Wednesday, February 16, 2011

Plan B?

I was just made aware of an open letter from a few “young” Nokia Shareholders who seem to be a little less than happy with the latest happenings at Nokia. While reading the open letter, all I could do was laugh.

My thoughts on the new strategy are fairly straight forward.. Nokia’s brand is declining and they have a large amount of money being sunk into two different smart phone operating systems. If Nokia don’t do something soon, they will start loosing money at a massive rate. The cost of bringing Symbian up to scratch is going to be huge which leaves them with Meego.

The problem with MeeGo is that there is no app or developer eco system for it, which will mean that if/when the OS is ready, they will be on the back foot fighting for developers. The time lag between releasing the OS and phones running it is likely to be long, and the whole time Nokia will be losing more Market share and shrinking any money they have left in the bank.

Taking up another OS may not be an ideal solution for a company that has always stood on it’s own, but it is a strategy that can be executed quickly and can ensure the brand continues in the short term. This is the only reason (in my opinion) why Nokia are moving to an existing Smartphone OS. It’s about turning the company around quickly, with the biggest profit margin possible to allow them the freedom to execute a longer term strategy to differentiate themselves from the market.

Plan B in my option, would be the ultimate mistake for a company that’s lost it’s way, and would only speed up the decline of the once leader in the mobile space.

No comments: