Nokia: Strategic Options Analysis

Nokia, although in the first position as the world’s leading mobile company in product sales plans to launch new techniques in order to maintain the position and maintain the market compared to the competitors. Venture into the innovations already explored by other firms proves to be a hilly path for the company, such that that providing extended services is one challenge. For example, Nokia finds it necessary to add new features to the previous ones on its handsets and improve their capability to continue attracting more customers.

This requires extra competitive techniques smatter than those of the competing firms as pertaining competitive prices of the new gadgets with added capabilities, affordable services, and reliance for the same service. For example, the company publicized the ovi technology in 2007 but ovi had not been implemented fully by last year. Ovi offers an opportunity for the mobile phone users to use the Nokia Music Store to allow them download free music onto their personal computers and phones, and N-Gage.

However, there are uphill to overcome since the offering of gadgets that are offering the same services is already in the market. Nokia will expect to avail these services more affordably through cheaper cost and faster and reliable cost. Yet the danger of offering such services free of charge for one year may be eminent. Much as the customer ‘s attraction by the to-edge gadgets that advance the free-music trend amongst youth, Nokia would be expected to continue investing in making sure that the agreement it has made with such companies like Sony-BMG and Universal continue to bear fruit.

It may be expected that the company will see the end-results that would force it to make more deterministic moves after the end of the one-year free music download period. The company would need to offset the cost if it will be too high for the continuation of such arrangement with music recorders and the plan to have 50% of Independent Artists Club’s portfolio. Since the free internet download poses dangers of illegal implications, Nokia’s efforts would reduce the necessity to download free illegal music by availing an alternative that is free of these dangers.

It would be expected that the music industry would welcome this move since many may fear effects of piracy, and this appears to be a good alternative to sealing this gap. However, since subscription fee for downloading music may cause lesser publicity of the music as those downloading it elsewhere sometimes do it free of charge, the company may consider alternatives like making sure that it absorbs the extra-expense more than it taking in the current setting. This is to make sure that the gadgets with this facility are affordable as compared to others provided by competitors, and to pull people away from other alternatives to downloading services.

The company also requires new strategies to counter defiance to the hopes that teenagers would just acquire the item since they would want to be seen with the most recent phone make or model, as Elizabeth Schimel-the head of Nokia’s music business views. The company already has began facing challenges since provision of services allowing downloading of digital music has already been explored by Apple through the iTunes downloads and the iPod music-players. The market is promising since last year alone, the company sold 146 million phones that are capable for playing music.

This was a positive move by the company because high competition may make consumers to seek other providers of phone gadgets. Although the services rendered by Nokia may be beneficial to the music industry, some of the music industry players may not be willing to advance the agreement since they may not be willing to let out their music be given away by other people or companies.

The Nokia also launched a service that allows travelers to download travel guides right from their phones. Users of Nokia Maps 2.0 enjoy maps and city guides from Lonely Planet according to a deal announced in August last year. On February the same year, a Nokia phone 6210 with internal compass and uses the Maps 2.0 service.

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