Inspiration to Modern Enterprises
Executives Need to Accurately Grasp the Market Trend
This era of rapid development of science and technology the replacement speed of products as well as service was rapidly increasing all customer needs even the core needs that, would inevitably change. Therefore, enterprises should keep close to customers, and tried best to study them, take the change trend of the demands and satisfy them. Just like the phone industry consumer requirement for phones has shifted from functionality & durability to intelligence & entertaining, thus strengthening the hardware facilities like Nokia was wrong on the constrain, it should improve the software, the focus should be shifted from the call quality to the number of applications and simplicity of operation. Consumer demand and desire is the subjective feeling to consumption & could be effected by a lot of factors, so it would be difficult to determine which one was important. This required all companies to stand in a leading position of the times, follow the market trends, have insight the changes happened in the entire consumer market. On one hand enterprises can acquire the general situation of past consumer demand through access to second hand information about development of industry on other hand, enterprises could get better understanding of changes of market through market research to obtain the latest hand data of trends in consumer demand changes.
Companies Should Make the Right Business Tactic
The Business tactic means the reaction that one enterprise takes to form own advantages & create space for survival and development by considering its advantages and disadvantages on the competitive environment business tactic can’t remain unchanged, or the contrary, it must be adjusted to changes of internal conditions as well as external environment. Beside this business tactic is related to future development of the enterprise it is significant for any company to investigate the external environment and internal conditions of enterprises, define the position of the enterprise in the market competition, and eventually have a clear idea about how to enhance the strength. Enterprises should abandon programs that are not very suitable for the enterprise, as symbian has been unable to meet the smart phone requirements and unable to meet consumer demand, when they have recognized the market trend any firm intending to occupy a share in the field of smart phones should learn from Samsung who jumped from Saipan to Android camp in the development of the smart phone. As a result the turns out, Samsung’s timely abandoning Symbian made it now the largest smart phone maker in Android camp, and Nokia’s seeing the situation distinctly made it gradually lose the kingdom even had no right to speak in smart phone market and eventually ended up being acquired by Microsoft. This is a revelation for modern enterprises on the hand to seize the opportunity to give up the business tactic not adaptable to market and its development path early, on the other hand, to find a new way suitable for the market and its own development prospects.
Enterprises Should Be More Cooperative than Competitive
The world is open to the resources technology and so on this have to be shared under the rapid development and popularization of the Internet. There is no isolated enterprise, any enterprise having a variety of contact with others and it is proved the only cooperation source and power of long development of enterprises. Any enterprise refusing to cooperate must face the fact that it will be defeated by other companies in the industry. Like the one in smart phone industry. A number of phone manufacturers in the Android camp grabbed Nokia’s share to an empty so Nokia should have cooperated with other mobile phone manufacturers to broaden the entire phone market, in this way each company’s profits will increase accordingly and the profit is far more than its previous monopoly profits. But Nokia was unwilling to abandon the high monopoly profits Symbian brought, worse still it was not willing to share the profits with other enterprises and rejected to collaborate with Android. It may also be said that Nokia’s crisis was blamed for its conservation, because its rejecting to cooperate forced other handset vendors to associate with each other, and the smart phone market share was seized. So the current enterprises must have a win to win idea and put it into action. Take a small step back is to take a big step forward and win to win does not mean give up their own interests it not only helps companies to preserve their own in the competitive environment, but establish business partnerships to seek support for the future development
This paper introduces the background of Nokia’s acquisition by Microsoft and then proposed the paper based on the study done on several research papers and upon surfing by studying the problems and then followed by giving a brief account of the three stages of Nokia’s development. After this paper analyses the Nokia’s decline from three aspects. Nokia’s executives didn’t grasp the market accurately; there was a deviation in the business tactic of the company, Team was lacking in teamwork, finally this paper is put forward to target the marketing strategies on the above three problems of Nokia.