Awful decisions destroys businesses. This can take a whole year to discuss. There are just so many examples. Nokia, Kodak, Blockbuster and hundreds of other businesses. Let’s talk about Nokia for now.
Awful Decisions Destroys Businesses – Nokia Case Study
In the 2000s, Nokia came out to be the largest market shareholder in the mobile phone industry. The brand was so popular that it almost became the “Coca-Cola” of the mobile phone industry. They had a great operating system (before windows) nice-to-use everyday features, handy dimensions, and excellent build quality.
Also, they offered great colors to their audiences which resulted in huge plus to their overall profits. Everything was going well. Nokia had many well-planned features to come in the near future and everyone was working happily to keep “Connecting People”
Bonus Tip: By the end of 2007, almost half of the whole world’s smartphones were made by Nokia.
And then, the “iPhone” came.
When Steve Jobs introduced the iPhone in 2007, Nokia didn’t care about it.
Side Thought: They should have.
The top management didn’t find it worthy to have an all-touchscreen smartphone. They were still interested in having a phone with a physical keyboard.
Some of the middle management thought that they should move to a better OS and a touch screen feature but the top management call them cowards and told them to stick with the agenda (which ultimately came out to drown Nokia in its pride)
Long story short, iPhone gained momentum and become the new rage. People liked what Steve Jobs had to offer and within 6 years, Nokia’s sales declined to over 90%.
Bonus Tip: They still had a chance to regain their momentum and secure their places in consumers’ hearts if they had moved towards Android. But they didn’t and the internal politics resulted in Nokia being destroyed.
It was heart-shattering to see Nokia’s CEO state, “We didn’t do anything wrong, but somehow we lost”
Well, after 10 years, Nokia is revitalized and reintroduced by a team of its previous employees. They are now doing what Nokia “SHOULD HAVE” done in the first place: offering an all-touch smartphone with Android and latest features.
Let’s hope we could all learn something from Nokia.
PS: Almost the same thing happened to Apple when they threw Steve Jobs off-board. But they understood the importance of having a brain like Steve Jobs timely and brought him back, thus saving Apple from becoming another example of great failures.
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