Nokia was the world's largest vendor of mobile phones from 1998 to 2012.Nokia Corporation was established in 1865 with its headquarters in Espoo and Finland.It was one of the most dominant mobile phones in the world.The company launched first internet-enabled phone in 1998.
But,Nokia failed due to some of their poor decisions.There are internal and external factors that resulted in the failure of the company.The company struggled to cope up with the innovation,and this resulted in decline of its market share.
Poor marketing strategies was one of the reasons that led to their failure.Nokia decide to launch new products with different brand names that confused their customers.Nokia didn't adopt umbrella branding,which was adopted by Apple and Samsung.
Another reason was the deal with Microsoft.Microsoft acquired Nokia,the biggest blunder that wasn't fruitful.This partnership made Nokia dependent on Microsoft.
Lack of innovation in products significantly contributed to the brand failure.While brands like Apple and Samsung came up with advanced phones,Nokia launches phones with basic features.These dull features didn't help.Nokia didn't adopt the latest technologies.
There was a change in top management.In 2006, Jorma Ollila was replaced by Olli-Pekka Kallasvuo as CEO.The new management focused more on traditional phones rather than coping up with latest changes in technology.
The company also overestimated its brand value.They believed that people will purchase Nokia manufactured phones,if they used just better software.This was a wrong belief.
Nokia was a most recognized brand till 2007.But the things began to change with the entry of Apple and Google in 2007.Nokia's failure is the best example that tells us, even the most recognized brand may fail when they don't cope up with changing environment and watch their competitors.
Malavika VJ
August 04, 2023
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