Nokia Loses Big In Competitive Market

In response to Can Celikyilmaz’s blog in “Nokia Is Losing Big In The Competition Of Smartphones,” I developed insight in market competitions and the significance they hold when determining an industry’s attractiveness. In the article, “Nokie Surrounded By Competition,” Nokia’s chief executive states that the company has responded too slowly to the change in demand in the market, while its competitors, Apple and Samsung, have moved on to develop new technologies with which they have gained complete lead in the market share.

In spite of the changes in technology Nokia has recently developed, however, the company is doing poorly in the fierce competition existent in the industry. As illustrated in “The Smartphone Shakeout: Time Is Running Out for a Viable No.3”, smartphone companies struggle to see an increase in the market share due to intense rivalry, which is directly related to the market strategy and Porter’s five forces tool covered in class.

For Nokia to put an end to the endless fall in its market share and total revenue (and profit), its marketers should take a closer look at the industry’s rivalry, and drive a normative statement that suggests an action with which the company will survive in such an “unattractive” cell phone industry.

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