Innovative Marketing Strategies

Topics: Mobile phone, Smartphone, Nokia Pages: 9 (2313 words) Published: April 23, 2015
Question #1
Marketing strategy for Nokia without handset business
The former phone manufacturer giant Nokia completed its acquisition on 25 April, selling its whole mobile business to Microsoft, symbolized the end of the old mobile era (McKalin, 2014). Getting rid of the bleeding-money handset business, Nokia acquired more revenue steam from Microsoft. Such changes as losing significant assets along with part of the brand value of which, should be considered by Nokia to make marketing strategy for achieving sustainable development. For developing an effective marketing strategy, as categorized from Figure 1, three dimensions need to be structured well which are where to compete, what to offer and how to compete. The necessary specifies are indicated under each dimension, and the particular aspects that need to be reassessed or re-directed are indicated as well within the table, which will be demonstrated later in detail.

Explanation of symbols: * aspects need to be changed Where to Compete
In term of where to compete: economic situation, business environment and market selection are three useful indicators for enterprises to base its product-market investment decisions on. Macroeconomic background will not to be influenced by one trade of Nokia. However, with regard to Finland, even with the handset business shrinking, the tax paid by Nokia still occupied 20% of Finnish GDP by the end of 2011 (“The Nokia Effect,” 2012). Whether the corporation tax form Nokia lessons or the cooperation between two companies will boost Nokia’s development, to Finland this deal will have a long-term influence. Environmental analysis for business involves different subjects with no bounds, among which, three most useful indicators are: technology trends, consumer trends and government/economic forces (Aaker, 2011). Since these trends can’t be manipulated, it’s a fair game to any contemporaneous enterprises. It’s noteworthy that, innovation policies of Finland, where Nokia’s headquarter is, are converging (Halme, Lindy, Piirainen, Salminen and White, 2014). Hence, until now, there are no particular changes between these two aspects above, that Nokia should put forward to the marketing strategy with regard of its acquisition. What to Offer (SCAs)

However, market selection for Nokia, based on analyses of consumer and competitor, needs re-direction due to one of the assets – mobile business has no longer been existed. Without a former key success factor, Nokia need to develop a more well-conceived strategy which can neutralize the loss to maintain and enhance its ability to compete with other competitors. With more disposable capital and less products, Nokia need to focus on redefining scope dynamics either to expend market or product, or do both. Towards what to offer, both customer value proposition and assets & competencies offered by Nokia has been changed. Almost everyone has had one Nokia mobile phone at one stage over the past 15 years (German, 2013). The recognition from consumers that low-price but high-quality products can be offered by Nokia would fade with the absence of mobile devices. In other words, Nokia’s customer value proposition is facing crisis. Recently, there were even rumours spreading online about Nokia’s death (French, 2014). In the light of assets and competencies, the situation of which even worse, package selling devices and services division with big bags of patents, Nokia will also need to transit over 25,000 employees to Microsoft (Molen, 2014). Meanwhile, the second largest mobile phone market share has also been given away. As a result, internal transvaluation should be pursued by Nokia to understand its own strengths. To seek the sustainable competitive advantage over the existing and potential competitors, Nokia need synthesize the dimensions from where to compete and what to offer after losing respectable assets to re-orientate its market positioning. How to Compete

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