Why Nokia Lost Its Market Share? Brand Failure Study

Nokia used to be a well-reputed name in the cell phone industry since the introduction of these personal communication devices. It was a time when almost every person used to hold a Nokia cell phone. However, with the introduction of smartphones, this company suffered a great setback. After such demised circumstances, Microsoft took over the company and launched its own cell phone range in 2014. Now there is credible information that Nokia is planning to get back in phone business with new enthusiasm and more refined technological advancements.

Nokia has suffered a great loss in terms of its market shares and reputation as a cell phone manufacturer in the past few years. The basic factor behind this decline was the inappropriate decisions taken by the management and as a result, failure to adjust with the ever-increasing smartphone industry. The launch of the first iPhone by Apple was the wakeup call for Nokia, but unfortunately, it wasn’t well perceived by the company.

There were some serious steps taken by the management and one of them was to engage Microsoft’s former executive Stephen Elop as a CEO. The most important issue faced by the company was that Nokia’s Symbian platform was too slow to be upgraded and was not advanced as compared to iOS and Android. So, it was clear from the beginning that they need a complete change and develop a competitive operating system. There were basically two available options in this regard, either choose Android or go for Windows Phone.

After due consideration, the company decided to opt for the Windows phone. Hence, the new range of Nokia Lumia was launched with a Windows operating system. However, despite the continuous efforts and collaboration with Microsoft, these devices couldn’t seek the required attention of smartphone users. Microsoft being a big player was in a position to carry on with the Windows Phone but Nokia was somewhat reluctant in this regard. Therefore, Microsoft took a solo flight and bought Nokia’s phone division for $7.5 billion.

According to this contract between these two companies, Nokia was prohibited form cell phone manufacturing until the end of 2016. This contract is actually responsible for the demise of Nokia. The famous company took a lot of time to understand the behavior of the market.

Will Nokia Make a Comeback?

There is always a chance of a comeback, but it looks nearly impossible in this particular case. Nokia’s market share is well captured by Samsung, Apple, Huwavie, and other smartphone manufacturers.

Since the contract ended with Microsoft, Nokia has introduced many android based smartphones. They are trying to get the attention of people with introducing various new models. They also introduced a new version of its very popular phone Nokia 3310. But until today, nothing has worked in favor of Nokia.

Nokia’s downfall begin when Apple introduced the very first smartphone and Nokia did nothing. Samsung learned for the market behavior and today it’s the largest smartphone seller in the world.