Famous and Finnish at the same time? Jean Sibelius, Tove Jansson, Kimi Räikkönen, and – maybe most notably – Nokia. Dada da da, dada da da, dada da da, daaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa (If you can’t read music, that’s the ringtone tune, which was composed by a Spaniard.) It’s a smoothly tumbling phrase of quavers and crotchets when written out as music. That in no way mirrors the company’s fortunes over time, which are more akin to a gradual upward ascent followed by a cliff. Here in this blog, find the detail regarding the rise and fall of Nokia.
Nokia wasn’t always in the telecommunications and electronics business. It began as a pulp factory in 1865 before moving into the rubber business. It made flexible cables and was also adept at adjusting to change (well, until later, the precipice). Nokia expanded into phones in the latter half of the twentieth century and became the global market leader. It created something for just over £100 that everyone in the world desired or needed and could be persuaded to buy a new version every few years. It was, without a doubt, the best business idea ever. She might be interested if you pitch something to Deborah Meaden on Dragons’ Den.
Not that it was clear to everyone right away. Jorma Nieminen, the “founder” of the Finnish mobile phone industry as we know it, recalls his sales manager, Ilpo Rossi, packaging the components of an SRP202 into a case – phone, receiver, antenna, and battery. Rossi was questioned about what he was doing by Nieminen. Some people, according to Rossi, wanted a phone at their cottage, on their boat, in a hotel, and so on. He was putting one together because they didn’t have a portable one. “That was the beginning of the creation of a mobile phone,” Nieminen adds.
Another Finnish telecommunications pioneer, Matti Makkonen, recalls, “Everyone laughed.” “Who in their right mind would bring a phone with them?”
Who’s the one who’s laughing now? (With the exception of my mother, who has yet to be converted. She has one, but she has no idea where it is or how to call it because she doesn’t know the number.)
There are multiple instances like this in this film. Who’d have guessed that X (something that is now commonplace) would become a thing? Having a phone that wasn’t the same size as your cottage or boat; text messaging; having a variety of ringtones (in case you got tired of the original), and games like Snake. Nokia, on the other hand, was well aware of the situation. And they kept adapting, developing, and expanding until they were the biggest and best.
You might think that a film in Finnish with subtitles in which a group of suits and techies, almost exclusively named Matti, Ilpo, Jorma, Mika, and Ove, speak about SRP202s and NMT900s and reminisce in a rather self-congratulatory manner about how they came to rule the world, would have limited appeal, unless you were looking for some kind of motivational business experience. You’d be mistaken, however.
For starters, Nokia is – or was – more than a Finnish telecom business. It had a higher annual budget than the government had. It was an important component of the country and a source of national pride. Until shame overtook pride.
Second, because everything went horribly wrong (there is a clue in the title to be fair). While this is awful news for Ove, Mika, Jorma, and the rest of the crew — as well as bad news for their country’s economy – it makes for a lot more intriguing documentary. The Fallen, not just grey techy men. Not merely a business story, but a late-period capitalism morality tale.
Some folks made a lot of money and went on to buy homes and boats even larger than the first SRP202. However, with worldwide dominance, quantity trumped quality. Nokia’s pioneering spirit faded, and Apple and Samsung seized control of the smartphone market when it matured.
So, instead of their coming up with concepts that were mocked before being completely adopted in the past, this time it was someone else. Steve Jobs is a well-known figure in the business world His phone has no buttons, just a touch-and-swipe screen that displays everything; your life, the love of your life… LOL… Oh.
Nokia had disregarded touchscreens as a gimmick that drained the battery too quickly. They then had to play catch-up, which they never managed to do. Nokia’s market dominance dwindled, and Microsoft purchased the company’s mobile phone division in 2014. Nokia was formerly valued at $300 billion, but Microsoft sold it in two pieces for £350 million in 2016. Finland no longer manufactures phones, and the tune- is no longer just annoying.
The review stated that Nokia “was purchased by Microsoft.” Nokia was once valued at $300 billion, but when Microsoft sold it to HMD in Finland in 2016, it was only worth £350 million. ” Nokia’s mobile phone business was purchased by Microsoft, not Nokia itself. Microsoft sold the brand to two businesses, HMD and Foxconn, in 2016. Furthermore, the documentary’s statement that Nokia discontinued manufacturing in Finland in 2016 was incorrect. This review has been updated to remove the reference.
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The reason behind the fall of NOKIA!!!
1. The Reluctance to Change When It Comes To Smartphones
Nokia remained obstinate even as other smartphone manufacturers improved and worked on their products. Samsung quickly released a line of Android-based phones that were both affordable and user-friendly.
Nokia’s executives believed that users would reject touch screen phones and instead go with the QWERTY keyboard layout. Its demise began with this misunderstanding. Nokia never saw Android as a step forward, and it had no intention of adopting the operating system.
Nokia released the Symbian operating system after recognizing market trends. However, Apple and Samsung had already solidified their positions, so it was too late. The Symbian operating system had a hard time gaining traction. This is the primary cause of Nokia’s demise.
2. Microsoft’s Agreement
Nokia’s demise was also exacerbated by an ill-advised partnership with Microsoft. The company was sold to Microsoft at a time when the software titan was in the midst of a loss-making period.
Nokia’s sales screamed the company’s incapacity to make a living on its own. Apple and Samsung, on the other hand, were making great progress in terms of innovation and technological advancements.
Nokia was too late to respond to the market’s fast and severe adjustments. Microsoft’s purchase of Nokia is widely regarded as one of its biggest errors, with little benefit to either party.
3. Nokia’s Marketing Strategies That Failed
A startup’s failure is usually due to a poor marketing plan, and Nokia was no exception. The corporation tried and failed to brand itself as an umbrella company. Apple was the first corporation to use an umbrella branding strategy, with the iPhone at the helm. Year after year, it started introducing new versions to this umbrella. Samsung took the same path with the Samsung Galaxy series, while Nokia failed to follow suit.
Nokia’s reputation for user trust had eroded over time. The company’s selling and distribution techniques were inefficient. As a result of the shambles, Nokia came up with some remarkable hardware and software advances. These, on the other hand, have already been released by Nokia’s competitors and lacked originality. Failure in Nokia’s marketing and distribution strategies played a significant role in its elimination from the mobile industry.
4. Keeping Up With The Industry Is Too Slow
Nokia was never able to keep up with the advancements in technology and trends. Nokia has long been known for its hardware and has paid little attention to its software offerings. To minimize the hazards of introducing innovation to phones, the corporation first ignored technological developments.
The company needed a distraction, but by the time Nokia understood it, it was too late. Nokia moved when practically every major brand had already started creating fantastic phones, rather than being among the early adopters.
5. Overconfidence in one’s own abilities
Nokia overestimated the importance of its brand. People would still flock to retailers to buy Nokia-manufactured phones, the business predicted, despite the late arrival of its devices. A misunderstanding! People continue to expect that Nokia will maintain its market leadership provided it improves its core software. However, as we can see today, this is far from the case.
The corporation was trapped with its software system, which has a history of glitches and clunks. Nokia believed that reclaiming its former greatness would aid in the resolution of any problems. Unfortunately, things did not go as planned.
6. Lack of Innovative Products
Nokia’s problems were exacerbated by its products’ lack of innovation. While Samsung and Apple released improved phones every year, Nokia released the Windows phone with only the most basic functionality.
The Nokia Lumia series served as a stopgap fix, but it too failed due to a lack of innovation. The unsightly and uninteresting features didn’t help matters. Nokia didn’t even have 3G-enabled phones in the 4G era. Nokia also released the Asha series, but it was already too late.
The mobile behemoth’s demise was precipitated by poor decisions and an aversion to risk. Nokia refrained from adopting cutting-edge technology. Nokia’s failure served as a case study, demonstrating the significance of constant improvement and evolution.
The journey of what was once the world’s best mobile phone company to losing it all in 2013 is quite tragic. Nokia also strongly lacked leadership and guidance.
FAQs regarding the fall of Nokia:
What went wrong with Nokia?
Nokia’s collapse was caused by a number of factors, including a lack of innovation, a failure to upgrade the software, and an overestimation of the brand’s value.
What exactly is Nokia?
Nokia is a well-known consumer electronics brand known for its mobile phones. It is one of the world’s largest mobile phone makers.
Is Nokia no longer in business?
No, the corporation is still operational, but several of its plants have been shut down.
What was Nokia’s reasoning for rejecting Android?
Nokia never saw Android as a step forward and purposefully avoided adopting it in 2011.
Why did Nokia fall behind Samsung and Apple in terms of market share?
Nokia failed to compete against Samsung and Apple because it did not adopt Android and concentrated more on its hardware than its software.
Are there any new Nokia smartphones on the horizon?
Despite its apparent dominance in the phone market, Nokia releases new phones and smartphone gadgets on a regular basis. The following are several Nokia smartphones that are expected to be released in 2022:
- Nokia 2760 Flip 4G
- Nokia C21 Plus
- Nokia 6.4
- Nokia Suzume
- Nokia C2 2nd Edition
- Nokia C21
Who gained control of Nokia?
Nokia phones were the pre-smartphone era’s tough and loyal friends. Nokia’s Java and Windows phones, on the other hand, struggled to distinguish in a market dominated by Apple and Android phones. Android phone manufacturers such as Samsung, LG, HTC, Sony, Motorola, and other Chinese smartphone developers such as MI, Realme, Oppo, Vivo, as well as Apple IOS devices, have mostly replaced Nokia in the mobile market.
Hope you liked this article about the mistakes that Nokia made which resulted in the fall of Nokia.