The history of Nokia is one of the most striking illustrations of how the largest corporations in the world can fall out of favor in case they do not evolve. Nokia was the mobile phone king at some point. Nokia was owned by almost everyone and was trusted with the strength, durability and reliability of the device.
Their mobile phones were ubiquitous. Nevertheless, in a short span of time, they lost their leadership to such firms as Apple and Samsung. This up and down was a startling lesson to many, and to me it was a very profound one. I read about the Nokia story and I learned ten obvious things that all entrepreneurs and owners of businesses should learn. All these are not phone lessons, but business, growth, and survival lessons.
The innovation lesson is the first one. Nokia had been too slow in adopting new technology. They also did not like the new style of phones, which was sweeping over the world but in the place of smartphones. This error demonstrates to us that innovation should not be overlooked. In business, regardless of how excellent your product is now, you need to continuously develop it since the needs of the customers will never remain the same. When this comes to me, I realize that my personal little accomplishments can easily become extinguished when I cease being creative and reaching out to new ideas.
The other lesson that is big is to listen to customers. Nokia had assumed that since people previously loved their phones, they would continue to love them always. However, customers already began to demand more sophisticated features such as touchscreens, the internet and apps. The company was not paying due attention. It is an alert to all business owners, your customers are your compass. Failure to heed their demands would mean someone will satisfy those needs and you will be the loser.
Their downfall was also caused by overconfidence in Nokia. They thought that they were not touchable due to their massive success. This blinded them on the emergence of competitors. Pride is extremely dangerous in business. An entrepreneur has to be humble and be ready even when things are doing well. The overconfidence will cause you to slack too much yet, the market is still on a roll. That is why I always keep in mind not to become careless because of some small wins.
Another lesson is the rate of adoption of change. Nokia acted too slowly to change their software and their operating systems. The moment they took the action, it was too late since Apple and Samsung had taken the market. Delay in business is as bad as failure. Things are always changing and only the people who react fast are the ones who survive. Personally, I think it is preferable to give something new a chance and fail than to take too much time and miss the opportunity all together.
It is also the leadership which contributed to the fall of Nokia. Their leaders were not able to take bold decisive actions when the market changed. Even the most powerful business may fail without the work of strong leaders. A company requires leaders who are innovative, adaptable and visionary. This helps me to remember that as an entrepreneur I am supposed to be able to make hard decisions and not to live within comfort zones only.
One other important lesson is learning through competitors. Nokia was not studying Apple and Samsung but undervalued them. They should have listened, so they could have seen what the industry was leading. Competitors are not threats only, they are also teachers. Observing what other people do in any business will enable you to see opportunities and avoid errors. One can do well to observe, learn and then improve your own strategy.
Another thing that Nokia did wrong was relying on its success in the past. They believed that their glory in the past was going to take them into the future. However, customers do not remain loyal to the memories rather they demand better experiences. However, in business you should celebrate your victories, but you also have to plan in advance. What was effective yesterday might not be effective tomorrow so it is hazardous to remain in the past.
Nokia was also too preoccupied with the hardware and did not pay attention to the significance of software. Their phones were powerful, had good batteries and could last several years. But more was desired by people, they desired intelligent applications, web capabilities, and refined programs. This demonstrates that clients seek total experience, and not tangible merchandise. This is what it amounts to in the present day of businesses, you should not look as far as the surface. It is not only selling the product but also the packaging, service, after sale services, and customer relationship.
The other important lesson is to be future-minded. Nokia was not thinking far into the future. They paid too much attention to their current success and failed to plan how mobile technology would be in the future. Any business has to pose a question; where is my industry moving within the next five or ten years. How do I prepare for that future? Future-mindedness can ensure businesses are ready and relevant even where there are changes in the times.
Lastly, technology has also been one of the primary causes of the decline of Nokia. They never adjusted to the Android operating system, which took over as the world standard. This indicates that technology is the key to the success of no modern business.
Be it digital marketing, online customer interaction or software tools, technology is the key to survival and expansion. Personally, I have been able to learn that technology is a time saver, provides new prospects, and keeps me in touch with the customers. Covering up on it is tantamount to living in the past.
Nokia failure is not simply a tragedy of a collapsed giant- it is a lesson to anybody who wishes to establish a sustainable business. They are teachings that can be used in a large and small business.
Reading about the Nokia story, I understand that there is no business that is too large to go down. Meanwhile, there is no business that could be too small to be successful. It is all in the manner you are handling change, customers, competition and innovations.
When we put all this into action, then we will be able to create successful businesses that cannot just survive but prosper in this rapidly evolving world. The collapse of Nokia is a lesson that maybe we should never be complacent with success because learning and change has the power to provide us with a sustainable advantage.
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