by Holly Shoemaker
Nokia’s recent announcement that it will continue to leverage its maps and
locations platform by licensing its technology to Oracle will help Nokia build
a niche with business-to-business (B2B) customers. It could also assist the
company with its financial and perception problems in the smartphone
industry.
Nokia Reaches B2B Clients
Opus Research reported that mobile advertisements associated with maps or
locations made up approximately 25 percent of the $2.5 billion spent on ads in
2012, with the figure expected to grow as mapping technology does.
While Nokia formed a deal
with Groupon in August, the company’s map offerings to large corporations holds
a distinct advantage over Apple and Google, companies that focus more reaching
individual consumers. Currently, more than 110 countries use Nokia’s
turn-by-turn directions compared to 56 countries for Apple and 39 countries for
Google Maps.
By partnering with a large company like Oracle, Nokia shows what its
Location Platform offers to corporations. Oracle gains the ability to combine
Nokia’s mapping capabilities with its own software. Nokia also retains a good
position because it owns, builds and distributes its mapping content.
Furthermore, Nokia does not require a data connection to run its location-based
applications.
Concluding Thoughts
This is a good strategic move for Nokia, and the company makes the most out
of its acquisition on Navteq, which it acquired in 2007. To date, Nokia’s
location and commerce unit makes up four percent of its revenue. As the company
continues to enter into agreements with large Internet companies, Nokia escalates
the map app war in a new direction. It also makes a statement when a competitor
ditches its own maps for Nokia - that is what Microsoft did with Bing Maps. The
company showcases Nokia’s Location Platform on its Windows 8 phones.
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