The new logo is characterized by an updated typeface and an updated symbol that reflects Nokia’s vision of technological advancement. Nokia is speeding up and signaling a shift in strategy when it changes its logo’s design for the first time in over (sixty) 60 years.
Rebranding a company to signal an evolution in its strategy has been a common corporate strategy. Nokia has used a similar method.
Alongside the brand’s new design, Nokia also announced a new set of goals to speed up the company’s growth and establish it as a major player in the telecommunications sector. The new objectives include:
- The company is expanding its 5G services.
- Based on its existing relationships with major operators of telecom.
- The investment into research and development to create innovative products and technologies.
Nokia’s chief executive officer, Pekka Lundmark, has said that Nokia is dedicated to driving forward the pace of innovation and growth in the telecoms industry. She also stated. “The new brand identity and goals for the future are part of the larger effort to accomplish this vision.”
Nokia’s Strategy: Set, Speed up, and Scale:
CEO Pekka Lundmark revealed the three-phase plan when he was appointed as the CEO of Nokia in 2020. Finnish company Nokia at the end of 2020. The three phases include resetting the strategy, accelerating it, and scaling.
According to Reuters, “Nokia” is the name of the company “Nokia”. It is formed by five distinct forms that form the brand’s new logo. The logo’s original blue color has been replaced by various colors.
Nokia, a producer of 5G-related equipment in Finland, has updated its logo to differentiate it from the cell phone market.
Nokia disengaged from that market over 10 years ago.
Today, Nokia is a “business technology company,” according to CEO Lundmark, and is not just a smartphone maker.
On the day of MWC’s annual Mobile World Congress (MWC) that began on February 27 in Barcelona this February 27 and ran through March 2, Lundmark did not just unveil the brand new look but also explained the way the company anticipates networks to evolve in the coming seven years, and how it intends to adapt to the changes.
He stated in an interview, “We want to launch a new brand (rebrand) that is focusing very much on the networks and industrial digitalisation, which (Nokia) is a completely different thing from the legacy mobile phones,”according to a report by Livemint
Nokia-branded mobiles are available to purchase from HMD Global Oy. HMD acquired the rights to the name at the time Microsoft Corp., which purchased the company in 2014, ceased the use of Nokia.
Nokia’s Shift in strategy
Nokia is still looking to expand its business as a service provider by selling equipment to telecom companies. However, its primary goal is to offer equipment to other firms.
“We had very good 21 percent growth last year in enterprise, which is currently about eight percent of our sales, (or) 2 billion euros ($2.11 billion) roughly,” Lundmark stated. “We want to take that (sales) to double digits as quickly as possible,”Reuters
A majority of their clients are from the manufacturing industry. As such, the major technology companies have begun cooperating with manufacturers of telecom equipment, such as Nokia, to offer them private 5G networks and tools for automated factories.
Through the provision of network devices to service providers for wireless, Lundmark declared that Nokia would concentrate on expanding its market share within its activities, according to Livemint.
He also said it was because Nokia currently has “the ammunition and the tools” to increase market share without sacrificing margins. This is made possible due to restrictions put on Huawei Technologies Co., which is a Chinese competitor, following several European governments banning the company from supplying parts to 5G network infrastructure, as per Livemint.Livemont
In the development process, Nokia will also evaluate each of its companies and consider options, such as divestment.
Telecoms CEO Lundmark stated, “We believe that we can use digital technology to revolutionize the way we conduct business, industry, and society with the potential for huge improvements in efficiency as well as sustainability and accessibility. Partners and customers in every sector increasingly rely on our world-class crucial networking technology. We envision a future in which networks are more than just connecting objects and people. They are adaptable, autonomous, and consumable. They’re networks that are able to perceive, think as well, and then act to maximize the potential of digitalization. “
“Today, we announce our revised technology and company strategy, emphasizing unleashing the exponential potential of networks, creating a new future where networks can connect with the cloud. To show our commitment to this, we’re updating our brand name to reflect the current status of our company as a B2B technology innovation pioneer. ” This is Nokia but not how the world has known us previously,” he added.
“The message is crystal obvious. We are only interested in organizations where we can see leadership across the globe,” he continued.
The Competition in the Market
According to a Reuters article, Nokia’s venture toward factories that use data centers and automation could put them in direct concurrence with the big IT giants such as Microsoft or Amazon.
Nokia has decided not to join Ericsson AB, which spent $6.2 billion to purchase Vonage Holdings Inc., due to the same need to increase its operations.
In obtaining an investment-grade BBB score at S&P Global Ratings, Nokia has just completed its 10-year battle with junk status. Moreover, Based on Livemint, Lundmark thinks there remains work to be done, particularly about Nokia’s operational margins.