Thursday, March 27, 2008

Tested philosophy

Of course, it is to be seen in the near future whether the tried and tested philosophy of closely knitting the marketing activities and product division or the newly epitomised divorce agreement as conceived by Nokia proves to be a better option. Nokia, unquestionably a market leader, is perhaps not happy with the numero uno tag that it has been carrying for years now. Their appetite all of a sudden seems to have increased, it is yearning for more, and it wants to either own the ecosystem or dictate the terms for other players or else force them to abide by the pre set rules of Nokia. So is it time for us to expect something on the lines of Nokia Hardware, Nokia Software, Nokia Services, Nokia Backend et al – perhaps it is for us to adopt a wait and watch policy. But do mobile business, computer industry and consumer electronic businesses stand on the same platform? Perhaps not. Arja Suominen, VP, Communications , told 4Ps B&M “We continue to focus on enhancing our strong position in mobile de- vices and networks, and building the new business of consumer internet services and business solution, where we see interesting possibilities.” Interesting possibilities…but how long a business, based just on possibilities or probabilities, run. The least that Nokia should remember is: as regards design per se, it is still behind Motorola and Samsung; in entertainment, it lags behind Sony Ericsson and Motorola and for mobile games, the least spoken the better. As far as leadership in the entry level phone is concerned it stands to face a formidable challenge from Motorola and Samsung. There is that tale about the lion who is the king of the jungle who becomes supremely arrogant about his prowess and infallibility. Didn’t a fox outfox the lion in a classic flanking strategy?

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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