Downfall Of Nokia

The Downfall of Nokia came at a time that it was not expected. Nokia had previously been dominant in the market especially in the late 1990s. It is critical to note that Nokia had been the best and biggest vendor in the market since 1998 after overtaking Motorola. No one thought of the Downfall of Nokia. Not many in the market had seen this coming. However, the Downfall of Nokia was a big blow to the company that has previously been enjoying dominance in the market. Nokia had been spending heavily on its brand in the 1990s. The spending at this time, however, yielded positive results. The quality of the phone by Nokia was high. For this reason the people of the US and parts of Africa liked Nokia had loyalty for the product. The Nokia phones thus grew their share of the market very rapidly. Customer loyalty for Nokia in the world had remained for some time before it was followed by the Downfall of Nokia. The Downfall of Nokia was a catastrophe for the company in terms of sales and Nokia lost significant market share in the world.

Downfall of Nokia: Android and Apple

The crushing of Nokia in the phone market was mostly attributed to the technologies of Android and Apple. Android and Apple captured the eyes of customers who had previously been loyal to the Nokia brand. The downfall of Nokia is also blamed on careless mistakes of Nokia in decision making. One of the most risky decisions that were made by Nokia was investing into the Smartphone business. This was characterized by poor strategic moves.

Downfall of Nokia: Mistakes that were made by Nokia

The Nokia Company ignored the iPhone threat in the market. The thought of how expensive iPhones were made Nokia reluctant on the magnitude of the threat that the phones was likely to pose to Nokia’s dominance in the phone market. Since Nokia was much cheaper, the growth of the iPhone market was not overseen. However with the apps in the iPhone, people still purchased the iPhones. Some Nokia customers thus started buying iPhones. Overestimation of the strength of the Nokia brand in the market was another dangerous mistake that led to the Downfall of Nokia. Nokia thus ignored the customers and while they were enjoying the prestige of great sales other companies were busy making contact with their clients and introducing new, better and high-quality brand phones. Samsung soon overtook Nokia.

Looking for help with your essay or term paper? Hire this essay writing service - professional writers for hire 24/7