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The following article was published in our article directory on September 26, 2010.
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Nokia Why the Left Behind

Article Category: Business

Author Name: Amanda xzh

Failure to fully understand the market changes, and there is no time to adjust the geographical layout, making Nokia mobile phone market gradually has lost its leading position.

90 Who is the last century, the most successful European companies? Too simple, of course, Nokia. The Finnish mobile phone manufacturers to seize the rise of the mobile phone market, and become the industry's most powerful brands. Since 1992, launched the first GSM mobile phones since 1011, a Nokia cell phone is almost the definition of the entire industry. From 1996 to 2001, the company's revenue nearly doubled 5 times, until 1998, then become one of the world's largest mobile phone maker. In 2005, Nokia sold 10 million mobile phones, this is a 1100 sale of mobile phone users in Nigeria.

Politicians are much appreciated on the Nokia, and that the company can continue to prosper in the 21st century. European Commission President Romano Prodi speech in 2002, Nokia and its competitors specifically highlighted the success of Sweden's Ericsson. "They are the achievements in the mobile phone market has created two vibrant industries, which are located in Oulu, Finland and Stockholm, Sweden, the two industry clusters attract a large number of start-ups and foreign investment." Prodi said, "These examples prove the European region have the ability to develop new high-tech clusters. "

Now, who is the first decade of the 21st century, the most disappointing of the company? Equally simple, or Nokia. The company's performance has fallen sharply - Nokia announced on September 10, will be appointed the first non-Finnish CEO, which underscores its current decline.

Lessons of fall

Nokia's success and bring the experience of Europe as its decline also tell us why European companies - and large enterprises around the world - often falter. Over the past three years, Nokia's bad news followed. Since Apple released in January 2007 since the iPhone, Nokia's share price has fallen 49% cumulative. In MillwardBrownOptimor released the 2010 ranking of global brands, Nokia is only ranked 43 and 12 months, fell a full 30. The company has also been shrinking profit margins, market share and average selling price of mobile phones also have suffered different degrees of decline.

Indeed, Nokia still holds one-third of the global mobile phone sales. However, the situation in the market it is attacked front and rear. South Korean handset manufacturer Samsung and other major consumer market in a leading, Apple iPhone and RIM BlackBerry are dominated high-end smart phone market. Aware of the daunting challenges in the post-series, Nokia decided to employ the Microsoft executives, Canadians StephenElop to turn around. Everyone wants him to successfully complete the task. As to whether he has sufficient understanding of the mobile phone, but he refuses to talk about. Microsoft has not made any progress in the industry.

The harsh reality is, though still have good market share, but Nokia has become obsolete. Mobile phone industry is working with the integration of computing and social networking, but Nokia has not understood this trend. And now again remedy, it may be too late.

Nokia should learn from this course a lot of painful lessons. First of all, success is not once and for all. Although Nokia will soon get the top spot in the industry, but since then, it began to complacency. In the CEO Olli-Pekka Kallasvuo under the leadership of the market share began to worry about the outcome of Nokia, rather than trying to give consumers a surprise development of innovative products. Second, Nokia do not want to challenge themselves. It has been stubbornly believe that the main purpose of the phone call. But do not realize that gradually began to use mobile phone users check e-mail, looking for information on restaurants and update Twitter.

The consequences of isolation

Finally, Nokia's headquarters has not clustered in similar enterprises in the region. Create a technology giant in Finland is indeed a great achievement, but Nokia is not around a lot of Internet companies or consumer electronics manufacturers. This means the company can not get a variety of creative, forcing it day after day, questioning his own theories, and constantly repeated. In fact, Finland is not the mainstream of Europe, never became an important member of the global economy. Most of Europe's most successful industries are concentrated in a few small geographic area. For example, the European pharmaceutical industry is mainly located in Basel and southeast England. Luxury car industry, mainly in Munich and Stuttgart. Banks are located in London. But there are few exceptions, such as Toulouse, Airbus is located. And competitors are often good for business for the neighborhood, they lure them away from each other and exchange ideas. Detrimental not only to people in isolation, the development of enterprises as negative.

Is undergoing rapid change for the industry, in particular. Nokia need to identify the location of the computing industry, and even still concerned about the film, music and Internet industries. Although we still do not know what mobile phones will become, but it is difficult to imagine an enterprise located in the periphery of Europe can seize this trend. Nokia as early as 10 years ago should move its headquarters to California. It would certainly have been publicly opposed the Government of Finland, the European Commission is likely to not support this behavior, but it is worth it. Nokia needs to join in the trend toward technological change. In this way, the Nokia brand leadership may be able to keep it, rather than 10 years ago almost to the verge of a collapse of the computer manufacturers led by the nose.

Europe, there are still many in the oil, aviation, pharmaceuticals, automotive and financial services companies dominating the field. All of these companies are repeat similar mistakes. Whether the car manufacturers of electric vehicles full of plans coming? Computing technology and pharmaceutical companies for the integration of biotechnology to prepare it? When the debt fell steadily during the past decade, the bank's position was secure it? I'm afraid not.

Politicians and business experts to spend a lot of time in recognition of Nokia, and tried to get from the experience of his success. They should spend as much time to study the decline of Nokia. Otherwise, the rest of the industry in Europe may also have committed the same error with Nokia. Europe has been unable to bear the loss of more global leader in bringing the lost.

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