Tech News Desk, Nokia, the Finnish telecommunications equipment maker, has announced plans to change its brand identity for the first time in nearly 60 years, with a new logo that signifies its shift towards aggressive growth. The new logo consists of five different shapes that come together to form the word NOKIA, while the classic blue color has been replaced with a range of colors depending on the intended use. The company’s Chief Executive, Pekka Lundmark, said in an interview that the revamped brand reflects Nokia’s transition from a smartphone maker to a business technology company.
Lundmark explained that Nokia’s strategy consists of three stages: reset, accelerate, and scale. With the reset stage now completed, the company is moving onto the next stage. While Nokia still aims to grow its service provider business, where it sells equipment to telecom companies, its primary focus is now on selling gear to other businesses. Lundmark stated that “we had very good 21% growth last year in enterprise, which is currently about 8% of our sales, (or) 2 billion euros ($2.11 billion) roughly. We want to take that to double digits as quickly as possible.”
Nokia is also reviewing the growth path of its different businesses and considering divestment alternatives. Lundmark emphasized that the company wants to concentrate on businesses where it can achieve global leadership. This move towards factory automation and data centers will bring Nokia into direct competition with major tech firms such as Microsoft and Amazon.
The telecommunications equipment market is facing challenges, with a macro environment denting demand from high-margin markets such as North America and replacing it with growth in low-margin India, forcing rival Ericsson to lay off 8,500 employees. Lundmark acknowledged that “India is our fastest growing market that has lower margins – this is a structural change,” but he added that Nokia expects North America to be stronger in the second half of the year.
In conclusion, Nokia’s decision to rebrand itself and shift its focus to business technology signifies a significant strategy shift for the company. With the reset phase complete, Nokia is now accelerating its growth by selling gear to other businesses. The company is also reviewing its businesses to achieve global leadership and exploring divestment alternatives. As Nokia moves towards factory automation and data centers, it will face stiff competition from major tech firms such as Microsoft and Amazon. Despite the current challenges faced by the telecommunications equipment market, Lundmark expects Nokia to emerge stronger in the second half of the year, with North America bouncing back and India remaining the company’s fastest-growing market.
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