How Does Technology Affect Nokia
Nokia
Nokia is an informational and technological company which started as paper manufacturer in 1865 by Fredrick Idestam and co founded by Leo Mechelin. With its headquarter located in Espoo, Finland, Nokia is able to become a leader in the advanced technologies fields, network infrastructure industry and location-based technologies sector. It is currently focusing on a massive scale telecommunication infrastructure and technology development (Nokia, 2015). Employing more than 57,000 workers, it is the 274th largest company in the world measured based on the revenue generated in 2013 (Fortune, 2013). However, on 25th April 2014, this company well known for its mobile phone was acquired by Microsoft for $7.2 billion (Molen, 2014). According …show more content…
The first external factor is technological force. It is undeniable that technology is improving and developing every day. Things that seemed impossible to do few years ago are now possible to accomplish with the help of technology. In this case, technological advancement causes Nokia to lose their phase and other companies in the same industry took advantage of this. Nokia moved too slowly; while other brands have had their focus on improving the features inside their phones, Nokia focused on changing their phones hardware, but keeping the same feature. As a result of this mistake, Nokia had to bear the consequences of losing their customers to their competitors. People prefer Smartphones which offered better applications and functions such as Apple and Samsung. Consumer, specifically upscale consumers, value the advancement of Smartphone design and hardware specification but only if it is supported by a high end software too, so that it brings a superior experience for them (Bonnington, 2012). Due to this, demand for Nokia’s product fell causing their net sales to …show more content…
Trend changed, people’s taste and preference were leaning towards Apple’s and Samsung’s products rather than Nokia’s. Dominating the global phone market until 2010, Nokia had to give up that title to their competitors as it is obvious now that Apple and Samsung are leading the pack (Statista, 2015). Brand value of Apple climbed by around $17 billion. In addition, growing by $20 billion to reach $78 billion, Samsung surprisingly inclined the most. Meanwhile these two companies continue to increase their brand value and never stop growing; Nokia did not even made it to the top 500 list (Kuittinen, 2014). This leaves people thinking of what advantage do they get from buying Nokia’s phones over other phones available (Jones, 2014). This is one of the factors to why Nokia’s goodwill diminished from 2012 to
Nokia is an informational and technological company which started as paper manufacturer in 1865 by Fredrick Idestam and co founded by Leo Mechelin. With its headquarter located in Espoo, Finland, Nokia is able to become a leader in the advanced technologies fields, network infrastructure industry and location-based technologies sector. It is currently focusing on a massive scale telecommunication infrastructure and technology development (Nokia, 2015). Employing more than 57,000 workers, it is the 274th largest company in the world measured based on the revenue generated in 2013 (Fortune, 2013). However, on 25th April 2014, this company well known for its mobile phone was acquired by Microsoft for $7.2 billion (Molen, 2014). According …show more content…
The first external factor is technological force. It is undeniable that technology is improving and developing every day. Things that seemed impossible to do few years ago are now possible to accomplish with the help of technology. In this case, technological advancement causes Nokia to lose their phase and other companies in the same industry took advantage of this. Nokia moved too slowly; while other brands have had their focus on improving the features inside their phones, Nokia focused on changing their phones hardware, but keeping the same feature. As a result of this mistake, Nokia had to bear the consequences of losing their customers to their competitors. People prefer Smartphones which offered better applications and functions such as Apple and Samsung. Consumer, specifically upscale consumers, value the advancement of Smartphone design and hardware specification but only if it is supported by a high end software too, so that it brings a superior experience for them (Bonnington, 2012). Due to this, demand for Nokia’s product fell causing their net sales to …show more content…
Trend changed, people’s taste and preference were leaning towards Apple’s and Samsung’s products rather than Nokia’s. Dominating the global phone market until 2010, Nokia had to give up that title to their competitors as it is obvious now that Apple and Samsung are leading the pack (Statista, 2015). Brand value of Apple climbed by around $17 billion. In addition, growing by $20 billion to reach $78 billion, Samsung surprisingly inclined the most. Meanwhile these two companies continue to increase their brand value and never stop growing; Nokia did not even made it to the top 500 list (Kuittinen, 2014). This leaves people thinking of what advantage do they get from buying Nokia’s phones over other phones available (Jones, 2014). This is one of the factors to why Nokia’s goodwill diminished from 2012 to