5 challenge to Nokia's new CEO

Last weekend, maker of mobile phones Nokia the world's biggest statement said Stephen Elop, a former head of Microsoft, to chair Executive Director (CEO) after 21 / 9, instead of the current CEO Olli-Pekka Kallasvuo.

 
Reuters has listed five challenges not easily resolved, but Elop coming over from his predecessor.

 
1. Plate poor smartphone

 
Long dependence on Nokia Symbian OS in smart phones made by firms in Finland this group "scapegoat" after rival Apple launched the iPhone in 2007. The strength of Nokia on the market segment smart phone has deteriorating, despite the production volume is guaranteed a profit for the company.

 
Although Nokia is still the leading rival mobile market globally, thanks to the widespread presence in countries such as China, India and Indonesia, but its weak points in smartphone has Apple helping to put into its mobile phone production has the highest profit rate.

 
Nokia's in the slow competition with Apple in touchscreen technology, plus its "Mother" when to utilize a large number of developer applications on mobile phones, making consumers less salty but with the Nokia phone attached label. Meanwhile, both Apple and Google - the author of the open source operating system Android for mobile phones - are already very high for all application development.

 
Back in April, Nokia's CEO Kallasvuo that disappointed investors, said the launch of the latest software Symbian - Nokia's key weapon in the fight to Apple - will be delayed to late 2010 and the increase level will be moved to in 2011.

 
Since the N95 was launched in 2006 to today, Nokia launched almost a luxury phone that really impress. It is worth saying is, this delay happens right at Nokia's rivals the best in design and technology to promote products such as Apple started a foot in the smartphone market.

 
2. Decline in U.S. market

 
In late 1990, when Motorola Nokia overcome to become the maker of mobile phones the world's largest, an important factor in creating this success was the dominance of Nokia in the U.S. market both in terms of profitability and attractiveness to consumers.

 
But until now, that appeal has gone. Nokia now accounts for less than 10% market share in the U.S., far behind rivals by heavyweights like Apple, Samsung and LG. Nokia is a lack of vitality in the technology market right at the world's leading power companies that need the most.

 
Nokia CEO taking office in 2006, Mr. Kallasvuo was "hitting" promised to focus on solving problems in the U.S., he would spend each week in January for this problem. But since then, the situation has not changed anything.

 
A major barrier for Nokia in the U.S. market is the dominance of the big networks like AT & T and Verizon combined with the "arrogant" while not subject to its design and sell the device through the network.

 
3. Leadership "old" Nokia

 
Elop's appointment is considered a milestone of Nokia, for a long time, it does not bring new faces to replace the old characters, mostly Finns - who have the capital to Nokia business from a timber and paper business of empire mobile phone.

 
Board chairman is Mr Jorma Ollila of Nokia and CEO Kallasvuo has worked together since the 1980s, when Nokia started to increase investment in the field of mobile and progressive elimination of the business segment as screen computers, TVs, tires, cables ...

 
The appointment of Mr. Elop on the chair and CEO of Nokia to increase the presence of foreigners in its leadership. Vice Chairman of the Board of Nokia currently is Marjorie Scardino, an American. Two other foreign members of the Board Nokia is Alberto Torres, a Venezuelan, American and Mary McDowell.

 
4. Unsuccessful attempt in the service segment

 
One of the first initiatives of CEO Kallasvuo is to promote Internet business segment profitable, to compensate for the decline of the profit rate in the field of hardware can say has failed in many ways.

 
Key tool in the service segment of Nokia Ovi services page can not attract the number of users as in large stores of Apple App Store applications. Page to share pictures and video, "Share on Ovi," Nokia's open in 2008 had to cease operations in 2009. Service N-Gage games will also be dissolved this year. Last month, the Nokia said, another service that will Ovi Files "hat to go" on 1 / 10 to here.

 
In 2007, Nokia spending 8.1 billion dollars to buy maker of digital maps Navted, marking the most expensive step in the service sector, but to date, still do not get results from the purchase this again. In January this year, Nokia announced it will provide free driving directions on your phone company's effort to increase sales and selling prices of the phone.

 
5. Participation in costly telecommunication equipment market

 
Nokia has said that participation in the telecommunications market, the company's first director of Nokia Networks and Nokia Siemens Networks through joint ventures, its help in the design of the phone. This may be true, but the cost of Nokia's presence on the field is not small.

 
Nokia Siemens Networks has been struggling for many years by the declining influence of the network investment and fierce competition from rivals such as Huawei and ZTE of China.