…DESIGNED FOR INNOVATION
Nokia was the first mobile phone
manufacturer to realize in the late 1990s that phones no
longer played only a functional role; they were also
becoming fashion symbols. Until Nokia began emphasizing the
design aspect, mobile phones were bulky, bricklike devices
with an external antenna and a standard keypad.
Manufacturers emphasized functionality over aesthetic
appeal.
Nokia broke new ground in 1999, when it launched its 8200
handset on the catwalk at a Paris fashion week. The phone
was a tremendous success and for Nokia, there was no looking
back. Following up on its success with the 8200 series, the
company regularly brought out phones that were considered
design marvels and impressed customers with their trendy
looks. This helped the company create a cult-like following
in the market, which helped it become the top mobile
manufacturer in the world… |
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…EFFORTS AT RECOVERY
Soon after announcing disappointing results in the first quarter of
2004, Nokia realized that it was in trouble and began to take steps
to correct matters. The company not only cut prices on certain
handsets to increase market share, but also fine-tuned its portfolio
to adjust products to meet market needs. It killed some outmoded
models and brought forward the launch of several others, including a
number of clamshell phones…
…A CHALLENGING FUTURE
Despite Nokia’s laudable efforts in the direction of recapturing its
lost market position, the opinions of analysts on its turnaround
were mixed. While the company’s detractors believed that Nokia had
lost its competitive advantage in the mobile phone market, its
supporters said the company’s inherent strengths and stable
financial position would help it sail through the difficulties it
had faced in 2003-2004 to recover in the future. However, most of
them agreed that the mobile phone industry was undergoing a vast
change...
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