forever.

No doubt there were many touch phones before the iPhone. But the iPhone succeeded because of an aggressive marketing strategy and changed the norms. Now, the iPhone is ruling the mobile industry.

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iPhone

The era of windows based phones

Stephen Elop, Nokia’s CEO, decided to sell Nokia to Microsoft and make mobiles with Microsoft system. Many experts say it was a huge mistake because there was no need for this system. People were not used to this. As iOS and Android already dominated the market so many developers refused to make applications for Microsoft phones.

This became the reason for its unpopularity among consumers.

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Nokia Lumia(Window Phone)

High competition

Gradually, many competitors like Samsung, Apple, blackberry came into the market. In this

In the race of competition, Nokia didn’t improve its strategies and other brands took benefit of this situation and Nokia lost its shares.

With the passing time, many other brands also came in this competition and gained significant shares.

Read Now: Huawei took over Samsung and Apple as the world’s largest mobile phone maker

Absence of a strategic plan 

 Apple and Samsung both make strategic plans from time to time. And, they had an excellent game plan which Nokia couldn’t manage.

These two companies have created a flagship product. And they released a new version every year with additional features. This keeps the customers eagerly waiting for the new version. And this enhances the interest of the customer and that’s what Nokia lack.

Repositioning

From all the above it was essential for Nokia to change the previous brand image with a new one. But Nokia didn’t give importance to its smartphone market.

Although the first smartphone was manufactured by Nokia (Symbian). But due to lack of focus people didn’t know about Symbian. To them, the first manufacturer of smartphones would be Apple.

Attitude of employees

When the company achieved a remarkable amount of success, the attitude of its employees also changed.

A public statement shows that the company and its employees were in the same position and that is the main reason that failed Nokia.

Because employees paid less attention to the company.

Nokia came back

Form all the deep rivalries, dysfunctional organizational structure Nokia again came back to the market.

In the last few years, it is playing well in the mobile industry as compared to the past. We wish Nokia will gain its place again.

 Now hope for the best!

NOKIA

Maida Saeed

A rhetorical author of Blogsy. She can influence people through her impressive style of writing.