Dave, I would like to be as positive about the changes Nokia has made as you are but I can't help but feel this move is going to confuse a lot of people. This represents a major shift at Nokia and it will impact the company internally and its external support teams, partners, suppliers and independent developers. If you were working on an application for Symbian until this morning you would have to junk it and start on Windows OS for Nokia even if the uncertainty surrounding the platform complicates your plan.
Nokia and Microsoft announced today a strategic alliance, in which Nokia will use Microsoft’s Windows Phone operating system on their smartphones.This move is an obvious attempt by both Nokia and Microsoft to regain market share in the mobile space, specifically from the iPhone and Android market.
This is a bold move for Nokia, which has based its devices on the Symbian OS in the past.This partnership seems to be a smart move for Nokia and an overall shift in strategy, and perhaps an even smarter move by Microsoft, which now will have a huge market opportunity to have devices running it mobile OS.
It is very clear that Nokia didn't see what was coming in terms of the complete eco system for mobiles. They always concentrated on new models and many models. How the new Nokia CEO is going to handle this? Will he actually going to develop entirely from scratch to develop the complete software for the ecosystem or will he go out and buy a few companies to launch some thing with the software services support in next two quarters. If nothing is done then probably it is again a fall like what we’ve seen with Motorola. This simply shows the electronics is not that powerful without good software applications.
It seems Nokia had understood their fault in marketing strategy and where they are now. As a part of capture or retain the market segment CEO comes up with a road map. Good. Initially users have only limited options like either Nokia or alternate models from (LG/Motorola/Samsung etc). So majority preferred nokia and hence they gain a huge market share in the basic mobile phone segment. Later when mobiles become a multipurpose device (Video, net, camera, PDA, FM, Music etc) or needed for 3G/4G service, competitor came with advance mobile device having all this features.
In that case, I think nokia had delayed a little bit for their entry in to the advance segment. When users searched for a device having all these features and compactable for 3G/4G operation, selection from nokia is limited and hence preferred for other brands. That is competitors like (RIM/LG/AT&T, T mobile etc) provide new devices having advance features than nokia. At the same time, new comers in basic mobile segment having Chinese links, provides devices with lower cost and more features like dual sim, camera, fm etc. So in contrast nokia failed to retain their basic segment market share and to build up a portion in the advance segment.
Hope the road map of CEO will help NOKIA to retain its market share. Meantime they can also have some innovative changes in their designs, OS and features, in order to make the device more attractive and user friendly.
I really liked Nokia cell phone, which I was my first one I had owned many years ago. Then came RAZR by Motorola and I could not resist the Apple iPhone even the first model. Looks like over the years large companies acquire corporate inertia to innovation. Is it because previous success blinds management to do any changes? There could be some other reasons. It is sad but one can be extrapolated that Apple is due to this phenomena. I am wondering if they figure out how to avoid it?
I think they're beginning to head in the right direction. The letter to employees from the new chief is motivating and shows that his 90-day plan is probably the start of some BIG changes that absolutely need to be made.
It is refreshing to hear a CEO be direct about its company’s problems.Nokia will have to move beyond Symbian and perhaps utilize other OS platforms, such as Android and Windows Mobile.From a software developer perspective, programming on the Symbian platform is much more complicated than the competitive mobile OS platforms.On a positive note, Nokia still has a very large worldwide market share, although it may be declining.I agree momentum is against the company at the moment, but you can say the same thing about Apple years ago too. It’s Nokia’s market share to lose at this point.
Nokia has limited time to right the ship. The previous management sat by while Apple and Droid phones took over. Nokia needs to look two steps ahead of Apple. The Iphone 5 is due out later this year already. In the ever growing market of smart phones, the minute you buy something new it's replacement is already being developed.
For Nokia to not go the route of Motorola, they need to introduce something bold and innovative and take the leap of faith that they are going down the right path.
Spot on comparison with Motorola. If anything, Nokia will have to move faster than Moto--I don't think it has five years to right the ship. Like Motorola, though, Nokia has a reputation for quality that it may be able to revitalize, assuming it revitalizes its product portfolio.
CEO Stephen Elop's comment while directed to the employees is a major indictment of Nokia's previous management. They saw the train wreck coming and were unable to avoid the disaster now unfolding. I fully expect he will announce a strategic shift at the company's event on Friday.
Nokia, though still leading the market, is now at the same point Motorola Inc. was about five years ago when it failed to respond nimbly to the changes taking place in its market. It was clear Motorola was cruising on its past performance and needed to radically change its strategy. It didn't and the company paid dearly for the error.
Nokia may still avoid the same fate but as you noted, the momentum may be against the company. If you poll consumers for the most innovative companies in the mobile handset and wireless tablet market, Nokia is unlikely to be one of the top mentions. This, despite the fact it spends more on research and development than many of its rivals. If my company supplies components to Nokia today, I would be very worried.
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Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
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You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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