Nokia Give an Example From

Nokia

Give an example from the case or from your own research of how Nokia approached its venture into the content area.

Nokia has been one of the most aggressive in terms of seeking partners and sources of content for enriching their business model with value-added services. As the case shows, Nokia had the foresight in 2000 to see wireless devices converging with content, and launched Club Nokia that year. Seen as more of a threat than a value-added service by its distribution and service channel partners, Club Nokia eventually was discontinued by the company. Nokia however has continued to pursue digital content and explore opportunities to offer value-added services to increase more profitable sales.

Nokia learned through several more content portal initiatives that their customers rely on and are more loyal towards Google and Yahoo content portals, and sideload vs. download music. These factors have led the company to concentrate more on digital video convergence where the opportunities for content partnership are more open. In 2007 Nokia announced plans to add YouTube, Reuters, CNN, Jamba, and Sony Pictures to their Nokia Video Center (Wireless News, 2007). The Nokia Video Center adding in these brands was accomplished through loyalty sharing agreements and cross-promotional programs aimed at providing video-based services to the Nokia customer base at a fee. Another example of their approach to content convergence is the offering of data services launched for small businesses in rural areas (Ewing, 2008) where Nokia's content portal provided useful market pricing data and agricultural market data as well. Nokia's initial vision of convergence (Vanjoki, 2005) now encompasses video and real-time Internet access to upload both still images and short videos takes with their phones. All of these initiatives together are aimed at creating a services-based ecosystem that can fuel additional margins and revenue. Nokia will need to intermediate between the brand loyalties its customers have for traditional Internet portals Google and Yahoo and provide exceptional content and experiences for the convergence vision (Vanjoki, 2005) they have to succeed.

Do you think Nokia's strategy to enter the content area is more successful than the mobile operator Vodaphone's $38 billion attempt to enter the content area? Why or why not. Explain using information from the case or your own research.