NOKIA'S LOSS IN BRAND VALUE

Nokia's Loss in Brand Value

Nokia's Loss in Brand Value

Executive Summary

Nokia's trajectory has been going downhill from the top reached when Motorola almost self destructed. Now it examines that Nokia is following the identical path as the other old wireless handset manufacturers like Siemens, Sony Ericsson, Motorola and others. Though it still commands an impressive 36% market share of the world mobile market that has been steadily coming down. More importantly its share in the lucrative high end Smartphone market is falling faster (www.greenworldinvestor.com). So what will it be? Software or smart phones? Laptops or entertainment network? Nokia is endeavouring to be all of the overhead, but in my opinion is improbable to accomplish any of them. While competitors such as BlackBerry and apple fruit display the power of aim, Nokia likes to be all things to all people, all over the world, all the time. As marketers, we understand how that dream generally ends.

Introduction

Nokia has posted quarterly revenue of $14.3 billion (Euros 10.3 billion) and a net profit of $733.25 million (529 million euros). It's worth noting that Nokia posted a snare decrease of 559 million euros 2009 Q3 quarter. This is the first financial result broadcast under Stephen Elop ever since he took over as the new CEO of Nokia. Beating the expectations of the analysts, nosier has posted better-than-expected results riding on the strong demand of cheap smart phones (www.activeboard.com).

Nokia shipped 110.4 million handsets this quarter, which is just 2% higher than the shipments made last year. Among the shipments made, 26 million handsets were smart phones. Nokia also reported that the total market size grew by 14% year or year. Considering this, the 2% increase in shipment is insignificant and in essence nosier is losing the market share.

Factors Affecting Nokia's Brand Value

It looks with the hypercompetition in the Smartphone market; Nokia has an exceedingly low possibility of regaining its lost profits and margins. It is concentrating on the other segments of the mobile market to defend its units where it is also getting hammered by competition from Samsung, LG in the middle segment and local players at the lowest segment. One can't see Nokia being a Buy anytime in the future (www.91mobiles.com). The main difficulty in its present difficulties lies in its very unsuccessful R&D which regardless of its long annals in the mobile market and gigantic amount of dollars has failed to ...