Vertu: Nokia Luxury Mobile Phone for the Urban Rich
In this case study of Nokia Vertu, a luxury phone, I will review the strengths, weaknesses, opportunities and threats of the company. The struggles the luxury phone brand has gone through with the continually changing technology and the success they have seen. The vision statement of the company is to deliver an outstanding customer motoring experience through honesty and trust (Our-Vision-Values, “2013”).
Synopsis of the Situation
Vertu Nokia is trying to find a way to stay afloat in the competitive world of cell phones. This is a luxury phone brand costing more than $2,000 per phone but with outdated software systems. The big difference is the materials the phone is made of such as titanium, exotic leather, diamonds and other precious gems. Nokia must find an alternative to the current operating system while maintaining their customers trust.
The key issue Vertu faces is the outdated operating system and what they should choose to update to. Another issue the company faces is that this phone is only geared towards the extremely wealthy; it is not a phone to be mass produced and used by all. In order to sell more phones they will need to cater to the wealthy and find more unique designs to generate more interest.
Define the Problem
Nokia’s main problem is the outdated operating system and the risk of going
to a new, unknown, system. With the announcement of the change to a new operating system during a time when other mobile companies were testing the waters caused the stocks to drop an astounding 14%. There are a limited number of people who will purchase this phone, so marketing has to be spot on in order to gain customers and shareholders interest with a mediocre company being the owner, Nokia.
There are several other options the company could have done. Continue using the old software while they test the new option or wait for the market to test them all and then follow. Vertu could consider partnering to a larger, more well-known mobile company like Apple to get a better operating system that has already been tested, instead of Nokia. Vertu could find more luxury brands to partner with to make more unique lines of phones.
Selected Solution to the Problem
In order to keep the luxury brand customers, Vertu needs to stay competitive in the cell phone market. With the invention of smart phones, Nokia will need to move forward with a new operating system. I would select Android over the Microsoft option they presented.
In order to implement the new software, a new device will need to be created. Since the phones are made of more materials then a normal phone this could take time. A good option would be for an easy way to upload the new software to the current phone. Vertu will need to drive excitement to their customers and maybe offer a trade in allowance to offset the cost of the new device if they are required to purchase a new phone to get the updated software. A good marketing pitch to the savvy customer will be needed to encourage them to upgrade.
My recommendation for Vertu is to upgrade the operating system to stay competitive in the mobile phone business. They may also need to partner with other luxury brand names to create new and exciting phones that their current customers will feel the need to have. They will need an exciting marketing pitch that would create a need to the current customers and make them feel the need to upgrade. Offer discounts, trade in allowances or free upgrades.
In order to stay competitive with other phones Vertu will need to stay up to date with the software. They must make sure the software works since their customers are high end and will not tolerate an inoperable phone. Going with a well-known operating system is a safe choice. The materials the phones are made out of are what make the phone unique and desirable by the urban rich.
Kwong, K., & Wong, K. (2011, September 28). Vertu: Nokia’s luxury mobile phone for the urban rich. (Report No. W11208). Watertown, MA: Harvard Business Publishing. Our-Vision-Values, retrieved from
Figure 1. SWOT Analysis.