What does Nokia need to get out of the gutter?

What does Nokia need to get out of the gutter?
In just over a year, Nokia went from a profitable company, to the biggest loser the industry has ever seen - the company has burned a billion dollars of its cash each of the past couple of quarters. Nokia can’t seem to get the needed traction with its Windows Phone devices - sales are slowly picking up, but next quarter its high-end Lumia will face an uphill battle as users know they are not getting updated to Windows Phone 8 and many will hesitate before getting one.

So what does Nokia need to do to finally get out of the gutter and swing back to profit, and to bringing awesome devices to us, users? What’s the recipe for success?

To arrive at that answer, we should know that Nokia has already changed a great deal under Stephen Elop and is no longer the same company you knew. First, Nokia has dramatically slashed R&D and its workforce, and is continuing to do so. It has outsourced manufacturing to Asia and closed a couple of its factories. Also, it has focused more on design and location, with Elop’s vision of Nokia as the “where” company. It has also signed agreements with Microsoft that tie it with the Redmond company for good or bad. In that relationship, Nokia is the part providing the maps and the colorful handsets bringing the best out of Windows Phone.

With this new reality in mind, here’s what we think Nokia can do to finally get out of the red. But we are mostly looking to hear what are your thoughts and suggestions about the company that until recently was the world’s largest phone maker.

We are not suggesting radical shifts in management as that would mean a whole new paradigm to think in, but you are welcome to - that’s definitely the only option for many. What should happen after those changes? Check out our ideas and hit us with your thoughts in the comments below.


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