Most of you guys were asking about how Nokia starts himself again. If you guys are still don't understand what I am talking about then probably you don't read part - 1 so read it ( Nokia Part- 1 ) before reading this one. In this article I tried to make you understand Nokia's comeback and regaining a position in the smartphone market, this article can be a bit long but it's really important to know this case study deeply before we start reading this article please comment about your feedback and tell me how do you reach here or do you like us or not? Let's start then.
We will talk about 4 reasons in this article -
From Part - 1
1. Stephen Elop's Negative WILL
Stephen Elop's was a Leader with Favourable Skill But Unfavourable Will, He was a leader with high competence but low character. Let's understand who was Stephen Elop
Before joining Nokia in 2010 Elop was an internal business head at Microsoft, Elop is one of the biggest reason behind the fall of Nokia. Stephen Elop always wanted Nokia to be acquired by Microsoft: Forbes ( Sept. 2013 ), Elop knows that Nokia should use Android as an operating system in their phones, Elop knows that Nokia's OS "MeeGo" Can be a game-changer, some of the phones with "Meego" OS has Outstanding reviews "MeeGo" have the power to compete with Android and IOS. But Elop shut down the MeeGo Program Basically Nokia Have two OS "Symbian" and "MeeGo", Symbian was not a suitable or compatible OS for smartphones But MeeGo has the potential to grow. Stephen Elop wants to be the successor of Steve Ballmer ( Former CEO at Microsoft ) Elop was thinking that Microsoft will acquire Nokia then Elop will be the next CEO of Microsoft Some people compare Elop as Trojan Horse because Elop is the head of Nokia but wanted to be of Microsoft, Elop Know that Symbian is outdated and Meego has potential but Elop shut down MeeGo project. at that time almost every smartphone manufacturer shifting to Android except Nokia, Nokia was a Global Giant with high brand equity if Nokia chooses Android rather than Windows so definitely, some manufacturers like Apple and Samsung might not even exist right now.
2. Wrong Acquisition
Actually, Steve Ballmer wasn't a great CEO for Microsoft. Steve Ballmer Lead's Microsoft to the disaster, Wrong acquisition is one of the major reason, In 2013 Microsoft Acquire Nokia for there handset business this deal cost Microsoft $7 Billion and as you can see it wasn't a great movie, Second worst decision was not using Nokia's brand value, After the acquisition of "Nokia" Microsoft use "Microsoft" as a brand name for there phones rather than Nokia, Microsoft should use Nokia because Nokia has a very high Brand value and this thing can make easy for Microsoft to sell their products. if Microsoft doesn't want to use "Nokia" as their brand name then they can purchase any Chinese phone manufacturing company, A Chinese company can cost them around $1 Billion and Nokia cost them $7 Billion. Microsoft thinking if they purchase Nokia then they have their own Hardware and Software, Third mistake - Windows was never compatible with phones and Nokia's Acquisition was very expensive, Microsoft's strategy was to capture the Asian market with their feature phones but in Asia, many Chinese companies like Xiaomi, Vivo etc.. already enjoying their heavy share of the market, Microsoft Can't even sustain there. The third mistake is Microsoft's phones were really expensive if you compare them to the other Chinese phone manufacturer.
3. Slow Mover
"It's okay to be the last mover but at least be a fast mover"
In early 2013 - 2014 android and apple has completely built their eco-system and Microsoft was very slow and last in the race but sometimes be the last mover gives you an advantage but in this case, Microsoft was even slow Operating systems like Android and IOS attract millions of applications and developers, in Microsoft, it was really tough to create an application in simple language Microsoft has low feature then other competitors their user interface is not user friendly if we compare android.
"I Voted no for NOKIA, I Did not get why the world needed a third Eco-system in phones unless we change the rules but it was too late to regain the ground we had lost. We were chasing our competitors and their tail lights" - Satya Nadella
4. Come back of Nokia
In 2016 Nokia's ex Employees formed a brand called HMD Global and purchase Nokia's rights for 10 yrs, This time HMD Global solve every past mistake and start manufacturing their phones with the android operating system. Let's understand Hmd global's business strategy, Hmd global currently focussing on sales, marketing and branding, the phone's brand name is Nokia and Foxconn manufacturing it. Hmd global is on fly lit modal and focussing on feedbacks by customers. Hmd global is focussing on low range segment mobile phones for maximum opportunity market Hmd global brin there feature phone and smartphone both. Hmd global sold 21 Million Nokia phones ( Q3 2017 ) IDC Report Hmd global launch 6 smartphones and 5 feature phone in 2017 - 2018, Build 400+ Distributors and 8000+ Retailer 2017 - 2018 Report.
Conclusion
In this article, I tried to explain how Nokia rise and fall reasons behind it in a very simple language. this article will really help you grow your business and avoid some serious mistakes. I hope you like this article and learned some important lessons from it, tell me in the comment section what you say about this Case study and is it really helpful for you. If you want more articles like this then let me know in the comment section and don't forget to follow us on social media platforms for an instant reply.
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