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bolaji.ojo
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Not enough?
bolaji.ojo   6/14/2012 10:20:07 AM
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Nokia's planned additional layoffs hasn't impressed investors. The company's stock price fell more than 15 percent on the news. Shareholders were spooked by the fact its outlook remains grim. Job cuts don't seem to be enough anymore as far as investors are concerned. What they want is a product that's great, higher sales and the production processes and supply chain to match it.

Wale Bakare
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Re: Not enough?
Wale Bakare   6/14/2012 10:48:47 AM
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"We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones".

I think Nokia's problem has compounded since adoption of Windows OS for its feature phones to run on - that platform simply not too attractive to consumer market but desktop devices. Unless Nokia refocus its phone OS to either adopt something of mass appealing or completely switch back to Symbia. Am afraid Windows wont do any help in this tough market situation everyone is experiencing.

Anna young
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Re: Not enough?
Anna young   6/14/2012 11:11:47 AM
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 "However, we must reshape our operating model and ensure that we create a structure that can support our competitive ambitions."

Rightly so, Bolaji. I think the investors are not asking too much here.
I just wonder whether the plans to close its factories in Canada and Germany will restore the company's position in the market place. I doubt this. Could this be the end of Nokia?
How much more restructuring and reshaping will restore order? 

 

Ariella
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Re: Not enough?
Ariella   6/14/2012 11:16:49 AM
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@Anna I wouldn't think it's the final nail in the coffin, but it does appear to be one the nails. Job cuts show a shift in numbers that can reduce loss, but it doesn't necessarily signal a new direction toward success. Unfortunately, cutting jobs is easier for most companies than coming up with a real solution to the problems that plague it. 

elctrnx_lyf
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Re: Not enough?
elctrnx_lyf   6/14/2012 11:32:00 AM
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Nokia needs to focus on the right market of smart phones. They should become more aggressive and should launch devices with android to compete against Samsung. Microsoft is not attractive and famous among the smart phone consumers.

Anna young
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Re: Not enough?
Anna young   6/14/2012 11:46:27 AM
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Absolutely, Ariella. A shift in number like you said may reduce the company's loss significantly, however, will not immediately restore increase in performance. More I think is required from Nokia to arrive at a desired destination. 

bolaji.ojo
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Re: Not enough?
bolaji.ojo   6/14/2012 7:19:56 PM
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Nokia had its moment in the sun. A different company is shinning now and the reality is that Apple is the one with the golden touch at the moment. It lost its luster some years ago and found it again. Inevitably, it will lose it again and a competing business will be the new whizz kid. Only a few companies have the capability to keep renewing themselves and Nokia is in my opinion one of those companies. The problem is the leadership it currently has do not have the required vision.

Wale Bakare
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Re: Not enough?
Wale Bakare   6/14/2012 11:47:02 AM
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@Ariella do you think  spreading 10,000 reponsibilities ontop of others not OK? Considering million of Euros the company would save but i think this should direct to R&D instead.

Ariella
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Re: Not enough?
Ariella   6/14/2012 11:49:17 AM
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@Wale I don't think that when a business lays off that many people that they're seeking to divert the money into research and development. Rather, I think that they want the savings in operations and labor cost to make their bottom line look better. It's possible they will divert some of the savings into investment in r & d, but there already should be a budget for that.

Wale Bakare
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New OS? Probably
Wale Bakare   6/14/2012 12:01:05 PM
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"Could this be the end of Nokia?" @Anna, a big question you raised here.


According Nokia's CEO release "However, we must reshape our operating model and ensure that we create a structure that can support our competitive ambitions." Base on the CEO's statement, I think we just have to wait and watch as the smartphone market's drama unfolding. May be 1st quarter of 2013.


Anna young
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Re: New OS? Probably
Anna young   6/14/2012 1:19:03 PM
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Hmm! good point Wale. It's a wait and see game.

bolaji.ojo
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Re: New OS? Probably
bolaji.ojo   6/14/2012 7:22:40 PM
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What are we waiting to see? Nokia is sliding downhill and it hasn't touched rock bottom yet. Once it does, visionary leadership -- if one comes along -- will get it back on the road up the mountain.

Wale Bakare
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Re: New OS? Probably
Wale Bakare   6/15/2012 7:10:09 AM
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Hmmm! It is sad seeing this giant phone icon wallowing in doldrums of smartphone market. Why is Nokia unable to produce competitive phone? Why are the likes of iPhone and Samsung ( Android ) perhaps remain  "best" in the eyes of mobile phone users? Why Windows OS based phone unpopular in the world in contrast to Windows OS for desktop computer ( XP, Vista, or 7).

No matter what,  i think Nokia needs total overhaul in design strategy and proactiveness within its research and development center where ever it is located.

bolaji.ojo
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Re: New OS? Probably
bolaji.ojo   6/14/2012 7:24:44 PM
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Wale, Nokia CEO Elop was talking about systems and procedures. That's not what Apple won with. It won with great products that emerged out of a great system. Processes and systems are fine but Nokia hasn't given the market a product to look forward to. He is selling hope and that's not a product.

t.alex
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Re: New OS? Probably
t.alex   6/15/2012 9:02:46 PM
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Yes, selling hope. He brings Nokia downhill together with Microsoft. Microsoft seems to have nothing to lose but this is a big loss for Nokia.

prabhakar_deosthali
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right predictions by EBN
prabhakar_deosthali   6/14/2012 11:52:16 AM
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Bolaji,

 

Just a couple of months ago, you had identified HP, Nokia and RIM to be lacking right directions and likely to go downhill because of their mis-strategies , not innovating early enough and be complacent about their market positions.

How true! All these companies are now struggling to keep themselves afloat.

 

 

bolaji.ojo
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Re: right predictions by EBN
bolaji.ojo   6/14/2012 7:32:33 PM
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@Prabhakar, Nokia and RIM have indeed been cutting costs as a way to get themselves profitable. That's an error so many companies commit. They cut costs to match current sales. The dumbest executive can put those numbers together and say: "if my cost is currently greater than my sales, I should bring down my costs below my sales and I'd be profitable." Brilliant, eh? Not.

That's the step dummy leaders would consider first. Great leaders on the other hand would look at the employee resources they have and evaluate them on quality and usefulness. Then they'll look at the products they want to have and envision a customer base that can't do without those products. Then they'll charge the employees with creating that product. In other words, executives that are outstanding would aim for higher sales rather than merely start cutting costs.

They would say something along the lines of: 1. Our costs are greater than our revenue. 2. Let's grow our revenue to be above our costs. 3. Let's keep innovating products and services that keep our revenue way higher than our costs. Anything other than this is pedestrian and we see examples of this at Nokia and RIM.





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