subject: Frbiz.com Reports Two Strategic Errors Caused The Loss Of Nokia As An Inevitable [print this page] Since 1998 the global market than Motorola to become the first major mobile phone brand in the Chinese market in 2003 to Motorola's first major triumph over the status of horses under the brand, topped the mobile phone industry's largest vendor Nokia has "done a Big Brother for many years . "
However, the just-released third-quarter earnings in 2009, Nokia reported that out of 13 years, the first quarterly loss, a loss limit of up to 559 million euros, while in the same period last year, Nokia's profit 1.06 billion euros.
Even Nokia, have begun a loss, and how the mobile phone industry in the end?
Nokia worldwide CEO Olli-Pekka Kallasvuo Nokia Siemens attributed this loss. Nokia's loss was largely due to 1.17 billion euros from impairment of assets, of which three related to Nokia Siemens.
"Our mobile phone business is still developing well, and the two can not be confused." Olli-Pekka Kallasvuo told reporters on the CBN.
But it is undeniable that Nokia's mobile phone business is facing unprecedented challenges. Especially the smart phone business, its market share has dropped from 41% to 35%. From the Apple iPhone (mobile Internet), RIM Blackberry, as well as the impact of competitors, Plam companies goes without saying, but Nokia's own strategic issues are also duty-bound.
"Nokia loss news really surprised me, but a careful analysis of its strategy, we can see behind the loss of 'natural' causes." Borth Consulting managing director of Beijing Bin Gong told reporters on the CBN.
Are two strategic mistakes
Bin Gong believe that, in addition to slowing the global handset market growth outside of the broader context, Nokia's strategic layout of the two mistakes appeared.
Relative to other enterprises in the three major 3G standards for mobile phones grab strategy, Nokia's current strengths are still concentrated in traditional 2G and 3G of GSM in WCDMA. Nokia in the CDMA field has been "ambiguous on" attitude, and did not take great efforts to promote, but also several adjustments of the strategy out of the market rumors about CDMA market, whether it is CDMA or CDMA product range sales are only a very small proportion of the share of , which is started by the Samsung CDMA stands in sharp contrast to the Samsung, Nokia is now Maozulejin to catch up.
Samsung, Motorola and LG have launched a TD in the first time, mobile phone, Nokia will launch until the end of this year before the first product, despite the 3G market is not fully start, but China Mobile pursued, if not support the TD, 2G mobile phone Custom will also be affected.
"It's like horse racing. Others have three horses running, while the Nokia is only one. 2G era is not obvious, to the 3G, the short board out on the show." GONG Bin that when the living environment has changed, Nokia can the continued success lies in its ability to adapt to the original concept of new markets.
According to the statistics Borth advice and monitoring in the domestic CDMA market, Nokia is currently only among the top 10, not only is not a Samsung competitor, even Hisense, Tianyu other domestic mobile phone enterprises are also ranked in front of it, as well as Chinese To, ZTE for CDMA equipment manufacturers this tradition of "low impact."
"To the Chinese market, for example, even if Nokia's WCDMA market to account for all finished, it was only 30% of the share, let alone such a situation is impossible." Bin Gong said.
The stand-alone low prices, and profits are high is also one of the problems faced by Nokia. Data show that Nokia sold 160 domestic in a variety of products, 60% ~ 70% are low or even ultra-low-end products that are selling the top five were all low-end products, the prices of the former four are Only three or four hundred yuan; in the top 10 sales of the product price, only 2 of more than 1,000 yuan; sales of more than 1 million models in a single paragraph, only the 6210 cost more than 1,000.
Bin Gong analysis, although the E71, N97 and other high-end models is also very hot, but the proportion is still small, with Samsung's easily five or six thousand, Qi Baqian dollars compared to high-end phones, Nokia top-selling high-end machine type is generally two or three thousand dollars, so naturally the profits growing in thin. Despite the introduction of a large number of low-end machines, but Nokia's market share actually have not been consolidated, BULATS statistics show that Nokia's market share in China from the fourth quarter of last year's 36.5% to 30.2% now.
Bow or not bow his head?
In market share has reached 40% of the limit, the Nokia's future lie? After careful consideration, Nokia has made the transition in 2006 mobile Internet strategy, and launched a mobile Internet portal OVI.
However, the road of transition and did not imagine so smoothly. Until the third quarter, Nokia's revenue from the services sector, only 1.5 billion euros. "Now it seems, OVI still very far away from making money." Bin Gong said. In the OVI can really prop up the sky before a Nokia, Nokia's traditional phone business is ahead of schedule at risk.
Nokia has been pursuing a strategy of its own brand, although other cell phone companies have started to OEM way to mobile phone operators, and embarked on the road operator customization, but Nokia has been unmoved, but firmly on the path path of mobile Internet.
Ominously, the transformation of Nokia's mobile Internet strategy for gradually allow operators to feel "bad mood." 3G era, operators would prefer to have complete control over 3G industrial chain, and deeply involved in all aspects of 3G content. What should strive to push their own business or bow to the operators to meet the operators business? This question has always been that lie between Nokia and the various operators.
At present, the global telecommunications market, Japan, South Korea 100% of the mobile phone market are the carrier market, this ratio in North America, Canada and other markets accounted for more than 80% are also the five countries in Western Europe accounted for 60%. Operators, accounting for more and more become the inevitable trend. This year, Chinese mobile phone market operators in the proportion of channels from 35% before rising to about 65%.
Thus, in recent years, Samsung, Huawei, ZTE, as well as HTC and other "with the" mobile phone operators, companies have been great, "promotion", the market share has been rising.
Nokia's success in the Chinese market is a magic weapon for the provincial direct supply distributor model, but this model from its inception in 2004, up until now has been implemented for five years, "Although this model the current situation, and no problem, but in the market shuffle circumstances, if it is to continue to follow the traditional model, a bit too conservative. "GONG Bin view.
"The market emphasizes group is 'survival of the fittest', the future of a mobile phone enterprises will be difficult to maintain pre-eminence, Nokia challenges and pressures will be more and more critical look at how to do it." He said.
by: heiyou
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