Posts Tagged ‘competition#8217;


Will the new winds breathe life into Nokia?

Written on September 29, 2010 by Marta Domínguez in The Global Business of Technology

It´s certainly weird that a company which has a thousand million customers around the world would encounter problems driving demand in its business market. But this is case with Nokia mobile phones. One out of three mobile phones in the hands of people is Nokia, and there are roughly 3,000 million worldwide. Now there are also 93 million of iPhones and an important (haven´t found a total yet) number of Android phones.

A succinct summary of the problem is that these, let´s say small, competitors are setting up the pace in the mobile phone business (at least in theory). In two ways: iPhone is by large the phone most people would love to have, although not everyone is eager to purchase it (usually at a higher price in the shelves). And second, It´s Android that owns the top 10 selling list.

And so analysts have had Nokia in the eye for a radical change with regards to its strategy. New appointed CEO Stephen Elop will have to sail Nokia´s ship in such challenging seas. He comes with a background in software as Microsoft Business Director that will be highly valuable. For a start, he should have to decide whether to continue investing in the existing two-fold approach of operating systems on Nokia devices, Symbian and MeeGo.

For me, there is a most critical issue to resolve. How to breathe life and grow an established brand? Elop´s predecessor stayed for 30 years in which he lived a stream of innovations and changes to the industry and eventually put Nokia as the biggest handset maker. Now Morgan Stanley predicts that more users will access Internet from mobile than PC´s in 5 years. It tells of a glossy future for phone makers, software providers and the whole mobile industry. My guess is that perhaps Nokia new customers are no longer in western world, but in growing countries such as India and China. So this “old” handset maker has still room to re-invent a new Nokia, with a lower focus on design and a grower reach to services and utilities.

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