Understanding nokias smartphone strategy

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.

The Strategic Decisions that cause Nokia’s Failure

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.

Understanding Nokia's smartphone strategy decision

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 Microsoft 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.

The Strategic Decisions that cause Nokia’s Failure

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.Feb 25,  · There is an excitement in the digital air at Mobile World Congress.

The Nokia name is back. Europe’s former smartphone juggernaut has resurfaced, promising new handsets, the return of a familiar. 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 .

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).

Nokia’s marketing strategy

However, this led to a highly fractured corporate strategy with emphasis placed on immediate gains. So, in the early s, buoyed by its recent success, Nokia set up the NVO (Nokia Ventures Organisation) to explore business innovations.

Ironically, it was Nokia which first developed a smartphone called Communicator back in and even a. Marketing Strategies Used By Nokia. Print Reference this.

Disclaimer: This work has been submitted by a student. This is not an example of the work written by our professional academic writers. This e-business strategy that supplement Nokia traditional phone support is a system that saves precious time for Nokia while providing.

Apr 30,  · Nokia Announces New Strategy, and a New Chief to Carry It Out. despite Nokia’s failure to react to changes in the smartphone market driven by the introduction of Apple’s iPhone in