If we look in retrospect, Nokia was always the biggest company in terms of mobile sales and market share. It worked as a benchmark for performance and policies in the whole competitive structure.
Nokia was able to achieve and maintain the successful run in the market for a variety for reasons. Nokia catered to a large audience in the market. They were not based to a certain sector in the market. For example, Nokia launched the Nokia classic series for the people who had minimal use of the mobile phones and were willing to spend a lesser amount on the mobile devices. Such devices were easy to use and came at humble prices. This was one of the biggest reasons of how Nokia was able to get the market share that it has. The Nokia classic is till date, the highest sold mobile device in the whole market. Also, Nokia had a separate range of N series and E series mobile sets in the market for those who were willing to spend more on the mobile phones and wanted more features in their mobile phones. These devices were seen as trendsetters as the youth was seen highly demanding of the devices as they became a status symbol due to the marketing strategies implied by Nokia. By having these two ranges of the devices and understanding the need for the demarcation early on , Nokia was able to achieve the dramatic market shares early on.
But this was the time when mobiles were sold by a limited number of people and were demanded less. But as time passed, the demand increased which brought competition into the market. Suddenly many companies were seen entering the market by providing devices which had similar if not more features than the Nokia devices. These devices also gave competition to Nokia as they provided more and more features to the price dominance of Nokia. In such a state, Nokia needed to come up with new technology and policies which would help it spring back to the earlier state . But Nokia, did not act.
Android: The real hit that Nokia received was when Google went on to launch the easy to use Android Operating system. Google made the system public by making it available for all the mobile companies. This brought a huge breakthrough in the market as soon enough every phone was seen operating on the android system which very soon became really popular and in demand. Nokia in such a state saw a huge hit. Instead of following the trend and adapting to the technology towards having android as their own system, Nokia chose the harder way. By deciding to stick to their SYMBAIN system ,Nokia aimed at having a certain exclusivity which they assessed would rather help them and took a big risk. Working on an incompatible system, people started looking away from the Nokia devices. People wanted the standards and apps of Android which were absent in SYMBIAN. Also, since android was cheaper and easily available, the nokia devices were no more the cheapest. The other Chinese companies gave cheaper devices, which were with more facilities. Also ,the kind of brilliant camera devices that Nokia delivered did not work out. In a trend of time where people wanted sleek and better looking phones, Nokia was creating phones which were not in sync with the trend. The devices needed a lens which often made them bulky and not that good in appearance.
Though over it all, the worst hit came later. For a company which was almost fighting a war with SYMBIAN over ANDROID. It eventually fell as they brought devices with devices with android. This made NOKIA receive high ridicule from the critics as their whole business mismanagement came into to light prior to all these changes.
Facing it all, NOKIA led a huge marketing campaign which brought changes but was not enough to take it back to where it was. Coming from a state of boon to here, NOKIA has a long way towards going back to where it used to be. The thing to do right now would be to learn from where it gained and lost towards making a new strategy altogether. Otherwise, if it goes on as it is it might only survive but not develop.
Vatsal is a student at SSCBS, DU. The views expressed are based upon the analysis and research that the writer did on the topic from various books, reports and web articles. The writer regularly writes for Corporate Monks as a research associate. The writer takes personal responsibility for the ownership of the content shared and incase some sources have not been given credit, you can directly mail the writer at-.Vatsaldhaka1@Gmail.com