Tomahawk, WI 12/04/2013 (BasicsMedia) – Nokia Corporation (ADR) (NYSE:NOK) recently sold its phone making business to Microsoft Corporation, news that created a lot of buzz around the world. Many have been left wondering how NOK will survive since the whole world knows it purely as a phone making company with its headquarters in Finland. Now that it will not be making mobile phones, which has made it a global brand, the company must re-evaluate itself to find out what it can now provide to its clients worldwide lest it is forced to close shop. What must it do to ensure it does not fold up?

Nokia Has Changed its Business Model before

Is this the first time that Nokia Corporation (ADR) (NYSE:NOK) is changing its business model? The answer is that the company has changed its business model in the past, and probably, this is not the last time either. During the 1980s, Nokia used to be among the biggest sellers of televisions in the whole of Europe, before changing its business model to become a global mobile phone maker. It shifted from selling televisions to making mobile phones during the 1990s, a position it held until this year when it deemed it wise to sell its phone making business to Microsoft, another tech giant.

In selling its mobile phone business to Microsoft, Nokia Corporation (ADR) (NYSE:NOK) will receive payment to the tune of $7.2 billion. The deal will have to be approved by the European Union to ensure that it does not break any of the laws, and satisfies all the necessary conditions. Nokia will finalize the sale of its mobile phone making division to Microsoft in 2014, at which time the American giant will also inherit the company’s workforce of around 32,000 employees. This will not kill Nokia, since it will be left with 6,000 employees in Finland, and more than 50,000 workers around the world.

Where Will Nokia Now Channel its Resources?

The main challenge for Nokia Corporation (ADR) (NYSE:NOK) would be to find new areas where it will invest the $7.2 billion it receives from Microsoft. Further to this amount, the company will also receive close to $2 million for licensing agreements that it has already entered into with Microsoft. It has enough money to enter into a new industry or change its business model from mobile phone making to something totally different. It could even revert to the sale of televisions once more, that is, if it has not thought of a new business to go into before finalizing the deal with Microsoft.

Nokia Corporation (ADR) (NYSE:NOK) has not been left with a shell after selling its highly profitable and globally respected mobile phone making business. It will operate as a seller of equipment, services and software to telecoms operators around the world. Some of the companies that will provide Nokia Corporation (ADR) (NYSE:NOK) with serious competition in this business include Eriksson of Sweden, as well as Huawei Technologies and ZTE Corporation of China. Nokia believes that ninety percent of its revenue will be from this new business, which has already been in operation for quite some time now.

Nokia’s Solutions and Networks, which offers the services listed above, has already brought in some $13 billion in revenue to the company’s kitty after the first nine months of 2013, and this could keep rising in the coming months and years.

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