The Inspiration Of NOKIA'S Decline To The Managers Of Clothing Enterprises

In 1915,

As an individual, the success or failure of NOKIA is of no importance to the whole society. However, the decline of the brand of a series of shops, represented by NOKIA and Kodak recently, does not make people start to question the value of the old store brand.

The brand of the old store is a statutory business to win the market or a shackle of innovation, which has become the focus of controversy.

Therefore, in this article, as a brand marketing expert and trainer of research and service enterprises, Mr. Jack will combine NOKIA's case to see whether the old brand is still valuable and old in the current era.

According to the brand theory of Liu Jack's original course "three dimensional marketing theory", the so-called old shop brand is characterized by its long history, its own product or service characteristics, and its integrity management. Although it has been vicissitudes for hundreds of years, the name and the products or services provided by the firm are still trusted and welcomed by the public and have a high reputation and influence brand in the society.

From the point of view of business operation, the brand of old store is an important factor that encourages consumers to give priority to their products. It is an important tool for enterprises to shield competitors, and is also an important force for enterprises to control price elasticity, gain pricing power and bring higher premium to enterprises.

From the perspective of capital market, the old brand has been accumulated for many years, which makes it impossible for the latecomers to surpass the normal situation. This enables the enterprises with old brand brands to build enough moat, or high enough barriers to enter, to give preference to investors, which in turn will enhance the market value of the company so that enterprises can occupy a favorable position in the capital market and facilitate the integration of enterprises through mergers and acquisitions.

From the above analysis, we can see that from the angle of operation or capital, old brand is very valuable to enterprises, and because of this, "if Coca-Cola's factory is burned down by a big fire, the front page headlines of the big media in the second days of the world must be the news that every bank is competing for Coca-Cola loans."

Mr. Jack believes that from this point of view, the brand of the old shop is an important factor that can not be ignored in the competition of modern enterprises. It will never be damaged by the decline of enterprises such as NOKIA. In a sense, it can also be said to be the basis for the survival of enterprises. Enterprises must strive to create their own brand of brand from the perspectives of strategy, culture, marketing, capital and so on.

But on the other hand, the case of NOKIA's decline can also give us a useful inspiration. The old brand is an important tool for enterprise competition, but it is not a sufficient condition to ensure long-term success. If we want to maximize the value of the old store brand and let the enterprise continue to win the market, the old store brand must also keep pace with the times.

Two, the brand of old shop needs to keep pace with the times so as to keep youth forever.

As Mr. Jack said in the innovation theory of "three dimensional theory of marketing", "innovation can be divided into micro innovation and revolutionary innovation". "In this era, a company will never be invincible because it is very strong. If a powerful empire does not conform to the changes in production and business mode, it will collapse overnight," which is also applicable to old brand enterprises.

Enterprises must be established in a specific market environment, with a specific consumer group and business operation mode.

If the change of the consumer behavior pattern leads to the change of the dominant business mode, the enterprise will not be alert enough and respond in time, then it will be in a very dangerous position.

A notable example is that along with the Internet becoming more and more mature, with the Internet becoming more and more mature, the traditional offline purchase is also gradually changing to online shopping mode.

Perhaps the status of the old brand in the traditional market has not been weakened, but due to the shrinking of the traditional market players, the influence of the brand of the old shop has been greatly weakened.

Because of this, the market value of WAL-MART, which once defeated all competitors in the traditional retail sector and has kept its success to date, has fluctuated slightly around 200 billion dollars over the past decade.

At the same time, Amazon, which is based on Internet online shopping, showed an explosive growth, and the stock price rose more than 100 times over the past decade.

Coincidentally, in the domestic market, the competition between Gome and Suning Appliance is very hot, and the number of stores is also very tight. But through the capital market, we can see that as of last weekend, Suning Appliance listed in the domestic A shares market capitalization is only 62 billion 400 million yuan, the market value of Gome listed in Hongkong is less than 33 billion 800 million Hong Kong dollars, and the new Jingdong mall which has not yet been listed is valued at or up to 150-200 billion US dollars.

In other words, the total market capitalization of Gome and sunninga, which has been struggling for many years, is not as good as a younger generation who only opened in 2004.

Mr. Jack believes that the world is always full of vitality because new technologies are constantly changing our society and life.

As an old brand, we must keep pace with the times. We must never neglect the "opportunities" and "risks" brought about by the emergence of new technologies. This is especially prominent in the technology industry.

Some old shop brands or because of "advanced age", underestimated the intensity of the current market environment changes, did not realize that the larger enterprises will also shake the foundation of their survival because of the birth of new technology, and they will be in trouble.

Or as a beneficiaries, in order to keep the huge market under the current technological background and resist the new technology, it has proved that all these efforts can only be mantis in the wheel of history.

And the wisest way is to embrace the change with an open mind and take the lead or acceptance of technological innovation as a driving force for companies to move forward.

Only in this way can we continuously promote human civilization and improve the quality of public life, while continuing to enable enterprises to gain market competitiveness.

I hold Apple stock for a long time, and once held Google stock, so I am always concerned about NOKIA shares in the same block.

From NOKIA's share price chart, we can see that NOKIA's share price has risen in recent ten years in 2007, when NOKIA's stock price was as high as 42.22 dollars, then down until 5.67 dollars last weekend.

Interested readers may notice that 2007 is the time when Apple IPHONE was born. Until now, NOKIA has not launched a more innovative product than IPHONE, nor has it even introduced a product that is close to the IPHONE user experience.

Thousands of words are displayed in such a silent stock price chart.

Mr. Jack believes that the fact that the old brand is not sensitive to technological change leads to bankruptcy. NOKIA is just one example of a number of cases.

It is worth mentioning that although NOKIA's new product has been well received by the market, NOKIA's current share price is less than 15% of its peak in 2007. But in the face of the current market situation, NOKIA's coping strategies and the current P / E ratio, I believe its current US $5.67 share price is definitely not low.

NOKIA still has a very difficult road ahead of the real rebirth of the bath. Today's situation is no longer the product of NOKIA's one or two innovative products.

Is NOKIA still sticking to the era of 5G, 6G and even NG? Can we introduce revolutionary innovative products to Jedi counter attacks based on the needs of consumers? Let us wait and see.

To sum up, miss Jack believes that the value of the old store brand will never be damaged by the decline of the old businesses such as NOKIA. On the contrary, the brand of the old shop will still have unique value in the market competition, no matter in today's or in the future. Enterprises should put the building of the old brand in a strategically important position.

But at the same time, we should also see that the old store brand is not a sufficient condition to ensure that enterprises continue to win the market.

In order to maintain the long-term leading edge of the market, enterprises should continuously make their own brand while continuing to make dynamic adjustments to their operation mode, business strategy and product line according to the changes of the industrial environment, the change of consumers' behavior and the technology. Only the old businesses that keep pace with the times can remain young forever, and remain invincible in the fierce competition market.