Nokia, a leading global telecommunications equipment company, has announced a significant brand identity change for the first time in almost 60 years. The move comes as part of the company’s aggressive growth strategy, which focuses on expanding its enterprise sales and targeting other businesses.
New Logo Design
The new logo features five different shapes forming the word “NOKIA” and drops the iconic blue color of the old logo for a range of colors depending on the use. According to Pekka Lundmark, the CEO of Nokia, the rebranding is necessary as the company evolves from a smartphone manufacturer to a business technology company.
Nokia’s Business Update
The business update was released ahead of the annual Mobile World Congress, which commenced in Barcelona on Monday and runs until 2 March. Lundmark said that the company had an impressive 21% growth last year in the enterprise sector, which currently accounts for approximately 8% of its sales. He further emphasized that the company aims to double its sales in the enterprise sector as quickly as possible.
Nokia’s Strategy for Growth
Lundmark’s strategy for Nokia is divided into three stages: reset, accelerate, and scale. With the reset stage now complete, the company will move on to the second stage of the plan. While Nokia still aims to grow its service provider business, the company’s primary focus is on selling equipment to other businesses.
Partnering with Technology Firms
Nokia is partnering with major technology firms to sell private 5G networks and gears for automated factories to customers, mostly in the manufacturing sector. The company plans to review the growth path of its different businesses and consider alternatives, including divestment, as it strives to achieve global leadership in all areas.
Competition from Big Tech Companies
Nokia’s move towards factory automation and data centers will see it competing with big tech companies such as Microsoft and Amazon. Lundmark acknowledges that Nokia will have to work with these companies at times, while at other times, they may be competitors.
Market Pressures
The market to sell telecoms gear is under pressure due to the macroeconomic environment, which is denting demand from high-margin markets such as North America. Nokia expects North America to be stronger in the second half of the year. Lundmark added that India is the company’s fastest-growing market with lower margins, indicating a structural change in the market.
Conclusion
Nokia’s rebranding strategy is a significant step towards achieving global leadership in the business technology market. The company’s focus on enterprise sales and partnerships with major technology firms demonstrates its commitment to innovation and growth. With Nokia’s new logo and rebranding, the company is poised to take on new challenges and opportunities in the years to come.