Company Name: Nokia

Topic of the Week: Nokia’s luxury mobile phone for the urban rich

Synopsis of the Situation

Nokia which was established by Frank Nuova in the 1990s. The headquarters of the company is in Finland (Kwong-Kay, 2011). Nokia is a worldwide manufacturer of telecommunications equipment The Company targets the rich more through their luxury mobile devices (Kwong-Kay, 2011). There are several features of the Nokia devices that make it appealing to the markets involving the wealthy. Such Features include gold, stainless steel, ceramics, sapphires and leather stitched on the mobile devices sold by Nokia. Moreover, Nokia has recorded impactful growth in their sales figures in an industry that is dominated by companies such as Android Products and APPLE. The new chief executive officer for Nokia Samuel Elop revealed a new action plan to assume the new Windows by Microsoft which have not yet been proven and use it as the principle operating system for the Nokia’s mobile phones.

Samuel Elop, the new chief executive officer for Nokia, made an announcement that Nokia would be using unproven Windows by Microsoft. As a result of the report, Nokia’s stock price declined by 14 percent because the market did not resonate well with the use of the unproven Windows from Microsoft (Kwong-Kay, 2011). Nevertheless, Samuel Elop entered into a partnership with Microsoft in an attempt to save the situation and improve the company’s share price and growth. As a result, the partnership led to the formation of Vertu opulence phone which was launched by Frank Nuovo.

Key Issues

Regardless of the fact that Nokia as a company was performing well, the market it operated on was getting smaller. Besides, one of the fundamental problems with the company was the sudden decline in the company’s share price by 14 percent. Stephen Elop was appointed as the new chief executive officer to make Nokia better (Kwong-Kay, 2011). Unfortunately, the systems which were being used by the company were Symbian. Stephen Elop as the chief executive officer preferred a new system of technology where phones would be operating by use of Windows which was not tested, proven and introduced to the market. As a result, an internal memo from the company’s management captured the lack of leadership, failure to be accountable, and lack of collaboration internally made it impossible for Nokia to provide innovative products on a timely basis.

Define the Problem

Numerous problems face Nokia as a company. First, by adopting this new operating system, the company risks losing out on a lot in the event issues emerge from the use of the scheme. As a matter of fact, the share price of the company dropped further due to the utilization of the new operating system that is outdated in comparison with the devices being developed by other enterprises such as Android and Apple. Nokia needs to address the problem of the inability to deliver products that are innovative in a timely basis.

Alternative Solutions

First, Nokia should change the way they conduct business by utilizing different marketing strategies. The company should prepare its customers for a change and not just surprise them (Schwittay, 2011).

Second, on realizing that the new Symbian system was not doing Nokia any good in its operations, Stephen Elop announced the need to abolish the outdated Symbian system and adopt a new software operated by Microsoft. By doing so, Stephen Elop aimed at improving the quality of the products and services of Nokia and increases the income of the company and facilitate its growth.

Selected Solution to the Problem

The partnership between Nokia and Microsoft is a good thing. This is because it will promote the growth of Nokia since both companies have been in operation for long (Schwittay, 2011).

Recommendations

Nokia should proceed with the process of implementing the Windows technology as that will keep them abreast with the changing times and gain considerable market share in the industry.

Conclusion

Vertu stands a chance concerning the phones Windows technology from Microsoft. To realize significant growth, Vertu should continue making use of this new technology and consider limiting the location where these phones can be found. Also, Vertu should advertise the product in top-notch stores that cater to the needs of the wealthy in the society.

References

Kwong-Kay Wong, K. (2011, September 28). Vertu: Nokia’s luxury mobile phone for the urban rich. (Report No. W11208). Watertown, MA: Harvard Business Publishing.

Schwittay, A. (2011). New media practices in India: Bridging past and future, markets and development. International Journal of Communication, 5, 349-379.

 
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