Nokia is a dominant global wireless force, but it is losing their market very in the U.S. market, and very fast. The company’s share was in 20% two years ago and dropped to 7%. There were two problems that made them not work so well. The First was that the American wireless technology is CDMA which is well made by Korean cellphone companies. The second and the major problem was that AT&T and Verizon Wireless companies are the dominant wireless carriers in a point that the cellphone companies have to work through them in order to succeed. The second problem was the one that brought them down because they didn’t want to be under the control of their competitors. Now, they say they are changing their strategy in the US market first by entering in partnership with AT&T and Verizon and moving their sales force to places near to their headquarters. They also increased their investment in R&D to make products unique to the US market.
I think that Nokia made a huge mistake entering the US market with such a mentality. Even though it is a leading company in a global level, letting their proud intervene in a new international business was not an intelligent action for such an experienced action. By this fact, I remembered Prof. Abraham’s lecture, when he told us that Disney failed when they tried to enter to France and didn’t let them invest in the amusement park because of their proud and totally failed. I think that when entering into a new market is very risky to any company in the world. It is an unknown environment that you have to learn. Just because it is company it doesn’t mean you don’t have risks, and such a successful company should know by their experience that this is a fact and applies even for them. At least it is good thing that they didn’t end up with depts, and are able to try again.
20600642 entry #7
