Friday, October 19, 2007

Nokia Business Plan Explained

There’s a topical article in the Boston Globe this morning about Nokia that stitches together a lot of their recent actions into a strategy that is emerging for the mobile handset giant that has them taking a big picture point of view to turn handset insight into a broad-based ad driven media company. The article keys in on a recent acquisition by Nokia of Enpocket, a Boston based firm specializing in mobile phone advertising.

The article quotes Rodger Entner of IAG Research who says, “They want to be more than just a phone purveyor, or an infrastructure purveyor. They want to be involved in the whole value chain. That’s why they bought Enpocket. They want to make this a substantial part of their business, ideally worth billions of dollars.”

This gives insight into why they are seeking to buy NAVTEQ too; with maps and navigation come more dependence on your mobile device, which facilitates Location Based Services (LBS). With the knowledge of who you are, and where you are, and maybe what you are looking for, comes ad opportunity, and that’s where the revenue is.

Detailed in the article are several more acquisitions that Nokia made which when listed together starts to form a solid picture of the broad offering to sell services. There are issues in the US market model that the article goes on to point out. Worth the quick read if you like this stuff.

ReadMore at Boston Globe.

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