The Nokia Company has been comfortable sitting at its number one position in handset making that it has failed to realize how dominance is shifting slowly under its feet. The competition has gone to another leveling the smart-phone area as many participants rush into one of the few available markets. It did what was thought to be the right think, selling large volumes of cheap phones, for a long time before it realized that was too small a business venture. Despite this, the company has always been the one at the top with the grand vision, bold ideas and multibillion-dollar innovation budget, (Businessweek, 2007).
The phone industry has come a long way in innovations. The different mobile phone companies decided on a foundation to be established to provide royalty-free open platform and speed up invention and innovation. Nokia always comes forward to support open platforms and technologies as these give the go-ahead to build up, maintain and evolve applications and services. Vodafone believes this is a positive step in pushing up mobile innovation for internet services and creating richer mobile experience for their customers, although it failed in an attempt before.
Nokia has seen a growth opportunity and has woken again to do what it does best. It is launching its first mass-marketing touch-screen phone in a bid to strike back on the companies such as the Apple, which has taken the spotlight. The plan also targets to incorporate an online music stock up targeting the music-enabled Nokia mobile phones already dispatched to the market, a user-friendly mobile phone game service and the newest interface of Nokia cell phone where you can exchange and manage photos, video and music files.. According to the company, that would be the most motivated way to turn around their profits as consumers need the most advanced and complete experience with the new inventions.
Other firms had tried to create the music files and other destinations but failed; now Nokia takes the chance and, as always, it is optimistic it will come out the boss of all. Nokia has a way with its subscribers; the trick of constant changes with its diverse services builds the curiosity to find out about a new product or service and in turn increasing sales. At the same time, information on the market allows the improvement of products and services in the case of stagnant and failed target in sales. It also intends to give corporate IT managers ways to support its smart-phones for less than it does costs to support other makes like the Blackberry, by doing away with the need for some servers (Businessweek, 2007).
Britain’s Vodaphone, which is the world’s largest international service provider, flopped in their $38 billion project in an attempt to encourage its customers to use the mobile music data files. Very few of its subscribers embraced the new tune, so the company ran into a great loss because of poor investment. Nokia seems to go well with the proposal; we can relate the current intended Nokia plan with its Maps service, where you select a location and directions to the exact point pop right before you. The same way, the mobile music, video and game service it wants to launch will no doubt make headlines. Its customers will always stick to none other because Nokia proves loyal every other year.
The other big mobile companies will definitely think of playing foul by replacing their own music service with Nokia’s idea, because they do not seem willing to discuss and contribute to the invention. The scheme might also push competitors like Google and Yahoo to come up with some different and better idea, in an attempt to override Nokia in its course, but that would not be a problem because they do not control phones’ screens. In addition, Nokia has one of the largest numbers of customers and good business relationship with a wide range of mobile operators around the world, almost a hundred thousand outlets in India only, so it will still be strong in the market, maybe for a good while. However, how long will it take the rivals to pick up and catch up?
Businessweek, (2007, September 10). Nokia Aims Way Beyond Handsets. Retrieved 17 October 2009, from http://www.businessweek.com/magazine/content/07_37/b4049054.htm