Recent reports here (uk.Reuters.com) suggest that Nokia are in free-fall and their their problem may well be that they are no longer sure what constitutes a “win” in their ongoing negotiation for consumer attention. Their aim has traditionally been to occupy the number 1 position worldwide. But that position has now been undermined in the smart phone market and looks to be under threat in relation to the overall handset market.

What should they do? The Nokia tie-up with Microsoft suggests a continuing pre-occupation with achieving greatness through scale. But though they are big, neither Apple nor Android have made progress on the Smartphone market by focusing on being number 1. They focused on creating superb technology and let their market position take care of itself.

Maybe Nokia should go back to basics and concentrate on creating the next generation of technology for smart phones? Or focus on its existing customer base and create a peerless reputation for customer service? Or focus on price ahead of quality and become price-leaders? Any of these options offer alternative ways of taking forward the “negotiation” with consumers.

Perhaps the one mistake would be for Nokia to presume that the only way to get a win from the negotiation is to “get back to number 1”. That would be to put the desired outcome ahead of the negotiating strategy for getting there…