Nokia's Downfall
NOKIA’S DOWNFALL
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries. It is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. It plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors.
But now, the king has fallen. Nokia shares have fallen by 47 percent since Apple introduced its iPhone. Even its market share has been shrinking. This downfall was caused by three major factors. First was that Nokia rested on their laurels. They were just too confident of their success and glory that it eventually lead to poor assumption of sticking to its market share without giving much attention on innovating and developing its products. In this industry, the company must always make sure to innovate their products in order to attract and excite the consumers to purchase it. The second factor was that Nokia was unwilling to challenge itself to innovate its products. They failed to notice that the mobile phone users nowadays don’t just use their phones to call or send someone a message. Instead, current users now cares about mobile phones that can provide them with a feel of the advancement in technology like, they use their mobile phones to check their emails, to locate a specific place or even update their “facebook” status. Lastly, Nokia was not situated in a location where in other Web companies or consumer electronics manufacturers are. So, they were not able to gather
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries. It is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. It plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors.
But now, the king has fallen. Nokia shares have fallen by 47 percent since Apple introduced its iPhone. Even its market share has been shrinking. This downfall was caused by three major factors. First was that Nokia rested on their laurels. They were just too confident of their success and glory that it eventually lead to poor assumption of sticking to its market share without giving much attention on innovating and developing its products. In this industry, the company must always make sure to innovate their products in order to attract and excite the consumers to purchase it. The second factor was that Nokia was unwilling to challenge itself to innovate its products. They failed to notice that the mobile phone users nowadays don’t just use their phones to call or send someone a message. Instead, current users now cares about mobile phones that can provide them with a feel of the advancement in technology like, they use their mobile phones to check their emails, to locate a specific place or even update their “facebook” status. Lastly, Nokia was not situated in a location where in other Web companies or consumer electronics manufacturers are. So, they were not able to gather