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Nokia's Distribution Revolution

In: Business and Management

Submitted By urarpit
Words 1154
Pages 5
Nokia’s move to review its distribution strategy has sent a frisson through the market. Despite its fall from grace as the world’s leading phone manufacturer to one lagging behind rivals in the smartphone race, this is a company that still packs a punch in the market.

Coming hard on the heels of Stephen Elop’s arrival as its new CEO, Nokia’s joint venture with Microsoft for Windows Phone 7, and the appointment of new UK MD Conor Pierce, the distribution review is taken as yet another sign that the sleeping giant is about to awaken.

Certainly the atmosphere at Nokia’s offices in London is anything but sleepy.Behind its sleek, minimalist Scandinavian façade, there is a distinctly industrial air about the place. James Kitto, Nokia UK’s head of retail sales, embodies this atmosphere, exuding a focused energy and dynamism. He is keen to make clear that this review is no window dressing operation.

‘We are reviewing the entirety of our distribution arrangements in the UK,’ he tells Mobile.

Rapid market

So what is driving this swingeing review? After all, it was barely three years ago that Nokia whittled its distributors down from eight to three – choosing Data Select and 20:20 Mobile as its b2c distributors and, for a while, Brightpoint as its b2b partner.

Kitto says the move is partly driven by the pace of the industry. He explains: ‘It is very healthy, particularly as the market moves so rapidly, to invite partners and potential partners to talk about their capabilities and the way they see the marketplace.

‘Our last review was in 2008 and a huge amount has changed in that time in terms of smartphone volume share, convergence, types of hardware and new operating systems, so it is right and healthy to review the marketplace.’

Nokia UK is also out to spread its reach. Kitto says: ‘We want our distribution strategy to deliver Nokia’s mobile solutions...

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