Dr. J Sinha
(1) Nokia’s present problems.
Nokia has been slow in accessing the changing features customers want in their cell phone products. They were the last smart phone provider to offer consumers a touch screen version of their product. With the popularity associated with such an attribute, Nokia should have had the option available years ago as not to lose potential customers to another carrier. They are also just updating their version of an application store and making it easier for developers to write apps. Also, they are just now changing their operating system to meego to have internet as a core function. Nokia has not been innovative enough to keep up in this market. They have been slow to react to visionaries such as Apple and its iPhone and Reactors like Google and their Droid. “There are people out there saying that Nokia is going into a tail-spin, all the focus is on what Apple and Google are doing.” This just creates a red ocean for the company that has them competing over price instead of differentiation.
The company has also run into many technical issues that have been cited in relation to the operating system that Nokia employs. Namely that it “lacks basic fundamental functionalities” (Nokia). This should be something the company works to change immediately because unhappy customers leads to negativity online in the form of blogs and other social medias as well as diminishing future sales. Their operating system has a big memory footprint and is burdened by animations and “graphical gadgets” that were deemed useless by users. Because of the latter the phone is slow and the handling is unclear. The company’s smart phones also face problems with synchronization and messaging and have been said to be completely unusable for professional and business uses. It is important for Nokia to become business friendly since much of the demand for the smart part of a smart phone comes from business or professional occupations.
Nokia’s problems and the reason for their low market share in the North American market stem from their lack of product marketing and as mentioned, product development. They have almost zero presence anymore in the US market. They have been successful in selling mid to lower end products with simpler features to many other parts of the world but Americans want smart phones. They want them to work properly and fast and if you want them to buy yours, you’ll have to tell them about it constantly. It is a market with a lot of money to be spent on products like cell phones and their data packages yet Nokia has been very slow to take advantage of that.
(2) Based on Miles and Snow PADR scheme, Nokia is a defender
Nokia would be considered a defender according to Miles and Snow’s PADR scheme. They are the number one cell phone maker in the world and hold the most market share of any smart phone provider with 41%. As of last quarter Nokia’s smart phones outsold Apple’s smart phone 2 to 1 (Technolog on MSM). Therefore their primary goal is to stay on top. With the recent emergence of competition in the smart phone arena, Nokia must retaliate to their position as the market leader. “Today we shift into high gear in Nokia's fight back to smart phone leadership," he said. With so many brands competing for market share in the multi-billion dollar segment of the Technology and Communications industry that is smart phones, Nokia will need to vigorously defend their hill and make it higher. As it stands their one-year sales growth has decreased by 18.1% from last year and their net profit margin has decreased from 14.1% in 2007 to 2.2% in 2009.
(3) Brand prism for Nokia
(4) A new marketing strategy plan to revive Nokia smart phone sales in North America
Moving forward, Nokia must not only project what is coming but also make it happen themselves. In short, they need to innovate. This is why Apple has been...