The news of Microsoft acquiring Nokia was big news. It was a surprise for many people as there was a time when Nokia ruled the mobile phone market. Some companies enjoy success and
dominance in the market for quite a long time. Some misfortunes and missteps led to the downfall of the company. Nokia is a company that experienced both.
Before the popularity of smartphones, everybody had a Nokia cell phone with them. However, after some years, Nokia’s competitors overtook the fame and popularity of the company. After
the release of iPhones and Android phones, things turned against Nokia. Nokia had to face huge losses in the next five years after this. At the end of 2012, the smartphone market of the company fell to almost zero.
Here are some lessons businesses should learn from Nokia Lumia.\
● It is a wrong idea to buy a company that manufactures the product you love. You must look for its value in the market before making your purchase decision.
● There will be changes in every business in the future. It can be different from the changes experienced in the past. Therefore do not depend on the success the company enjoyed in the past always for the journey forward. Do not believe that experience will help you build a bright future.
● Companies expecting a failure may use many excuses like a new strategy, going through a transition phase, using new opportunities, etc. The thing you should do is to avoid such companies.
● The advancing technologies are mostly beneficial to customers rather than the creators. Technology has gotten extremely affordable over the years. Therefore, businesses must use these technologies.
● It is not good for businesses to stay away from competition. These companies are sure to experience some bad luck.
● If your company finds anything troubling them, try to find the solution to it at the earliest. Nokia was facing a bad phase for quite a long time without realizing that it would cause them their doom.
● It is hard for companies to bring back trust once gone. Nokia Lumia had a strong customer base who trusted the company. However, they could not maintain the trust their customers kept in them. Companies must not forget their existing customers in finding new ways to attract new customers.
● When companies become successful and profitable, there is a high chance of them becoming bureaucratic, which will eventually lead them to failure. Therefore, investors must ensure that they do not always go behind the size of the company.
● Long waits can be knells for your company. Instead of waiting to get things better, it is better to take the next step instantly. The wait can make the situation worse.