Daily Management Review

Nokia Technologies Division Hiring Talents as it Prepares to Renter Mobile Handset Market


Nokia Technologies Division Hiring Talents as it Prepares to Renter Mobile Handset Market
The plot to return to the mobile phone market for Nokia is taking shape. The company started hiring talents for its software division as the company tests new products.

Nokia has already announced that it plans to re-enter the mobile phone business after late 2016 when the embargo on the Finnish company imposed from its deal with Microsoft ends.

As of now, the company seems to be preparing its base for the re-entry. As a preliminary effort, the once largest manufacturer of mobile handsets, has already launched an Android tablet, the N1, which went on sale in January in China. Just a few days ago, the company unveiled a "virtual-reality camera" which is being christened as the "rebirth of Nokia". Z Launcher, an Android app that helps organize content on smartphones was launched by Nokia sometime back.

The latest indication of its preparations became evident after Nokia put up advertisements seeking talents for dozen of posts on Linkedin for California. The jobs are for its technologies division. The job seeks, among other things, talented Android engineers who specialize in the operating software Nokia mobile devices will use. This, experts say, are sure indications of the planed re-entry of the company into the mobile handset market.

Another indication of the above stated fact is that the company has planned to retain nearly half of the 70 announced retrenchments at the technologies division, an announcement that was made in May this year, according to the Reuters.

The company has planned to re-enter the mobile handset business through the franchise mechanism and it is said that the company is actively seeking out potential partners in who manufacture smartphones.  The business plan includes the lending of Nokia brand name to the manufacturers while the partners bear the costs of distribution, advertisement, services, etc.

However experts suggest that it would not be an easy task for Nokia trying to re-enter the market that it had once ruled. The dynamics of the market, since Nokia last actively operated in, has undergone changes and has become the fast-changing and competitive with Apple, Nokia‚Äôs one time primary competitor, being the single largest profit maker compared to all the other phone makers combined. 

However Nokia is banking on a treasure trove of intellectual property that the company holds and is the biggest in the industry. These are patents that the company holds even after selling off its mobile phone handset business to Microsoft in 2013. These patents, worth billions of dollars, were built up by the company over the last two decades.

The company would also have a fresh infusion of talent after Nokia completes the 15.6-billion-euro ($17 billion) acquisition of Alcatel-Lucent. The scientists of this U.S. research center have won eight Nobel prizes.

All these preparations seem meticulous enough for a company that has been accused of going into oblivion as they missed out on technology trends and developments. This is the primary reason that is attributed to the company not being able to withstand the change in the mobile handset business whose dynamics were changed with the advent of the smartphone.

Nokia says that it would repeat the same mistake it had once done and its claim is supported by the recent spate of recruitments for its technologies division.

(Source: www.reuters.com)