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Case Study: Nokia Corporation Reversing the Decline in Brand Value

In an ever-evolving market, even the most established brands can face challenges. This blog post explores the journey of Nokia Corporation, once a titan in the mobile phone industry, as it grappled with the decline in its brand value. We will delve into the reasons behind this decline, examine the advantages and disadvantages of umbrella branding, highlight the importance of branding for consumer electronics companies, and explore how Nokia made a remarkable comeback. Let’s dive in!

Section 1: Dominating the Mobile Phone Market

Nokia Corporation, founded in 1865, had a rich history of success. It dominated the mobile phone market in the late 1990s and early 2000s, capturing the hearts of consumers worldwide. With innovative designs, user-friendly interfaces, and reliable hardware, Nokia became synonymous with quality and reliability.

Section 2: Background Note

However, as the market evolved and new competitors emerged, Nokia faced significant challenges. The rise of smartphones and the rapid growth of operating systems like iOS and Android presented a new landscape for the mobile phone industry. Nokia struggled to adapt quickly, leading to a decline in its market share and brand value.

Section 3: The Nokia Brand - Losing its Sheen?

The decline in Nokia’s brand value can be attributed to several factors. The company’s insistence on the Symbian operating system, while competitors embraced newer platforms, left Nokia lagging behind in terms of software capabilities. Additionally, the lack of innovation in design and features further contributed to its decline. As a result, consumers began to associate Nokia with outdated technology and fell out of love with the brand.

Section 4: Moving Beyond Umbrella Branding

Nokia’s attempt to revive its brand involved moving away from umbrella branding, where multiple products are marketed under a single brand name. Recognizing the need for differentiation, Nokia focused on creating sub-brands like Lumia and Asha for its smartphones and feature phones, respectively. This approach allowed Nokia to target specific market segments and rebuild its reputation for quality and innovation.

Section 5: A Brand Comeback?

Nokia’s journey towards a brand comeback was not without its challenges. While the company made strides in its product offerings and marketing strategies, it faced intense competition from well-established players in the smartphone market. However, Nokia’s partnership with Microsoft and its adoption of the Windows Phone operating system breathed new life into the brand. The Lumia series gained recognition for its sleek design, powerful performance, and impressive camera capabilities. Nokia successfully reignited consumer interest and loyalty.

Section 6: Outlook

Looking ahead, Nokia Corporation has successfully reversed the decline in its brand value through strategic decisions and innovation. By embracing new technologies like 5G and focusing on areas such as telecommunications infrastructure and digital health, Nokia has diversified its product portfolio and expanded its brand footprint. While challenges will always exist in the highly competitive consumer electronics industry, Nokia’s revival serves as a testament to the importance of branding and adaptability.


Nokia Corporation’s journey from a declining brand to a revived powerhouse showcases the significance of branding in the consumer electronics industry. By understanding the challenges faced, embracing change, and focusing on innovation, Nokia successfully reversed the decline in its brand value. This serves as a valuable lesson for other companies seeking to defend their market leadership positions and adapt to changing market dynamics. Also got to know about theĀ Maruti Suzuki’s Advertising Strategies: Driving Success in the Indian Passenger Car Industry