Nokia takes a leap from selling devices to giving customers a “complete experience.” The company plans to offer their handset users a new array of contents and services, including an online music store, an interactive multiplayer game service, and a new venue for Nokia handset users to swap photos, videos, and music. This aims to enhance the quality of their services and maximize the use of their devices. While the potential of the campaign is apparent, there are questions about the profitability of their decision.
Their biggest challenge is having a lot of competitions. In taking this new direction, Nokia competes with giant portals like Google and Yahoo! Other mobile operators like Vodafone and Orange have their own services and may not be willing to carry that of Nokia. Another issue is profitability. Mobile operators around the world had tried breaking into the digital music stores and other services but failed. For this project, Nokia has already spent millions acquiring companies like Loudeye, gate5 and Twango in order to complete their portfolio.
Nokia’s head start is its wide range of consumers. It has around 200million music-capable Nokia mobile phones already on the market. Compared with internet sites and mobile providers, it has a control of the phone’s screen and specifications, making it convenient to bundle great services with specially tailored and user-friendly hardware services. They also have a large network of mobile operators around the world that can profit from integrating Nokia content in their network offerings.
Nokia’s ambitious stance presents a double-edged sword that could either propel them into heights no other phonemaker and mobile network have succeeded before, but it can also end up a disaster. However, the Nokia brand has differentiated itself from the others, creating a set of loyal followers craving for their latest devices and service offerings and may just be waiting for this opportunity to get the utmost Nokia experience, this is an advantage other web portals and mobile networks do not have.
Nokia Aims Way Beyond Handsets. Businessweek (2007, September 6).