Nokia used to be the market leader in the mobile phone industry. What environmental factors do you think affected the viability of Nokia?
Nokia used to be the market leader in the mobile phone industry. Its Symbian Series 60 was one of the smart phone pioneers. However after the introduction of Apple’s iPhone, Samsung's Galaxy S series and the explosion of the smart phone market, Nokia’s market share was eroded. A variety of environmental factors caused Nokia to lose its position as the market leader. These environmental factors can be subdivided into micro and macro factors such as Suppliers, Competitors, Publics and Technology.
Before collaborating with Microsoft, Nokia used the Symbian platform for their smart phones. Symbian however, is not developer friendly. “Nokia has had so many versions of the Symbian and development environments that apps created for one set of devices often don’t work on another. It’s a fragmentation problem.”(Ganapati, 2010) Moreover, Apple and Android platforms for smart phones possess a larger market size as compared with Symbian. This means that apps developers benefit more from developing apps for Apple and Android platforms. Therefore, not only are Apple and Android able to attract a higher quantity but also a larger pool of highly skilled developers. This results in lower quantity and quality of apps produced for Nokia smart phones. Thus, the lack of support from suppliers hurt their sales.
Nokia faced stiff competition from Apple and Samsung. Apple's iPhone redefined the smart phone while Samsung's Galaxy S series was Android's most successful smart phone. Nokia was slow to react to its competitors. This slow response caused Nokia to lose out to its competitors. “Apple and Samsung were quickly making their mark in the industry, it also meant that they were inducing the sort of pulling effect that just plucked out a great number of fans from Nokia.”(Hassan, 2012) Thus, Nokia lost market share as consumers switched to its strong competitors.
General public opinion of Nokia has been dropping. Nokia is associated with the old brick phone and snake game without any other impressive breakthroughs. This gave the idea that having a Nokia phone is no longer hip or cool. It did not help that the design of new Nokia phones remained unfashionable. “Reasons can be its design, which wasn't as attractive as Samsung phones or the iPhone. Today the sale of phones is dependent on how shiny or trendy it looks.” (“Three reasons why Nokia failed”,2012) In addition, the reviews of Nokia phones have not been as great. This was caused by the unsatisfactory user experience due to the phone lag or unresponsive touch screen. “Nokia's user experience was inconsistent, unforgiving and hostile.” (Orlowski, 2011) Hence, the general public opinion affected Nokia's sales negatively.
Nokia failed to keep up with changing technology. The Symbian platform was outdated compared to Android and iOS. There were basic problems that were not solved. Nokia was slow to innovate on both hardware and software. “Nokia's phones were considered uncompetitive in the marketplace, because new products from Apple and Android had raised the bar for ease of use, particularly for new data applications.” (Orlowski, 2011) Furthermore, Nokia did not keep up with current trend to appeal to the general public's taste. These failures to keep up with its competitors resulted in Nokia losing out.
(2) As consumers become more health conscious, what can you as a soda drink manufacturer do to expand market share? Cite real-life examples of soda drink companies who have adapted their strategies to address this concern.
To gain more market share of drinks consumed as consumers become more health conscious, I can engage in market penetration, product development and diversification.
I can increase my market share in soda drinks through market penetration, even as...