Dt: 18 June 2012
There was a time as a kid when I felt that mobile phones were only manufactured by one company.NOKIA.The familiar start up tone.The graphical image of two hands coming together.And the famous tagline 'Connecting People'.Now at that age if I had also been investing in stocks, then I would have surely picked stocks of Nokia ..an ever prospering company with a future so bright that growth could be taken for granted.
But in comes a company named Samsung which is apparently not satisfied with its TV and electronics business and wants to venture into mobile phones.Within a period of less than a decade this organization just steals the thunder from Nokia in India's cellphone market .India where people at one time used to only use Nokia and would not even bother to think of another brand.
So what made people change their mindsets.Firstly its the pricing .In the Asian markets where the consumer base is large, pricing is the main decisive factor influencing consumer preferences.So when you paid 5 grand for a Nokia candy bar phone and u could get the touch screen samsung phone for about the same price,the novelty of touch coupled with pricing ensured sales for Samsung.But it was not only the pricing but the quality which Samsung delivered over the years which meant that Nokia suddenly lost considerable ground in a market where it had a monopoly of sorts.
So what did Nokia do wrong .Were they too confident about their products.Were they too casual in their approach or something else.Whatever may be the reason they were stunned.Even today Nokia's quality of products cannot be questioned but they have suddenly fallen behind in the technology race . Nokia has announced around 10,000 job cuts something which is not worthy of a big organization and which is a clear indicator that this organization is on its slide.
Association with Microsoft is being touted as the next big thing for Nokia.Only time will tell how much Nokia will benefit out of this.In time they may still be able to cover up some lost ground .But once the monopoly has been broken they can no longer command the same price in the Market.
Note:If you are a Nokia fan and hate this article don't curse me coz I use a Nokia even today.