Nokia Challenges

As Nokia’s HERE applications try to establish itself as an industry leader, there are some critical issues the firm needs to address. The industry of global mapping technology has been controlled by one formidable player, and stained the image of another. To pursue industry leadership means risking a high stakes venture that requires a flawless debut, and ongoing improvements. This is because the average global denizen is extremely sensitive to the very product Nokia is trying to develop, and in many ways unforgiving of even the smallest glitches. Finally, there are doubts that Nokia can even sustain such a massive project. In the world of online mapping Google Map reigns supreme. Google’s position as top topographer may appear to be locked in as websites almost universally use Google’s API for their own maps. For one particular month in 2012, Google Maps represented 71% of all online map usage in the United States (Hardy). It appears that Google Maps has enjoyed the advantages of being a first mover, and since barriers are large enough to keep most competitors out of the market, Google has a chance to focus on realizing their opportunity. Google Maps has benefited from network effects and brand recognition by connecting to Google’s core service (Basulto). Their Maps can be found on many third party web sites because the API is offered for free. Google’s brand recognition can be illustrated by how much web users will say they want to “Google” something regardless of what search engine they use. However, Google Maps does not have any obvious switching costs that are based on the application itself. Foursquare and StreetEasy dumped their API the instant Google insisted on raising their usage fee (Popper). The good news for Nokia is that Google’s first mover advantage may be an exaggerated one, and in some ways acts as a disadvantage. Apple is another large competitor that has pledged to replace Google Maps. First, Nokia should recognize Apple as a very