Nokia, the Finnish telecommunications equipment maker, has announced a change in its brand identity for the first time in almost 60 years. The move includes a new logo that features five different shapes forming the word “NOKIA,” and the company has dropped the iconic blue colour associated with its old logo. The change in branding reflects the company’s shift in focus towards aggressive growth and a new strategy that CEO Pekka Lundmark outlined in three stages: reset, accelerate, and scale.

Here are some key points about Nokia’s new strategy and what it means for the company:

Shifting focus towards business technology:

Nokia has moved away from being associated solely with smartphones and is now positioning itself as a “business technology company.” This shift in focus is aimed at boosting growth, and the company plans to sell equipment to other businesses, rather than just service providers.

Strong focus on enterprise growth:

Nokia had an impressive 21% growth last year in its enterprise segment, representing about 8% of its sales. Lundmark has set a target to increase that to double digits as quickly as possible. The company plans to expand its enterprise business by selling gear to factories and other businesses, as well as partnering with tech firms to sell private 5G networks.

A new market for Nokia:

Nokia’s shift towards factory automation and data centres puts it in direct competition with big tech companies like Microsoft and Amazon. While the market for telecom gear is under pressure, Nokia is counting on the growth in low-margin markets like India to offset the decline in high-margin markets like North America.

Divestment and restructuring:

Nokia plans to review the growth path of its various businesses and consider alternatives, including divestment. According to Lundmark, the company only wants to be in businesses where it can achieve global leadership. By focusing on its core businesses and divesting non-core businesses, Nokia hopes to accelerate growth and remain competitive in a challenging market.

A new brand identity:

The new logo marks Nokia’s shift towards a new strategy and focuses on business technology. The five distinct forms in the new logo symbolize the different shapes and sizes of networks, reflecting Nokia’s vision of adaptable, autonomous, and consumable networks.