Nokia’s matrix organisation was malfunctioning and its venture with Siemens aimed at network equipment faced severe challenges.
The company also missed an opportunity with smartphones. The aim of switching to a new operating system which would become an ecosystem platform was unsuccessful. Eventually, Google and Apple were the companies that won the ecosystem battle. There was no room left for Nokia, despite its alliance with Microsoft. Nokia simply did not succeed in building a third credible ecosystem.
Currently there is no next Nokia
According to an article on the website of the INSEAD business school, high-ranking executives at Samsung and Huawei have one key worry: they desperately want to avoid becoming the next Nokia.
Nowadays there is similar speculation surrounding Apple. However, Apple, Samsung and Huawei are unlikely to follow the same dire fate of Nokia with its business based on mobile phones.
Their situation today is different to that in which Nokia found itself. There are three industry leaders with a strong starting position in the smartphone business. They also have strong positions in the following areas:
- Samsung: components and home appliance
- Huawei: AI, big data analytics and integrated communication equipment
- Apple: a range of devices and services as described in the previous article
These opportunities may, however, be of different dimensions. Samsung is perhaps the most vulnerable of the three, since the components are not deeply rooted in an ecosystem like services offered by Apple and Huawei.
There are also new competitors providing similar services – traditional telcos and new media companies. So Apple and other major players are by no means doomed but they do have their work cut out.
-jk-