The smartphone wars: Strategies for Nokia and Microsoft

Nokia has been struggling to regain its market share even since cheap, feature rich and user-friendly smartphones have been launched by various manufacturers in the market. The acquisition of Nokia’s handset division by Microsoft can be a potential game changer for it. Microsoft needs to provide a complete solution to the current user needs. To capture this market would require a new approach on the following aspects:

APPLICATION SUITE

A large pool of smartphone buyers do not go in for a Windows OS as they feel that they will not be able to access all the apps that Android and other OS have on offer. There are 1,60,000 Windows Phone apps, while Apple’s Appstore offers over 8,50,000 apps and Android more than 7,00,000 apps. Microsoft and Nokia are confronting with a

Catch 22 situation. People will only buy Microsoft’s phones if the phones have access to all of the latest apps, and app developers will only build those apps if enough people buy Microsoft’s phones. These days, apps are like fads. But by the time a version for the Windows phone is created, it is too late, and people don’t care anymore. It is not only the time when the app is launched that matters, it is also the quality and the features that it boasts. For example, Instagram launched a Windows OS version but it lacked the ability enable photos to be taken within the app. Hence the users have to take the photo externally and then upload from within the app. Windows has taken a step in the right direction by introducing Windows Phone App Studio to encourage new app development by simplifying app building.

Microsoft should concentrate on differentiating Windows Phone OS from the other operating systems in the market and creating a competitive advantage. The PC market is dominated by windows OS. Microsoft can leverage this to create a seamless experience of windows phone OS devices with windows OS. Microsoft needs to roll out more frequent OS updates to keep at pace with the other phone’s OS. Android’s business model gives it the flexibility to develop a new version and then allow all the vendors to customise it according to their needs. Microsoft does not offer this and hence has to do most of the development and deployment of the OS by itself, making its updates more sluggish.

PRODUCT RANGE

The current offerings of Nokia are fairly limited and hence Nokia needs to expand its offering line in both the high- and low-end segements. With less than 10 phones each in the Asha Range and Lumia range, Nokia is lagging behind in the sheer number of models it has on offer. Samsung currently has a range of about 30 smartphones while Micromax has 27 smartphones. The phablet market, which is 30 per cent of the smartphone market, had been untapped by Nokia until recently. They have launched two new phablets in the market which are less than the current offering of Samsung and Micromax in this range. Nokia Lumia and Asha range should be able to provide enough variety of options to service most of the consumers in the smartphone market.

Microsoft and Nokia need an image overhaul. With the huge brand of Microsoft behind it, Nokia needs to focus on marketing uniqueness: faster and smoother performance, complete mobility PC solution, sleeker designs and better battery backup.This is a battle between the capabilities and appeal of the Windows, android and iOS. Android phones continue to show potential to achieve a higher level of device integration, greater compatibility and increased user participation in development, For Windows to regain the strong foothold over the mobile market, they will not only have to beat Android comprehensively in the above mentioned areas but bring something new to the table such as an Omni platform for all user devices with enhanced ability of customisation. Nokia, with its current hardware technologies and the past brand image does provide windows OS with a fighting chance against Android and iOS.

(The author is pursuing an MBA at Delhi University’s Faculty of Management Studies.)