Nokia, the Finnish multinational telecommunications equipment manufacturer, has announced a brand identity change after almost 60 years. The move includes a new logo that features five different shapes spelling out the company’s name, replacing the iconic blue color with a range of colors depending on the use. The decision to update the brand identity is part of the company’s aggressive growth strategy, as Nokia aims to expand beyond its traditional service provider business and focus on selling gear to other businesses.
Pekka Lundmark, Nokia’s CEO, explained the rationale behind the change, stating that the old logo was associated with smartphones, whereas the company is now a business technology company. In an interview with Reuters, Lundmark said, “There was the association to smartphones, and nowadays we are a business technology company.” He added that the company’s focus is on growth, with the aim of doubling its enterprise sales, which currently account for around 8% of total sales, as quickly as possible.
Nokia’s aggressive growth strategy is divided into three stages: reset, accelerate, and scale. The reset phase, which focused on stabilizing the company, has been completed, and the company is now moving into the acceleration phase. Despite its continued focus on its service provider business, Nokia is expanding into other areas, such as factory automation and data centers, which will put the company in direct competition with major tech firms like Microsoft and Amazon.
The company plans to review the growth path of its different businesses and consider alternatives, including divestment, with the goal of being in businesses where it can achieve global leadership. Lundmark also acknowledged the changing market dynamics, with India becoming Nokia’s fastest-growing market with lower margins, while North America is expected to pick up in the second half of the year.
Nokia’s move towards aggressive growth and diversification comes at a time when the market to sell telecom gear is under pressure, with demand from high-margin markets such as North America being replaced by growth in low-margin markets like India. The move will position Nokia to take advantage of the growing demand for private 5G networks and gear for automated factories, primarily in the manufacturing sector.
Nokia’s brand identity change signifies the company’s shift towards an aggressive growth strategy, expanding its focus from service providers to other businesses. While Nokia faces stiff competition from major tech firms, the move to diversify its business and focus on high-growth areas like factory automation and data centers could position the company for long-term success.