Linked by Thom Holwerda on Tue 16th Apr 2013 16:37 UTC
Windows Microsoft's Terry Myerson, corporate vice president of Windows Phone, talks about the competition. "With iPhone, I sense that it's running out of steam. With iOS, [Apple] just added a fifth row of icons. Android is... kind of a mess. Look at Samsung - there's clearly mutiny going on. The only OEM making money off of Android is Samsung." There's truth to all these statements, which makes it all the more surprising that Microsoft appears to be unable to properly capitalise on them. Sure, WP appears to be doing well in a few select markets, but by no means the kind of success Microsoft and (Nokia) was banking on. Microsoft will pull through. Nokia on the other hand...
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RE: Nokia is ready for Hospice
by hhas on Wed 17th Apr 2013 11:49 UTC in reply to "Nokia is ready for Hospice"
hhas
Member since:
2006-11-28

Then Elop burned the platform. The one the company was standing on. And said they would go Windows Phone.


As a rookie CEO, Elop made one of the great classic mistakes in business: announcing a new product to replace its existing product way before the new product was actually ready to ship, aka the Osborne Effect (http://en.wikipedia.org/wiki/Osborne_effect).

He was absolutely right that Symbian was nearing the end of its useful life while the competition was accelerating ahead buoyed by Android and iOS. But this is not something you want to shout out loud so you panic the shareholders and lose customer confidence.

Switching to Windows Phone wasn't the problem, nor was burning Symbian; both were solid business decisions and (IMO) the best choices under the circumstances. The mistake was doing them in totally the wrong order: Elop should've waited till the Nokia+WP platform was hitting the shelves, then set fire to the dreary old Symbian platform to get all the existing Nokia customers to jump to its exciting new WP platform, instantly bootstrapping the whole show. But without that new platform to jump to, existing Nokia customers naturally bailed for the next nearest option: its competitors products instead.


Like I say, a noobie error. Elop's really quite lucky to have kept his job, but I guess all the damage was done so Nokia didn't have much alternative than to tough it through and hope that his long-term vision would make up for his short-term strategy blunder. And it's certainly possible to bring a company back from much worse: look at the remarkable Jobs Mk2 turnaround of Apple, for example. Now that Nokia's new WP products are out, they certainly deliver on their original promise in technical terms, e.g. the 620 gets top reviews and is an absolute steal at the price. But as I said in an earlier post, the real challenge now for Nokia is convincing customers exactly why they want a Nokia phone instead of one of the 'safer' (i.e. Android-based) options.

And since they can no longer rely on customers to buy Nokia phones just because they're Nokia (at least not until the brand itself is fully rebuilt), they are really going to have to work hard on their presentation and sales tactics. This is especially the case on third-party shop floors, where they seriously need to take a leaf out of Apple's marketing manual, don a pair of brass ones, and loudly promote their handsets' 'differentness' as a feature rather than a risk. Which means ponying up for dedicated displays to show their entire lineup as a strong, coherent identity, rather than leaving stores to spread their products across their shelves according to price point, leaving them swamped by a sea of me-too Android devices.

And I think this'll be Elop's real test, because if he can be half the sales tactician the post-wilderness Jobs was then I think both Nokia the company and Nokia the brand will eventually bounce back just fine. If not, eh, time will tell.

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