1. Nokia Background
Nokia has been a top mobile market leader for 14 years since the 1990s Recently, Nokia was forced to hand over its market to Apple's iPhone and Samsung mobile, and never be able to reclaim its throne again.
1.1. Crisis of a market leader
Nokia introduces its first mobile device in the late 1980s. during the 1990s, this Finnish phone maker launch its innovative feature phone in difference models face by instantly respond to the market demand, which quickly make it become the largest phone manufacturer in the world.
1.1.1. Emerging of touch-base modern smartphone
In the mid-2000s, many other phone manufacturers including Dopod, Palm, HP (Hewlett-Packard), and Sony start to introduce touch-base smartphone pre-installed
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He also found to be holding to Microsoft shared after he becomes Nokia CEO. There was rumor from developer and Consumer that Elop was Microsoft Trojan horse to destroy Nokia’s share price for Microsoft benefit. Elop negates those claim and speculation.
3.2.5. Shareholders’ Resistance
Nokia shareholders were shocked about the February 11 announcement as a result Nokia 10% share price steep dropped immediately.
4. Conclusion
Summarizing above report indicate that Nokia has faced tremendous issues and challenge after the beginning of the smartphone series launch. Nokia was the leading position in headset market but introduction of apple iPhone in 2007 brought misfortune for Nokia. The drawback of Nokia actually was because it fails to meet the need of its consumer demand. Any organization must have effective and quick strategies to sustain and retain its consumers as an example from Nokia failed from the area that it had the stronghold.
5. Recommendation
Even though Nokia had failed to maintain its crown position in smartphone era, there is some action that Nokia should have done to prevent this tragedy:
- Should execute a groundbreaking corporate planning by maintaining the strategic
It’s sad to say the founder CEO’s paved the way for a new CEO quite late. The reasoning behind this accusation is that the company had already lost-majority of its once devoted customers. Steps should have been put in place to handle such a loss before it occurred. The executive team should have had strategies put in place to handle the stock loss once they saw it declining.
Akamai Technologies, Inc. is an organization which delivers the content over the Internet. It is one of the largest organizations which provide the distributive Computing Platforms; it provides a cloud based services to the end user. It serves 30% of the overall web traffic. Akamai provided numbers of servers which are located all over the globe and stores the web application of the clients. It provides a faster access to those applications because of the distributive contents in to various servers around the world. Akamai does not want the long routes to it distributed the data based on the locations, it works as like a work or a task which is not possible to be completed by a single persons is divided in to multiple process or threats or assign to teams to complete their individual part, so that task can be complete faster, in the same way the contents are stored at different servers based on their access mechanism.
Blackberry lost focus on its core business and consequently lost its position as the “Business phone” market leader. Its Market-Share of the smartphone shrank from>21% to below 1%.
In today’s current economic state, the likelihood of a company entering into a global market is inevitable. Multinational corporations (MNCs) such as Vodafone are required to standardise their Research & Development activities throughout the world in order to penetrate the market. This is achieved by obtaining new technological opportunities, such as the most up-to-date phones, thus maintaining a competitive driver in the market.
14. Warman, M., (2014), Nokia X: Android Phone Announced, Telegraph.co.uk, [online] Available at: http://www.telegraph.co.uk/technology/nokia/10657433/Nokia-X-Android-phone-announced.html, Accessed on: 2nd April 2014.
Manufacturers and service providers of cell phones are located throughout the world, although, as inCode, a wireless business and technology consulting firm, suggests, “Not many wireless carriers today have a truly global presence.” However, the company predicts that “the top 10 wireless carriers are going to make a push for globalization in the coming years” (“InCode releases…”). Most especially, inCode foresees service providers reaching to “unconquered markets like China, which is the fastest growing wireless market in the world” (“InCode releases…”). Some companies have already tapped into the global marketplace, spreading areas of coverage across continents. The cell phone manufacturer Nokia, for example, is rooted in Finland, but sells cellular phone products virtually everywhere on the globe. Service providers, although most often more less expansive in scope, are also trying to provide more global coverage.
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The operating system is very distinct, but is straightforward with its functionality. People who purchase the iPhone believe that they have received their money’s worth and more when owning and iPhone. The iPhone is better than Android when compared because of the beautiful design and attractive display, the operating system and its functionality, and the device’s personal worth is definitely worth the money spent to own one.
Many of the early cell phones were considered “car phones” because they were extremely bulky and too big to fit into one's pocket. The first mobile phone due to its smaller size would still be considered overly large in today’s world. It was called the Motorola DynaTAC 8000x and arrived on the market in 1983. “You always have the trendsetters who are not afraid of trying new things and then everyone else follows. They were primarily used in the sales and business world, but not often for personal use like you see today” ("Ai InSite"). As technology advanced, companies invented new ways to pack all their customer’s desired features into smaller, portable, and more affordable models. Companies started with a cell phone size as big as a computer and have now created small enough devices to keep in a pocket. They have created bigger screens, built-in cameras, phones with less buttons, and many have touch screens now days. The shape of cell phones have drastically changed over the years.
Today, Nokia is the world leader in mobile communications. The company generates sales of more than $27 billion in a total of 130 countries and employs more than 60,000 people. Its simple mission: to "connect people."
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
According to Reed (2010), smartphones were first brought to the attention of the public in 1993 by IBM and BellSouth. When the first smartphone was produced, it was called "Simon". Even though the technology was nowhere near what it is today, "Simon" utilized a touch screen and was able send faxes and access e-mail. The use of the touch screen foreshadowed what would come 14 years later, the iPhone. The next smartphone to be invented was the Nokia 9110 Communicator in 1998. This phone resembled the look of toda...
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.
Print. The. Silcoff, Sean, Jacquie McNish, and Steve Ladurantaye. " Inside the Fall of BlackBerry: How the Smartphone Inventor Failed to Adapt."
The year is 2014, the markets are changing constantly, and they always have to meet the needs of new consumers as well as old consumers. Mobile telephones have been in the retail and wholesale business for quite some time, and are only evolving from here on out. There are things that these cell phones can bring us that are major benefits in our everyday lives. Cell phones bring us maps, radios, address books, and even flashlights now. Cell phones have taken shape from a huge portable device to a more convenient thin device that can fit in your pocket. With time in any consumer market, the consumer adapts to the technology that makes their life easier. The constant innovation of cell phones has led us to smart phones, and these smart phones are capable of putting certain businesses out of the market. Businesses that engineered PDAs in the past were met with challenges because smart phones are able to match their productivity. Land lines have become useless since everyone can afford a mobile device now. Listening to music has also switched from a traditional CD Player/MP3 Player to an everyday smart phone.
In 2007, Apple designed the first touch screen phone and it was a huge change and after three years, everyone wants to buy touch screen phone and Apple became the super star of the smartphone market. Apple’s unique designs changed the definition of fashion in the smartphone world, sine then, apple become the leader of smartphone market.