Saturday, June 16, 2012

An open letter to the CEO of Nokia Stephen Elop

I am writing this letter in light of an article which I read here 
I was not very shocked to learn that the company is at the risk of going out of business within next two years by the current trend of things. I don’t blame the analysts who are predicting Nokia’s doom as that seems to be the popular market sentiment. Most of these so called analysts follow the herd mentality and just try to fit in their assessment in line with big guys in business. So Stephen if I were your lead strategist then I would say that the problems you are facing is :
Sales are down:
Nokia is not selling enough phones (btw I could have used a lot of jargon from my business strategy lectures but lets just spare those for some time shall we!)
So what went wrong that suddenly the best phone maker in the world can’t seem to find the right combination? Iphone happened, IOS happened and then Android happened. Apple changed the game by bringing in computer like comparison to phones. So now people care about specs and OS.

So my whole argument is that Nokia is at this position today because Nokia was in love with its operating system and/or are too arrogant to accept that it’s not the popular one in the market. All companies had their own OS but companies those who are doing well in the market are those who adapted to the change. Why is Samsung successful? It’s because they are selling android phones which can do a lot of things. I am sure nokia can still get in the race by just doing one thing. They need to release android phones. Just think of a Lumia with Android or all those N series phones with Android! That’s the winner combination. If you could have launched the NFC thingy with Android you would have had a killer phone. Iphone had an inherent deficiency built into their phones …. They are damn costly, and I am not kidding when I say that there are a lot of people who want those features at lesser cost and they would love to flaunt a Nokia instead of any other!
All this cost cutting and austerity measure and shutting shops is not going to get you anywhere. Efficient plumbing is not an answer to drought situation!!! You need to make it rain. Improve your Top Line.
I am sure this seems as a defensive strategy but I am very sure that this would keep the cash register ringing so that you can try out those game changing experiments.
Just in case you want some more details you can find me here!

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