The Rejuvenation of Nokia
How can Microsoft rebrand Nokia to increase sales for the younger generation market?
Nokia was once a great hit and popular brand among the mobile phone industry. The market has been changing a lot recently. Along with the rapid development of technology, more and more new phone features are available in the market, thus changing the focus of consumers buying them. At this moment, Nokia has lost a huge amount of market share as a result of failing to adapt the new market. In this report, we will discuss Nokia’s problem by a decision problem, followed by multiple research problems to analyse and solve the problem Nokia is currently facing.
Two giant companies have recently dominated the mobile phone industry recently. However dating back the history of this market when Apple and Samsung were still developing, Nokia was definitely influencing and leading the trend.
Nokia is a Finnish multinational corporation found in 1865. According to the Fortune Global 500, it is measured that Nokia is the world’s 274th largest company in 2013. Devastated by the introduced of iOS by Apple and Android system in 2007 and 2008 respectively, Nokia announced alliance with Microsoft and introduced products with this primary smartphone platform in 2011. Soon, Nokia sold its mobile phone business to Microsoft in September 2013. The marketing share of Nokia in the US fell behind with holding only approximately 2% while Apple and Samsung led with 42.5% and 29% accordingly (Nielsen, 2014). The company has made continuous effort to re-capture customer’s heart but has not succeeded yet.
There were studies and analysis about the reasons of Nokia’s failure and conclusions including the lack of marketing power to promote new products to customers, wrong effort of R&D department in producing products that failed to meet customers’ need and underestimation of the importance of transition to smartphones (SINGHAL, 2013) (SUROWIECKI, 2013). The...