Saturday, August 10, 2019

Difficulties and Challenges of Nokia Company Essay

Difficulties and Challenges of Nokia Company - Essay Example From this study it is clear that net cash and value of liquid assets declined by $2 billion year-on-year, while it decreased by $9 billion as compared to the same quarter last year. Moreover, Microsoft assisted Nokia with $250m for "platform support payments", it implies that Nokia's operations have consumed $1.15 billion. According to Henry Blodget, if the situation remains same, Nokia is estimated to go bankrupt within two years. Henry's idea is a bit too extreme because Nokia can convert its assets into cash for recovery. However, once market losses confidence on a company's future, vendors demand payments and customers become hesitant that leads to nothing but crisis. Source: Jean-Louis Gassee, 2012. Huge volume of mobile phone is decreased by 16 percent. Even worse, average selling price (ASP) also declined by 18 percent to $44. In developing countries, Nokia is overtaken by Huawei and ZTE which are marketing smartphoens and feature phones at a very low price. According to the c hart above, Nokia's smartphone ship is also sinking. The volume is -51 percent as compared to the volume in same quarter last year. With $189 ASP, it cannot make give any financial boost since this is the production cost of one unit. However, Nokia is planning to counter them through Asha family of mobiles. Another hope for Nokia is the new Window Phone "smart device". Nokia's latest smatphone, Lumia's performance is also unidentified. This essay declares that another rumor, though well-supported by Mary Jo Foley, an authority on Microsoft, and The Verge, a credible blog, is that existing Lumia phone will not be upgraded to the next OS version, Windows Phone 8.The existing Windows Phone OS is based on the venerable Windows CE kernel. Regardless of veneration, Microsoft would have gone for a modern alternative for Windows Phone 8.It's better be rumor for Nokia because they have already convinced their customers that Symbian-based phones are useless in future. If they deal with Lumia in the same way, future would be even bleak (Gassee, 2012). Considering the rise of Android and iOS, an ex-Microsoft executive said that Nokia is not in the competition for devices but in a battle of ecosystems. Stephen Elop also announced that Nokia is moving from Symbian and Meego software platforms to Microsoft Windows Phone ecosystem. Gruber's source is Jean-Louis Gassee, he points out that Nokia's current devices are using old Symbian S60 stacks, comparatively new Symbian^3 and Symbian^4 engines, and Meego. He criticises Nokia and says how Nokia expects to stay in competition with the likes of Apple, Google, and HP when playing such a disorganized game. This paper outlines that on the other hand, Kotch finds that prevalaing perception that Nokia cannot handle two OS is unrealistic since other companies do it very successfully. The only problem with Nokia is that it is not an American company. He identifies that Nokia has more than two operating systems, for instance, S40 and so me others for cheap features and basic phones. According to Kotch Nokia's problem is not with the OS, but with the execution. While stating that Symbian is a feature, not a bug, Kotch   confirms that it is useless,

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