ENTREPRENEURIA

L SMALL BUSINESS
INDIVIDUAL ASSIGNMENT 1
Identifying the reasons behind the failures of
Nokia and orBlackberry

Class: FIN0803
Name: Phan Th Cm
ID: SB01265

I.

Introduction
1. Nokia
Nokia

Corporation

is

a Finnish multinational communications

and information technology company. For a period, the largest vendor

of mobile phones in the world. Nokia's dominance also extended into
the smartphone industry through its Symbian platform, but it was
soon overshadowed by the growing dominance of Apple's iPhone line
and Android devices.

Nokia

eventually

entered

into

pact

with Microsoft in 2011 to exclusively use its Windows Phone platform

on future smartphones. In September 2013, Microsoft announced that
it would acquire Nokia's mobile phone business as part of an overall
deal totaling 5.44 billion.

2. Blackberry
BlackBerry is a line of wireless handheld devices and services designed
and marketed by BlackBerry Limited, formerly known as Research In Motion
Limited (RIM). Specializing in secure communications and mobile productivity. The
consumer BlackBerry Internet Service is available in 91 countries worldwide on over
500 mobile service operators using various mobile technologies. As of September 2013,
there were 85 million BlackBerry subscribers worldwide. That number has dropped
steadily, down to 46 million in September 2014.

II.

Reason behind the failures

1. Nokia
SWOT of Nokia 2011
Strengths (S)
+ There are advantages of brand
+ Diversity Product
+ Good customer care Service
+ Good supply chain
+ R & D be invested
+ Strong financial resources
+ Owning many patents have value

Weaknesses (W)
+
Not enough to meet
customer demand
+ Symbian OS

losing

preference from customers

+ Revenues are serious
decline
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+ Products offered by the company

are available in all price ranges.
Opportunities (O)
+

Expanding

cooperation

Threats (T)
with + Competitors increasingly

partners

strong

+ The market appeared new consumer + Technology changes.

trends (touch phone, large screen..)
There are many strengths and opportunities, even Nokia has
been the leading companies in the financial factor, distribution
systems, manufacturing, marketing. But Nokia have made a big
mistake leads to the inevitable failures.
Not catch up phone trends: Nokia is not catching up trend
clamshell phone, used to popular in the US and many other markets
early last decade. The unable to launch custom phone line in US
market, it lead to difficult cooperation with telecom operators and as a
result it lose US market.
Nokia does not recognize the threat from Apple: When
iPhone suddenly appeared, shaking the market and change the
perception of people about smartphones. And Nokia is still occupied
the top with a market share ahead of rivals and not recognize the
danger coming. Nokia starting lose their position.
Wrong development strategy and inconsistent with the
needs and tastes of customers: when the technical camera,
hardware, product size, ... has become popular, it is not much
different,

the

operating

system

become

key

issue

in

competitiveness. Previously, users accept Symbian because it is not

inferior to other platforms. But the iPhone launch, Symbian instantly
become old product, not dynamic. As Nokia is not able to respond,
they continue to be threatened by the rise of Google Android. Nokia
got a big mistake when Nokia Continue to develop Symbian OS and
cooperate with Intel developing Meego OS. And two operating systems
are no point highlights to attract users and compete with other
operating systems. At that time, the iOS has 35,000 applications on

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the AppStore and Android are leading with 200,000 applications in the
Android Market, while the number of applications that Meego provides
only a few hundred. This is a critical mistake in the analysis and
selection has led Nokia lagging too far to rivals. Nokia's next mistake
was embarking Microsoft produce Lumia phones running on Windows
Phone operating system to compete with other smartphones. In this
time the IOS and android operating system was too strong and it really
difficult for a new operating system go into the market and it is hard
for customer use new operating system which is not too special and
attractive. Windows Phone 7 launch. A few months after Microsoft
introduced Windows Phone 8 platform and does not support the
previous generation products. By this time Nokia enters crisis and
failure.

2. Blackberry
SWOT Blackberry 2013
Strengths (S)
Weaknesses (W)
+ Highly secure phones
+ Inability to market the brand
+ Strong focus on narrow
+ BlackBerry OS
customer segment
+ Highly dependent on government
and corporate contracts
+ Poor presence in the tablet market
Threats (T)

Opportunities (O)

Growth of tablet and + Rapid technological change

+ Saturated smartphone markets in
smartphone markets
+

+ Strong growth of mobile developed countries

advertising market
+

Increasing

demand

Increased

competition

for

of government contracts

cloud based services

The

development

of

the

competitors:

The

rapid

development of iPhone and phones running Android accounted largely

market of blackberry. Blackberry has released its products to compete
but it is not strong enough and cannot approach user leads to failure.

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Is not catch trends of technologies: RIM has decided to

stick with physical keyboards on all devices. As for Apple and Android
soon realized the new virtual keyboard technology is the optimal
choice of the user. The results of the competition, BlackBerry become
antiques; blackberry browser slow and cannot compare with browser
of IOS and the Android offers. Blackberry app store is poor.
Not interested in consumer tastes: in a long time, the
business strategy of RIM phones has succeeded because the company
aims to target customers are enterprises, or more precisely the
business community. But as more competitors jump on threatened this
business, RIM failed to predict consumer trends in the future. not
interested in changing the user's guide and RIM cannot renew itself.

III. Conclusions and solutions

In generally, we can see that the failure of Nokia and
blackberry have a number of similarities; too strong growth of
competitors, not catch up technological trends (especially is OS
obsolete inappropriate with current trends). Giving the wrong strategy
and not caught in the tastes of consumers. and finally, the product
creates no superiority and differentiation to attract consumers.
To overcome this failure, Nokia and blackberry have to more
effort in understanding of market trends, catching up technology to
create products that are highly competitive, attract more users.
besides to identify their market segment to have products fit the
market segment and can then apply appropriate strategies. Make a
product with high creativity, innovation and pricing strategy fit with
the value of the product.
For example: Nokia may use their strengths to create high
quality products with good design and use android operating.
Blackberry identified two segments of market business users and
individuals to be able to create diversified products and suitable to
each market in order to increase their market size

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IV. Reference
Nokia Wiki - Available at: <https://en.wikipedia.org/wiki/Nokia>
BlackBerry Wiki - Available at: <https://en.wikipedia.org/wiki/BlackBerry>
5 sai lm ln y Nokia st vc thm - 15/6/2012 - Available at:

<http://sohoa.vnexpress.net/tin-tuc/doi-song-so/5-sai-lam-lon-dayNokia-sat-vuc-tham-1544949.html>
Nokia v ci gi cho vic ng qun trn chin thng - 11/2/2013 -

Available at: < http://vneconomy.vn/cuoc-song-so/Nokia-va-cai-giacho-viec-ngu-quen-tren-chien-thang-20130211103929803.htm>

V sao ngi dng ngonh mt vi BlackBerry - 20/7/2012 - Available
at: <http://www.thongtincongnghe.com/article/36858>
V sao BlackBerry tht bi - 1/10/13 - tinhte.vn - Available at:
<https://tinhte.vn/threads/vi-sao-blackberry-that-bai-mot-cau-chuyenduoc-ke-tu-ben-trong.2182642>

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