Friday, September 06, 2013

Nokia revisited

Following up the earlier post, Surowiecki looks at what went wrong.  Where Nokia Went Wrong : The New Yorker:  Inability to take risk?

" Diverting a lot of resources into a high-end, low-volume business (which is what the touch-screen smartphone business was in 2007) would have looked risky. In that sense, Nokia’s failure resulted at least in part from an institutional reluctance to transition into a new era"

A new company can take a chance on a new area with less risk because you do not add on losing what you already have to the inherent uncertainty of any such business decision.  Breaking into the market involves taking risk.  There were similar potential benefits and much fewer costs for Apple.

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