China Economic Weekly: Nokia disappeared within 10 years?

In a recently announced list of ten brands that may disappear within a decade, Nokia is impressively on the list. A mood mixed with nostalgic sentiment and reluctant evasion surrounds many people. However, this brand that the Chinese people once loved most did not understand the current China. Will market value evaporate, high-level change, and exit from Japan, will Nokia become the next Motorola?

It is undeniable that, with the advent of the smart phone era, with the popularity of the Android system, iPhone hot, Nokia is declining, and gradually lose its market darling status. Although Nokia has already realized the emergence of a downtrend and changed its leadership, it seems that there is no way to curb the continuous decline in market value.

Who defeated Nokia?

In retrospect, it seems that overnight, people began to invade Apple's iOS and Google's Android.

"Not that Nokia does not work hard, Nokia has always been very hard." In the impression of Nokia's former senior vice president, Pan Asia Pacific Management Research Center chairman Liu Xijin, Nokia has always maintained a strong entrepreneurial spirit, leaders have a A humble heart. "At that time, both the American Fortune magazine, Forbes, and Business Week magazine published cover stories, giant photos of Nokia mobile phones or Nokia CEOs, but our leaders told us that we are far from magazines. It's so successful."

Liu Shoujin believes that Nokia is only a slow step in implementing the action. "As early as 2000, Nokia had demonstrated a smart phone concept machine that integrates functions such as video playback, web browsing, and search. The prototype at that time was similar to that of today's iPhone."

Nokia has always been very hard, but Google's Android and Apple's iOS has suddenly appeared, the advantage is too obvious, so that Nokia is caught off guard. "Apple made the phone a small personal computer. The open Android gave people the way to turn a cell phone into a small personal computer." In this encounter, Nokia lost.

However, the most difficult enemy to defeat is actually himself.

Frost & Sullivan President of China Wang Qiquan said on CCTV's "Rival" program, "Nokia has problems in product design, management model and marketing model. First of all, early Nokia's product design is actually very successful, users have used Nokia's mobile phone. After that, no matter what Motorola or Samsung is used to, Nokia is defeated by the big-screen touch-screen mobile phone, but at this time, Nokia is still reluctant to let go of the old design."

"Secondly, Nokia's traditional management model is to control wireless applications. I think the OVI map is good, I bought it, and Saipan is a good system. I also bought it, it's all mine. And this is totally open to ecological competition advocated by Android. The concept completely deviated."

"Finally, Nokia's traditional marketing model is in the major cities and the second and third tier cities have the main push models, perhaps the big cities are the latest models, second and third tier cities are the next new models, followed by analogy to each layer Profits are all profitable, but now, the iPhone's marketing model is a marketing strategy called blockbuster mode, which makes people crazy about new products when they are not yet released, so that people have a very expectant mentality for new products, and other new products. Once released, people will go for a mad rush and use hunger and thirst marketing strategies at the same time.” Nokia’s own pride has prevented it from laying down the shelves of veteran telecommunications equipment vendors for radical reforms.

All along, Nokia has been showing a steady and steady image, and the introduction of mobile phones has always given people a strong, durable, simple operation, which also contributed to the steady rise of Nokia's performance over the years. On the other hand, it also allows Nokia to sit for the first time in the low-end market.

However, today, iPhone has occupied the high-end market; Android has made a number of domestic brands, which occupy the low-end market at a very low cost. As a result, Nokia will be enemies.

Exit China or read China

In the communications terminal market, it is not uncommon for giants to take advantage. Motorola had also experienced the same decline: the market value quickly evaporated, and the top level changed frequently. However, with Motorola, Motorola is back to life. Can Nokia copy the Motorola model?

In Liu’s view, Motorola's rejuvenation is temporary, and what people like is ultimately Android. If Nokia wants to overcome difficulties, it must have its own changes and differentiate itself from competitors. Now that Nokia has failed in the absence of a self-denial spirit, Nokia only dares to deny itself in order to see the current direction of change in the communications terminal market.

Just recently, Nokia further decided to gradually withdraw from the Japanese market from August.

Whether Nokia will withdraw from the Chinese market after exiting the Japanese market has become a topic of concern. Chairman of the Board of Directors of Changyuan Group and Liu Xiaoying, one of Nokia’s first agents in China, believes that people’s concerns are redundant. In his view, China has always been Nokia's most concerned market. “Nokia is very focused on the layout of the marketing network in China. Over the years, it has established hundreds of specialty stores. Moreover, the choice of marketing strategy also closely follows the characteristics of the Chinese market. In order to further adapt to the characteristics of China, Nokia in China also The R&D center was established, and Nokia will not be able to withdraw from the Chinese market because of a decline in business."

But does Nokia really know what the Chinese want? The answer may be negative. When the era of smart phones is rushing, people are no longer concerned about whether the mobile phone is durable and the battery standby time is long enough. People are more concerned about whether the mobile phone can play angry birds, whether the Internet is convenient, and whether the application is Can you keep up with the trend? Is it cool? However, in China, Nokia is too rigid.

According to Shen Yin, founder of NTA Innovation Communications, the problem is Nokia's conservative attitude. He believes that Nokia has been emphasizing brand advantages for many years and believes that it will be able to gain a firm foothold in China with a brand advantage. In fact, the brand advantage is a very virtual thing. The real brand advantage is defined by the consumer. Now the mainstream consumer groups in China are the 80s and 90s. They are now pursuing fashion and fashion. Consumers do not think that Nokia is a cool brand, a trendy brand, and a social brand that represents the most advanced Internet. In that case, Nokia will be a tragedy. If Nokia continues this way, everyone will lose confidence in the brand. "If Nokia does not change, the market in China will gradually lose until it finally disappears from the Chinese market."

As an old communication company with a hundred years of history, the genes in Nokia's bones are Nordic people's shyness, rigor, and pragmatism. They will always make products perfect, continuous, and never lose.

Operating system rescues Nokia

Since there was a problem with the management concept, Nokia replaced the president. Elop's arrival changed the old-fashioned model of Nokia. He encouraged everyone to express their thoughts. Some Nokia employees told the media that they had spoken more in the months following the arrival of the new president than in the past few years. Although from the performance point of view, the impact of resurrection has not been seen, but the change is always from quantitative to qualitative change. At least from the perspective of internal changes in the atmosphere of Nokia, everything is moving toward a more open and positive direction.

On the other hand, Nokia is now faced with a tough choice. When He Gang, executive editor of Caijing magazine, talked about this issue, he felt deeply that "Nokia is faced with the key choices. Choosing the right one may be brilliant, and choosing the right one is a mistake. The seemingly powerful market leader with hegemony cannot adapt to the changes in the market and cannot meet the demands of rapid adjustments by consumers, and cannot turn around flexibly. It will ultimately be big and will fall.”

With the rapid evaporation of market value, Nokia’s finances are facing the most serious test in the past decade. He Gang said, “According to the financial statements of the three companies, it is easy to see that Microsoft’s investment in 1 million can generate 3 million in revenue, Nokia’s investment in 1 million can generate hundreds of thousands of income, and Apple’s investment in 1 million can generate 13 million in revenue. "In order to solve the financial crisis, Nokia chose to temporarily transfer Saipei to Accenture, and then cooperate with Microsoft, hoping that Microsoft can provide cash flow support.

On the technical level, Nokia has made many attempts, such as the MeeGo system and the Saipaniana system. But consumers do not seem to buy it so much. The technical crux of Nokia has long been obvious. Liu Xijin said, "Nokia believes that Android is also its opponent. This is wrong. Choosing to close it is the biggest issue."

What will happen to Nokia in the future? No one can give a definite answer now. However, Elop and his development team left the world with a meaningful statement: “Nokia will develop a better-than-used Android is more open program, we are ready to let go!

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