see the original site I created for this blog at http://blogs.ubc.ca/hugelessonfornokia/

To modern technology industrials and companies arena, the keystone of the success of a company is not simply relying on their innovations anymore, but their marketing strategy and their fast reacts to the unpredictable global marketplace. After reading the article “Why Nokia’s marketing strategy failed” by Peter Sandeen, I could not help myself thinking about the differences between two companies that have gone diverging situations—Nokia and Apple.

Nokia, the pioneer in the telecommunication and innovative technologies, had been bought by Microsoft for preventing them from bankrupting. According to all the research that I did for them, their failure could primarily blame the uncertainty of their goals or, in another word; they did not identify their value propositions correctly. Thought back ten years ago, Nokia was the limelight among all the mobile devices; my dream was to have a latest model of Nokia rather than iPhones.

The recession of Nokia can track back to that they fail to “communicate” with their consumers and convey the messages and reasons why they need the buy Nokia’s products instead of others’. This was a huge lesson that Nokia cannot afford. In contrast, Apple focuses on building their value propositions; they take the whole Apple families as a whole and provide a number of great reasons for customers to purchase their products. They eliminated all the unimportant opportunities to concentrate on their customer’s satisfaction. Taking iPad as an example, 32% of their users use it constantly while 42% users saying that they use it at least once a day. The high level engagement of the customers in the Apple stores and Apple devices provides Apple with much higher consumer loyalty.

According to these articles, I figured out that value proposition is just as important as the soul of a human. A company needs to do it correctly in order to attract their clients continuously. Most companies chose to do it in a singular way which means they only choose one area that they can be the “best” to beat all the competitors. However, missing the boat in evaluating themselves can directly lead to failures.

References:

Deng, J. (2013, September 23). Apple’s value proposition. Retrieved from http://blogs.ubc.ca/junyuandeng/2013/09/29/apples-value-proposition/

Sandeen, P. (n.d.). Why Nokia’s Marketing Strategy Failed. Retrieved from http://www.petersandeen.com/nokia-marketing-strategy-fails/