Nokia once ranked number one in the sales and production of phones. Their market dominance was overwhelming. There was no competition at all. Their profit rose, sales tripled and they kept rolling out different phone versions. Fast forward to today, Nokia has been knocked out the phone game by the likes of Apple, Techno, and Samsung. It is a 360 u-turn for the Finland-based company which is searching for ways to regain its market dominance. The fall of Nokia can be likened to the once impregnable Ottoman Empire. Interestingly, there are quite a number of things that businesses can learn from the fall of Nokia. This will perhaps help these companies avoid the mistakes Nokia made. Innovation Village shares some of these things.
Keep innovating
A business that does not innovate or does not follow the trend is digging its own grave. While Apple, techno, and Samsung were dishing out fantastic and adorable devices, Nokia kept doing the same thing that earned it the market dominance. Little did they know that the lack of innovation will hunt them. Innovation is a continuous process. It came really late into the innovation space with its Windows phone while Android had already completed 100 metres and has moved to 5,000 metres.
Know that any business can fail
The decline of Nokia is a story that will be told for years. If Nokia could lose their market position, what stops other businesses from suffering a similar fate? Any business can crash especially during a cash crunch. If businesses understand this, they will wholeheartedly embrace innovation which will boost their market position.
Follow trends in the industry
Your business may be ‘big’ but remember that you have competitors that want to take advantage of any loophole. One trend that Nokia refuse to embrace early is the Android Operating System. The android OS was trending but they did not embrace it. Meanwhile, other phone manufacturers were producing cheaper phones with the Android OS. Nokia has lost out. Nokia phones are not really affordable and do not use the Android OS. So, for your business, you are condemned to keep tabs with the latest trend to remain relevant.
Diagnose business problems as early as possible
Nokia did not envisage its rapid decline. In fact, very few geeks and experts thought this could happen. The first sign of Nokia’s crash was the reduction in phone sales and next was its dwindling share price. Without any doubt, it must have been affected by the 2008 economic crisis but it is not an excuse to fall like a pack of cards. Anybody running a business should always lookout for these warning signs. Importantly, do not ignore it.
Anticipate competition
From all indications, Nokia did not anticipate competition. While Samsung, Apple and others were conducting research to usurp Nokia’s position, Nokia aimed to strengthen its market dominance. This backfired and Nokia was left behind. The competition in any business environment is fierce, you have to do everything to outpace your competitor.
