Nokia was among the first big players in portable phones when the mobile industry starting producing compact devices. Nokia not only became a familiar brand to those who had or were thinking about purchasing a mobile phone, but began to dominate the market at both discount level and medium price points.
However, once smartphones started to appear, most notably the BlackBerry®, Apple iPhone®
and then later Samsung products, Nokia’s days were numbered. The company’s phone presence disappeared, much the same way Palm’s PDA market dried up.
A Return From a Previous Decade
The Finnish company is now coming together again for a new market launch and re-entrance. It’s an interesting move given the fact that Nokia sold off the last of its cell presence and rights to Microsoft in 2014. However, after some legal wrangling, Nokia had been able to get back into the industry but the entire entry plan is not set in stone yet. Nokia needs a close supportive player to help with distribution, manufacturing and production.
Slow and Steady
Nokia is taking a very slow, methodical approach with its return, ensuring that all the pieces are in the right place first. That too is interesting, because it means that Nokia has plenty of diverse products to fall back on in other areas, like with its virtual reality and connected health technologies, and is not driven by necessity to realize market entry quickly. This comeback offers an opportunity for those working on their business degrees, to see if/how an obsolete company can once again gain marketing share and find success in a competitive environment.
One Foot In, One Foot Out
The entire game plan being followed by Nokia’s executives is an interesting one that doesn’t follow a typical fast-moving business approach. Nokia has already proven itself once as a major international business game player and can do so again. Yet, instead of having a “hands-on” presence, Nokia is choosing to use a licensing approach and take a skim profit off the top. That potentially reduces significant market risk, but still gives it the benefit of brand awareness expansion and presence globally. Theoretically, Nokia could be using this guarded approach to “get back in” initially and then, if things go well, to invest more and more over time. It’s a safe play for a company that exited years ago and doesn’t have a ready, complete sales channel today.
To learn more about why lessons in how Nokia and other companies manage business come backs in today’s markets, visit Maryville University online.