Thursday, June 14, 2012

Nokia - Planned actions aimed at sharpening its strategy and returning the company to profitable growth

Nokia once again speak to its audience and its investors with a new official statement that contains important updates on the business strategy that will characterize the coming months and new targets to be achieved to overcome the difficult situation. This is a very articulate statement that identifies the main area of focus is the strategy and indicates further measures to make it even more competitive production structure of the company.Not missing a reference to a renewal of the management and further staff reductions to be implemented by the end of 2012.
Nokia identifies three main areas on which we focus the new business strategy:
  • The investments will be directed in the new Lumia 
  • smartphone line
  • Another area of ​​investment will be represented by the platform for location services
  • Rounding out the picture of the main investments of Nokia feature phones that will contribute to the further step of evolution
Nokia has also clarified the objectives in the individual sectors of activity:
  • Lumia smartphones will be offered at prices more affordable and will continue to differentiate itself from other Windows Phone through the integration of new technologies and new software.
  • Location services will represent another important means of differentiation from competitive offerings of smartphones Lumia. The development of the City Lens app with Nokia will continue in parallel and we will try to extend the scope of use of technology developed by Nokia maps to generate new revenue
  • In the field of mobile phones Nokia will try to improve the competitiveness and profitability. Nokia aims to further develop the platform, S40 and S40, investing in key areas such as web browsing. The first results of the renewed strategy are visible with the new Nokia full touch Asha.
In the coming months changes will be made ​​to the  production facilities :
  • Veranno reduced research and development projects, with the closure of plants in Ulm, Germany and Canada in Burnaby
  • Windows will close the plant in Salo in Finland
  • Will be intensified marketing and sales priorities in key markets
  • Disused activities that fall outside the core-business
The continuation of the restructuring will cost in terms of staff reductions that will be reduced by 10,000 units by the end of 2013.
This is a very complex strategy that involves measures in some cases very difficult, as mentioned cuts to personnel and facilities that were dedicated to research and development. It is hoped that all the measures just mentioned might be able to revive the company by the crisis that has gone on for many months.

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