Nokia clearly wants its business to grow, and it is looking to get some help in determining whatdirections it can choose to make it grow in the Canadian market. You recall there are certainfeatures to growth when considering the Ansoff matrix strategic approach. Use the space below toexplain this to Nokia.

Mid termNokia Place Like Home The cell phone brands that readers of this case have used in their lifetimes are most likely restricted to a few common choices: Apple, Samsung, Huawei, LG. While there might be others, it is unlikely the brand Nokia tops anyone’s list—unless they were using cell phones in the late 1990s and early 2000s, of course. Nokia was a superpower in the cellular phone market for many years—looking back, it is clear that Nokia did have the kind of brand awareness and market share that Apple now possesses. However, as the iPhone was introduced in 2007 so was the more complex and technologically advanced hardware that allowed for seamless interaction with its users. Nokia struggled to find the right technology, and did not address the issues with the interface of its handheld devices. 

As larger players like Apple and Samsung were developing eye-catching screens and features, Nokia phones began to look clunky and dated. This inability to properly compete led Nokia to sell the cellular phone business to Microsoft in 2013 for $7.6 billion. And while many firms struggle with how to handle such a crushing business loss (see Research In Motion), Nokia kept on doing what it has done since 1865: it evolved. Instead of trying to continue selling cellular handsets, Nokia assessed the market and realized that potential was still there. But instead of focusing on end consumers, Nokia sought out the firms it had worked (and sometimes battled) with in the past: wireless service providers like AT&T, Verizon, and Deutsche Telekom. Nokia helps these firms set up their networks by providing the switches and software necessary to make things run smoothly. Nokia is counting on the need for quicker and more expansive networking needs. It has invested heavily in the upcoming 5G network infrastructure, where systems like driverless cars and artificial intelligence will seek to make their mark. 

Nokia has also invested in digital health, using its cameras recently to display a neurological surgery as part of a live demonstration course run by a Helsinki hospital. It is clear that Nokia seeks to move on from what it has best and most recently been known for. The Nokia Technologies CMO recently stated that, “I want to get people to see that Nokia is not just a phone brand. I want to rekindle the consumer enthusiasm for the Nokia brand—they will reconsider us in other categories outside of mobile.” And Nokia’s history shows that this about-face not only is possible, but also can be almost a company strategy. Nokia started out in 1867 as a single paper mill, and since then has been involved in rubber boots, paper products, and tires until its most recent incarnation selling mobile devices around the turn of the last century. 

But the Nokia name is not completely absent from the current mobile phone world. In 2016, Microsoft sold the Nokia mobile business to an Apple supply chain partner called Foxconn. This Taiwan-based firm has big plans for the new Nokia phone, and early looks at the product see it competing directly with the Apple iPhone and Samsung Galaxy. And there are plenty of nostalgiaseeking older Millennials and young Gen Xers who would be interested in taking a chance on the new Nokia phone. 

These thirtysomethings are brand loyal and would be very interested in testing that loyalty in a new phone. Marketing, 410-929-VA, Section 7001, F2019 2 It is in the purchase of another consumer electronics firm, French-based Withings, where Nokia’s most interesting possibilities lie. The Withings brand sold consumer products like fitness trackers and baby monitors, and in 2017 Nokia took over the branding to sell these health-based consumer electronics products to the nostalgia-seeking consumer market. 

The Nokia Health line now includes weight scales, fitness trackers, and blood pressure monitors. Nokia is looking at a number of potential geographic markets to which to take the new health focus. One market is Canada, and this is where you come in, case reader. Using the Ansoff matrix you have learned about, create some feasible options for Nokia coming to Canada with its Health line. Don’t get your handset and start writing right away; think first about what you need to do to provide Nokia with the best strategic marketing advice.