September 02, 2007   

NOKIA WELCOMES APPLE TO THE MOBILE BUSINESS WITH OVI


José Ignacio Gafo Gómez-Zamalloa

Let me start quoting Anssi Vanjoki, HJ, Head of Nokia Multimedia Division when asked about the similarities between the iPhone, iTunes and the new devices and services announced by Nokia on Friday 31st of August: “I don´t know what is copying and what is original, but if there is something good in the world, we copy it with pride”.

When Apple announced its iPhone several months ago many people (including myself in this Marketing Community) assured that a warm welcome by competition was to be given in short.

nokia_logo_sc.jpg

The first one in the welcome party was HTC that launched, almost at the same time as Apple did in the USA, a superb device called Touch. It basically had a wonderful design plus a touch screen, that made it really attractive in spite of its high price.

I personally do not think that it is as good at the iPhone (if you haven´t seen and touched it, go to the closest Apple Store in your place where it will be exhibited), but it is for sure a good competitor available in all carriers.

However, what everybody was really waiting for, was for Nokia, that joined the party last Friday. What they announced was really revolutionary as they stated they are (at least they will do their best) to reposition themselves from a hardware company to a services and software one. The fist step for doing so is the launching of a new brand called OVI, door in finish, under which it will provide the new Internet related services, including Nokia Music Store. Moreover, they are to launch new devices that include many of the iPhones specs such as the Touch Screen , and, according to them, the best customer experience. As Nokia Chief Executive, Olli-Peka Kallasuvo, put it: “Nokia definitively appreciates the challenge”.

nokia-ovi.jpg

From a Business and Marketing point of view this starts a really interesting fight where we will see:

1. If Nokia is really able to reposition itself.
2. How they are to implement it.
3. A fight between two well-established brands and marketing companies.
4. How Nokia handles the conflict that The Nokia Music Store generates to well- known carriers such as Telefonica – O2, Vodafone, Orange, Verizon, etc.

Whatever it happens, this is going to be a great victory for the end user as far as its needs and customer experience is really taken into account!

Thoughts, forecasts and opinions are welcome.

Think Different!

Ignacio Gafo


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Posted on 2 September 2007 in Nuevas Tendencias, International Marketing, Branding

Comments

Jose Ignacio,
I have been reading the nokia web page, and yes it`s good, but it no gives me the sensation like the htc or the i-phone. It`s a good mobile but.... they need to send me the sensation that I need to buy the phone. I need to buy the htc or the iphone but i don`t need to buy the nokia.

Posted by: Javi at September 3, 2007 10:00 AM

Nokia has been very successful so far with the copy&enhance strategy. The E series is an enhanced version of the RIM Blackberry, because the mix the best capabilities of the Canadian device with the most appreciated features of the Nokia phones.
I'm sure they are going to develop a top-class device, but regarding the Music Store...this is a very different issue.

Posted by: Rubén at September 3, 2007 12:06 PM

Ruben, I agree with what you say: Nokia is bright with copy & enhance. The latter is true so far for hardware (terminals) but not for services. Developing a successful online music store is going to be a great challenge! With regards to this, I read today in an article that Sony was planning his music store... Let´s see what happens.

Javi, wait and see. Nokia is very good at marketing, and when they launch the new terminals and make a big ad campaigns with them, your will surely feel more tempted to get it for sure!

Best.

Posted by: jigafo at September 3, 2007 11:44 PM

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