Nokia and the New Mobile Ecosystem (A): Competing in the Age of Internet Mobile Convergence

Nokia has dominated the mobile handset business for over 20 years. But as mobile technologies evolves and the consumer focus shiftsfrom handset design towards software and content platforms, it creates an opportunity for new players, such as RIM, Apple and Google, to enter the market and challenge Nokia’s position. This case examines the competitive situation in the mobile ecosystem and Nokia’s attempt to redefine itself as an 'internet company' in 2008.

This case can be used to illustrate basic concept of competitive strategy (five forces, value chain integration, competitive advantage) in the context of an ecosystem. It is designed to discuss competitive threats to Nokia's position, such as envelopment threats from players outside the ecosystem (Apple, Google). Particularly attention is given to issues of cooperation and integration between software platforms and complements (hardware, content, services). It also explores Nokia's corporate strategy and structure.