This report will critically evaluate the current strategic management of Nokia and also report will talk about what are the reasons which impact the strategy position of Nokia Corporation. To make changes in strategy is became necessary for Nokia while considering its declining market share due to increasing competition in smart phone area from its competitors.
Nokia's smartphone strategy is a profound change for the company, marking the end of an era. A strategy change became necessary in the face of declining market share, caused by intense competition from its rivals in the smartphone space.
Nokia's current situation is not untenable, but the concern is what the situation will be like in two or three year if no changes are made. Big strategy changes are not about the now, but about the next.
The cost of porting Symbian to new hardware and developing the next generation of the platform limited the effective life of Symbian. Nokia had already realised this and was positioning MeeGo as a successor.
Qt is an elegant cross platform development framework, but its existence, in the mobile space, is largely tied to MeeGo and Symbian. MeeGo is not yet ready yet. The risks involved in Nokia waiting for MeeGo to be ready are perceived to be greater than switching to another platform.
Nokia correctly foresaw the need for a surrounding ecosystem, but has struggled to fully implement its Ovi vision and, as a result, it now has a perception problem. It is becoming difficult for one company to do everything hardware design, manufacturing, operating system, applications, developers, location, content services, advertising, etc.
Android was always an unlikely option because the business case justification was weak.
Windows Phone offers a modern UX with good underlying technology. However it has significant holes in its feature set that will need to be addressed. The agreement with Microsoft and the use Windows Phone allows Nokia to differentiate its devices from its main Android and iOS powered rivals.
Nokia and Understanding nokias smartphone strategy are well positioned to jointly build a viable and competitive mobile ecosystem in which both companies have a near-equal equity stake. Nokia's decision to switch to Windows Phone was primarily driven by the need for a competitive, viable and sustainable ecosystem, rather than any concerns with the underlying technology operating system.
Introduction Prior to February 11th, Nokia's strategy in smartphones was to use the Symbian and MeeGo platforms, linked by a common developer environment Qt and service layer Ovi. MeeGo would be used in the highest end devices, with Symbian in everything else.
Underlying this was an assumption that MeeGo would, in the longer term, gradually erode Symbian. Crucially, Nokia would control all areas - in both software and hardware.
Put more simply, Nokia wanted to 'control its own destiny'. In the run up to the announcement, speculation centred around Nokia introducing an additional platform, with Windows Phone emerging as the most likely option.
When the new strategy was announced, there was a palpable sense of surprise - very few in the industry, even amongst Nokia's harshest critics, anticipated the speed or depth of this unprecedented change in Nokia's smartphone strategy.
The impact is made all the greater because Nokia's new partner, Microsoft, is the very company it sought to avoid a decade ago for fear that mobile device manufacturing would become a commodity business. This really underlines how much things have changed in the last 15 years.
Commoditisation is still a long term danger, but the short term danger from smartphone competitors is a far bigger threat. So make no mistake - this is the end of an era for Nokia. Its totemic smartphone software business will be washed away. While significant software engineering capacity will remain, the idea that Nokia has the capacity to solely create and shape trends in mobile technology on the cutting edge is gone.
This is a profound and abrupt change for the company; along with the inevitable job losses, there is an impact on the psyche of the company and the morale of its employees.
This shock is also transmitted to associated companies, Finland as a whole, and many of Nokia's fans. In the week following the announcement, we've seen a broadly positive reaction from the industry. The large majority of those I spoke to at MWC thought that Elop, Nokia's CEO, had made the right decision, albeit with widely varying views on how successful the new strategy would be.
However, at the same time, as is apparent from many of the comment threads both here on AAS and on many of Nokia's online properties, amongst existing Symbian users and developers there were more negative reactions.
Within the AAS team there's a range of opinions, but a common sense of loss. We all grieve for the eventual loss of Symbian and cutbacks to MeeGo and do wonder what might have been The pains of Nokia The pains that have afflicted Nokia in the smartphone space in the last few years have been well documented: Above all, it has been clear for some time, as we have noted on numerous occasions, that Nokia has been unable to sustain its position at the high end of the smartphone market.
This is best seen when drawing a comparison with Nokia's dominant smartphone market position five years ago, exemplified by the release of the Nokia N95, with its position today. To an extent, the severity of the issue facing Nokia has been glossed over by the impressive growth into the mid tier and low end smartphone space.Understanding those differences requires that Nokia conduct ongoing research among different consumer groups throughout the world.
The approach is reflected in the company's business strategy: We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will .
Understanding Nokia's Smartphone Strategy Essay strategy trade: Nokia has recognized itself as the market and brand leader in the mobile devices market in India.
The company has built a various product selection to meet the needs of different consumer segments and therefore offers devices from corner to corner five categories . Download: Understanding Nokia's smartphone strategy decision. Executive Summary. Nokia's smartphone strategy is a profound change for the company, marking the end of an era.
A strategy change became necessary in the face of declining market share, caused by intense competition from its rivals in the smartphone space. This step is important in order to understand the underlying drivers for Nokia’s strategy choice in the smartphone market).
which business they are in and who is the customer and what this customer value. so it builds its marketing strategy protecting from those.1/5(1). Apr 30, · Under the new strategy, Nokia said, it will continue to invest in its two other business units, which focus on digital maps and on developing the .
Consumers are always after the most innovative and best looking Smartphone because in today’s culture people are judge on how fashionable they are by their choice of mobile phone. * Show a full understanding of a marketing strategy for Nokia with a clear understanding of marketing principles.
Documents Similar To Objectives of Nokia 4/4(5).