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    Entrepreneuria L Small Business: Individual Assignment 1

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    Tên Hay Thế
    This document analyzes the reasons for the failures of Nokia and Blackberry. For Nokia, key reasons included not recognizing the threat from Apple's iPhone, pursuing the wrong development strategy with Symbian and Meego operating systems that did not meet customer needs, and partnering too late with Microsoft. For Blackberry, main factors were the rapid development of competitors like iPhone and Android phones, sticking with physical keyboards instead of virtual keyboards, and not adapting to consumer tastes. Both companies failed to keep up with technological trends, give customers differentiated products, and understand shifting market demands.

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    Entrepreneuria L Small Business: Individual Assignment 1

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    Tên Hay Thế
    45 views6 pages
    This document analyzes the reasons for the failures of Nokia and Blackberry. For Nokia, key reasons included not recognizing the threat from Apple's iPhone, pursuing the wrong development strategy with Symbian and Meego operating systems that did not meet customer needs, and partnering too late with Microsoft. For Blackberry, main factors were the rapid development of competitors like iPhone and Android phones, sticking with physical keyboards instead of virtual keyboards, and not adapting to consumer tastes. Both companies failed to keep up with technological trends, give customers differentiated products, and understand shifting market demands.

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    This document analyzes the reasons for the failures of Nokia and Blackberry. For Nokia, key reasons included not recognizing the threat from Apple's iPhone, pursuing the wrong development strategy with Symbian and Meego operating systems that did not meet customer needs, and partnering too late with Microsoft. For Blackberry, main factors were the rapid development of competitors like iPhone and Android phones, sticking with physical keyboards instead of virtual keyboards, and not adapting to consumer tastes. Both companies failed to keep up with technological trends, give customers differentiated products, and understand shifting market demands.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views6 pages

    Entrepreneuria L Small Business: Individual Assignment 1

    Uploaded by

    Tên Hay Thế
    This document analyzes the reasons for the failures of Nokia and Blackberry. For Nokia, key reasons included not recognizing the threat from Apple's iPhone, pursuing the wrong development strategy with Symbian and Meego operating systems that did not meet customer needs, and partnering too late with Microsoft. For Blackberry, main factors were the rapid development of competitors like iPhone and Android phones, sticking with physical keyboards instead of virtual keyboards, and not adapting to consumer tastes. Both companies failed to keep up with technological trends, give customers differentiated products, and understand shifting market demands.

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    Download as docx, pdf, or txt
    of 6

    ENTREPRENEURIA

    L SMALL BUSINESS
    INDIVIDUAL ASSIGNMENT 1
    Identifying the reasons behind the failures of
    Nokia and orBlackberry

    Class: FIN0803
    Name: Phan Th Cm
    ID: SB01265

    I.

    Introduction
    1. Nokia
    Nokia

    Corporation

    is

    a Finnish multinational communications

    and information technology company. For a period, the largest vendor


    of mobile phones in the world. Nokia's dominance also extended into
    the smartphone industry through its Symbian platform, but it was
    soon overshadowed by the growing dominance of Apple's iPhone line
    and Android devices.

    Nokia

    eventually

    entered

    into

    pact

    with Microsoft in 2011 to exclusively use its Windows Phone platform


    on future smartphones. In September 2013, Microsoft announced that
    it would acquire Nokia's mobile phone business as part of an overall
    deal totaling 5.44 billion.

    2. Blackberry
    BlackBerry is a line of wireless handheld devices and services designed
    and marketed by BlackBerry Limited, formerly known as Research In Motion
    Limited (RIM). Specializing in secure communications and mobile productivity. The
    consumer BlackBerry Internet Service is available in 91 countries worldwide on over
    500 mobile service operators using various mobile technologies. As of September 2013,
    there were 85 million BlackBerry subscribers worldwide. That number has dropped
    steadily, down to 46 million in September 2014.

    II.

    Reason behind the failures


    1. Nokia
    SWOT of Nokia 2011
    Strengths (S)
    + There are advantages of brand
    + Diversity Product
    + Good customer care Service
    + Good supply chain
    + R & D be invested
    + Strong financial resources
    + Owning many patents have value

    Weaknesses (W)
    +
    Not enough to meet
    customer demand
    + Symbian OS

    losing

    preference from customers


    + Revenues are serious
    decline
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    Phan th Cm SB01265

    Entrepreneurial Small Business

    + Products offered by the company


    are available in all price ranges.
    Opportunities (O)
    +

    Expanding

    cooperation

    Threats (T)
    with + Competitors increasingly

    partners

    strong

    + The market appeared new consumer + Technology changes.


    trends (touch phone, large screen..)
    There are many strengths and opportunities, even Nokia has
    been the leading companies in the financial factor, distribution
    systems, manufacturing, marketing. But Nokia have made a big
    mistake leads to the inevitable failures.
    Not catch up phone trends: Nokia is not catching up trend
    clamshell phone, used to popular in the US and many other markets
    early last decade. The unable to launch custom phone line in US
    market, it lead to difficult cooperation with telecom operators and as a
    result it lose US market.
    Nokia does not recognize the threat from Apple: When
    iPhone suddenly appeared, shaking the market and change the
    perception of people about smartphones. And Nokia is still occupied
    the top with a market share ahead of rivals and not recognize the
    danger coming. Nokia starting lose their position.
    Wrong development strategy and inconsistent with the
    needs and tastes of customers: when the technical camera,
    hardware, product size, ... has become popular, it is not much
    different,

    the

    operating

    system

    become

    key

    issue

    in

    competitiveness. Previously, users accept Symbian because it is not


    inferior to other platforms. But the iPhone launch, Symbian instantly
    become old product, not dynamic. As Nokia is not able to respond,
    they continue to be threatened by the rise of Google Android. Nokia
    got a big mistake when Nokia Continue to develop Symbian OS and
    cooperate with Intel developing Meego OS. And two operating systems
    are no point highlights to attract users and compete with other
    operating systems. At that time, the iOS has 35,000 applications on

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    Entrepreneurial Small Business

    the AppStore and Android are leading with 200,000 applications in the
    Android Market, while the number of applications that Meego provides
    only a few hundred. This is a critical mistake in the analysis and
    selection has led Nokia lagging too far to rivals. Nokia's next mistake
    was embarking Microsoft produce Lumia phones running on Windows
    Phone operating system to compete with other smartphones. In this
    time the IOS and android operating system was too strong and it really
    difficult for a new operating system go into the market and it is hard
    for customer use new operating system which is not too special and
    attractive. Windows Phone 7 launch. A few months after Microsoft
    introduced Windows Phone 8 platform and does not support the
    previous generation products. By this time Nokia enters crisis and
    failure.

    2. Blackberry
    SWOT Blackberry 2013
    Strengths (S)
    Weaknesses (W)
    + Highly secure phones
    + Inability to market the brand
    + Strong focus on narrow
    + BlackBerry OS
    customer segment
    + Highly dependent on government
    and corporate contracts
    + Poor presence in the tablet market
    Threats (T)

    Opportunities (O)

    Growth of tablet and + Rapid technological change


    + Saturated smartphone markets in
    smartphone markets
    +

    + Strong growth of mobile developed countries


    advertising market
    +

    Increasing

    demand

    Increased

    competition

    for

    of government contracts

    cloud based services


    The

    development

    of

    the

    competitors:

    The

    rapid

    development of iPhone and phones running Android accounted largely


    market of blackberry. Blackberry has released its products to compete
    but it is not strong enough and cannot approach user leads to failure.

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    Is not catch trends of technologies: RIM has decided to


    stick with physical keyboards on all devices. As for Apple and Android
    soon realized the new virtual keyboard technology is the optimal
    choice of the user. The results of the competition, BlackBerry become
    antiques; blackberry browser slow and cannot compare with browser
    of IOS and the Android offers. Blackberry app store is poor.
    Not interested in consumer tastes: in a long time, the
    business strategy of RIM phones has succeeded because the company
    aims to target customers are enterprises, or more precisely the
    business community. But as more competitors jump on threatened this
    business, RIM failed to predict consumer trends in the future. not
    interested in changing the user's guide and RIM cannot renew itself.

    III. Conclusions and solutions


    In generally, we can see that the failure of Nokia and
    blackberry have a number of similarities; too strong growth of
    competitors, not catch up technological trends (especially is OS
    obsolete inappropriate with current trends). Giving the wrong strategy
    and not caught in the tastes of consumers. and finally, the product
    creates no superiority and differentiation to attract consumers.
    To overcome this failure, Nokia and blackberry have to more
    effort in understanding of market trends, catching up technology to
    create products that are highly competitive, attract more users.
    besides to identify their market segment to have products fit the
    market segment and can then apply appropriate strategies. Make a
    product with high creativity, innovation and pricing strategy fit with
    the value of the product.
    For example: Nokia may use their strengths to create high
    quality products with good design and use android operating.
    Blackberry identified two segments of market business users and
    individuals to be able to create diversified products and suitable to
    each market in order to increase their market size

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    IV. Reference
    Nokia Wiki - Available at: <https://en.wikipedia.org/wiki/Nokia>
    BlackBerry Wiki - Available at: <https://en.wikipedia.org/wiki/BlackBerry>
    5 sai lm ln y Nokia st vc thm - 15/6/2012 - Available at:

    <http://sohoa.vnexpress.net/tin-tuc/doi-song-so/5-sai-lam-lon-dayNokia-sat-vuc-tham-1544949.html>
    Nokia v ci gi cho vic ng qun trn chin thng - 11/2/2013 -

    Available at: < http://vneconomy.vn/cuoc-song-so/Nokia-va-cai-giacho-viec-ngu-quen-tren-chien-thang-20130211103929803.htm>


    V sao ngi dng ngonh mt vi BlackBerry - 20/7/2012 - Available
    at: <http://www.thongtincongnghe.com/article/36858>
    V sao BlackBerry tht bi - 1/10/13 - tinhte.vn - Available at:
    <https://tinhte.vn/threads/vi-sao-blackberry-that-bai-mot-cau-chuyenduoc-ke-tu-ben-trong.2182642>

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