Wednesday Dec 6th,2011

Why are Nokia no longer #1

in the smart phone market?

Reconnecting People

Facts & Figures

Nokia has posted a loss of € 523 million in the 2nd  quarter of 2011.

Its overall revenue has come down by 7% from 10 billion euro to 9.3 billion.

Nokia is now behind iphone in its overall sales figure and has slipped to the 2nd spot

Marketing Strategy

. Complete reliance on Brand Equity

Brand equity really makes up the price for a product. However Nokia supposedly relied on its brand equity for a longer time thereby effecting it in the long run

Marketing strategy was wrong lately

- Large array of smartphones : too much choice for the end users

- don't target one product in particular

- concentrate and develop sales strategy around it.

- different from Apple with the iPhone or Blackberry with their devices.

- more products = more costs = less profit

- more concept-orientated than product/consumer-orientated

"Connecting People"

Products & Design

None of the recent new phones launched by Nokia have product designs which even match those of top business phones or smart phones (Blackberry / Iphone).

The products appeared too bulky or stale to classify in either category.

Technology and Apps

Changing technological environment

Nokia was always known for its simplicity. But the telecom environment has completely changed and now people do not want simple phones. They want the smarter ones or the ones packed with features in a smart manner.

No new features added

Whatever features were in Nokia mobiles were already present in different mobiles as well. Whether it be 3G or social media. Nokia was a step behind in adding innovative features and apps to its collection.

No Android OS

Nokia did not adopt the android platform which is thriving in the market and this gave a huge open space to its competitor to make a dent in Nokia’s market share. Not adopting android might have been the worst decision Nokia ever took.

What will happen next ?

It is survival time for Nokia and it really needs to tighten its belt to come up again in the face of tough competition. But with the kind of brand equity it has, Nokia is one company which wont stay behind for long. A new strategic plan is needed by Nokia to stand apart from the crowd and “Be different”.

Nokia bets on Windows Phone future

A vision

Here's to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently.

They are not fond or rules. They have no respect for Status Quo.

You can quote them disagree with them, glorify or vilify them.

Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius.

Because the people who are crazy enough to think they can change the world, are the ones who do.

Steve Jobs

Questions ?

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