Expert suggests 'Melt down has already begun' for Nokia and Sony

Despite the news that Nokia has sold 2 million Lumia handsets in Q1 experts believe that both Nokia and Sony will have a lot to do if they're to survive

Sony and Nokia could both be fighting a losing battle in the war to compete with the likes of Apple, or at least that's according to Global Innovation Management Professor Ajay Bhalla from the Cass Business School.

 

Speaking about the decline of Nokia and Sony's share in the emerging markets Professor Bhalla believes that while both companies spend huge sums on being the most innovative, they've allowed themselves to be outgunned in what has always been their home territory.

“Nokia measured its success in market share in countries such as India where it was for long an undisputed leader, and could afford to ignore Apple, which had focused on US and selected European countries."

"Today it is losing its bread and butter in both emerging and developed markets as consumers shift to Android or iOS devices."

In relation to Sony Professor Bhalla believes that their biggest competitor has been Samsung, with the company firmly establishing itself as one of the leading makers in high-end televisions.

To try and better understand why, he argues that there can be two possible explanations for why both companies have been effectively left in the dust of their competitors.

"Is it that both firms competed in multiple product categories and lost focus, both internally and externally as they experienced unprecedented growth? Or is it that both turned their attention towards fast growing emerging markets, and in the process lost focus in building a next generation firm?"

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