Palak Bajaj | MBA-HR(2013-15)
Motorola, the inventor of the very first
cell phone (cell phone was invented by Martin cooper of Motorola), sold its
operations to Google in 2012. And now Nokia, whose 1100 was the world’s best
selling mobile (250 million units), and whose name became synonymous with typical
bar form factor cell phones, the name that echoed reliability and durability
stands acquired by Microsoft.
Nokia was definitely a fading brand, with
market share of 27%in India, lost the market at the top end to Apple and
Samsung and that at the bottom end to Chinese and Indian home grown handset manufacturers’
assault. What can it be attributed to - Poor marketing, poor strategic decision
or poor reactions?
Poor connect is how i'd like to term it. Nokia failed to continue on its path of understanding the ever-changing consumer needs and
design the product backwards. Apple got successful because they gave the
consumer what even the consumers didn’t know they needed (Touch screens, for instance,
we were doing well with button –phones ). “ Both Nokia and Microsoft really
missed the boat in terms of Smartphones “ says Paul Budde, a telecommunications
consultant in Sydney. A company like Nokia could have easily had the
first mover’s advantage and snubbed the Apple smart phone market, had they
innovated on time, had they worked with insight. Experts also opine that Nokia’s
current advertising and marketing strategy lacks focus and vision.
What is bothersome is the realization of
the fact that even the mightiest of organizations can succumb to the pressures
of time. The Nokia story exemplifies how complacency in understanding the
competing rivalry and underestimating the change of environment can be
detrimental for a firm.
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