Chapter 710 It may be too late to ask for cooperation
Nokia Headquarters, Finland.
Chairman and CEO Ollila learned that Chen Xiao went to Changzezhou and invested heavily in Tiangong Technology to mass-produce mobile phone hardware.
There was something in Ollila's heart that was touched.
During this period, Nokia headquarters was in dire straits.
The most critical reason is that Nokia's mobile phone business is declining sharply in the global market.
In markets such as the United States and Europe, the total sales volume in the first half of 2010 was not even as much as the sales volume in one month in the past few years.
The decline was so severe that it was jaw-dropping.
At first, Nokia thought it was due to its global sales strategy.
Nokia urgently changed the head of the marketing department and adjusted its sales strategy.
Cooperate with communication companies in important global markets to sell Nokia mobile phones in the name of communication companies.
After taking such emergency measures, Nokia's sales data in the global market have improved to a certain extent.
But this kind of improvement is more of a reflection before death and has no decisive significance.
After a short period of improvement, Nokia's sales continued to plummet wildly.
This plunge caused Nokia, which was originally profitable, to suddenly fall into losses.
It also caused Nokia's stock price to plummet, and its market value was less than 2/3 of last year.
The market abandons you without even telling you.
If it is a collapse of a single market, it may also be a problem of market strategy.
If it is a unified collapse in the global market, it proves that there is something wrong with Nokia's products.
Nokia's headquarters has held more than 10 emergency meetings.
The purpose of the meeting was to analyze the causes of the global market collapse.
It was discovered as a result of this analysis.
Nokia's collapse in the global market was not because the global mobile phone consumer market was weak, but because consumers no longer liked Nokia's mobile phones.
Consumers in the United States began to frantically buy Apple mobile phones, the just-released iPhone 4.
In addition to iPhoC, several Android smartphones have also been recognized by American consumers.
Among them, HTC's D2 mobile phone has surpassed Nokia's N95 in sales in a single month.
In addition to iPhone4, European consumers also like Android phones.
In addition to HTC, mobile phones such as Motorola and Samsung are also frantically grabbing Nokia's share.
Nokia's executives suddenly discovered that the sales volume in the global mobile phone market this year was more than double that of last year.
These data have fully explained the problem.
Ollila and other senior executives realized that Nokia may be being eliminated by consumers.
Some shortcomings of the Symbian system have now been magnified without limit in this rapidly developing market.
But what surprised Nokia was that.
Among the global markets, the only relatively stable market for Nokia is the Xiaguo market. It is a Xiaguo market that I have never looked down upon, and its sales have not declined much.
Nokia has always looked down on the Xia market. This is reflected in the fact that Nokia’s new mobile phones every year are never released in the Xia market first.
Some mobile phones have even been released abroad for many years before they are launched on the Xiaguo market.
And it’s the same phone.
In the European and American markets and even in the Oriental markets, the sales price is more than 1/3 cheaper than the effective market.
Of course, Ollila also expressed concern about Nokia's performance in the Xiaguo market.
Xia's mobile Internet market is not very developed yet, and is currently half a position behind Omi.
Therefore, the public's demand for smartphones is not very high, and they are not very familiar with the Android system and Apple's iOS system.
Everyone thinks that Nokia is good enough, so they continue to buy Nokia or the mobile sub-brand of China Mobile that cooperates with Nokia, Mobile Phones.
But this situation cannot last forever.
Technology around the world is making great strides forward.
The market is also adapting to the new environment.
Sooner or later, Xiaguo users will also accept Apple’s iOS and HTC’s Android systems.
That day was the day Nokia was abandoned by Xia users.
If Nokia loses an important market like Xia Guo.
That's really not far from bankruptcy.
Ollila is still a little confused until now.
Why did Nokia, which was so prosperous, suddenly have problems?
Ollila first began to confirm problems with the system.
That is a problem with the Symbian system.
Although Nokia made strategic adjustments a few years ago.
Don't put all your eggs in one basket.
While deeply optimizing and developing the Symbian system, we are also co-developing other systems with Microsoft and other companies.
For example, Windows phone, and the independently developed meego.
But the market effects are very bad.
In fact, Nokia has a chance to extend its life.
After Google released the Android system, Nokia was invited at the beginning, hoping that Nokia could join Google's camp.
Because Nokia was at its peak at that time, and Google's Android system was just a little-known system.
If Android can complement each other with the booming Nokia, it will be of great benefit to the promotion of Android.
However, Nokia, which is at its peak, does not care about this.
Some even looked down on Android and rejected Google's invitation.
After Android became popular in the hands of HTC, Nokia couldn't let go and cooperated with Google again. It had to develop the Meego system according to some operating habits of Android.
How could I know that the success would fall short?
On this day, Ollila convened another meeting with Nokia's top executives.
The theme of the meeting was still how to reverse the decline that has lasted for a year.
There was a lot of discussion among the senior management.
This scene has been going on for a long time.
"I think the Symbian system on smartphones has its inherent limitations. It is too closed and too inclusive. It is very unfriendly to programmers and is not conducive to the promotion of Symbian applications."
"We should give up further development of the Symbian system and focus more resources on the MEEGO system."
"I object. We only completely acquired Symbian in 2008. Over the years, we have invested a lot of money and manpower in the Symbian system."
"I think our top priority now should be to optimize the Symbian system as much as possible, increase related applications of the Symbian system, and enrich our ecological chain! Only in this way can we establish and consolidate our mobile phone market."
"I thought we should join the Android formation! Android is an open system, and Google also strongly invited us to join!"
"I object to being called Android!"
"The most critical reason why we at Nokia were able to succeed in the first place was specificity! Our Symbian system is unique in the world, and we have the only exclusive right to use it."
"If we join the Android camp, then our mobile phones will be completely homogeneous with HTC and Motorola. If we join Android now, it will be no different from committing suicide."
"I think we should abandon the Symbian system and increase the development of the Meego system."
This meeting was the same as the last one.
Nothing new.
Besides quarreling, there is still quarreling.
Nokia executives have completely lost their way.
Don't know where to go.
I don’t know if I want to add Android.
I don't know if I should give up Symbian.
Simpson is one of them.
Simpson looked at everyone's discussion and felt a little sad.
Because he always felt that Nokia had a chance to consolidate its position as the global king.
This opportunity is to strengthen cooperation with Changtian Technology.
it's good now.
When all mobile phone manufacturers strive to cooperate with Changtian Technology, Nokia is excluded.
Watching everyone talking noisily.
Simpson finally couldn't help it anymore and stood up and said: "Whether it's Apple, HTC, or Motorola, everyone is cooperating with Changtian Technology and has purchased Changtian Technology's hardware."
"We are now discussing what system to use. I think we should discuss what kind of hardware to use and whether to cooperate with Changtian Technology."
Simpson said: "The performance of Changtian Technology's carbon crystal storage equipment far exceeds that of Samsung, LG, Toshiba and other brands we currently purchase."
"Changtian Technology's cameras and lithium batteries are also far ahead in the entire industry."
"Let's not talk about the system, just these hardware, Nokia is already far behind."
"Consumers are not fools. They will buy whichever phone is cheaper and has better performance."
Simpson said with a wry smile: "Everyone, I have to say something very unpleasant. Nokia is now far behind in the entire mobile phone industry in terms of system and hardware."
"If we don't make changes, we will be eliminated soon."
After Simpson said this, he sat down a little frustrated.
Because he has a relatively good relationship with Changtian Technology and belongs to the Chinese intellectuals within Nokia.
So in the past few years, he has been gradually marginalized by Nokia's senior management.
Although he still has the title of vice president, it has no substance.
He didn't know how many people could listen to what he said?
The situation this time is completely different from the past.
Many mobile phone companies purchase hardware from Changtian Technology, which has been widely reported around the world.
Changtian Technology's hardware company has surpassed Samsung, Toshiba, LG and other companies, and has become the most important supplier in the global mobile phone chain.
In addition to Apple and HTC, the new mobile phone just announced by Motorola has also used Great Wall Technology's carbon crystal memory and carbon crystal storage and camera.
So after Simpson said this, everyone in the room was silent.
Finally, someone plucked up the courage and grasped the crux of the problem.
He also dared to directly break through Nokia's hypocritical surface and revealed that Nokia was actually very weak internally.
It’s just that no one wants to believe these facts, nor do they want to tell them.
Ollila, who was very anxious, only then noticed her former right-hand man Simpson.
Olla thought.
In the feature phone era, Nokia had no advantage when competing with mobile phone companies such as Motorola for the market.
It was because Simpson went to Xia State and signed a supply agreement with Changtian Technology that Changtian Technology supplied Nokia lithium batteries.
Nokia took the lead in the US market because of its ultra-long-lasting lithium battery, becoming the first-generation mobile phone king and establishing Nokia's dominance.
At this moment, the dilemma Nokia is facing has many similarities with the feature phone era.
Can Simpson, who has been marginalized, still turn the tide?
Ollila quickly stood up to silence the noisy senior executives.
He needs Simpson to speak.
He needed to hear Simpson's opinion.
"Mr. Simpson, tell me your opinion."
Simpson stood up and said: "The most important reason why Nokia can still sustain itself today is that our Xiaguo market has not collapsed yet."
"So my suggestion is to cooperate closely with Changtian Technology to consolidate the Xiaguo market and choose the opportunity to counterattack the global market."
"What about specific measures?" Ollila thought Simpson was right.
"My plan has three steps," Simpson said.
"Step 1 determines Nokia's future direction."
"At present, the European and American markets have told us that the Symbian system is definitely not the future, so no matter who we cooperate with in the future, we must give up the Symbian system."
"The Android system has matured, but the Meego system we independently developed has not been recognized by the market."
"At present, Nokia has reached the critical point of life and death. My suggestion is that Nokia joins the Android camp first and uses the Android system."
"After we get through this crisis and have enough energy and money, we can continue to develop mobile phone systems that can surpass Android."
"Step 2, reach cooperation with Changtian Technology as soon as possible."
"My suggestion is to go to Xia Kingdom immediately, purchase Changtian Technology hardware in large quantities, and apply it to our latest mobile phones using the Android system."
"If we adopt the Android system, our competitors will not be Apple, but brands such as HTC and Motorola."
"Because Apple uses a closed iOS system, users who like this system will never be satisfied, so we and Apple are actually competing in a misaligned manner."
"And when we face Motorola and HTC, it's really a head-to-head competition."
"Step 3, consolidate the effect market."
"This step is very important. My suggestion is that Nokia can sacrifice some shares and ask Changtian Technology to take a stake."
"Or we and Changtian Technology jointly invest to establish a sub-brand, which is specially supplied to the Xiaguo market. We provide rich mobile phone production experience and our own management experience."
"After the new sub-brand is established, all other Nokia brands will withdraw from the Xiaguo market to make way for the new brand."
"I think when necessary, we can give up a large amount of shares in the sub-brand. For example, I think it would be good if we hold 20% to 30% of the shares."
"If Changtian Technology does not agree with our opinion, I think we can also transfer part of Nokia's shares to Changtian Technology."
"The shares of Nokia's parent company should be more attractive than our newly established subsidiary."
"But the condition is that the hardware supplied by Changtian Technology to my sub-brand is better than the hardware supplied to Motorola and HTC."
After Simpson said this, he looked at Ollila expectantly.
He feels that this method is the best way to save Nokia, which is currently in decline.
Ollila and many Nokia executives were deeply shocked after hearing this.