Tuesday, November 30, 2010

Analysis of the alleged failure three former CEO of Nokia: Symbian too worship

Last week, Nokia announced that the Board of Directors since September 21, Stephen • El Antelope (Stephen Elop) will serve as the CEO of Nokia Corporation and the CEO.

El Antelope is currently the President of Microsoft Business Division.

This gives rise to the refraction of the Nokia Board of Directors of urgent state of mind, reveals the multiple Nokia current plight and had committed a fault.

Nokia "wings" Kang-Kai "class"

Kang-Kai in 1980 as corporate counsel to join Nokia, after continually imposes responsibility until the beginning of 2006 as President and Chief Executive Officer of Nokia.

So too, Kang-Kai joined Nokia has spent 30 years.

For Kang-Kai that 30 years of achievement and the Nokia Board of Directors granted a certain degree of certainty.

"All these years, he devoted himself to the company's management, operations and business development. His company's commitment and contribution are outstanding. "The Nokia Board of Directors President Ogma • Ollila assessment said.

The fact is true, especially in Kang-Kay leadership of a few years ago, Nokia Nokia mobile business development has been very strong, the market share reached 40% of the time.

But since the beginning of 2007, the mobile phone market being affected by the GPhone, iPhone, BlackBerry and other mobile products, Nokia Smartphone market share almost continually, once occupied the Smartphone market share of more than 60% of Symbian smart phones, now less than 45%.

As the main source of profit, the smart phone market regimes lead directly to Nokia's core profitability decline.

Nokia display results, since 2008, although Nokia market size and turnover is increased, but when there is a continued decline in profits.

While the value from the city, the three years time, Nokia's market value has shrunk to 600 million euros, the price of cumulative decline by 67 percent, only this year, the share price would fall by 25%.

Now Nokia has to repeat the mistakes of the edge, Motorola and the Board of Directors has no patience Kang-Kai of the next episode.

Three "lessons learned" Kahn

Overview of Nokia and Motorola footprint year, analysts say, in fact today, Nokia and Motorola failures of yesterday, in a sense there commonalities: innovation, particularly innovative actions too slowly.

But in fact, such an assessment for Kang-kai, but is not the point.

Because Kang Pui Kay from succession Nokia CEO has been committed to leading the Nokia into mobile software and services, or even earlier than the Apple iPhone, especially early in the App Store's launch.

"For Kang-kai, the real problem is that strategy ahead, but the tactics are too conservative.

"A bit once working for Motorola's engineers in the interview, said that Nokia's understanding of the mobile Internet is not inferior to Apple, IT enterprises, but the problem is that the tactics you always.

Recalling Hong BAE Kay ruling of those years, at least three lesson is obvious.

First of all, too much adoration Symbian platform is Kang Pui Kaiser committed the first error.

Kang-Kai for mobile Internet first understanding is: master mobile phone operating system platforms on the mobile Internet portal.

To this end, Kang-Kai as early as 2008 began to promote the development of the company, Symbian, on the one hand through the acquisition of Sony Ericsson and other manufacturers in the hands of the Symbian co., ultimately owned by Symbian, on the other hand, through a comprehensive open source Symbian to expect more of the other mobile phone manufacturers joined Symbian camp.

But Nokia didn't expect is that open after Symbian has not only failed to attract more mobile phone manufacturers, but lost the Motorola such giants support, Samsung, Sony Ericsson also basic is to stop the development of the State of the Symbian Smartphone.

The reason behind it is that Nokia over-exposure their intent, but as the same competitor's cell phone manufacturers, apparently will not easily select wedding dresses for Nokia do.

In addition there is another important reason is that Symbian platform is not a good fit the characteristics of the mobile Internet.

While Symbian ^ 3 Mobile have been listed, but more from Nokia's latest Symbian mobile phone sales, Symbian smart phones have become more and more ', the user of the system of recognition is also gradually decline.

Although now MeeGo platform demoralization, but this is just instructions Kang Pui Kay has been in the mobile phone operating system issues begin to sway.

We all know, MeeGo's predecessor is Mameoo system, but only using the system, Nokia has developed a screeching N900, and Intel push MeeGo in cooperation. At present, many analysts have still not optimistic about the future of the platform.

Secondly, the localization work is insufficient, the carrier requirements and market awareness.

It is well known, although the traditional mobile phone manufacturers in the Apple, and other manufacturers have emerged under the impact of different levels of depression, but it is worth noting that Samsung has to some extent out rebounded, but Samsung doesn't make a difference in the mobile Internet market.

To the Chinese market, for example, Samsung has spared no effort in doing is trying to cater to the needs of the three major carriers, and Nokia is in this area is very poor.

This in fact is the result of inadequate localization is also inadequate innovation performance, because Nokia has failed to adequately and in cooperation with the largest operators of root cause is that Nokia was unable to break through its own position in the global market.

So Nokia in the Chinese market on the one hand, basic neglect CDMA market, on the one hand, and in

TD market remain ambiguous attitude, but not too much substantive tempo.

On the contrary, Samsung, and Motorola is already aware of the importance of market operators and potential.

Currently, Motorola and China Telecom in depth cooperation has already made him taste of carrot.

Third, less flexible business models.

Nokia OVI store after the first episode in a long time not commercial, the root cause is that Nokia could not bypass the carriers to charge.

However Nokia earlier should be recognized: OVI store at least in China should first consider the scale, not fees and profit.

After nearly three years of hesitation and wandering, we finally got to see Nokia OVI pushed to the formal commercial phase, but too conservative's overall strategy is clearly already Nokia lost opportunities.

Therefore, even if Nokia has already seen this market opportunity, but the slow action make Nokia devoured as soon as.

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