Nokia, a Finland-based telecom equipment manufacturer, declared its plan to rebrand itself after six decades of its existence. It has redesigned its logo especially to start its new age growth trajectory in this cutthroat competitive market.
Nokia broke up with its old and classic blue-colored logo and inducted two brand new logos to be made in five different shapes put in place around the NOKIA. Earlier, it was only a blue-dyed NOKIA, but this time they have experimented with a variety of different shades.
Pekka Lundmark, President, and Chief Executive Officer of Nokia have plans to revamp the whole brand image. He has devised a three-phase action plan: reset, accelerate, and scale.
Nokia is currently a 5G accessories manufacturer. It renewed its logo to cut off its brand image as just another mobile phone manufacturer. It already closed down its mobile phone division a decade ago.
Chief Executive Pekka Lundmark said in an interview that their relationship with mobile phones has now become a chapter in their history, and now they are a ‘business technology company’. He added the blueprint of how the networks will unfold in the upcoming seven years and how well they are prepared to transform in tandem with the changes.
Lundmark was a speaker at its company’s business update reporting. This was just a day before the annual Mobile World Congress (MWC), which is to be held in Barcelona from 27 February to 2 March.
In a report by Livement, Lundmark said in an interview that they want to launch a new brand that will change their brand perception from smartphones to a firm working on networks and industrial digitalization.
Change in priorities
Mobile devices under the brand Nokia are still on the market and can be purchased from HMD Global Oy. When Microsoft Corporation, which took over the firm in 2014, halted the use of the brand, then HMD bought the naming rights to it.
Whereas it has expansion plans for its service provider business, under which it deals in providing equipment to telecom providers. But, now, they have shifted their priority towards selling equipment to multiple firms.
Nokia is now entering a field where it will directly compete with tech mammoths like Microsoft and Amazon. Currently, it has acquired several clients that are technology companies in the manufacturing sector. These companies have made contracts to purchase private 5G networks and factory automation equipment from telecom equipment manufacturers like Nokia.
Lundmark has said that they have registered a growth of 21 percent in the enterprise the previous year. It is around 8 percent of their sales, amounting to 2 billion euros or $2.11 billion.
He added that Nokia plans to increase its market share in the business by providing wireless service providers with network equipment.
He can visualize the capability of digital means to revolutionize business operations, societal structures, and industrial output. There is a chance to make growth in productiveness, sustainability, and accessibility. In several industries, they have clients and collaborators who demand their industry-leading network technology. He views such network technologies as easy to inculcate, independent, and easy to use. These have way more potential than just bringing together people and objects, Lundmark said these statements, according to Telecoms.
Market Competitors
As per reports, Nokia has met head-on with major tech giants like Amazon and Microsoft by entering into the business of data centers and automation of factories.
Nokia wants to build this business with its own bare hands. It does not want to take over, just like its peer Ericsson AB, who bought Vonage Holdings Inc. for $6.2 billion to enter into this business.
S&P Global ratings have improved Nokia’s investment-grade ratings to BBB-. The firm had been in the junk category for over a decade.