Nokia through Vertu - a luxury phone brand- ventured into producing mobile phone products having precious metal in them. For years, Nokia was accredited to be the market leader in mobile phone market. However, the landscape has changed distorting the dynamics of the initial prevailing situation. As a result, the future of Vertu is on the balance. It is at the discretion of Nokia to determine the future of Vertu with its great potential in the luxury mobile phone market among high-end consumers.
Synopsis of the situation
In 2011, however, Nokia adopted the windows phone platform as the primary source of software for the smartphones they produce. This move received ample rejection; there was a dip in share prices of the company …show more content…
This resulted to the restructuring of the management in the company. To be at par with the emerging trends in the industry, the new CEO opined the adoption of the windows phone platform as the main provider of operating systems for their smartphones. Following this adoption, the future of Virtue is in turmoil. Nokia has various options at its disposal that it can exercise to determine the future of Vertu. The need for a high-end market solution is however ostensible.
Since the inception of the mobile industry, the competitive environment has shifted to a great extent. There has been a convergence between the mobile phone industry and the application industry, the media industry and the internet industry (Huy, 2014). Focusing on these three solutions would be of great essence in helping Nokia roar back to life.
Solution to the problem.
Focusing on the media industry in relation to the company is of great essence. With good media strategies, there is a lot that Nokia can achieve. The undertaking of research would be facilitated in an inexpensive manner. What is more, the company will be in a position to determine the needs of their consumers who are located in different geographical locations. This will not only help Nokia remain current with the emerging trends in the industry but also help them tailor their products to the needs of their …show more content…
Symbian operating system in use was outlived.
Poor services by OVI services.
Presence of cheap counterfeit products in the market.
Strategic partnership with Nokia has the potential of creating a new global mobile ecosystem that appeals consumers.
Potential of generating more revenue with Vertu whose sales have not only grown since inception to the market but are also projected to grow further in the near future following increased demand.
Strategic partnership with other luxury commodity manufacturers to provide products with great appeal in the market.
Broadening its market outreach to incorporate regions where competitors are yet to venture.
An opportunity to secure high-quality labor from both the watch making and jewelry industry. Threats
Entry of new firms in the industry producing high-quality goods.
The shifting of preference for touch screen smartphones since their introduction.
The improved and innovative value adding services by competitors.
The potential of increase in counterfeiting of products despite measure to deter the