Nokia's Fall From Grace

In the 90's and early 2000's Nokia was the cellphone company, not Apple or BlackBerry, or Samsung, but Finnish Nokia. So how and why did they have such a steep fall from grace? When Nokia got to the top of the cellphone world the became complacent and did not challenge themselves at all. Nokia had a belief that cellphones main component were the phone. It's clear that they did not see the rising trend of the smartphone. As a leading company in the industry they should have had the R&D to see this on the horizon. This brings to mind Zara and neglecting to update their IT systems. Zara is the leader in their retail category with minimal competitive pressure. However, they have still refused to update their technology and they still do not sell online in larger markets. Are Zara neglecting two huge factors in business. Even though updating their IT would definitely cause major changes in the make up of the company could it further their competitive advantage?

 Nokia is also stuck in the middle of the cellphone market. Being stuck in the middle is the worst place you could be as a business. You have no direction and cannot go anywhere. If Nokia wants to regain their reputation they need to focus on a particular market while developing another major market. Say if they focus on the regular phone market they should do a lot of R&D to ensure when they do come out with a competitive smartphone it can make a dent in the market.

Obama Tax Credit and More Apple

While we all know that the economy is floundering, Obama has proposed a tax credit that could possible enable firms to write off business expenses. This could give companies the incentive to write off  IT purchases. This could cause a potential reduction in IT spending since companies could wait until the write off takes effect. Companies would seriously consider delaying the purchase of IT, unitll the credit takes effect.  Since spending in companies is directly related to the state of the economy, this tax credit could stimulate spending by companies on their IT. The hopes would be for companies to re-evaluate their IT infrastructure and possibly spark the technology industry. Companies could reconsider an IT overhaul that could make their companies more efficient. They could become more horizontal and eliminate levels and thus become more profitable because of the tax incentive to change their IT philosophy. The tax credit would force companies to re-evaluate their IT simply because it would be cheapier. This would also help software and hardware companies sell relatively expensive IT equipment they wouldn't sell in this down economy.

The other day while I was in class I found out that Apple has unvieled another update to the iPod. Now the iPod includes a video confrence feature, something that is new in the iPhone. I think that Apple now needs to have more product differentiation. I feel that many of the products offer similiar features. The only difference between an iPhone and an iPod is a phone and 3g. But the phone and 3g service in many areas are horrible. The only reason I have an iPhone is because I think having everything on one device. If blackberry had a way to play iTunes then I would definitely have a blackberry on verizon. I think that many of Apple's products do similiar things and thus may not sell as much. If certain products were radically differnet many people would buy them. If I have a iPhone why do I need an iPod or iPad?

Apple TV

After reading the Bloomberg article about Apple Tv, I feel that they are starting to over expand themselves. Apple should learn from their past mistakes and not attempt Apple TV. I think iTunes has worked so well is because so many people still illegally download music. People look for programs to convert youtube clips into music files. It seems that cable companies are very reluctant to license their programs to Apple, possible because they fear illegal downloads for their programs.

I feel that cannibalization will start to happen if they unveil their Tv product. Many people already watch some tv programs and movies on their iPads already. If Apple brings Apple Tv out I think that the company will see sales decrease and remain stagnant for both products. The iPad has a better chance of being successful because their is a consumer demand for tablets. I already have a mac, an ipod, and an iPhone and have toyed with the idea of buying an iPad. However, there are two things that have stopped me. One of those is that I feel an iPad is a large iPod, but with more capabilities. The other is when would I use the iPad. The only thing time I would use it would be if I had a train commute. So When would I use Apple Tv? Would I be just as satisfied with my dvr now? I really think I would. I think that Apple is really stretching their product lines. One of the things that made Apple so creative and sought after is because all of their products were so revolutionary and better than their competitors. However, I think now they are reaching with their products and have begun to cannibalize their own products.