Nokia Corporation has a long history which dates back to the 1860’s. Nokia had five businesses: rubber, cable, forestry, electronics and power generation. In 1982, Nokia first introduced the world’s first fully-digital telephone. By 1998, Nokia was leading in the world rank of mobile phones and was in the lead for more than a decade. In the second quarter of 2010, Nokia held a market share of over 30% globally. (Steinbock 2010) It had a constant stream of new phones being launched, and each new model was greeted with much consumer excitement.
However, when Apple introduced the iPhone operating system (iOS) in 2007 and Google introduced Android in 2008, it revolutionizes the mobile phone industry into a competitive state for Nokia. Nokia continuously tried to improve their Symbian OS but was not creating anything unique. In 2011, Nokia made the biggest mistake by adopting the Windows Phone operating system as the company already was in bad shape and trusting Windows which was new in the field to regain its status was just suicidal. (Singhal 2013). Reported by Zoe (2013), Nokia had lost at least 20% of smartphone market ever since adopting the Windows Phone operating system. Ever since then, the market share of Nokia had continuously declined from € 110 Billion to € 15 billion in 2012. (Bouwman, Harry et al. 2014) The Nokia phones are no longer the customers preferred brand as to Samsung, Huawei, Oppo and the iPhone as the newer brands were more innovative and ever changing to the modern society.
The question here is; what should Nokia do in order to improve? Nokia is lacking in many areas. The choices that Nokia has made regarding their value proposition and marketing strategy are the few shining examples to why their company continues to fail. However, it can be said that Nokia has a competitive advantage it a sense that it has been in the market for a long time.
First of all, Nokia doesn’t seem to know their strong points in their product and when you...