Kenapa Nokia Bisa Bangkrut ? Belajar dari Kegagalan Nokia

Summary

Nokia, once a mobile giant, faced a dramatic downfall due to its slow adaptation to the smartphone era. Despite early success with the Symbian OS, Nokia failed to innovate quickly enough, sticking to outdated technology while rivals like Apple and Samsung surged ahead. Overconfidence and complacency led to a lack of competitive products. The fatal blow came with Nokia's alliance with Windows Phone, alienating them from the popular Android market. The story serves as a cautionary tale about the importance of embracing change, seizing opportunities, and maintaining innovation to stay relevant in a competitive market.

Takeaways

• 📱 Nokia was once a dominant mobile phone company, particularly popular among the 80-90s generation.
• 🌐 Nokia's downfall began with the advent of smartphones, specifically with the introduction of the iPhone in 2007 and the release of Android in 2008.
• 📉 Nokia's market share and profitability declined drastically from 2007 to 2011, leading to negative ROE and ROA ratios.
• 🔄 Nokia failed to adapt quickly to the touch screen revolution and the rise of Android, sticking with their outdated Symbian OS.
• 🏆 Nokia was too complacent in its market leadership, underestimating the threat from competitors like Samsung and Apple.
• 📱 Nokia lacked innovation in product design and features, failing to keep up with the rapid advancements in smartphone technology.
• 📲 The failure of Symbian and the decision to partner with Windows Phone instead of Android were critical strategic mistakes for Nokia.
• 📈 Nokia was slow to respond to consumer demands in the smartphone market, focusing too much on hardware rather than software and applications.
• 📉 Nokia lost significant market share to both high-end competitors like Samsung and Apple, and lower-cost competitors like HTC, Huawei, and ZTE.
• 🏆 Nokia failed to establish a flagship product line that could compete with the likes of Samsung's Galaxy S series or Apple's iPhone.

Q & A

What is the significance of the Nokia story in predicting the future?

The Nokia story illustrates that no one can predict the future with certainty and that even successful companies can fail if they do not adapt to changing market conditions.

What was Nokia's initial product when it was founded?

Nokia was initially established as a rubber company.

How did Nokia transform over its more than 100-year history?

Nokia underwent three major transformations: from a rubber company to a cable company, then to a mobile phone company, and finally towards the era of smartphones.

What was the turning point for Nokia's decline?

The turning point for Nokia's decline was the advent of the smartphone era, marked by the introduction of the iPhone by Apple in 2007 and the release of Android by Google in 2008.

What was Nokia's market position before the smartphone era?

Before the smartphone era, Nokia was a market leader with a significant share and was known for its reliable and popular mobile phones.

Why did Nokia fail to maintain its market position in the smartphone era?

Nokia failed to maintain its market position due to several reasons including being slow to adapt to touchscreen technology, complacency as a market leader, lack of product innovation, failure of Symbian OS, a poor decision to choose Windows Phone over Android, slowness to meet consumer demands in smartphones, and losing market share to competitors in both high-end and mid-to-low-end markets.

What was the role of the Symbian OS in Nokia's decline?

The Symbian OS was a closed system that was not well-received by the market or developers, which contributed to Nokia's decline as it failed to compete with the open and developer-friendly Android OS.

Why was Nokia's decision to partner with Microsoft seen as a mistake?

Nokia's decision to partner with Microsoft for Windows Phone was seen as a mistake because it was a new OS with limited market appeal, and it did not help Nokia differentiate itself positively from its competitors.

What was the impact of Nokia's failure to innovate on its market share?

Nokia's failure to innovate led to a loss of market share as consumers moved towards competitors like Samsung and Apple that offered more innovative and feature-rich smartphones.

What lessons can be learned from Nokia's failure?

The lessons from Nokia's failure include the importance of not resisting change, seizing opportunities, focusing on innovation beyond just hardware, and maintaining a balanced approach to staying competitive as a market leader.

How did Nokia's complacency contribute to its downfall?

Nokia's complacency as a long-time market leader led to an underestimation of competitors and a failure to anticipate the rapid changes in consumer preferences and technological advancements in the smartphone market.

Outlines

00:00

📱 The Rise and Fall of Nokia

This paragraph discusses the unpredictability of the future using Nokia as a case study. Nokia, a company founded in 1865, underwent several transformations from a rubber company to a cable company and eventually a mobile phone company. It enjoyed significant success, especially during the mobile phone era, but failed to adapt to the smartphone revolution. The entry of Apple's iPhone in 2007 and Google's Android in 2008 marked the beginning of Nokia's decline as it clung to its outdated Symbian OS. Market surveys indicated a shift in consumer preference to brands like Samsung, Apple, and Huawei, with only a small percentage of users remaining loyal to Nokia. Financially, Nokia's profitability plummeted, and its return on equity and return on assets turned negative. The reasons for Nokia's failure included a lack of innovation, complacency as a market leader, and poor strategic decisions such as sticking with Symbian and later adopting Windows Phone instead of Android.

05:04

🔍 Lessons from Nokia's Decline

The second paragraph draws lessons from Nokia's failure. It emphasizes the importance of embracing change and seizing opportunities, as Nokia missed the chance to adopt Android and instead chose Windows Phone. The paragraph also stresses the need for continuous innovation, not just in hardware but also in software and services to meet consumer demands. It concludes by advising market leaders to maintain their position by balancing offensive and defensive strategies, much like in football. The video ends with an appeal to the viewers for likes and subscriptions, promising more content in future videos.

Keywords

💡Future

The term 'Future' refers to the time that is to come. In the context of the video, it is mentioned as a mystery with its own secrets, emphasizing the unpredictability of what lies ahead. This is illustrated by contrasting the current success of a company with the uncertainty of its future, as exemplified by Nokia's past dominance and subsequent decline.

💡Nokia

Nokia is a Finnish multinational telecommunications, information technology, and consumer electronics company. The video uses Nokia as a case study to illustrate how a once-successful company can fail to adapt to changing market conditions. Nokia's transition from a rubber company to a mobile phone giant and then its decline in the smartphone era is central to the video's narrative.

💡Transformation

Transformation refers to a significant change in form, appearance, or structure. The video outlines three phases of Nokia's business transformation over more than a century, from a rubber company to a cable company, then to a mobile phone company, and finally towards smartphones. This term is crucial in understanding Nokia's evolution and the challenges it faced in adapting to new technologies.

💡Symbian OS

Symbian OS was a mobile operating system that Nokia used in its smartphones. The video discusses how Nokia's reliance on the outdated Symbian OS contributed to its decline as it failed to compete with the more advanced and open operating systems like iOS and Android. This term is key to understanding Nokia's technological stagnation.

💡Smartphones

Smartphones are mobile phones with advanced features and connectivity. The video highlights the shift to the smartphone era as a pivotal moment when Nokia failed to keep up with the market's demand for innovative and feature-rich devices, leading to its decline.

💡Innovation

Innovation refers to the introduction of new ideas or devices. The video points out Nokia's lack of product innovation as a reason for its failure, contrasting it with competitors like Samsung that regularly released new models with updated features. This keyword is central to the discussion on how companies must innovate to stay competitive.

💡Market Share

Market share is the portion of the total market that a company or product captures. The video discusses how Nokia lost significant market share to competitors like Samsung, Apple, and others, both in the high-end and mid-to-low-end markets. This term is key to understanding the competitive dynamics that led to Nokia's downfall.

💡Windows Phone

Windows Phone was a mobile operating system developed by Microsoft. The video mentions Nokia's decision to adopt Windows Phone as a strategic move that backfired, as the OS did not gain market acceptance, contributing to Nokia's decline. This keyword is important in understanding the strategic errors made by Nokia.

💡Complacency

Complacency is a state of self-satisfaction, especially when coupled with a lack of desire to improve. The video attributes Nokia's downfall partly to complacency, as they were overconfident in their market position and did not perceive the threat from emerging competitors. This term is crucial in the discussion of how companies can fail by underestimating their competition.

💡Flagship

A flagship product is a product that is given special attention and is considered the best representative of a brand. The video notes that Nokia failed to establish a successful flagship series like its competitors, which hurt its brand image and market position. This keyword is important in understanding the branding and marketing strategies of tech companies.

💡Adaptation

Adaptation is the process of adjusting to new conditions. The video emphasizes the importance of adaptation in business, using Nokia's failure to adapt to the smartphone era as a cautionary tale. This term is central to the video's message about the necessity of change and innovation.

Highlights

The future is unpredictable, and even successful companies like Nokia can fail.

Nokia was once a proud brand for many, especially for those born in the 80-90s.

Nokia's history includes transformations from a rubber company to a cable company, and then to a mobile phone company.

Nokia was a market leader in mobile phones, earning a nominal value of 391 trillion Rupiah per year at its peak.

Nokia faced a significant downfall starting in 2007 with the advent of smartphones led by Apple's iPhone and Google's Android.

Nokia's market interest declined as users started shifting to brands like Samsung, Apple, and Huawei.

Nokia's financial performance plummeted from 2007 to 2011, with negative returns on equity and assets.

Nokia's failure has been attributed to seven key reasons, including slow adaptation to change and complacency.

Nokia stuck with the Symbian OS, which was outdated compared to the new touch screen interfaces of competitors.

Nokia's complacency as a market leader led to a lack of innovation and an underestimation of competitors.

Nokia failed to innovate in product design and features, missing out on trends like front cameras and 3G.

The Symbian system was not developer-friendly, contrasting with the open nature of Android.

Nokia's decision to partner with Windows Phone instead of Android was a strategic misstep.

Nokia was slow to adapt to consumer preferences in the smartphone market, focusing too much on hardware.

Nokia lost significant market share to both high-end competitors like Samsung and Apple and lower-cost brands like HTC, Huawei, and ZTE.

Nokia failed to establish a flagship product line that could compete with the likes of Samsung's Galaxy S series or Apple's iPhone.

Lessons from Nokia's failure include the importance of embracing change, seizing opportunities, innovating, and maintaining a balanced market position.

The video concludes with a call to action for viewers to like, subscribe, and look forward to the next video.

Transcripts

No one person can predict a future with certainty.

The future is a mystery, which of course has its own secret

Let's learn together from the failure of a large company called Nokia We

need to know who wins today, this is not necessarily winning in the future

and who those who are happy today are not necessarily happy in the next.

Maybe this is what happened to a company called Nokia

Some of us are certainly familiar, especially the generation born in the 80-90s

We must have heard how proud we are when we hold Nokia's Symbian HP

especially to the PlayStation game consoles it is still difficult to reach. The

N-Gage is still the favorite for playing games.

All Mas counter told him to buy Nokia Nokia Nokia basically

Nokia was founded in 1865 in Finland

its long struggle for more than 100 years was declared over

when in 2013 it fell to its knees in the hand Microsoft

Nokia has been acquired by Bill Gates and friends

If hindsight, there are three phases of the transformation of Nokia's business for more than 100 years of

the First Company was established as a rubber company

then turned into the cable company and then changed again into a mobile phone company

and from a mobile phone toward the era of smartphones or smart phone

Nokia success in two initial transformations, especially when it became a mobile phone

company. Big profit company with a nominal value of 391 trillion Rupiah per year

Disaster came for Nokia, when the third transformation was the era of smart phones

In 2007, Apple announced its first iPhone,

which was followed in 2008 by release of android by Google

Whereas before that, together with BlackBerry they were the two most superpowered cellphone brands

Things changed drastically, the market began to not be interested in Nokia

Even according to a survey conducted by Jia and Yin

in their journal Analysis of Nokia's Decline from a Marketing Perspective

That at that time users Nokia will move on to replace their cellphones with Samsung, namely 35%

Apple 16% Huawei 14% and the rest are other phones.

Meanwhile, users who choose to stay at only 6%

Nokia are getting crazy, according to Pudjiastuti's 2014 study, Nokia's profit fell drastically from 2007 to 2011,

causing its ROE and ROA ratios to change

from positive in 2007 to negative in 2007. 2011

In another journal by Balodia and Professor Sagotia,

there are at least 7 things that caused the failure of

the first Nokia

company Nokia didn't move fast

when Apple introduced the touch screen on the iPhone in 2007

and also Samsung's expansion betting with Android

Nokia barely did big leap, they stick with the Symbian OS

which has been giving big results in a long time for them.

The second reason, they are too complacent.

As a market leader for more than a decade,

Nokia feels normal with other competitors, does not feel that there will be a serious threat from their competitors,

they are still confident in the company's position as the king of mobile phones at that time.

The third reason, the lack of product innovation

when Samsung releases its newest series almost every year

Nokia still relies on its old cell phones,

even these phones are still not equipped with a front camera and don't even have 3G features

even though the Global community at that time was already on the threshold of the 4G phase

when they took steps with Lumia or Microsoft

they didn't make really interesting products. In terms of design language.

The fourth reason, the failure of Symbian and a mistake of a decision

Symbian is not really accepted by the market because Symbian is a closed system

which does not provide a gap for developers, to enter the existing system in Nokia.

This is what makes a difference, especially with Android!

The big jump was made in 2011 by choosing Windows Phone.

This election was based on Nokia's desire to force differences with its competitors.

This election is precisely the opposite of wishes.

The company's condition is down, plus the fact that Windows Phone is an OS new

their products are again not seen by the market

The fifth reason

Nokia is slow to please consumers among Smartphones

Samsung's main smartphones move in line with the development of Android

they know very well how to capture market demand

by developing useful and fast applications in order to pleasing this consumer

which Nokia didn't do

almost they focused on hardware at that time

The sixth and most influential reason

Nokia lost all of its market share

when it was knocked out of the high-end market share with big names like Samsung, Apple, and Sony

Nokia also seems to forget that the market share for the middle to lower class needs to be considered carefully. The

pressure in this market share comes from new brands in that era, namely HTC, Huawei and ZTE

Nokia forgot to realize it and lost both

. The seventh reason, Nokia failed to highlight Its products are in the Flagship class.

As we know, Samsung was very successful with its Galaxy S series,

then Apple succeeded with its iPhone line

while Nokia? they failed to highlight the series that became their mainstay

from the 7 reasons earlier, What can we take from this Nokia failure?

First, do not fight changes, many situations require change.

We cannot stagnate when the change is desired by consumers.

Then secondly, seize every opportunity to do it and make the best use of it

Nokia had the opportunity when it chose Android but missed the opportunity

and gambled with Windows Phone

Go to -3 that the competitive climate forces the latest innovations not to focus solely on hardware development

And the 4th or last one, if you are the market leader

you have to maintain a position like playing football, attack and defend in a balanced way

Alright That's it video this time

Thank you for friends who have watched

I really appreciate it if you click the like button and subscribe to this channel

until you see in the next video