Nokia Needs to Leverage Patents, Software

 

5. Become a smaller, more agile company

When one looks at Nokia's corporate structure, it's hard not to get a headache. The company is huge, with over 134,000 employees worldwide and with so many moving parts that it would make anyone scratch their head. The time has come, unfortunately, for Nokia to dramatically reduce its workforce and become more agile. By doing so, it might be able to fend off losses and become more financially sound.

6. Become a budget provider

Going beyond the earlier point on pricing and value, perhaps Nokia should consider becoming a budget provider that only sells affordable devices to those who can't afford an iPhone. That would play well into a focus on international markets and could help it slowly but surely increase market share.

7. Focus more on software

Let's not forget that Nokia has a somewhat strong software-development arm that has delivered high-quality products in the past. It won't be an immediate fix, but perhaps Nokia should invest more in software and try to find those areas where solid platforms could plug some holes in business model.

8. Leverage patents

If Nokia has anything going for it, it's the company's broad patent portfolio. From mobile technologies to design ideas, Nokia has a host of patents that several companies, including Apple, Microsoft and even RIM, would be interested in acquiring. Nokia should consider selling or licensing those patents sooner rather than later.

9. Remember industry standards away from phones

Although smartphones might be Nokia's first focus, the company has opportunities to make a mark across the industry in other less-sexy areas. For one, the company is making the smart move by competing against Apple to produce the industry standard on the new Nano-SIM card. Nokia should try to find other areas across the mobile space that will allow it to become a key player in industry standards.

10. Assume radio silence (and financial silence)

Looking ahead, Nokia needs to stop talking. It needs to stop telling the world about its troubles and stay as quiet as it can, given its legal requirements regarding the financial reporting calendar. At the same time, it should consider taking the company private so it no longer needs to announce losses. All of this negativity makes customers question whether they should buy Nokia products or move on to something else. It also makes them wonder how long Nokia will be around. At this point, silence is a blessing for this company that has been endlessly pummeled by bad news.

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