Disruption business is real. It triggers a new perspective on business and marketing. Nokia CEO, Stephen Elop, cried. “We did not make any mistake, but somehow, we lost”. It happened during a press conference announcing the acquisition of Nokia by Microsoft in 2013. As he said that, all the management team, including himself, cried sadly.
In the GSM generation, Nokia is the market leader in the world. In 2007, Nokia controlled 50% of the world’s mobile market. Furthermore, since 2010, Nokia market continues to fall to 3.1%.
Good Business in Disruption World
Until now, the Nokia brand still has a positive brand association. Nokia does not make broken products. The product is in line with quality expectations. Nokia also has good after-sales service, such as warranty. a good resale value in its Symbian Class Category.
Nokia has great innovations. Its famous products are easier and comfortable to wear. Loud noise – from monophonic to polyphonic to sounds of the sound system. Nokia pioneered technology that is user-oriented, user-friendly products. The motto, the technology that understands you. The Nokia snake game on the HP screen is a great idea in its day. It’s an idea that meets the human need to play.
But in fact, it is not enough to keep his business. Nokia has performed well in its business to become the most popular Symbian mobile phone. But the market trend has shifted. Although Nokia is the best Symbian mobile phones, the trend moves to the blackberry and then to the Android and iPhone types. Nokia tried to take up making products such as Blackberry, Android, and iPhone, but could not stem the development of Samsung and iPhone.
Late to Respond Market Change
Develop business on one category products is not enough without considering the market change. Later realized, Nokia stuck on innovative features improvements to existing products and services. While other companies are moving in the other direction, that is reacting to the innovation apple that offers smartphone products in 2007 with touchscreen features and thousands of applications. Samsung reacts quickly to the category of this smartphone by presenting Android-based smartphone in 2010. While Nokia updates Symbian software by launching Symbian 3, but not popular. Two years later, in 2012, Samsung became the market leader, defeating Nokia, grabbing the world’s largest market share in the mobile phone field. Nokia, the company that once ruled this mobile phone market gradually abandoned the market.
What happens to Nokia is late in reacting to a market that is experiencing a change of interest in the category of product category of Symbian to Android and iPhone category. Conventional Symbian categories that previously met the market need for communication became irrelevant, as the market opted for a new category of communication needs.
In the disruption business, we need to update marketing program that easy and fast to adjust behavioral market change. We need market intelligence, market research that sensitive to market change. Value proposition and business model offer that flexibility.