Nokia’s move into music is logical
What comes to your mind when you talk about the $159.9 billion
Finnish giant Nokia? Obviously handsets, right? Yes, and that its ride in this regard of late has been wonderful is undeniable (with a global market share of 32.6% being proof). However, there is much beyond just handsets that this Finnish giant is in for these days. Putting words to practice comes its latest revelation to move into unlimited music downloads to its subscribers in collaboration with Universal group, through a venture called ‘Comes with Music’ announced on December 2, 2007. So is this move well-toned with the changing scenario in the cellphone industry?
Certainly, as Jeff Kagan, a telecom expert notes, “The cell phone industry continues to go through enormous change and growth and the wireless phone is growing past a phone. The next several years will be full of these types of announcements.” Alternatively, with the venture (which will become operational in 2008) guaranteeing Nokia upto $5 billion in added revenues on an annual basis, the strategy appears logical as Mike Grant, Head, Broadband and Media, Analysys Inc. asserts, “With this announcement, Nokia has stepped out ahead of the rest in bridging the divide between mobility and the Internet. Should Nokia successfully execute these developments and attract even a small proportion of their current 1 billion customers to this service, other operators and OEMs will have a mountain to climb to offer the same compelling proposition.” Surely, Nokia is laying down the gauntlet and moving away from being a pure device play into an integrated end to end consumer service organisation in the mould of Apple, or perhaps even bigger and better than Apple in the business as Grant asserts, “Nokia’s global market reach and scale make it a powerful competitor to all in this space, while Apple has a strong presence only in the US.”
Surely, Nokia’s has expertly diversified its revenue streams during the past couple of years. Its focus on software as its core strategy, unlike other phone manufacturers will enable it to ride into sectors that are inherently software focused, such as mobile web services and other services including music et al. And this radical strategic move automatically pushes Nokia up the value chain. With revenues for Q4 2007 estimated to touch $21,123.4 billion, representing a rise of 63.77% over Q3 2007 this move is all but a clear case of successful bundling; all to please its consumers. Enough reasons why it should be the market leader in this regard.
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Source : IIPM Editorial, 2008
What comes to your mind when you talk about the $159.9 billion
Finnish giant Nokia? Obviously handsets, right? Yes, and that its ride in this regard of late has been wonderful is undeniable (with a global market share of 32.6% being proof). However, there is much beyond just handsets that this Finnish giant is in for these days. Putting words to practice comes its latest revelation to move into unlimited music downloads to its subscribers in collaboration with Universal group, through a venture called ‘Comes with Music’ announced on December 2, 2007. So is this move well-toned with the changing scenario in the cellphone industry?Certainly, as Jeff Kagan, a telecom expert notes, “The cell phone industry continues to go through enormous change and growth and the wireless phone is growing past a phone. The next several years will be full of these types of announcements.” Alternatively, with the venture (which will become operational in 2008) guaranteeing Nokia upto $5 billion in added revenues on an annual basis, the strategy appears logical as Mike Grant, Head, Broadband and Media, Analysys Inc. asserts, “With this announcement, Nokia has stepped out ahead of the rest in bridging the divide between mobility and the Internet. Should Nokia successfully execute these developments and attract even a small proportion of their current 1 billion customers to this service, other operators and OEMs will have a mountain to climb to offer the same compelling proposition.” Surely, Nokia is laying down the gauntlet and moving away from being a pure device play into an integrated end to end consumer service organisation in the mould of Apple, or perhaps even bigger and better than Apple in the business as Grant asserts, “Nokia’s global market reach and scale make it a powerful competitor to all in this space, while Apple has a strong presence only in the US.”
Surely, Nokia’s has expertly diversified its revenue streams during the past couple of years. Its focus on software as its core strategy, unlike other phone manufacturers will enable it to ride into sectors that are inherently software focused, such as mobile web services and other services including music et al. And this radical strategic move automatically pushes Nokia up the value chain. With revenues for Q4 2007 estimated to touch $21,123.4 billion, representing a rise of 63.77% over Q3 2007 this move is all but a clear case of successful bundling; all to please its consumers. Enough reasons why it should be the market leader in this regard.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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