Nokia's Board: Asleep at the wheel

[simplezz]

The Three Pillars of Nokia Strategy - Have All Failed. Why Nokia Must Fire CEO Elop Now

If you have three of your pillars in your strategy failing. All three failing, you must IMMEDIATELY STOP pursuing that strategy, as every day in it, brings you closer to death, to yes, bankruptcy, to oblivion, to complete failure, to junk status as a company, to being a takeover target. If your three pillars in your strategy are failing, you must fire immediately the strategy guy and replace not just the strategy head, but your whole strategy. If every leg of your strategy fails, then yes, ANY new strategy is better. Whatever you did before is better, whatever your competitors are doing is better, anything is better than pursuing a strategy that is 100% failing.

The CEO who executed a strategy where all three legs fail, is clearly incompetent, and must be fired immediately. If the Board waits, then the Board is either asleep at the wheel, or incompetent, or in collusion with the incompetent CEO. If the Board waits in firing the CEO of a company where the whole strategy is failing - that Board must be fired instantly as well. This is elementary stuff. A company that finds its three pillars of its strategy all failing, is shrinking in size, is losing customers, is losing market share, is losing consumer and investor confidence, finds its share price rated junk, and is obviously generating increasing losses. This company is at least on the brink of bankruptcy and depending on how much cash it has on hand, it may prolong its life a little, but as long as the company pursues a 100% failing strategy - the company will kill itself.

Source

Very good article on why Nokia is failing, and how the board is allowing CEO Stephen Elop to do it.

[remixedcat]

Windows phone is helping Nokia. It re-invigorated them. They were dated as a company and needed it. It differentiates them.

[FMH]

Don't agree with the article at all.

[thealexweb]

Windows phone is helping Nokia. It re-invigorated them. They were dated as a company and needed it. It differentiates them.

Yes they needed a new platform, they wasted millions developing MeeGo and tossed it aside without giving it a chance (ironically the N9 sold pretty well for no advertising and a dead OS). MeeGo should have been given more time and if that had failed, Android should have been deployed. I personally really want a Lumia 920 but wont touch WP with a barge pole because it doesn't have any of my 20 most used apps. With Android, sales would have been so much higher at this point easily overtaking most OEMs to become the 2nd biggest Android OEM behind Samsung.

[Max Norris]

Glad they didn't go with Android personally, just what the world needs, even more Androids, as if there aren't too many as it is. Being a non-Android phone is one of the reasons I went with a Nokia to begin with. Already owned a few, I've had my fill, and was wanting a good alternative to an iOS phone. You know, the whole "more choice is a good thing" speech I keep reading about.

[Dot Matrix]

Don't agree with the article at all. Windows Phone differentiates then from other handset makers. They're not just some other Android phone.

[simplezz]

Windows phone is helping Nokia. It re-invigorated them. They were dated as a company and needed it. It differentiates them.

Really? It looks like Windows Phone will be the death of Nokia from all the data I've seen.

[Dot Matrix]

And when have analysts ever proved their worth?

[thealexweb]

Don't agree with the article at all. Windows Phone differentiates then from other handset makers. They're not just some other Android phone.

How are they different software-wise from Samsung's or HTC's WPs? The answer is very little,

[simplezz]

Glad they didn't go with Android personally, just what the world needs, even more Androids, as if there aren't too many as it is. Being a non-Android phone is one of the reasons I went with a Nokia to begin with. Already owned a few, I've had my fill, and was wanting a good alternative to an iOS phone. You know, the whole "more choice is a good thing" speech I keep reading about.

What I don't understand is, why didn't Nokia go with a multi-OS strategy? It's pragmatic to hedge one's bets. There was nothing stopping Nokia from releasing Meego, WP, and Android phones.

[Dot Matrix]

How are they different software-wise from Samsung's or HTC's WPs? The answer is very little,

Hardware quality. Nokia isn't recycling unused Android hardware.

[simplezz]

And when have analysts ever proved their worth?

This guy is an ex-Nokia executive, so he knows how the company works. That gives his opinions significantly more credence than a random outside observer.

[ahhell]

Really? It looks like Windows Phone will be the death of Nokia from all the data I've seen.

That is the ********* graph that I have ever seen in my life. Was that made by a 3rd grader?

Nokia deciding on WP is a long term decision. WP8 hasn't even launched yet. If anything, this shows that Nokia's board is willing to make drastic changes to turn the company around.

Judging by your posts, this is clearly beyond your grasp.

[thealexweb]

Hardware quality. Nokia isn't recycling unused Android hardware.

Well it's recycling it's own N9 but that's okay :p

So the question is why can't they use Android and just differentiate on hardware?

[remixedcat]

I personally would like to see both WP and Android from them.

[Osiris]

You don't transition a large corporate on a new path or new platform without having a several year plan. I would also be surprised if it getting worse before it gets better was not to be expected. MS would not have gotten in bed with them in a multi-billionaire deal if it was not anticipated to be a several year plan.

Fact is too late too turn at this point anyway.

These commentators should find another company to try and comment into bankrupcy as its not happening for Nokia anytime soon.

[simplezz]

I personally would like to see both WP and Android from them.

I agree. I think Meego / Tizen, and Android should be part of Nokia's smartphone strategy. I fear though, that Elop has doomed the company by going the WP exclusive route.

[Max Norris]

What I don't understand is, why didn't Nokia go with a multi-OS strategy? It's pragmatic to hedge one's bets. There was nothing stopping Nokia from releasing Meego, WP, and Android.

Meego is already dead, rebranded as Tizen, and supposedly forked into yet another OS called Mer.. hardly a solid choice if you're betting the future of your company on it. And Android? There's already a gazillion handsets out there.. It's really hard to differentiate yourself from the crowd when you're just one of many selling the same thing as everybody else... throwing a few more into the pile and hoping somebody notices doesn't sound like a great way to recover, especially when some of their customers have already dealt with Android in the past. And that's not even calling the source into question.. plenty of other blogs call his data biased, inaccurate, and a few outright lies. Besides, you're always going on and on about choices, why is it that you're always dumping on choices that aren't what you'd personally choose? A bit hypocritical isn't it? Or is there another motive?

[Osiris]

What I don't understand is, why didn't Nokia go with a multi-OS strategy? It's pragmatic to hedge one's bets. There was nothing stopping Nokia from releasing Meego, WP, and Android phones.

Jack of all trades master of none? Several platforms increases manufactuering costs as well as marketing and resources required to sell, package, promote, distribute.

[123456789A]

Tomi Ahonen (ex Nokia executive) article - sour grapes.

Also, what's with those janky looking graphs? Were they made in Libre Office?

[fehu]

I'm sure that samsung is regretting being one of (or the) top selling company due to being another of that android makers

---

As an european I've almosto owned only nokia phone, except for a startac 130 and a motorola c333

They used to be perfect phones, then in ~2004 S60 started to become popular with the nokia 6600 and really compete with windows mobile.

It was so flexible that on top of a ton of mobile programs had even an augmented reality one

When I had the money I brought an N70, and when android was still in its infancy and the iphone was almost a dumb phone I brought an e52 with wifi, gps with unlimited support and turn by turn navigation, one week between recharges and many other pros. I still use it and can't find a better one for my necessity.

During 2006 Nokia add a lot of concepts and projects, and a rock solid popular platform. At some point someone pulled out even an online store accessible from the phone itself and the trend over bigger touch screen, but the board said no, those are stupid ideas.

It was at that moment that they were surpassed by almost anyone, and due to the same idiot board nokia hasn't stopped to spend all its fortune on random and then trashed projects like meego and qt.

For who wasn't there apple invented the smartphone, and then google varied it, so nokia add to change all and follow the new no key big screen trend, but with an os that wasn't meant for that.

And now they are still confused with no clear idea on what to do.

If it wasn't for the long list of dumb ceos nokia would be the incredibly innovative number one phone maker.

[Praetor]

I'm sure that samsung is regretting being one of (or the) top selling company due to being another of that android makers

---

As an european I've almosto owned only nokia phone, except for a startac 130 and a motorola c333

They used to be perfect phones, then in ~2004 S60 started to become popular with the nokia 6600 and really compete with windows mobile.

It was so flexible that on top of a ton of mobile programs had even an augmented reality one

When I had the money I brought an N70, and when android was still in its infancy and the iphone was almost a dumb phone I brought an e52 with wifi, gps with unlimited support and turn by turn navigation, one week between recharges and many other pros. I still use it and can't find a better one for my necessity.

During 2006 Nokia add a lot of concepts and projects, and a rock solid popular platform. At some point someone pulled out even an online store accessible from the phone itself and the trend over bigger touch screen, but the board said no, those are stupid ideas.

It was at that moment that they were surpassed by almost anyone, and due to the same idiot board nokia hasn't stopped to spend all its fortune on random and then trashed projects like meego and qt.

For who wasn't there apple invented the smartphone, and then google varied it, so nokia add to change all and follow the new no key big screen trend, but with an os that wasn't meant for that.

And now they are still confused with no clear idea on what to do.

If it wasn't for the long list of dumb ceos nokia would be the incredibly innovative number one phone maker.

This.

i had a n70, good smartphone (albeit a bit slow but had lot of potential) but it got overpassed; the problem is that Nokia had lots of resources splattered (MeeGo, Qt, Symbian) back in the days, with no real strategy; it was poor decision to ditch MeeGo when so much money was invested and it could be a fresh breath of air in the market (like the N9 proved, it sold well considering to be a dead platform on arrival); the WP8 is a critical move, on that could save or kill the brand...then again it's no wonder why they turn to Microsoft with a trojan horse named Elop.

[+LogicalApex MVC]

Yes they needed a new platform, they wasted millions developing MeeGo and tossed it aside without giving it a chance (ironically the N9 sold pretty well for no advertising and a dead OS). MeeGo should have been given more time and if that had failed, Android should have been deployed. I personally really want a Lumia 920 but wont touch WP with a barge pole because it doesn't have any of my 20 most used apps. With Android, sales would have been so much higher at this point easily overtaking most OEMs to become the 2nd biggest Android OEM behind Samsung.

Android would have been a very bad idea. Samsung is already monopolizing that market and would have complicated any attempt by Nokia to break into it. If Nokia went Android they would already have hit bankruptcy I'm sure.

If you want an idea of how painful the "multi-OS" strategy is just take a look at HTC. They aren't doing too well at the moment.

[thealexweb]

Android would have been a very bad idea. Samsung is already monopolizing that market and would have complicated any attempt by Nokia to break into it. If Nokia went Android they would already have hit bankruptcy I'm sure.

If you want an idea of how painful the "multi-OS" strategy is just take a look at HTC. They aren't doing too well at the moment.

Bankruptcy is almost certain now for Nokia without further large payments from Microsoft, the $250mn payments they've been making per quarter and no where near enough to stave off bankruptcy. Why would Nokia have hit bankruptcy if it had gone for Android? Adopting Android makes sales soar a lot of the time e.g. Samsung.

And everyone here uses HTC as a poster child to attack OEMs using Android, but HTC was the OEM that dumped Windows Mobile and adopted Android first and as a result became a mainstream OEM. HTC has had a string on bad management decisions and sub-par phones, that's why they are having difficulty. Samsung has shown how successful Android done right can be.Also for whatever reason HTC's Android offerings sell a lot better than their WP offerings ever do or did.

[Melfster]

Bankruptcy is almost certain now for Nokia without further large payments from Microsoft, the $250mn payments they've been making per quarter and no where near enough to stave off bankruptcy. Why would Nokia have hit bankruptcy if it had gone for Android? Adopting Android makes sales soar a lot of the time e.g. Samsung.

And everyone here uses HTC as a poster child to attack OEMs using Android, but HTC was the OEM that dumped Windows Mobile and adopted Android first and as a result became a mainstream OEM. HTC has had a string on bad management decisions and sub-par phones, that's why they are having difficulty. Samsung has shown how successful Android done right can be.Also for whatever reason HTC's Android offerings sell a lot better than their WP offerings ever do or did.

Samsung is really the only Android making any real money off android. I personally want to see a third ecosystem so that I as a consumer have choice and I think right now windows phone is the most viable alternative. I know some people say Blackberry but I think they don't have all the pieces of the ecosystem to be sustainable.