NOKIA CASE

NOKIA CASE

 Nokia Corporation, the communications and information technology company had failed in 2010  since  the marketing department did not establish and communicate properly its value proposition, so the customer did not identified why they should buy Nokia, therefore given it  little chances to survive. Its value proposition was based on random factor rather a clear messages with a consistency explained why nokia is better than other. An aspect that Apple and Samsung with Android know exactly how to do it.

Therefore,  to know how to to get ahead was necessary to know the value proposition offered by the company, since there could focus its marketing strategy in most relevant benefits of the product and different characteristics in comparison of competing products stand out. It is also important to consider the clarity of the message to be transmitted, taking into account the impact generated content and customer care, so that the product attractive. so to change their mindset to see the benefits of product you are looking for the product stand out as the best on the market. even more they should implement innovation strategies that includes technology and design in order to attract more consumers to buy Nokia

The failure of Nokia is clearly due to the lack of speed and lack of strategizing to help him to compete with the big cell phone companies and also to boost their sales. According to the case, we could infer that Nokia after being one of the leaders in mobile phone sales, was confident and was not taking into account their competitors, this can be deduced because even when Apple or Samsung innovated daily and created more entertainment for its users, Nokia remained deadlocked and did not change. Initially, the operating system of Nokia phones was almost completely closed, it did not allow the use of third-party applications and had not many applications available to users, so its use was limited to the possibilities offered by the company exclusively. When they decided to innovate by changing the operating system, again they failed because they did not consider what the market wanted and what they expect from a smartphone. What he did then, Nokia, was to create a new operating system that compared to the smartphones of that time was practically useless, unlike the other two major mobile companies Apple and Samsung, who tried everyday to be more innovative and different, offering more customer value and offering new and more functional characteristics, all of this in order to have a loyal clientele to their own brands. When Nokia realizes this, it was already too late, because the other large companies had already attracted a large share of the market and had clients with a very important loyalty to the brands, thanks to new things they offered and how they constantly sought to improve their products and respond to the needs and desires of customers.

Nokia formerly was in the third one business model , because the company competed in various segments simultaneously, like tires, VHS, toilet paper and 45 other divisions. They created a company with high innovation, low cost production and very profitable at the beginning . Also had a  strong presence in the distribution channel that made Nokia an excellent company and the pioneered company in ITCs. They invented the Senator that was the first telephony system.

Nowadays, nokia  business model  is the 5th  because the firm is integrating its innovation with its business model. They now study the customer needs and the opportunities in the market offering products that follow the customer needs.

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