Nokia's Blue Ocean Strategy: From Failure to Success in 5G Technologies

Image Credit: The Indian Express

Nostalgia hit me hard when I read the news about Nokia's revamping. It's been a while since I last thought about Nokia, but hearing about the changes that the company is undergoing made me think back to the good old days when I used to own a Nokia phone. It was my first phone, and I remember feeling so grown-up and cool when I bought it. I loved playing the classic Snake game, which was already installed on it, and I found the quirky keypad and sturdy body absolutely charming. But as time went on, Nokia's dominance in the mobile phone industry began to fade, and the brand started to lose its luster.

However, Nokia is making a comeback and revamping itself by focusing on networks and industrial digitalization. The company aims to move away from its former mobile phone business and offer unique value propositions in the world of 5G technology. Nokia's CEO, Pekka Lundmark, has stated that the company will focus on gaining market share in the wireless service providers' business with network equipment and selling private 5G networks to companies.

To achieve this, Nokia plans to explore new market spaces and take inspiration from the Blue Ocean Strategy. The Blue Ocean Strategy is a business strategy that involves creating a new market space by finding a niche and offering a unique value proposition that is not offered by existing competitors. By differentiating itself from its competitors and adapting to changing markets, Nokia hopes to achieve success in its endeavors.

The importance of the Blue Ocean Strategy in the success of a business cannot be overstated. Companies like Apple, Microsoft, and Starbucks have all created new market spaces with their innovative products and services. They have differentiated themselves from their competitors and achieved high growth and profits. On the other hand, companies like Kodak and Nokia failed to anticipate the changing market and lost their dominance. Nokia's failure to differentiate itself from its competitors and adapt to the changing market led to its downfall in the mobile phone industry.

In conclusion, Nokia's move away from its former mobile phone business and its focus on networks and industrial digitalization reflects its commitment to staying ahead in the 5G technology game. By exploring new market spaces and offering unique value propositions, Nokia hopes to achieve success and gain market share. The importance of the Blue Ocean Strategy in achieving success in the highly competitive world of business cannot be overemphasized. By differentiating oneself from competitors and adapting to changing markets, businesses can achieve high growth and profits. I, for one, am excited to see what Nokia has in store for the future.

Sources:

1. Nokia's New Logo Signals Move Away From Its Past: https://www.nytimes.com/2021/03/25/business/nokia-new-logo.html

2. Nokia unveils new brand to tap into 5G network opportunities: https://www.aljazeera.com/news/2021/3/25/nokia-unveils-new-brand-to-tap-into-5g-network-opportunities

3. What is Blue Ocean Strategy? https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/

4. Nokia and Kodak: The Giants of Yesterday That Couldn’t Adapt: https://www.nytimes.com/2013/09/04/business/nokia-and-kodak-the-giants-of-yesterday-that-couldnt-adapt.html

5. Apple's Blue Ocean Strategy: https://www.investopedia.com/articles/investing/110215/apples-blue-ocean-strategy.asp

6. Microsoft's Blue Ocean Strategy: https://www.fool.com/investing/2021/01/12/microsofts-blue-ocean-strategy/

7. Starbucks' Blue Ocean Strategy: https://www.blueoceanstrategy.com/blog/starbucks-blue-ocean-strategy/