It’s not looking good for Nokia. They gambled and put all their eggs in one basket. Microsoft screwed them and they will lose big time on Lumina 800. Every blog out there is predicting their downfall but I think they still have a chance. It won’t be easy but here’s the plan:
Hold hands with Android: You might be last to join the race but it will give you a fighting chance. Go for the low end and medium price segment, at first. Your brand recognition may help in these areas. Don’t skimp on the design.
Sue Microsoft for losses: Partners sue each other, it happens all the time with big corporations. Sure they might look like a sissy but if Oracle is not shy of suing Google, they shouldn’t be either. And fire your lawyers for not putting in a clause to safeguard against the Lumina 800 fiasco. Don’t drop MS, you can be frenemies and if it works out, you can be friends.
Diversify: This one is controversial. I know you have just started focusing on telecommunication in the last decade and Nokia-Siemens Network is not doing too well on profits. Push NSN to focus on profits and stop bleeding for them. As for Nokia, maybe it’s time to invest rather than acquire. Setup a venture fund and invest in mobile start ups. This will come with its own headaches but if you get the right guy for the job, it will pay off.
Cut the fat: Both NSN and Nokia are too big for their own good. You have to do more with less. I hate to say this but it means fewer plants and unfortunately, lesser staff which also includes the current CEO. Also things like Ovi store and completing with iTunes won’t work right now. Maybe you can try those when you have a pile of cash.