Nokia standing on a 'burning platform': Elop

HELSINKI, FINLAND: Nokia, which has reportedly ended the development of its first smartphone using its new MeeGo operating system before it was ever launched, seems to be on a 'burning platform' in all respects.

According to Engadget technology blog, in an internal memo to the employees, Nokia chief executive officer Stephen Elop has reportedly said that the handset giant is “standing on a burning platform”.

Nokia, which is facing stiff competition from players like Apple and Google in the high-end smartphone market, is struggling hard to retain its leading position in the handset market.

In the memo, he reportedly told his colleagues that their company is like a man standing on a burning North Sea oil platform and must decide whether to plunge into icy waters or perish, which points to the plight of the company.

Here is a portion of the memo, which is also bit inspirational:

There is a pertinent story about a man who was working on an oil platform in the North Sea. He woke up one night from a loud explosion, which suddenly set his entire oil platform on fire. In mere moments, he was surrounded by flames. Through the smoke and heat, he barely made his way out of the chaos to the platform's edge. When he looked down over the edge, all he could see were the dark, cold, foreboding Atlantic waters.

As the fire approached him, the man had mere seconds to react. He could stand on the platform, and inevitably be consumed by the burning flames. Or, he could plunge 30 meters in to the freezing waters. The man was standing upon a "burning platform," and he needed to make a choice.

He decided to jump. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times - his platform was on fire. The man survived the fall and the waters. After he was rescued, he noted that a "burning platform" caused a radical change in his behaviour.

We too, are standing on a "burning platform," and we must decide how we are going to change our behaviour.

According to Elop, Nokia lacks competitiveness not only in high-margin smartphone space but also in the low-cost emerging markets.

Many low-cost brands have taken the market share of Nokia in the recent times.

In a recent survey Voice&Data had said that Indian mobile-handset brands strengthened their presence in the domestic handset market in 2009-10, adding up to 14 per cent market share by revenue, due to which Nokia lost 12 per cent share in the market.

According to Engadget, Elop said the Finland-based company had “lacked accountability and leadership to align and direct the company through these disruptive times”.

“At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, 'the time that it takes us to polish a PowerPoint presentation',” Engadget cited the CEO as saying.

He ended the letter like this: "The burning platform, upon which the man found himself, caused the man to shift his behaviour, and take a bold and brave step into an uncertain future. He was able to tell his story. Now, we have a great opportunity to do the same."

This statement from Elop comes at a time the company is set to unveil its strategy to investors in London on February 11.