Sunday, March 27, 2011

Nokia's Decline: Ideas for re-building its brand

1. Read Bloomberg's article on Nokia's downfall  and share your personal reaction to the article.

2. If you were asked to help restore Nokia's brand what are three things you would suggest?  Feel free to be creative.

Due: April 1, 2011

Format - Please post your response as a "comment".


  1. Question 1.

    I think Nokia has slightly drifted apart from what it was supposed to be. Nokia's so called arrogance or failure to listen to customers and market trends caused their downfall, which resulted in losing customers. Still I think that all is not lost.. but they need the bravery to make some tough decisions and redesign their internals which will make its way to the interface and beyond that look at adding value to their brand.

    Question 2.

    • Nokia could paint its future more as a services company in the business of selling experiences under the brand name of Nokia. Building friendship and trust around its strongest traits- durability, reliability, and engineering nature of its phones -is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand. With the right re-branding campaign Nokia can build an image based on delivery quality products to its consumers.
    • Nokia has supported Thai developers through Form Nokia in developing local and Thai language apps and helping them distribute and sell it through the Ovi Store. It could continue doing that, as well as putting a lot of effort and focus in being sustainable, which is essentially important today.
    • By playing in all segments of the market, Nokia watered down its brand, eroding its meaning. Nokia could think of targeting more narrow segments of the market.

    - BR,
    Carolin Saan

  2. I totally agree with the following sentence mentioned in the article: "Nokia rested too comfortably on its laurels.".
    In my opinion, Nokia has tried to compete with all of its competitors, i.e. with the cheap mobile phones and with those more expensive smartphones. Maybe instead they should've concentrated on figuring out what they want to be and how they could stand out from the competitors and really define their focus. If Nokia would like restore their position that they once had, it would require some radical actions and I don't know if even that would save them anymore.

    Things I'd suggest for Nokia:
    - New, radical innovations
    - Developing or introducing a whole new operating system
    - Defining their brand


  3. 1.Nokis doesn't like turmoil. But revolution is extremely urgent! Nokia need to find a point that other cell-phone company can't provide.

    2.. I think Nokia should revolute. It have to abandon the old saiban system, what's more, adopt Windows smarphone platform.

    BR, Wu Lishan

  4. 1.Nokia’s decline reaction

    First of all, I must to say that for me, Nokia has been always one of the most powerful companies in the world. But, of course, it doesn’t mean that they have done everything correctly; it can be seen in the results and in the actual situation of the company. Anyway, this article talks about how one big company, a brand, in the top of the world, can plummet of overnight.

    If you think carefully about the decline of the company, you can conclude that is quite normal. The author of the article is totally right: Nokia rested too much on its laurels and they didn’t do so much to challenge its products. But yes, listening that from one of the biggest companies in the world, a brand that you knew many years ago, always surprise you. Never, never a big brand can be relaxed in its position.

    Furthermore, in my opinion, Nokia should know that in a market like technology the innovation and changes are the business of the day.They must to give something new to the customers than other companies, also innovating each day their products, can’t give to them.

    Manage a big brand carries a lot of responsibilities. Also, know how to communicate becomes one of the most important thinks that they must to think about.

    2.Restores Nokia’s brand
    a.First, in my opinion, they must to invest in investigation and market studies to know:
    −What the customers need and after that, improve their products and services.
    −What can they offer to the customers that other companies can’t.
    b.Determine better the target that they want to reach in function of the market situation.
    c.Communication. They should communicate from inside to outside. First fixing the situation inside the company, maintaining informed the employee, and then transmitting the new status to the public.


    Patricia Piera

  5. Question 1:

    Nokia has always been one of the most important mobile phone manufacturing company. It has always been synonymous of solide and affordable technology. But they are losing more and more market share.
    I totally agree with this sentence of the article:" Nokia looks like a has-been". Nowadays mobile phone does not serve only for calling people, you need a camera, send emails, listenning to music, surfing on the internet etc. Nokia hasn't developped this segment enough, and their competitors have take a huge advance on this area. According to the article it will be difficult to catch up.
    The article is also really pesimistic about Nokia's future. It says and i agree with that; that Nokia failure should serve as an example for all the european companies and for politicians governors, It shows the importance of the Innovation and especially in the globalize competitive market.

    Question 2:

    - Focusing on a new revolutionnary technology. To challenge Apple they have to focus on a new innovative technology and not being affraid to be creative. (Thinking to science fiction or future body integrated technologies)

    -Built a new Brand image. Nowadays, Nokia seems boring, they have to renew their image to appear trendy and maintain the trend in a long term.

    -Finding and Focusing on a product segment, either being leader on cheap solid phones or leader in trendy one but not both. Nokia is still the first phone providers in Africa but lost his leading place in China for example. Customers prefers fashionable tools than solid one. Responding to developing countries demand such as Bresil, China, India or Russia might be a good idea.

    Best Regard from China

  6. The three things I would suggest to Nokia to recover from the bad time would be:

    1. Knowing the market and respond to current market demand, for to be a market leader means to anticipate and adapt to new environmental conditions, to learn about new trends in the market have to do a lot of effort in research, listen their customers and but even those who are not yet.

    2. Continue work on the innovation, the article says that Nokia has been a bit behind in relation to the products of their competitors and companies that previously did not have much success but with new initiatives have succeeded in making a hole in the market, today any companies have to invest significant money in innovation because that is what will make you more money back in the future. If Nokia was market leader should not be difficult to re-activate their company looking for and working on new and successful ideas.

    3. Strategies with other companies, perhaps the market has evolved so much that your company is unable to keep up, but if you looking for other companies that are more familiar with some aspects of your company can not cover can be a good strategy to move forward, because you don't have only rivals in the market, you can have allies.

    Companies must be in continuous evolution, it allows them to adapt to changing market conditions and more in an industry as dynamic as the technology.

    Maria del Mar Llorens

  7. In my opinion,Nokia is the best mobile phone brand I know. I've always liked for its simplicity, design and quality.
    Nokia sat on the market without renewing their products but I do not think all is lost. Considering the history of Nokia since its founding, from working in the pulp of wood to technology ... why not going to get it now?

    Nokia's slogan has always been based on connecting people, but today, all kinds of edge technology allows you to communicate with others, not only need a phone. Rethink what they can offer consumers is an important thing to do and the best way is to through communication and marketing.
    It is clear that Nokia needs an urgent change in the market and find the feature in their phones that other companies can not offer. So I think that Nokia should investigate about this. First of all, nokia find the feature or function that the consumer would like to have in your mobile phone that other companies can not offer. Also with new products, could create a new brand in nokia and find a new target audience .

    On the other hand, must innovate in their technology, their design and their products. The innovation is not an isolated incident but must be ongoing to maintain leadership. Today innovation is an essential market requirement to be competitive. So Innovate and seek strategic positions that have a high entry barriers.

    Sheila Gómez

  8. Question 1

    In my opinion the article pointed out the main points which caused Nokia's failure. Nokia was absolutely too lazy or too confident about its products that it didn't really see what the consumers are demanding for their phones nowadays. Nokia didn't want to re-invent their business or create new products. The major mistake for Nokia was its incapability in the smartphone industry.

    Question 2

    1. Create an innovative, easy-to-use smartphone with an edge
    2. Reform their brand image
    3. Observe new trends in the industry


    Miina Lahdensuo

  9. 1) Well, Nokia’s downfall happened many years ago, and the reason for this was quite obvious: they couldn’t keep up with the technological progress. I suppose, being very successful Nokia wasn’t ready to accept all those challenges. However, I think that the company is able to ‘’catch up’’ and restore its position on the market, but they should certainly learn this lesson and remember their mistakes.
    2) I think that first of all Nokia has to start with a quality product. And this is the most important thing! The company just have to keep up with the tempo of technological progress. I would even suggest that it should even be ahead of it, as the market is full of very strong competitors. So, what I mean is that they have to develop and create a quality product which will be the foundation of a strong brand.
    Secondly, I think that the company has to define its target group, i.e. decide on the singular distinction for their product that is most important to their target market. Everyone has mobile phones nowadays! Special features and innovation is what people are looking for. On the other hand, there are consumers who are not up to all those technologically advanced gadgets. So, probably, these people should be out of the target group.
    Finally, the company should market the brand. They should get their brand message out there consistently and continuously through PR, advertising, and networking.
    Here are some channels which might be used:
    Print, online, and broadcast advertising
    Print, online, and broadcast media
    Web site and Web marketing
    Trade shows


    Julia Särki

  10. bousquet nicolasApril 1, 2011 at 6:27 AM

    1) The article describes very well how Nokia managed to arrive at the top very quickly, was one of the first to enter into this new market which was the mobile phone market. But then they simply stop innovating, maybe thinking that the things would stay as they were without any efforts! They still have a lot of the total mobile market share but the brand is declining really fast as well as the sales and image.

    2) The 3 things I would suggest are:
    - To engage competent people to manage the company; people who already have experience with smartphones and who are visionaries. I think that smartphones will represent most of the mobile sales really soon.

    - So they should also think about create some very innovating phone such as the Iphone or the Blackberry or the more recent Samsungs. I worked in a mobile phone shop last year and there were only few Nokia models which were quite basic and didn’t represent much of the sales!

    - They should also advertise, be more present and show their innovations. They still have a chance to catch up their delay if they act,change, innovate and advertise soon.


    Nicolas Bousquet

  11. Nokia’s new brand vision

    In my view Nokia needs an extensive brand reformation because its many problems and the fact that Nokia haven’t delivered anything innovative lately. In my view, Nokia should concentrate back to the basic’s its R & D work and to produce new fresh and funky ideas for the average users not only the for the business users. Nokia’s should be a leader not Apple’s follower which seems be the case now. The old saying “Nokia connecting people” was something that every used the know, therefore should put more effort and focus to innovative R & D, public relations and marketing with new approach.

    Secondly, Nokia’s approach has been high value for the money. Nokia’s phone’s are full a functionalities and features that average users do not need, but still I would like personally that phone has only necessity functionalities with new and fresh looks and that those are modern and unique phone’s. Yes, Nokia has promised that they will bring out something unique and special soon, but I and other consumers have been waiting it happening for long time already. So Nokia should concentrate delivery and public relations and not only delivering promise ware. They should have one charismatic’s evangelist like Apple has to bring the message and brand back to the consumers.

    The Nokia brand has been the Nokia handset running custom Nokia software. Nokia’s Symbian OS is used worldwide, and its new MeeGo OS was slated for upcoming smartphones. So what is the story of this latest alliance with Micro soft? Nokia and MS could bring more information what consumers can expect in the short term of this relationship more press releases with good news short and long term.

  12. Personal reaction to the article:
    On the one hand the author of the article is absolutely right that the Co. was producing phones mainly for peoples, who are calling. The Co. did not take into account, that people are interested also in e-mail checking and updating info in social media and it is failed in the competition with Apple or Blackberry. On the other hand the Co. still has its customers , who like more to call, than to update info in Twitter or Facebook. Each product on market has its own life cycle. I believe that the Nokia is capable to recover and to come up with something really new, that Apple or Blackberry does not have now.
    Suggestions for restoring of Nokia’s brand:
    1. To go deeper with technical innovations and to keep on hiring high-flyers;
    2. To buy Google or Facebook;
    3. To make the phone work as a banking card, or to allow to use other banking facilities via mobile services.

    Oksana Dolzhenko

  13. 1. I think the article got it all right. Nokia truly has rested on its laurels and now it is pay back time. I guess Nokia felt too comfortable and was only worried about its market shares. I hope that Elop is able to change the downswing of Nokia.
    2.I think that Noika should consentrate on something. Now they have so many phone models in the market at the same time that I don't think they have a corehent product range. It would be easier to focus their marketing if they would have fewer products. Now they seem to have a phone for everyone from 20 € to 500€. Too many similar phones in the same kategory.
    So my three suggestions are: fewer phones and consentrating on developing the qualities of those, secondly they could make a enormous market research to find out what kind of phones people really do want and what qualities and applications. Third, back to basics, meaning that they should thing their original slogan " connecting people" and get rid of all those applications that hasn't been so succesful, like Ovi.service.


  14. I´m sorry posting my comment a little bit late..

    1. I agree many things what Matthew Lynn wrote. Nokia didn´t develop according to the market in 2000s. Technical perspective Nokia´s Symbian operating systems are more advanced than Apple´s iPhone but consumers think otherwise. So technology wasn´t the problem for Nokia, it was more user experience and design, which has affect to the brand, negatively unfortunately. Apple has only one flagship model iPhone and Nokia has many different categories multimedia device, enterprise devices but they don´t have one device which will compete iPhone. So iPhone has build better brand because of that, so it´s very hard for Nokia to beat it.

    My opinion is, if Nokia wants to increase market share in North-America, they had no other choice than to make a major strategic shift. I mean Nokia-Microsoft co-operation.

    2. First brand suggestion for Nokia would be design co-branding for example with Marimekko, Luis Vuitton or some other design house. Nokia´s phones looks a bit boring.. They could create a limited edition for that.

    Apple has vertical strategy that means Apple owns device software stores and application store and that has been one key factor in Apples success. Nokia could also have more integrated value chain which produces more advanced and better user experience and brand wise better total satisfaction.

    Nokia could focus clearly in one main service for example came or entertainment. Now they have a little bit this and a little bit that.

    Ulla-Maria Ihalainen

  15. Valentine LAPENE DEMAYApril 3, 2011 at 3:31 AM

    I'm sorry to post my answer late but i have posted it last wednesday and i don't know why but today, my answer is not on the blog.

    Question 1.
    For me this article is really interesting because the author explains us the downfall of a big brand. He wants to show to the readers that even a big company which was the most successful company in Europe can decline. I think it is good to share its impressions about this failure to permit others companies to don’t follow its example. But for me it is not the “end” of this enterprise and Nokia can “bounce” and progress by changing its strategy and more adapt its strategy to the needs of its customers and the evolution of the market. Moreover, with the change of chief executive officer, the company will surely know some changes in the organization of its strategy to be more successful in the future.

    Question 2.
    - The first advice that I can give to Nokia is to innovate. In effect it’s in part the reason of this decline of the company (“Nokia was never willing to re-invent its business”). The enterprise has to innovate to be more successful than its competitors and touch a large part of the public.

    - Then, the company has to adapt its strategy to the actual needs of customers. For example, Nokia has to change its products and propose all these phones with internet access, camera, video… The company must be in the heart of the information technology industry and adapt all these products according to the new technology. In effect, most customers want to have the best product at the forefront of the technology and Nokia has to take into account it.

    - Finally, I think it will be better that the company invests a big part of the budget in communication. In effect even this brand is really famous, it has to be always present and make big efforts in advertising campaign. It can be guided by the communication of Apple for example. For the launching of a new product, Nokia has to prepare a real campaign by using more media like Internet, television, social network… And with this advertising, the company can build a better image and try to forget its failure to its customers.

    LAPENE DEMAY Valentine

  16. Nokia has been the leader of the high tech industry in Finland. The work to design and produce the phones as well as maintaining the ready-made products in use requires technological knowledge, technological equipment and employees. Nokia has made a contract with Windows to be used it it's phones. It will bring the refreshment on the software and usability.

    The Brand needs:
    -To attrack talent employees
    -Protection of R&D and adopting the ones of competitors, user friendly models
    -To maintain the score skills: the durability

    Maria Antila

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